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, 2011 |
Item 1. Reports to Stockholders
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Blue Chip Growth | .93% | | | |
Actual | | $ 1,000.00 | $ 1,231.20 | $ 5.23 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
Class K | .76% | | | |
Actual | | $ 1,000.00 | $ 1,232.30 | $ 4.28 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class F | .71% | | | |
Actual | | $ 1,000.00 | $ 1,232.40 | $ 4.00 |
HypotheticalA | | $ 1,000.00 | $ 1,021.63 | $ 3.62 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.9 | 6.6 |
Google, Inc. Class A | 3.7 | 3.2 |
Exxon Mobil Corp. | 3.1 | 2.4 |
QUALCOMM, Inc. | 3.0 | 1.7 |
Amazon.com, Inc. | 2.0 | 2.1 |
NVIDIA Corp. | 1.7 | 0.0 |
Philip Morris International, Inc. | 1.5 | 1.6 |
Target Corp. | 1.5 | 1.4 |
The Coca-Cola Co. | 1.5 | 1.4 |
Oracle Corp. | 1.5 | 0.4 |
| 26.4 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 36.7 | 35.1 |
Consumer Discretionary | 16.9 | 15.1 |
Industrials | 12.5 | 13.6 |
Energy | 10.4 | 7.4 |
Consumer Staples | 7.3 | 8.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
 | Stocks 99.8% | | | Stocks 99.5% | |
 | Short-Term
Investments and
Net Other Assets 0.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 11.2% | | ** Foreign investments | 8.6% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 0.8% |
Johnson Controls, Inc. | 500,500 | | $ 19,214 |
Lear Corp. (a) | 210,600 | | 22,246 |
TRW Automotive Holdings Corp. (a) | 773,200 | | 46,129 |
Visteon Corp. (a)(d) | 389,100 | | 27,330 |
| | 114,919 |
Automobiles - 2.8% |
Bajaj Auto Ltd. | 340,995 | | 9,271 |
Bayerische Motoren Werke AG (BMW) | 616,358 | | 47,320 |
Fiat SpA | 617,600 | | 5,995 |
Ford Motor Co. (a) | 7,453,300 | | 118,880 |
General Motors Co. | 3,829,100 | | 139,724 |
Hyundai Motor Co. | 95,676 | | 15,293 |
Maruti Suzuki India Ltd. | 94,097 | | 2,580 |
Tesla Motors, Inc. (a)(d) | 2,272,900 | | 54,777 |
| | 393,840 |
Diversified Consumer Services - 0.1% |
Coinstar, Inc. (a) | 293,594 | | 12,152 |
Everonn Education Ltd. | 325,512 | | 4,192 |
| | 16,344 |
Hotels, Restaurants & Leisure - 3.4% |
Bravo Brio Restaurant Group, Inc. | 322,300 | | 5,253 |
Chipotle Mexican Grill, Inc. (a) | 119,300 | | 26,117 |
Hyatt Hotels Corp. Class A (a) | 469,794 | | 22,827 |
Las Vegas Sands Corp. (a) | 1,757,900 | | 81,725 |
Marriott International, Inc. Class A | 489,200 | | 19,319 |
McDonald's Corp. | 1,447,230 | | 106,617 |
Starbucks Corp. | 3,885,900 | | 122,522 |
Starwood Hotels & Resorts Worldwide, Inc. | 650,600 | | 38,366 |
WMS Industries, Inc. (a) | 739,200 | | 31,009 |
Wyndham Worldwide Corp. | 1,278,785 | | 35,972 |
| | 489,727 |
Household Durables - 0.3% |
Beazer Homes USA, Inc. (a)(d) | 3,151,700 | | 16,862 |
Tempur-Pedic International, Inc. (a) | 575,900 | | 25,132 |
| | 41,994 |
Internet & Catalog Retail - 2.7% |
Amazon.com, Inc. (a) | 1,709,100 | | 289,932 |
E-Commerce China Dangdang, Inc. ADR | 457,000 | | 12,933 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Internet & Catalog Retail - continued |
Netflix, Inc. (a) | 141,800 | | $ 30,357 |
Priceline.com, Inc. (a) | 126,700 | | 54,293 |
| | 387,515 |
Media - 0.2% |
ReachLocal, Inc. (d) | 720,300 | | 15,703 |
The Walt Disney Co. | 259,300 | | 10,079 |
| | 25,782 |
Multiline Retail - 2.4% |
Macy's, Inc. | 5,266,700 | | 121,924 |
Target Corp. | 3,892,800 | | 213,442 |
| | 335,366 |
Specialty Retail - 2.1% |
Ascena Retail Group, Inc. (a) | 421,000 | | 11,413 |
Bed Bath & Beyond, Inc. (a) | 374,400 | | 17,971 |
China ZhengTong Auto Services Holdings Ltd. | 2,268,000 | | 1,882 |
Express, Inc. | 774,100 | | 13,469 |
Foot Locker, Inc. | 2,721,000 | | 48,597 |
Guess?, Inc. | 480,800 | | 20,569 |
Home Depot, Inc. | 1,222,400 | | 44,948 |
Limited Brands, Inc. | 262,600 | | 7,678 |
Lowe's Companies, Inc. | 2,880,000 | | 71,424 |
rue21, Inc. (a)(d) | 150,000 | | 4,425 |
TJX Companies, Inc. | 1,072,400 | | 50,821 |
Tractor Supply Co. | 59,000 | | 3,027 |
Williams-Sonoma, Inc. | 280,600 | | 9,035 |
| | 305,259 |
Textiles, Apparel & Luxury Goods - 1.3% |
Cia Hering SA | 254,600 | | 3,909 |
Coach, Inc. | 194,600 | | 10,526 |
Columbia Sportswear Co. (d) | 264,500 | | 16,129 |
Deckers Outdoor Corp. (a) | 256,300 | | 18,810 |
Gitanjali Gems Ltd. | 2,187,799 | | 9,570 |
NIKE, Inc. Class B | 154,800 | | 12,768 |
Pandora A/S | 325,500 | | 20,773 |
Polo Ralph Lauren Corp. Class A | 211,400 | | 22,658 |
Provogue (India) Ltd. | 2,190,561 | | 2,170 |
Steven Madden Ltd. (a) | 238,100 | | 9,088 |
Timberland Co. Class A (a) | 571,100 | | 15,266 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - continued |
Under Armour, Inc. Class A (sub. vtg.) (a) | 132,800 | | $ 7,949 |
Vera Bradley, Inc. (d) | 961,625 | | 33,075 |
| | 182,691 |
TOTAL CONSUMER DISCRETIONARY | | 2,293,437 |
CONSUMER STAPLES - 7.3% |
Beverages - 2.6% |
Anheuser-Busch InBev SA NV | 798,981 | | 44,081 |
Central European Distribution Corp. (a) | 562,800 | | 12,911 |
Coca-Cola Enterprises, Inc. | 454,100 | | 11,425 |
Dr Pepper Snapple Group, Inc. | 2,644,400 | | 93,691 |
The Coca-Cola Co. | 3,355,600 | | 210,899 |
| | 373,007 |
Food & Staples Retailing - 2.7% |
Costco Wholesale Corp. | 509,400 | | 36,595 |
CVS Caremark Corp. | 2,281,800 | | 78,038 |
Droga Raia SA | 462,700 | | 7,270 |
Drogasil SA | 930,300 | | 6,695 |
Fresh Market, Inc. | 785,326 | | 28,876 |
United Natural Foods, Inc. (a) | 474,000 | | 17,538 |
Walgreen Co. | 3,265,800 | | 132,069 |
Whole Foods Market, Inc. | 1,360,000 | | 70,326 |
| | 377,407 |
Food Products - 0.5% |
Archer Daniels Midland Co. | 319,500 | | 10,438 |
Diamond Foods, Inc. (d) | 427,800 | | 21,292 |
Green Mountain Coffee Roasters, Inc. (a)(d) | 961,300 | | 32,280 |
Mead Johnson Nutrition Co. Class A | 169,700 | | 9,838 |
| | 73,848 |
Personal Products - 0.0% |
Nu Skin Enterprises, Inc. Class A | 139,300 | | 4,190 |
Tobacco - 1.5% |
Philip Morris International, Inc. | 3,734,000 | | 213,734 |
TOTAL CONSUMER STAPLES | | 1,042,186 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 10.4% |
Energy Equipment & Services - 3.8% |
Atwood Oceanics, Inc. (a) | 1,097,900 | | $ 44,377 |
Baker Hughes, Inc. | 756,800 | | 51,848 |
Dresser-Rand Group, Inc. (a) | 276,600 | | 12,704 |
Halliburton Co. | 2,702,700 | | 121,622 |
National Oilwell Varco, Inc. | 1,109,800 | | 82,014 |
Oceaneering International, Inc. (a) | 292,500 | | 22,590 |
Schlumberger Ltd. | 1,301,200 | | 115,794 |
Transocean Ltd. (a) | 1,132,800 | | 90,545 |
| | 541,494 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 885,200 | | 47,562 |
Amyris, Inc. | 142,400 | | 4,494 |
Anadarko Petroleum Corp. | 160,700 | | 12,387 |
Chevron Corp. | 366,700 | | 34,811 |
ConocoPhillips | 233,500 | | 16,686 |
Exxon Mobil Corp. | 5,376,400 | | 433,768 |
Hess Corp. | 321,400 | | 27,036 |
Massey Energy Co. | 2,872,053 | | 180,537 |
Occidental Petroleum Corp. | 1,086,600 | | 105,052 |
Paladin Energy Ltd. (a) | 884,432 | | 4,310 |
Tesoro Corp. (a) | 773,100 | | 14,882 |
Uranium One, Inc. | 1,982,900 | | 12,974 |
Valero Energy Corp. | 852,100 | | 21,609 |
Whiting Petroleum Corp. (a) | 125,800 | | 15,886 |
| | 931,994 |
TOTAL ENERGY | | 1,473,488 |
FINANCIALS - 5.7% |
Capital Markets - 1.5% |
BlackRock, Inc. Class A | 177,200 | | 35,089 |
Goldman Sachs Group, Inc. | 201,700 | | 33,002 |
Invesco Ltd. | 289,800 | | 7,170 |
Money Matters Financial Services Ltd. | 1,633,500 | | 4,408 |
Morgan Stanley | 4,198,400 | | 123,433 |
TD Ameritrade Holding Corp. | 841,700 | | 17,188 |
| | 220,290 |
Commercial Banks - 0.6% |
HDFC Bank Ltd. | 252,493 | | 11,305 |
ICICI Bank Ltd. | 666,777 | | 14,980 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Regions Financial Corp. | 1,070,500 | | $ 7,601 |
SunTrust Banks, Inc. | 1,236,300 | | 37,621 |
Synovus Financial Corp. | 3,843,600 | | 10,147 |
| | 81,654 |
Consumer Finance - 0.5% |
Discover Financial Services | 1,400,200 | | 28,830 |
Green Dot Corp. | 214,800 | | 13,513 |
Manappuram General Finance & Leasing Ltd. | 3,328,852 | | 8,416 |
Shriram Transport Finance Co. Ltd. | 1,309,840 | | 19,630 |
| | 70,389 |
Diversified Financial Services - 2.5% |
Bank of America Corp. | 2,236,300 | | 30,704 |
Citigroup, Inc. (a) | 33,307,200 | | 160,541 |
CME Group, Inc. | 205,600 | | 63,440 |
IntercontinentalExchange, Inc. (a) | 163,900 | | 19,748 |
JPMorgan Chase & Co. | 1,795,300 | | 80,681 |
| | 355,114 |
Insurance - 0.3% |
Genworth Financial, Inc. Class A (a) | 3,172,300 | | 43,048 |
Real Estate Management & Development - 0.3% |
CB Richard Ellis Group, Inc. Class A (a) | 858,600 | | 19,052 |
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | | 22,306 |
| | 41,358 |
Thrifts & Mortgage Finance - 0.0% |
Housing Development Finance Corp. Ltd. | 335,144 | | 4,595 |
TOTAL FINANCIALS | | 816,448 |
HEALTH CARE - 6.7% |
Biotechnology - 2.0% |
Alkermes, Inc. (a) | 917,100 | | 11,840 |
Amgen, Inc. (a) | 476,700 | | 26,257 |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | | 29,643 |
ARIAD Pharmaceuticals, Inc. (a) | 885,726 | | 5,647 |
Dendreon Corp. (a) | 735,781 | | 25,782 |
Exelixis, Inc. (a) | 1,194,000 | | 10,352 |
Gilead Sciences, Inc. (a) | 890,200 | | 34,166 |
Human Genome Sciences, Inc. (a) | 1,012,500 | | 24,563 |
InterMune, Inc. (a) | 399,463 | | 14,928 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Micromet, Inc. (a) | 1,322,420 | | $ 8,503 |
SIGA Technologies, Inc. (a) | 918,000 | | 10,534 |
Theravance, Inc. (a) | 208,800 | | 4,393 |
Vertex Pharmaceuticals, Inc. (a) | 2,001,500 | | 77,838 |
| | 284,446 |
Health Care Equipment & Supplies - 0.4% |
C. R. Bard, Inc. | 91,200 | | 8,605 |
Covidien PLC | 477,000 | | 22,643 |
Edwards Lifesciences Corp. (a) | 165,100 | | 13,916 |
Elekta AB (B Shares) | 135,000 | | 5,458 |
Opto Circuits India Ltd. | 1,026,246 | | 5,476 |
William Demant Holding AS (a) | 126,000 | | 10,089 |
| | 66,187 |
Health Care Providers & Services - 2.7% |
Express Scripts, Inc. (a) | 3,314,380 | | 186,699 |
McKesson Corp. | 1,379,100 | | 103,667 |
Medco Health Solutions, Inc. (a) | 1,539,900 | | 93,965 |
| | 384,331 |
Health Care Technology - 0.5% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 597,100 | | 12,605 |
Cerner Corp. (a) | 489,100 | | 48,348 |
SXC Health Solutions Corp. (a) | 163,800 | | 7,886 |
| | 68,839 |
Life Sciences Tools & Services - 0.7% |
Agilent Technologies, Inc. (a) | 1,396,255 | | 58,405 |
Covance, Inc. (a) | 126,400 | | 7,126 |
Illumina, Inc. (a) | 391,000 | | 27,112 |
Thermo Fisher Scientific, Inc. (a) | 74,500 | | 4,267 |
| | 96,910 |
Pharmaceuticals - 0.4% |
Allergan, Inc. | 161,300 | | 11,389 |
AVANIR Pharmaceuticals Class A (a)(d) | 1,264,000 | | 5,119 |
Novo Nordisk AS Series B | 76,779 | | 8,643 |
Perrigo Co. | 50,000 | | 3,637 |
Questcor Pharmaceuticals, Inc. (a) | 181,600 | | 2,808 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Ranbaxy Laboratories Ltd. (a) | 560,099 | | $ 6,659 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 269,300 | | 14,717 |
| | 52,972 |
TOTAL HEALTH CARE | | 953,685 |
INDUSTRIALS - 12.5% |
Aerospace & Defense - 3.7% |
Bombardier, Inc. Class B (sub. vtg.) | 4,930,700 | | 28,074 |
Honeywell International, Inc. | 746,800 | | 41,828 |
Precision Castparts Corp. | 954,700 | | 136,513 |
Rockwell Collins, Inc. | 398,700 | | 25,573 |
The Boeing Co. | 1,665,800 | | 115,740 |
United Technologies Corp. | 2,201,300 | | 178,966 |
| | 526,694 |
Air Freight & Logistics - 0.5% |
United Parcel Service, Inc. Class B | 1,008,600 | | 72,236 |
Airlines - 0.5% |
Copa Holdings SA Class A | 216,000 | | 12,150 |
United Continental Holdings, Inc. (a) | 2,587,455 | | 65,721 |
| | 77,871 |
Building Products - 0.3% |
Armstrong World Industries, Inc. | 670,000 | | 27,209 |
Lennox International, Inc. | 196,000 | | 9,631 |
| | 36,840 |
Construction & Engineering - 1.2% |
Fluor Corp. | 1,360,600 | | 94,140 |
Jacobs Engineering Group, Inc. (a) | 968,471 | | 49,750 |
Shaw Group, Inc. (a) | 616,400 | | 23,281 |
| | 167,171 |
Electrical Equipment - 0.8% |
Emerson Electric Co. | 1,044,700 | | 61,512 |
Polypore International, Inc. (a) | 539,800 | | 25,991 |
Regal-Beloit Corp. | 108,300 | | 7,228 |
Rockwell Automation, Inc. | 295,100 | | 23,906 |
| | 118,637 |
Industrial Conglomerates - 0.1% |
Textron, Inc. | 572,000 | | 15,038 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - 4.0% |
Beml Ltd. | 504,883 | | $ 9,586 |
Caterpillar, Inc. | 1,237,200 | | 120,021 |
Cummins, Inc. | 892,900 | | 94,540 |
Danaher Corp. | 1,490,300 | | 68,643 |
Dover Corp. | 513,100 | | 32,890 |
Fiat Industrial SpA (a) | 617,600 | | 8,358 |
Ingersoll-Rand Co. Ltd. | 2,120,100 | | 100,069 |
PACCAR, Inc. | 1,208,600 | | 68,274 |
Pall Corp. | 686,200 | | 38,022 |
Parker Hannifin Corp. | 168,600 | | 15,075 |
WABCO Holdings, Inc. (a) | 294,200 | | 17,181 |
| | 572,659 |
Professional Services - 0.1% |
Manpower, Inc. | 285,800 | | 18,454 |
Road & Rail - 1.2% |
CSX Corp. | 664,500 | | 46,914 |
Kansas City Southern (a) | 100,000 | | 4,998 |
Swift Transporation Co. | 1,145,300 | | 16,366 |
Union Pacific Corp. | 1,004,500 | | 95,056 |
| | 163,334 |
Trading Companies & Distributors - 0.1% |
Mills Estruturas e Servicos de Engenharia SA | 827,400 | | 10,365 |
TOTAL INDUSTRIALS | | 1,779,299 |
INFORMATION TECHNOLOGY - 36.7% |
Communications Equipment - 5.1% |
Acme Packet, Inc. (a) | 464,200 | | 24,965 |
Ciena Corp. (a) | 373,700 | | 8,233 |
Cisco Systems, Inc. (a) | 4,640,200 | | 98,140 |
HTC Corp. | 1,787,000 | | 60,244 |
Juniper Networks, Inc. (a) | 1,955,400 | | 72,584 |
Motorola Mobility Holdings, Inc. (a) | 527,651 | | 14,706 |
QUALCOMM, Inc. | 7,794,600 | | 421,922 |
Research In Motion Ltd. (a) | 564,700 | | 33,379 |
| | 734,173 |
Computers & Peripherals - 9.5% |
Apple, Inc. (a) | 2,886,200 | | 979,345 |
EMC Corp. (a) | 3,529,900 | | 87,859 |
Hewlett-Packard Co. | 946,200 | | 43,232 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
NetApp, Inc. (a) | 2,039,100 | | $ 111,600 |
SanDisk Corp. (a) | 763,700 | | 34,649 |
Seagate Technology (a) | 2,907,600 | | 40,706 |
Western Digital Corp. (a) | 1,463,200 | | 49,778 |
| | 1,347,169 |
Electronic Equipment & Components - 0.3% |
HLS Systems International Ltd. (a) | 50,000 | | 803 |
Jabil Circuit, Inc. | 1,833,400 | | 37,053 |
TPK Holdings Co. | 16,000 | | 391 |
| | 38,247 |
Internet Software & Services - 6.9% |
Akamai Technologies, Inc. (a) | 2,271,600 | | 109,764 |
Alibaba.com Ltd. | 4,368,000 | | 8,628 |
Baidu.com, Inc. sponsored ADR (a) | 600,400 | | 65,221 |
Bitauto Holdings Ltd. ADR | 1,106,400 | | 11,993 |
Demand Media, Inc. (a) | 286,500 | | 5,810 |
eBay, Inc. (a) | 3,717,518 | | 112,864 |
Google, Inc. Class A (a) | 884,200 | | 530,838 |
INFO Edge India Ltd. | 293,110 | | 3,487 |
Mail.ru Group Ltd. GDR unit (a)(f) | 764,100 | | 27,202 |
OpenTable, Inc. (a) | 264,051 | | 20,760 |
Rackspace Hosting, Inc. (a) | 2,061,200 | | 69,071 |
VistaPrint Ltd. (a) | 138,400 | | 7,009 |
YouKu.com, Inc. ADR (a)(d) | 411,900 | | 12,205 |
| | 984,852 |
IT Services - 2.9% |
Accenture PLC Class A | 548,000 | | 28,206 |
Cognizant Technology Solutions Corp. Class A (a) | 1,141,900 | | 83,302 |
MasterCard, Inc. Class A | 543,600 | | 128,567 |
VeriFone Systems, Inc. (a) | 362,700 | | 14,486 |
Visa, Inc. Class A | 2,310,200 | | 161,367 |
| | 415,928 |
Semiconductors & Semiconductor Equipment - 6.3% |
Altera Corp. | 188,300 | | 7,074 |
Applied Materials, Inc. | 1,867,200 | | 29,296 |
Atmel Corp. (a) | 2,932,500 | | 39,706 |
Avago Technologies Ltd. | 3,661,100 | | 105,110 |
Broadcom Corp. Class A | 2,335,100 | | 105,290 |
GT Solar International, Inc. (a)(d) | 1,761,900 | | 19,460 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Lam Research Corp. (a) | 701,200 | | $ 34,983 |
Marvell Technology Group Ltd. (a) | 4,307,800 | | 81,891 |
Maxim Integrated Products, Inc. | 1,000,800 | | 25,841 |
Micron Technology, Inc. (a) | 895,000 | | 9,433 |
National Semiconductor Corp. | 3,163,000 | | 47,951 |
NVIDIA Corp. (a) | 9,794,422 | | 234,283 |
NXP Semiconductors NV | 2,790,200 | | 71,820 |
Silicon Laboratories, Inc. (a) | 364,700 | | 16,222 |
Skyworks Solutions, Inc. (a) | 974,800 | | 30,969 |
Spreadtrum Communications, Inc. ADR (a) | 720,700 | | 15,495 |
Teradyne, Inc. (a) | 1,000,000 | | 16,680 |
| | 891,504 |
Software - 5.7% |
Adobe Systems, Inc. (a) | 252,300 | | 8,339 |
BMC Software, Inc. (a) | 181,100 | | 8,638 |
BroadSoft, Inc. (a) | 930,000 | | 25,770 |
Check Point Software Technologies Ltd. (a) | 1,510,800 | | 67,306 |
Citrix Systems, Inc. (a) | 913,600 | | 57,721 |
Informatica Corp. (a) | 1,193,700 | | 55,388 |
Intuit, Inc. (a) | 712,600 | | 33,442 |
Microsoft Corp. | 54,500 | | 1,511 |
Nuance Communications, Inc. (a) | 1,387,000 | | 28,198 |
Oracle Corp. | 6,488,000 | | 207,811 |
QLIK Technologies, Inc. | 961,763 | | 22,323 |
RealPage, Inc. | 1,106,300 | | 30,302 |
Red Hat, Inc. (a) | 2,268,900 | | 93,751 |
Rovi Corp. (a) | 456,600 | | 28,200 |
salesforce.com, Inc. (a) | 722,518 | | 93,306 |
SuccessFactors, Inc. (a) | 199,100 | | 5,798 |
Velti Ltd. (a) | 298,100 | | 4,239 |
VMware, Inc. Class A (a) | 417,900 | | 35,739 |
| | 807,782 |
TOTAL INFORMATION TECHNOLOGY | | 5,219,655 |
MATERIALS - 3.5% |
Chemicals - 1.5% |
Cabot Corp. | 439,900 | | 19,026 |
Celanese Corp. Class A | 436,600 | | 18,115 |
CF Industries Holdings, Inc. | 504,600 | | 68,141 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
Grasim Industries Ltd. | 176,744 | | $ 9,382 |
LyondellBasell Industries NV Class A (a) | 1,460,600 | | 52,494 |
Methanex Corp. | 228,300 | | 6,207 |
Monsanto Co. | 98,200 | | 7,206 |
PPG Industries, Inc. | 51,300 | | 4,324 |
Rockwood Holdings, Inc. (a) | 384,600 | | 15,611 |
Sherwin-Williams Co. | 51,200 | | 4,338 |
Valspar Corp. | 118,200 | | 4,417 |
| | 209,261 |
Construction Materials - 0.0% |
ACC Ltd. | 150,000 | | 3,246 |
Containers & Packaging - 0.1% |
Ball Corp. | 220,500 | | 15,684 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 66,300 | | 4,322 |
Carpenter Technology Corp. | 699,325 | | 28,777 |
Freeport-McMoRan Copper & Gold, Inc. | 708,700 | | 77,071 |
Reliance Steel & Aluminum Co. | 502,700 | | 26,286 |
Silver Wheaton Corp. (a) | 260,500 | | 8,038 |
Stillwater Mining Co. (a) | 393,700 | | 8,535 |
United States Steel Corp. (d) | 1,705,100 | | 98,333 |
Walter Energy, Inc. | 188,000 | | 24,491 |
| | 275,853 |
TOTAL MATERIALS | | 504,044 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
NII Holdings, Inc. (a) | 460,200 | | 19,319 |
TOTAL COMMON STOCKS (Cost $10,352,785) | 14,101,561 |
Nonconvertible Preferred Stocks - 0.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 0.8% |
Automobiles - 0.8% |
Porsche Automobil Holding SE | 416,200 | | $ 38,654 |
Volkswagen AG | 469,600 | | 75,860 |
| | 114,514 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $77,268) | 114,514 |
Money Market Funds - 1.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 49,595,621 | | 49,596 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 159,497,250 | | 159,497 |
TOTAL MONEY MARKET FUNDS (Cost $209,093) | 209,093 |
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $10,639,146) | | 14,425,168 |
NET OTHER ASSETS (LIABILITIES) - (1.3)% | | (189,793) |
NET ASSETS - 100% | $ 14,235,375 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $27,202,000 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 35 |
Fidelity Securities Lending Cash Central Fund | 472 |
Total | $ 507 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Furniture Brands International, Inc. | $ 16,160 | $ - | $ 14,466 | $ - | $ - |
Parsvnath Developers Ltd. | 18,023 | 14,168 | - | - | 22,306 |
Total | $ 34,183 | $ 14,168 | $ 14,466 | $ - | $ 22,306 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 2,407,951 | $ 2,405,371 | $ 2,580 | $ - |
Consumer Staples | 1,042,186 | 998,105 | 44,081 | - |
Energy | 1,473,488 | 1,473,488 | - | - |
Financials | 816,448 | 790,163 | 26,285 | - |
Health Care | 953,685 | 945,042 | 8,643 | - |
Industrials | 1,779,299 | 1,779,299 | - | - |
Information Technology | 5,219,655 | 5,219,655 | - | - |
Materials | 504,044 | 494,662 | 9,382 | - |
Telecommunication Services | 19,319 | 19,319 | - | - |
Money Market Funds | 209,093 | 209,093 | - | - |
Total Investments in Securities: | $ 14,425,168 | $ 14,334,197 | $ 90,971 | $ - |
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 | $ 6,774 |
Total Realized Gain (Loss) | (1,136) |
Total Unrealized Gain (Loss) | 174 |
Cost of Purchases | - |
Proceeds of Sales | (5,812) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.8% |
Ireland | 1.3% |
Germany | 1.1% |
India | 1.1% |
Others (Individually Less Than 1%) | 7.7% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,028,059,000 of which $671,371,000 and $356,688,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $158,006) - See accompanying schedule: Unaffiliated issuers (cost $10,399,202) | $ 14,193,769 | |
Fidelity Central Funds (cost $209,093) | 209,093 | |
Other affiliated issuers (cost $30,851) | 22,306 | |
Total Investments (cost $10,639,146) | | $ 14,425,168 |
Foreign currency held at value (cost $820) | | 820 |
Receivable for investments sold | | 265,133 |
Receivable for fund shares sold | | 32,727 |
Dividends receivable | | 2,801 |
Distributions receivable from Fidelity Central Funds | | 191 |
Prepaid expenses | | 30 |
Other receivables | | 946 |
Total assets | | 14,727,816 |
| | |
Liabilities | | |
Payable to custodian bank | $ 374 | |
Payable for investments purchased | 306,929 | |
Payable for fund shares redeemed | 14,250 | |
Accrued management fee | 8,434 | |
Other affiliated payables | 2,379 | |
Other payables and accrued expenses | 578 | |
Collateral on securities loaned, at value | 159,497 | |
Total liabilities | | 492,441 |
| | |
Net Assets | | $ 14,235,375 |
Net Assets consist of: | | |
Paid in capital | | $ 10,921,318 |
Accumulated net investment loss | | (10,769) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (461,169) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,785,995 |
Net Assets | | $ 14,235,375 |
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, 2011 (Unaudited) |
| | |
Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($12,293,630 ÷ 265,604 shares) | | $ 46.29 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,237,872 ÷ 26,745 shares) | | $ 46.28 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($703,873 ÷ 15,201 shares) | | $ 46.30 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 52,561 |
Interest | | 3 |
Income from Fidelity Central Funds | | 507 |
Total income | | 53,071 |
| | |
Expenses | | |
Management fee
Basic fee | $ 35,632 | |
Performance adjustment | 8,114 | |
Transfer agent fees | 13,009 | |
Accounting and security lending fees | 712 | |
Custodian fees and expenses | 271 | |
Independent trustees' compensation | 35 | |
Registration fees | 74 | |
Audit | 66 | |
Legal | 43 | |
Interest | 12 | |
Miscellaneous | 63 | |
Total expenses before reductions | 58,031 | |
Expense reductions | (894) | 57,137 |
Net investment income (loss) | | (4,066) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 664,639 | |
Other affiliated issuers | (10,044) | |
Foreign currency transactions | (1,905) | |
Total net realized gain (loss) | | 652,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $49) | 1,984,810 | |
Assets and liabilities in foreign currencies | 148 | |
Total change in net unrealized appreciation (depreciation) | | 1,984,958 |
Net gain (loss) | | 2,637,648 |
Net increase (decrease) in net assets resulting from operations | | $ 2,633,582 |
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 January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (4,066) | $ 13,622 |
Net realized gain (loss) | 652,690 | 1,055,028 |
Change in net unrealized appreciation (depreciation) | 1,984,958 | 793,347 |
Net increase (decrease) in net assets resulting
from operations | 2,633,582 | 1,861,997 |
Distributions to shareholders from net investment income | (8,765) | (57,433) |
Distributions to shareholders from net realized gain | (6,091) | - |
Total distributions | (14,856) | (57,433) |
Share transactions - net increase (decrease) | 68,429 | (538,131) |
Total increase (decrease) in net assets | 2,687,155 | 1,266,433 |
| | |
Net Assets | | |
Beginning of period | 11,548,220 | 10,281,787 |
End of period (including accumulated net investment loss of $10,769 and undistributed net investment income of $2,062, respectively) | $ 14,235,375 | $ 11,548,220 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | .04 | .27 | .35 | .32 | .23 |
Net realized and unrealized gain (loss) | 8.72 | 5.80 | (6.36) | (2.89) | 6.19 | (1.06) |
Total from investment operations | 8.70 | 5.84 | (6.09) | (2.54) | 6.51 | (.83) |
Distributions from net investment income | (.02) | (.18) | (.29) | (.33) | (.24) | (.23) |
Distributions from net realized gain | (.02) | - | (.71) | (4.95) | (.93) | - |
Total distributions | (.04) | (.18) | (1.00) | (5.28) | (1.17) | (.23) |
Net asset value, end of period | $ 46.29 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Total Return B, C | 23.12% | 18.29% | (15.85)% | (6.30)% | 16.02% | (1.97)% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of fee waivers, if any | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of all reductions | .92% A | .93% | .76% | .57% | .59% | .61% |
Net investment income (loss) | (.09)% A | .10% | .93% | .81% | .72% | .54% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 12,294 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 |
Portfolio turnover rate F | 126% A | 135% | 134% | 82% | 87% | 48% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .02 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 8.72 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 8.74 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.10) | (.25) | (.34) | - |
Distributions from net realized gain | (.02) | - | (.71) | - |
Total distributions | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 46.28 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 23.23% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .76% A | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .76% A | .75% | .53% | .41% A |
Expenses net of all reductions | .74% A | .74% | .52% | .41% A |
Net investment income (loss) | .09% A | .30% | 1.16% | 1.09% A |
Supplemental Data | | | | |
Net assets, end of period
(000 omitted) | $ 1,237,872 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 126% A | 135% | 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .13 | - I |
Net realized and unrealized gain (loss) | 8.71 | 5.80 | 2.82 |
Total from investment operations | 8.74 | 5.93 | 2.82 |
Distributions from net investment income | (.11) | (.22) | - |
Distributions from net realized gain | (.02) | - | - |
Total distributions | (.13) | (.22) | - |
Net asset value, end of period | $ 46.30 | $ 37.69 | $ 31.98 |
Total Return B, C | 23.24% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .71% A | .70% | .51%A |
Expenses net of fee waivers, if any | .71%A | .70% | .51%A |
Expenses net of all reductions | .69%A | .68% | .51%A |
Net investment income (loss) | .14%A | .35% | (.05)%A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 703,873 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 126%A | 135% | 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 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, 2011 (Unaudited)
(Amounts in thousands except ratios)
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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, 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 | $ 3,858,280 |
Gross unrealized depreciation | (125,852) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,732,428 |
Tax cost | $ 10,692,740 |
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 $8,032,085 and $7,929,304, 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 Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% 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 Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Blue Chip Growth | $ 12,731 | .23 |
Class K | 278 | .05 |
| $ 13,009 | |
* 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 $269 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 19,315 | .47% | $ 10 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $22 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,013. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $472, including $22 from securities loaned to FCM.
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 $27,562. The weighted average interest rate was .69%. The interest expense amounted to $2 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 $894 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Blue Chip Growth | $ 5,059 | $ 52,296 |
Class K | 2,396 | 4,902 |
Class F | 1,310 | 235 |
Total | $ 8,765 | $ 57,433 |
From net realized gain | | |
Blue Chip Growth | $ 5,301 | $ - |
Class K | 520 | - |
Class F | 270 | - |
Total | $ 6,091 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Blue Chip Growth | | | | |
Shares sold | 24,844 | 41,698 | $ 1,071,524 | $ 1,553,486 |
Conversion to Class K | - | (604) | - | (19,981) |
Reinvestment of distributions | 232 | 1,459 | 10,166 | 51,338 |
Shares redeemed | (33,085) | (72,051) | (1,382,230) | (2,676,741) |
Net increase (decrease) | (8,009) | (29,498) | $ (300,540) | $ (1,091,898) |
Class K | | | | |
Shares sold | 6,451 | 11,377 | $ 271,887 | $ 427,050 |
Conversion from Blue Chip Growth | - | 603 | - | 19,981 |
Reinvestment of distributions | 70 | 139 | 2,916 | 4,902 |
Shares redeemed | (4,511) | (5,839) | (188,331) | (218,811) |
Net increase (decrease) | 2,010 | 6,280 | $ 86,472 | $ 233,122 |
Class F | | | | |
Shares sold | 7,100 | 8,796 | $ 301,794 | $ 331,309 |
Reinvestment of distributions | 38 | 6 | 1,580 | 235 |
Shares redeemed | (465) | (282) | (20,877) | (10,900) |
Net increase (decrease) | 6,673 | 8,520 | $ 282,497 | $ 320,644 |
A Conversion transactions for Class K and Blue Chip Growth are presented for the period August 1, 2009 through August 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
13. 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
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
BCF-USAN-0311
1.789282.108
Fidelity®
Blue Chip Growth
Fund -
Class F
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Blue Chip Growth | .93% | | | |
Actual | | $ 1,000.00 | $ 1,231.20 | $ 5.23 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
Class K | .76% | | | |
Actual | | $ 1,000.00 | $ 1,232.30 | $ 4.28 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class F | .71% | | | |
Actual | | $ 1,000.00 | $ 1,232.40 | $ 4.00 |
HypotheticalA | | $ 1,000.00 | $ 1,021.63 | $ 3.62 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.9 | 6.6 |
Google, Inc. Class A | 3.7 | 3.2 |
Exxon Mobil Corp. | 3.1 | 2.4 |
QUALCOMM, Inc. | 3.0 | 1.7 |
Amazon.com, Inc. | 2.0 | 2.1 |
NVIDIA Corp. | 1.7 | 0.0 |
Philip Morris International, Inc. | 1.5 | 1.6 |
Target Corp. | 1.5 | 1.4 |
The Coca-Cola Co. | 1.5 | 1.4 |
Oracle Corp. | 1.5 | 0.4 |
| 26.4 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 36.7 | 35.1 |
Consumer Discretionary | 16.9 | 15.1 |
Industrials | 12.5 | 13.6 |
Energy | 10.4 | 7.4 |
Consumer Staples | 7.3 | 8.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.8% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 0.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 11.2% | | ** Foreign investments | 8.6% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 0.8% |
Johnson Controls, Inc. | 500,500 | | $ 19,214 |
Lear Corp. (a) | 210,600 | | 22,246 |
TRW Automotive Holdings Corp. (a) | 773,200 | | 46,129 |
Visteon Corp. (a)(d) | 389,100 | | 27,330 |
| | 114,919 |
Automobiles - 2.8% |
Bajaj Auto Ltd. | 340,995 | | 9,271 |
Bayerische Motoren Werke AG (BMW) | 616,358 | | 47,320 |
Fiat SpA | 617,600 | | 5,995 |
Ford Motor Co. (a) | 7,453,300 | | 118,880 |
General Motors Co. | 3,829,100 | | 139,724 |
Hyundai Motor Co. | 95,676 | | 15,293 |
Maruti Suzuki India Ltd. | 94,097 | | 2,580 |
Tesla Motors, Inc. (a)(d) | 2,272,900 | | 54,777 |
| | 393,840 |
Diversified Consumer Services - 0.1% |
Coinstar, Inc. (a) | 293,594 | | 12,152 |
Everonn Education Ltd. | 325,512 | | 4,192 |
| | 16,344 |
Hotels, Restaurants & Leisure - 3.4% |
Bravo Brio Restaurant Group, Inc. | 322,300 | | 5,253 |
Chipotle Mexican Grill, Inc. (a) | 119,300 | | 26,117 |
Hyatt Hotels Corp. Class A (a) | 469,794 | | 22,827 |
Las Vegas Sands Corp. (a) | 1,757,900 | | 81,725 |
Marriott International, Inc. Class A | 489,200 | | 19,319 |
McDonald's Corp. | 1,447,230 | | 106,617 |
Starbucks Corp. | 3,885,900 | | 122,522 |
Starwood Hotels & Resorts Worldwide, Inc. | 650,600 | | 38,366 |
WMS Industries, Inc. (a) | 739,200 | | 31,009 |
Wyndham Worldwide Corp. | 1,278,785 | | 35,972 |
| | 489,727 |
Household Durables - 0.3% |
Beazer Homes USA, Inc. (a)(d) | 3,151,700 | | 16,862 |
Tempur-Pedic International, Inc. (a) | 575,900 | | 25,132 |
| | 41,994 |
Internet & Catalog Retail - 2.7% |
Amazon.com, Inc. (a) | 1,709,100 | | 289,932 |
E-Commerce China Dangdang, Inc. ADR | 457,000 | | 12,933 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Internet & Catalog Retail - continued |
Netflix, Inc. (a) | 141,800 | | $ 30,357 |
Priceline.com, Inc. (a) | 126,700 | | 54,293 |
| | 387,515 |
Media - 0.2% |
ReachLocal, Inc. (d) | 720,300 | | 15,703 |
The Walt Disney Co. | 259,300 | | 10,079 |
| | 25,782 |
Multiline Retail - 2.4% |
Macy's, Inc. | 5,266,700 | | 121,924 |
Target Corp. | 3,892,800 | | 213,442 |
| | 335,366 |
Specialty Retail - 2.1% |
Ascena Retail Group, Inc. (a) | 421,000 | | 11,413 |
Bed Bath & Beyond, Inc. (a) | 374,400 | | 17,971 |
China ZhengTong Auto Services Holdings Ltd. | 2,268,000 | | 1,882 |
Express, Inc. | 774,100 | | 13,469 |
Foot Locker, Inc. | 2,721,000 | | 48,597 |
Guess?, Inc. | 480,800 | | 20,569 |
Home Depot, Inc. | 1,222,400 | | 44,948 |
Limited Brands, Inc. | 262,600 | | 7,678 |
Lowe's Companies, Inc. | 2,880,000 | | 71,424 |
rue21, Inc. (a)(d) | 150,000 | | 4,425 |
TJX Companies, Inc. | 1,072,400 | | 50,821 |
Tractor Supply Co. | 59,000 | | 3,027 |
Williams-Sonoma, Inc. | 280,600 | | 9,035 |
| | 305,259 |
Textiles, Apparel & Luxury Goods - 1.3% |
Cia Hering SA | 254,600 | | 3,909 |
Coach, Inc. | 194,600 | | 10,526 |
Columbia Sportswear Co. (d) | 264,500 | | 16,129 |
Deckers Outdoor Corp. (a) | 256,300 | | 18,810 |
Gitanjali Gems Ltd. | 2,187,799 | | 9,570 |
NIKE, Inc. Class B | 154,800 | | 12,768 |
Pandora A/S | 325,500 | | 20,773 |
Polo Ralph Lauren Corp. Class A | 211,400 | | 22,658 |
Provogue (India) Ltd. | 2,190,561 | | 2,170 |
Steven Madden Ltd. (a) | 238,100 | | 9,088 |
Timberland Co. Class A (a) | 571,100 | | 15,266 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - continued |
Under Armour, Inc. Class A (sub. vtg.) (a) | 132,800 | | $ 7,949 |
Vera Bradley, Inc. (d) | 961,625 | | 33,075 |
| | 182,691 |
TOTAL CONSUMER DISCRETIONARY | | 2,293,437 |
CONSUMER STAPLES - 7.3% |
Beverages - 2.6% |
Anheuser-Busch InBev SA NV | 798,981 | | 44,081 |
Central European Distribution Corp. (a) | 562,800 | | 12,911 |
Coca-Cola Enterprises, Inc. | 454,100 | | 11,425 |
Dr Pepper Snapple Group, Inc. | 2,644,400 | | 93,691 |
The Coca-Cola Co. | 3,355,600 | | 210,899 |
| | 373,007 |
Food & Staples Retailing - 2.7% |
Costco Wholesale Corp. | 509,400 | | 36,595 |
CVS Caremark Corp. | 2,281,800 | | 78,038 |
Droga Raia SA | 462,700 | | 7,270 |
Drogasil SA | 930,300 | | 6,695 |
Fresh Market, Inc. | 785,326 | | 28,876 |
United Natural Foods, Inc. (a) | 474,000 | | 17,538 |
Walgreen Co. | 3,265,800 | | 132,069 |
Whole Foods Market, Inc. | 1,360,000 | | 70,326 |
| | 377,407 |
Food Products - 0.5% |
Archer Daniels Midland Co. | 319,500 | | 10,438 |
Diamond Foods, Inc. (d) | 427,800 | | 21,292 |
Green Mountain Coffee Roasters, Inc. (a)(d) | 961,300 | | 32,280 |
Mead Johnson Nutrition Co. Class A | 169,700 | | 9,838 |
| | 73,848 |
Personal Products - 0.0% |
Nu Skin Enterprises, Inc. Class A | 139,300 | | 4,190 |
Tobacco - 1.5% |
Philip Morris International, Inc. | 3,734,000 | | 213,734 |
TOTAL CONSUMER STAPLES | | 1,042,186 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 10.4% |
Energy Equipment & Services - 3.8% |
Atwood Oceanics, Inc. (a) | 1,097,900 | | $ 44,377 |
Baker Hughes, Inc. | 756,800 | | 51,848 |
Dresser-Rand Group, Inc. (a) | 276,600 | | 12,704 |
Halliburton Co. | 2,702,700 | | 121,622 |
National Oilwell Varco, Inc. | 1,109,800 | | 82,014 |
Oceaneering International, Inc. (a) | 292,500 | | 22,590 |
Schlumberger Ltd. | 1,301,200 | | 115,794 |
Transocean Ltd. (a) | 1,132,800 | | 90,545 |
| | 541,494 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 885,200 | | 47,562 |
Amyris, Inc. | 142,400 | | 4,494 |
Anadarko Petroleum Corp. | 160,700 | | 12,387 |
Chevron Corp. | 366,700 | | 34,811 |
ConocoPhillips | 233,500 | | 16,686 |
Exxon Mobil Corp. | 5,376,400 | | 433,768 |
Hess Corp. | 321,400 | | 27,036 |
Massey Energy Co. | 2,872,053 | | 180,537 |
Occidental Petroleum Corp. | 1,086,600 | | 105,052 |
Paladin Energy Ltd. (a) | 884,432 | | 4,310 |
Tesoro Corp. (a) | 773,100 | | 14,882 |
Uranium One, Inc. | 1,982,900 | | 12,974 |
Valero Energy Corp. | 852,100 | | 21,609 |
Whiting Petroleum Corp. (a) | 125,800 | | 15,886 |
| | 931,994 |
TOTAL ENERGY | | 1,473,488 |
FINANCIALS - 5.7% |
Capital Markets - 1.5% |
BlackRock, Inc. Class A | 177,200 | | 35,089 |
Goldman Sachs Group, Inc. | 201,700 | | 33,002 |
Invesco Ltd. | 289,800 | | 7,170 |
Money Matters Financial Services Ltd. | 1,633,500 | | 4,408 |
Morgan Stanley | 4,198,400 | | 123,433 |
TD Ameritrade Holding Corp. | 841,700 | | 17,188 |
| | 220,290 |
Commercial Banks - 0.6% |
HDFC Bank Ltd. | 252,493 | | 11,305 |
ICICI Bank Ltd. | 666,777 | | 14,980 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Regions Financial Corp. | 1,070,500 | | $ 7,601 |
SunTrust Banks, Inc. | 1,236,300 | | 37,621 |
Synovus Financial Corp. | 3,843,600 | | 10,147 |
| | 81,654 |
Consumer Finance - 0.5% |
Discover Financial Services | 1,400,200 | | 28,830 |
Green Dot Corp. | 214,800 | | 13,513 |
Manappuram General Finance & Leasing Ltd. | 3,328,852 | | 8,416 |
Shriram Transport Finance Co. Ltd. | 1,309,840 | | 19,630 |
| | 70,389 |
Diversified Financial Services - 2.5% |
Bank of America Corp. | 2,236,300 | | 30,704 |
Citigroup, Inc. (a) | 33,307,200 | | 160,541 |
CME Group, Inc. | 205,600 | | 63,440 |
IntercontinentalExchange, Inc. (a) | 163,900 | | 19,748 |
JPMorgan Chase & Co. | 1,795,300 | | 80,681 |
| | 355,114 |
Insurance - 0.3% |
Genworth Financial, Inc. Class A (a) | 3,172,300 | | 43,048 |
Real Estate Management & Development - 0.3% |
CB Richard Ellis Group, Inc. Class A (a) | 858,600 | | 19,052 |
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | | 22,306 |
| | 41,358 |
Thrifts & Mortgage Finance - 0.0% |
Housing Development Finance Corp. Ltd. | 335,144 | | 4,595 |
TOTAL FINANCIALS | | 816,448 |
HEALTH CARE - 6.7% |
Biotechnology - 2.0% |
Alkermes, Inc. (a) | 917,100 | | 11,840 |
Amgen, Inc. (a) | 476,700 | | 26,257 |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | | 29,643 |
ARIAD Pharmaceuticals, Inc. (a) | 885,726 | | 5,647 |
Dendreon Corp. (a) | 735,781 | | 25,782 |
Exelixis, Inc. (a) | 1,194,000 | | 10,352 |
Gilead Sciences, Inc. (a) | 890,200 | | 34,166 |
Human Genome Sciences, Inc. (a) | 1,012,500 | | 24,563 |
InterMune, Inc. (a) | 399,463 | | 14,928 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Micromet, Inc. (a) | 1,322,420 | | $ 8,503 |
SIGA Technologies, Inc. (a) | 918,000 | | 10,534 |
Theravance, Inc. (a) | 208,800 | | 4,393 |
Vertex Pharmaceuticals, Inc. (a) | 2,001,500 | | 77,838 |
| | 284,446 |
Health Care Equipment & Supplies - 0.4% |
C. R. Bard, Inc. | 91,200 | | 8,605 |
Covidien PLC | 477,000 | | 22,643 |
Edwards Lifesciences Corp. (a) | 165,100 | | 13,916 |
Elekta AB (B Shares) | 135,000 | | 5,458 |
Opto Circuits India Ltd. | 1,026,246 | | 5,476 |
William Demant Holding AS (a) | 126,000 | | 10,089 |
| | 66,187 |
Health Care Providers & Services - 2.7% |
Express Scripts, Inc. (a) | 3,314,380 | | 186,699 |
McKesson Corp. | 1,379,100 | | 103,667 |
Medco Health Solutions, Inc. (a) | 1,539,900 | | 93,965 |
| | 384,331 |
Health Care Technology - 0.5% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 597,100 | | 12,605 |
Cerner Corp. (a) | 489,100 | | 48,348 |
SXC Health Solutions Corp. (a) | 163,800 | | 7,886 |
| | 68,839 |
Life Sciences Tools & Services - 0.7% |
Agilent Technologies, Inc. (a) | 1,396,255 | | 58,405 |
Covance, Inc. (a) | 126,400 | | 7,126 |
Illumina, Inc. (a) | 391,000 | | 27,112 |
Thermo Fisher Scientific, Inc. (a) | 74,500 | | 4,267 |
| | 96,910 |
Pharmaceuticals - 0.4% |
Allergan, Inc. | 161,300 | | 11,389 |
AVANIR Pharmaceuticals Class A (a)(d) | 1,264,000 | | 5,119 |
Novo Nordisk AS Series B | 76,779 | | 8,643 |
Perrigo Co. | 50,000 | | 3,637 |
Questcor Pharmaceuticals, Inc. (a) | 181,600 | | 2,808 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Ranbaxy Laboratories Ltd. (a) | 560,099 | | $ 6,659 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 269,300 | | 14,717 |
| | 52,972 |
TOTAL HEALTH CARE | | 953,685 |
INDUSTRIALS - 12.5% |
Aerospace & Defense - 3.7% |
Bombardier, Inc. Class B (sub. vtg.) | 4,930,700 | | 28,074 |
Honeywell International, Inc. | 746,800 | | 41,828 |
Precision Castparts Corp. | 954,700 | | 136,513 |
Rockwell Collins, Inc. | 398,700 | | 25,573 |
The Boeing Co. | 1,665,800 | | 115,740 |
United Technologies Corp. | 2,201,300 | | 178,966 |
| | 526,694 |
Air Freight & Logistics - 0.5% |
United Parcel Service, Inc. Class B | 1,008,600 | | 72,236 |
Airlines - 0.5% |
Copa Holdings SA Class A | 216,000 | | 12,150 |
United Continental Holdings, Inc. (a) | 2,587,455 | | 65,721 |
| | 77,871 |
Building Products - 0.3% |
Armstrong World Industries, Inc. | 670,000 | | 27,209 |
Lennox International, Inc. | 196,000 | | 9,631 |
| | 36,840 |
Construction & Engineering - 1.2% |
Fluor Corp. | 1,360,600 | | 94,140 |
Jacobs Engineering Group, Inc. (a) | 968,471 | | 49,750 |
Shaw Group, Inc. (a) | 616,400 | | 23,281 |
| | 167,171 |
Electrical Equipment - 0.8% |
Emerson Electric Co. | 1,044,700 | | 61,512 |
Polypore International, Inc. (a) | 539,800 | | 25,991 |
Regal-Beloit Corp. | 108,300 | | 7,228 |
Rockwell Automation, Inc. | 295,100 | | 23,906 |
| | 118,637 |
Industrial Conglomerates - 0.1% |
Textron, Inc. | 572,000 | | 15,038 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - 4.0% |
Beml Ltd. | 504,883 | | $ 9,586 |
Caterpillar, Inc. | 1,237,200 | | 120,021 |
Cummins, Inc. | 892,900 | | 94,540 |
Danaher Corp. | 1,490,300 | | 68,643 |
Dover Corp. | 513,100 | | 32,890 |
Fiat Industrial SpA (a) | 617,600 | | 8,358 |
Ingersoll-Rand Co. Ltd. | 2,120,100 | | 100,069 |
PACCAR, Inc. | 1,208,600 | | 68,274 |
Pall Corp. | 686,200 | | 38,022 |
Parker Hannifin Corp. | 168,600 | | 15,075 |
WABCO Holdings, Inc. (a) | 294,200 | | 17,181 |
| | 572,659 |
Professional Services - 0.1% |
Manpower, Inc. | 285,800 | | 18,454 |
Road & Rail - 1.2% |
CSX Corp. | 664,500 | | 46,914 |
Kansas City Southern (a) | 100,000 | | 4,998 |
Swift Transporation Co. | 1,145,300 | | 16,366 |
Union Pacific Corp. | 1,004,500 | | 95,056 |
| | 163,334 |
Trading Companies & Distributors - 0.1% |
Mills Estruturas e Servicos de Engenharia SA | 827,400 | | 10,365 |
TOTAL INDUSTRIALS | | 1,779,299 |
INFORMATION TECHNOLOGY - 36.7% |
Communications Equipment - 5.1% |
Acme Packet, Inc. (a) | 464,200 | | 24,965 |
Ciena Corp. (a) | 373,700 | | 8,233 |
Cisco Systems, Inc. (a) | 4,640,200 | | 98,140 |
HTC Corp. | 1,787,000 | | 60,244 |
Juniper Networks, Inc. (a) | 1,955,400 | | 72,584 |
Motorola Mobility Holdings, Inc. (a) | 527,651 | | 14,706 |
QUALCOMM, Inc. | 7,794,600 | | 421,922 |
Research In Motion Ltd. (a) | 564,700 | | 33,379 |
| | 734,173 |
Computers & Peripherals - 9.5% |
Apple, Inc. (a) | 2,886,200 | | 979,345 |
EMC Corp. (a) | 3,529,900 | | 87,859 |
Hewlett-Packard Co. | 946,200 | | 43,232 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
NetApp, Inc. (a) | 2,039,100 | | $ 111,600 |
SanDisk Corp. (a) | 763,700 | | 34,649 |
Seagate Technology (a) | 2,907,600 | | 40,706 |
Western Digital Corp. (a) | 1,463,200 | | 49,778 |
| | 1,347,169 |
Electronic Equipment & Components - 0.3% |
HLS Systems International Ltd. (a) | 50,000 | | 803 |
Jabil Circuit, Inc. | 1,833,400 | | 37,053 |
TPK Holdings Co. | 16,000 | | 391 |
| | 38,247 |
Internet Software & Services - 6.9% |
Akamai Technologies, Inc. (a) | 2,271,600 | | 109,764 |
Alibaba.com Ltd. | 4,368,000 | | 8,628 |
Baidu.com, Inc. sponsored ADR (a) | 600,400 | | 65,221 |
Bitauto Holdings Ltd. ADR | 1,106,400 | | 11,993 |
Demand Media, Inc. (a) | 286,500 | | 5,810 |
eBay, Inc. (a) | 3,717,518 | | 112,864 |
Google, Inc. Class A (a) | 884,200 | | 530,838 |
INFO Edge India Ltd. | 293,110 | | 3,487 |
Mail.ru Group Ltd. GDR unit (a)(f) | 764,100 | | 27,202 |
OpenTable, Inc. (a) | 264,051 | | 20,760 |
Rackspace Hosting, Inc. (a) | 2,061,200 | | 69,071 |
VistaPrint Ltd. (a) | 138,400 | | 7,009 |
YouKu.com, Inc. ADR (a)(d) | 411,900 | | 12,205 |
| | 984,852 |
IT Services - 2.9% |
Accenture PLC Class A | 548,000 | | 28,206 |
Cognizant Technology Solutions Corp. Class A (a) | 1,141,900 | | 83,302 |
MasterCard, Inc. Class A | 543,600 | | 128,567 |
VeriFone Systems, Inc. (a) | 362,700 | | 14,486 |
Visa, Inc. Class A | 2,310,200 | | 161,367 |
| | 415,928 |
Semiconductors & Semiconductor Equipment - 6.3% |
Altera Corp. | 188,300 | | 7,074 |
Applied Materials, Inc. | 1,867,200 | | 29,296 |
Atmel Corp. (a) | 2,932,500 | | 39,706 |
Avago Technologies Ltd. | 3,661,100 | | 105,110 |
Broadcom Corp. Class A | 2,335,100 | | 105,290 |
GT Solar International, Inc. (a)(d) | 1,761,900 | | 19,460 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Lam Research Corp. (a) | 701,200 | | $ 34,983 |
Marvell Technology Group Ltd. (a) | 4,307,800 | | 81,891 |
Maxim Integrated Products, Inc. | 1,000,800 | | 25,841 |
Micron Technology, Inc. (a) | 895,000 | | 9,433 |
National Semiconductor Corp. | 3,163,000 | | 47,951 |
NVIDIA Corp. (a) | 9,794,422 | | 234,283 |
NXP Semiconductors NV | 2,790,200 | | 71,820 |
Silicon Laboratories, Inc. (a) | 364,700 | | 16,222 |
Skyworks Solutions, Inc. (a) | 974,800 | | 30,969 |
Spreadtrum Communications, Inc. ADR (a) | 720,700 | | 15,495 |
Teradyne, Inc. (a) | 1,000,000 | | 16,680 |
| | 891,504 |
Software - 5.7% |
Adobe Systems, Inc. (a) | 252,300 | | 8,339 |
BMC Software, Inc. (a) | 181,100 | | 8,638 |
BroadSoft, Inc. (a) | 930,000 | | 25,770 |
Check Point Software Technologies Ltd. (a) | 1,510,800 | | 67,306 |
Citrix Systems, Inc. (a) | 913,600 | | 57,721 |
Informatica Corp. (a) | 1,193,700 | | 55,388 |
Intuit, Inc. (a) | 712,600 | | 33,442 |
Microsoft Corp. | 54,500 | | 1,511 |
Nuance Communications, Inc. (a) | 1,387,000 | | 28,198 |
Oracle Corp. | 6,488,000 | | 207,811 |
QLIK Technologies, Inc. | 961,763 | | 22,323 |
RealPage, Inc. | 1,106,300 | | 30,302 |
Red Hat, Inc. (a) | 2,268,900 | | 93,751 |
Rovi Corp. (a) | 456,600 | | 28,200 |
salesforce.com, Inc. (a) | 722,518 | | 93,306 |
SuccessFactors, Inc. (a) | 199,100 | | 5,798 |
Velti Ltd. (a) | 298,100 | | 4,239 |
VMware, Inc. Class A (a) | 417,900 | | 35,739 |
| | 807,782 |
TOTAL INFORMATION TECHNOLOGY | | 5,219,655 |
MATERIALS - 3.5% |
Chemicals - 1.5% |
Cabot Corp. | 439,900 | | 19,026 |
Celanese Corp. Class A | 436,600 | | 18,115 |
CF Industries Holdings, Inc. | 504,600 | | 68,141 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
Grasim Industries Ltd. | 176,744 | | $ 9,382 |
LyondellBasell Industries NV Class A (a) | 1,460,600 | | 52,494 |
Methanex Corp. | 228,300 | | 6,207 |
Monsanto Co. | 98,200 | | 7,206 |
PPG Industries, Inc. | 51,300 | | 4,324 |
Rockwood Holdings, Inc. (a) | 384,600 | | 15,611 |
Sherwin-Williams Co. | 51,200 | | 4,338 |
Valspar Corp. | 118,200 | | 4,417 |
| | 209,261 |
Construction Materials - 0.0% |
ACC Ltd. | 150,000 | | 3,246 |
Containers & Packaging - 0.1% |
Ball Corp. | 220,500 | | 15,684 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 66,300 | | 4,322 |
Carpenter Technology Corp. | 699,325 | | 28,777 |
Freeport-McMoRan Copper & Gold, Inc. | 708,700 | | 77,071 |
Reliance Steel & Aluminum Co. | 502,700 | | 26,286 |
Silver Wheaton Corp. (a) | 260,500 | | 8,038 |
Stillwater Mining Co. (a) | 393,700 | | 8,535 |
United States Steel Corp. (d) | 1,705,100 | | 98,333 |
Walter Energy, Inc. | 188,000 | | 24,491 |
| | 275,853 |
TOTAL MATERIALS | | 504,044 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
NII Holdings, Inc. (a) | 460,200 | | 19,319 |
TOTAL COMMON STOCKS (Cost $10,352,785) | 14,101,561 |
Nonconvertible Preferred Stocks - 0.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 0.8% |
Automobiles - 0.8% |
Porsche Automobil Holding SE | 416,200 | | $ 38,654 |
Volkswagen AG | 469,600 | | 75,860 |
| | 114,514 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $77,268) | 114,514 |
Money Market Funds - 1.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 49,595,621 | | 49,596 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 159,497,250 | | 159,497 |
TOTAL MONEY MARKET FUNDS (Cost $209,093) | 209,093 |
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $10,639,146) | | 14,425,168 |
NET OTHER ASSETS (LIABILITIES) - (1.3)% | | (189,793) |
NET ASSETS - 100% | $ 14,235,375 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $27,202,000 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 35 |
Fidelity Securities Lending Cash Central Fund | 472 |
Total | $ 507 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Furniture Brands International, Inc. | $ 16,160 | $ - | $ 14,466 | $ - | $ - |
Parsvnath Developers Ltd. | 18,023 | 14,168 | - | - | 22,306 |
Total | $ 34,183 | $ 14,168 | $ 14,466 | $ - | $ 22,306 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 2,407,951 | $ 2,405,371 | $ 2,580 | $ - |
Consumer Staples | 1,042,186 | 998,105 | 44,081 | - |
Energy | 1,473,488 | 1,473,488 | - | - |
Financials | 816,448 | 790,163 | 26,285 | - |
Health Care | 953,685 | 945,042 | 8,643 | - |
Industrials | 1,779,299 | 1,779,299 | - | - |
Information Technology | 5,219,655 | 5,219,655 | - | - |
Materials | 504,044 | 494,662 | 9,382 | - |
Telecommunication Services | 19,319 | 19,319 | - | - |
Money Market Funds | 209,093 | 209,093 | - | - |
Total Investments in Securities: | $ 14,425,168 | $ 14,334,197 | $ 90,971 | $ - |
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 | $ 6,774 |
Total Realized Gain (Loss) | (1,136) |
Total Unrealized Gain (Loss) | 174 |
Cost of Purchases | - |
Proceeds of Sales | (5,812) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.8% |
Ireland | 1.3% |
Germany | 1.1% |
India | 1.1% |
Others (Individually Less Than 1%) | 7.7% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,028,059,000 of which $671,371,000 and $356,688,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $158,006) - See accompanying schedule: Unaffiliated issuers (cost $10,399,202) | $ 14,193,769 | |
Fidelity Central Funds (cost $209,093) | 209,093 | |
Other affiliated issuers (cost $30,851) | 22,306 | |
Total Investments (cost $10,639,146) | | $ 14,425,168 |
Foreign currency held at value (cost $820) | | 820 |
Receivable for investments sold | | 265,133 |
Receivable for fund shares sold | | 32,727 |
Dividends receivable | | 2,801 |
Distributions receivable from Fidelity Central Funds | | 191 |
Prepaid expenses | | 30 |
Other receivables | | 946 |
Total assets | | 14,727,816 |
| | |
Liabilities | | |
Payable to custodian bank | $ 374 | |
Payable for investments purchased | 306,929 | |
Payable for fund shares redeemed | 14,250 | |
Accrued management fee | 8,434 | |
Other affiliated payables | 2,379 | |
Other payables and accrued expenses | 578 | |
Collateral on securities loaned, at value | 159,497 | |
Total liabilities | | 492,441 |
| | |
Net Assets | | $ 14,235,375 |
Net Assets consist of: | | |
Paid in capital | | $ 10,921,318 |
Accumulated net investment loss | | (10,769) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (461,169) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,785,995 |
Net Assets | | $ 14,235,375 |
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, 2011 (Unaudited) |
| | |
Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($12,293,630 ÷ 265,604 shares) | | $ 46.29 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,237,872 ÷ 26,745 shares) | | $ 46.28 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($703,873 ÷ 15,201 shares) | | $ 46.30 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 52,561 |
Interest | | 3 |
Income from Fidelity Central Funds | | 507 |
Total income | | 53,071 |
| | |
Expenses | | |
Management fee
Basic fee | $ 35,632 | |
Performance adjustment | 8,114 | |
Transfer agent fees | 13,009 | |
Accounting and security lending fees | 712 | |
Custodian fees and expenses | 271 | |
Independent trustees' compensation | 35 | |
Registration fees | 74 | |
Audit | 66 | |
Legal | 43 | |
Interest | 12 | |
Miscellaneous | 63 | |
Total expenses before reductions | 58,031 | |
Expense reductions | (894) | 57,137 |
Net investment income (loss) | | (4,066) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 664,639 | |
Other affiliated issuers | (10,044) | |
Foreign currency transactions | (1,905) | |
Total net realized gain (loss) | | 652,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $49) | 1,984,810 | |
Assets and liabilities in foreign currencies | 148 | |
Total change in net unrealized appreciation (depreciation) | | 1,984,958 |
Net gain (loss) | | 2,637,648 |
Net increase (decrease) in net assets resulting from operations | | $ 2,633,582 |
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 January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (4,066) | $ 13,622 |
Net realized gain (loss) | 652,690 | 1,055,028 |
Change in net unrealized appreciation (depreciation) | 1,984,958 | 793,347 |
Net increase (decrease) in net assets resulting
from operations | 2,633,582 | 1,861,997 |
Distributions to shareholders from net investment income | (8,765) | (57,433) |
Distributions to shareholders from net realized gain | (6,091) | - |
Total distributions | (14,856) | (57,433) |
Share transactions - net increase (decrease) | 68,429 | (538,131) |
Total increase (decrease) in net assets | 2,687,155 | 1,266,433 |
| | |
Net Assets | | |
Beginning of period | 11,548,220 | 10,281,787 |
End of period (including accumulated net investment loss of $10,769 and undistributed net investment income of $2,062, respectively) | $ 14,235,375 | $ 11,548,220 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | .04 | .27 | .35 | .32 | .23 |
Net realized and unrealized gain (loss) | 8.72 | 5.80 | (6.36) | (2.89) | 6.19 | (1.06) |
Total from investment operations | 8.70 | 5.84 | (6.09) | (2.54) | 6.51 | (.83) |
Distributions from net investment income | (.02) | (.18) | (.29) | (.33) | (.24) | (.23) |
Distributions from net realized gain | (.02) | - | (.71) | (4.95) | (.93) | - |
Total distributions | (.04) | (.18) | (1.00) | (5.28) | (1.17) | (.23) |
Net asset value, end of period | $ 46.29 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Total Return B, C | 23.12% | 18.29% | (15.85)% | (6.30)% | 16.02% | (1.97)% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of fee waivers, if any | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of all reductions | .92% A | .93% | .76% | .57% | .59% | .61% |
Net investment income (loss) | (.09)% A | .10% | .93% | .81% | .72% | .54% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 12,294 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 |
Portfolio turnover rate F | 126% A | 135% | 134% | 82% | 87% | 48% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .02 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 8.72 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 8.74 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.10) | (.25) | (.34) | - |
Distributions from net realized gain | (.02) | - | (.71) | - |
Total distributions | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 46.28 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 23.23% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .76% A | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .76% A | .75% | .53% | .41% A |
Expenses net of all reductions | .74% A | .74% | .52% | .41% A |
Net investment income (loss) | .09% A | .30% | 1.16% | 1.09% A |
Supplemental Data | | | | |
Net assets, end of period
(000 omitted) | $ 1,237,872 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 126% A | 135% | 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .13 | - I |
Net realized and unrealized gain (loss) | 8.71 | 5.80 | 2.82 |
Total from investment operations | 8.74 | 5.93 | 2.82 |
Distributions from net investment income | (.11) | (.22) | - |
Distributions from net realized gain | (.02) | - | - |
Total distributions | (.13) | (.22) | - |
Net asset value, end of period | $ 46.30 | $ 37.69 | $ 31.98 |
Total Return B, C | 23.24% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .71% A | .70% | .51%A |
Expenses net of fee waivers, if any | .71%A | .70% | .51%A |
Expenses net of all reductions | .69%A | .68% | .51%A |
Net investment income (loss) | .14%A | .35% | (.05)%A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 703,873 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 126%A | 135% | 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 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, 2011 (Unaudited)
(Amounts in thousands except ratios)
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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, 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 | $ 3,858,280 |
Gross unrealized depreciation | (125,852) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,732,428 |
Tax cost | $ 10,692,740 |
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 $8,032,085 and $7,929,304, 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 Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% 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 Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Blue Chip Growth | $ 12,731 | .23 |
Class K | 278 | .05 |
| $ 13,009 | |
* 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 $269 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 19,315 | .47% | $ 10 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $22 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,013. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $472, including $22 from securities loaned to FCM.
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 $27,562. The weighted average interest rate was .69%. The interest expense amounted to $2 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 $894 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Blue Chip Growth | $ 5,059 | $ 52,296 |
Class K | 2,396 | 4,902 |
Class F | 1,310 | 235 |
Total | $ 8,765 | $ 57,433 |
From net realized gain | | |
Blue Chip Growth | $ 5,301 | $ - |
Class K | 520 | - |
Class F | 270 | - |
Total | $ 6,091 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Blue Chip Growth | | | | |
Shares sold | 24,844 | 41,698 | $ 1,071,524 | $ 1,553,486 |
Conversion to Class K | - | (604) | - | (19,981) |
Reinvestment of distributions | 232 | 1,459 | 10,166 | 51,338 |
Shares redeemed | (33,085) | (72,051) | (1,382,230) | (2,676,741) |
Net increase (decrease) | (8,009) | (29,498) | $ (300,540) | $ (1,091,898) |
Class K | | | | |
Shares sold | 6,451 | 11,377 | $ 271,887 | $ 427,050 |
Conversion from Blue Chip Growth | - | 603 | - | 19,981 |
Reinvestment of distributions | 70 | 139 | 2,916 | 4,902 |
Shares redeemed | (4,511) | (5,839) | (188,331) | (218,811) |
Net increase (decrease) | 2,010 | 6,280 | $ 86,472 | $ 233,122 |
Class F | | | | |
Shares sold | 7,100 | 8,796 | $ 301,794 | $ 331,309 |
Reinvestment of distributions | 38 | 6 | 1,580 | 235 |
Shares redeemed | (465) | (282) | (20,877) | (10,900) |
Net increase (decrease) | 6,673 | 8,520 | $ 282,497 | $ 320,644 |
A Conversion transactions for Class K and Blue Chip Growth are presented for the period August 1, 2009 through August 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
13. 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-F-SANN-0311
1.891666.101
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Blue Chip Growth | .93% | | | |
Actual | | $ 1,000.00 | $ 1,231.20 | $ 5.23 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
Class K | .76% | | | |
Actual | | $ 1,000.00 | $ 1,232.30 | $ 4.28 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class F | .71% | | | |
Actual | | $ 1,000.00 | $ 1,232.40 | $ 4.00 |
HypotheticalA | | $ 1,000.00 | $ 1,021.63 | $ 3.62 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.9 | 6.6 |
Google, Inc. Class A | 3.7 | 3.2 |
Exxon Mobil Corp. | 3.1 | 2.4 |
QUALCOMM, Inc. | 3.0 | 1.7 |
Amazon.com, Inc. | 2.0 | 2.1 |
NVIDIA Corp. | 1.7 | 0.0 |
Philip Morris International, Inc. | 1.5 | 1.6 |
Target Corp. | 1.5 | 1.4 |
The Coca-Cola Co. | 1.5 | 1.4 |
Oracle Corp. | 1.5 | 0.4 |
| 26.4 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 36.7 | 35.1 |
Consumer Discretionary | 16.9 | 15.1 |
Industrials | 12.5 | 13.6 |
Energy | 10.4 | 7.4 |
Consumer Staples | 7.3 | 8.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.8% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 0.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 11.2% | | ** Foreign investments | 8.6% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 0.8% |
Johnson Controls, Inc. | 500,500 | | $ 19,214 |
Lear Corp. (a) | 210,600 | | 22,246 |
TRW Automotive Holdings Corp. (a) | 773,200 | | 46,129 |
Visteon Corp. (a)(d) | 389,100 | | 27,330 |
| | 114,919 |
Automobiles - 2.8% |
Bajaj Auto Ltd. | 340,995 | | 9,271 |
Bayerische Motoren Werke AG (BMW) | 616,358 | | 47,320 |
Fiat SpA | 617,600 | | 5,995 |
Ford Motor Co. (a) | 7,453,300 | | 118,880 |
General Motors Co. | 3,829,100 | | 139,724 |
Hyundai Motor Co. | 95,676 | | 15,293 |
Maruti Suzuki India Ltd. | 94,097 | | 2,580 |
Tesla Motors, Inc. (a)(d) | 2,272,900 | | 54,777 |
| | 393,840 |
Diversified Consumer Services - 0.1% |
Coinstar, Inc. (a) | 293,594 | | 12,152 |
Everonn Education Ltd. | 325,512 | | 4,192 |
| | 16,344 |
Hotels, Restaurants & Leisure - 3.4% |
Bravo Brio Restaurant Group, Inc. | 322,300 | | 5,253 |
Chipotle Mexican Grill, Inc. (a) | 119,300 | | 26,117 |
Hyatt Hotels Corp. Class A (a) | 469,794 | | 22,827 |
Las Vegas Sands Corp. (a) | 1,757,900 | | 81,725 |
Marriott International, Inc. Class A | 489,200 | | 19,319 |
McDonald's Corp. | 1,447,230 | | 106,617 |
Starbucks Corp. | 3,885,900 | | 122,522 |
Starwood Hotels & Resorts Worldwide, Inc. | 650,600 | | 38,366 |
WMS Industries, Inc. (a) | 739,200 | | 31,009 |
Wyndham Worldwide Corp. | 1,278,785 | | 35,972 |
| | 489,727 |
Household Durables - 0.3% |
Beazer Homes USA, Inc. (a)(d) | 3,151,700 | | 16,862 |
Tempur-Pedic International, Inc. (a) | 575,900 | | 25,132 |
| | 41,994 |
Internet & Catalog Retail - 2.7% |
Amazon.com, Inc. (a) | 1,709,100 | | 289,932 |
E-Commerce China Dangdang, Inc. ADR | 457,000 | | 12,933 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Internet & Catalog Retail - continued |
Netflix, Inc. (a) | 141,800 | | $ 30,357 |
Priceline.com, Inc. (a) | 126,700 | | 54,293 |
| | 387,515 |
Media - 0.2% |
ReachLocal, Inc. (d) | 720,300 | | 15,703 |
The Walt Disney Co. | 259,300 | | 10,079 |
| | 25,782 |
Multiline Retail - 2.4% |
Macy's, Inc. | 5,266,700 | | 121,924 |
Target Corp. | 3,892,800 | | 213,442 |
| | 335,366 |
Specialty Retail - 2.1% |
Ascena Retail Group, Inc. (a) | 421,000 | | 11,413 |
Bed Bath & Beyond, Inc. (a) | 374,400 | | 17,971 |
China ZhengTong Auto Services Holdings Ltd. | 2,268,000 | | 1,882 |
Express, Inc. | 774,100 | | 13,469 |
Foot Locker, Inc. | 2,721,000 | | 48,597 |
Guess?, Inc. | 480,800 | | 20,569 |
Home Depot, Inc. | 1,222,400 | | 44,948 |
Limited Brands, Inc. | 262,600 | | 7,678 |
Lowe's Companies, Inc. | 2,880,000 | | 71,424 |
rue21, Inc. (a)(d) | 150,000 | | 4,425 |
TJX Companies, Inc. | 1,072,400 | | 50,821 |
Tractor Supply Co. | 59,000 | | 3,027 |
Williams-Sonoma, Inc. | 280,600 | | 9,035 |
| | 305,259 |
Textiles, Apparel & Luxury Goods - 1.3% |
Cia Hering SA | 254,600 | | 3,909 |
Coach, Inc. | 194,600 | | 10,526 |
Columbia Sportswear Co. (d) | 264,500 | | 16,129 |
Deckers Outdoor Corp. (a) | 256,300 | | 18,810 |
Gitanjali Gems Ltd. | 2,187,799 | | 9,570 |
NIKE, Inc. Class B | 154,800 | | 12,768 |
Pandora A/S | 325,500 | | 20,773 |
Polo Ralph Lauren Corp. Class A | 211,400 | | 22,658 |
Provogue (India) Ltd. | 2,190,561 | | 2,170 |
Steven Madden Ltd. (a) | 238,100 | | 9,088 |
Timberland Co. Class A (a) | 571,100 | | 15,266 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - continued |
Under Armour, Inc. Class A (sub. vtg.) (a) | 132,800 | | $ 7,949 |
Vera Bradley, Inc. (d) | 961,625 | | 33,075 |
| | 182,691 |
TOTAL CONSUMER DISCRETIONARY | | 2,293,437 |
CONSUMER STAPLES - 7.3% |
Beverages - 2.6% |
Anheuser-Busch InBev SA NV | 798,981 | | 44,081 |
Central European Distribution Corp. (a) | 562,800 | | 12,911 |
Coca-Cola Enterprises, Inc. | 454,100 | | 11,425 |
Dr Pepper Snapple Group, Inc. | 2,644,400 | | 93,691 |
The Coca-Cola Co. | 3,355,600 | | 210,899 |
| | 373,007 |
Food & Staples Retailing - 2.7% |
Costco Wholesale Corp. | 509,400 | | 36,595 |
CVS Caremark Corp. | 2,281,800 | | 78,038 |
Droga Raia SA | 462,700 | | 7,270 |
Drogasil SA | 930,300 | | 6,695 |
Fresh Market, Inc. | 785,326 | | 28,876 |
United Natural Foods, Inc. (a) | 474,000 | | 17,538 |
Walgreen Co. | 3,265,800 | | 132,069 |
Whole Foods Market, Inc. | 1,360,000 | | 70,326 |
| | 377,407 |
Food Products - 0.5% |
Archer Daniels Midland Co. | 319,500 | | 10,438 |
Diamond Foods, Inc. (d) | 427,800 | | 21,292 |
Green Mountain Coffee Roasters, Inc. (a)(d) | 961,300 | | 32,280 |
Mead Johnson Nutrition Co. Class A | 169,700 | | 9,838 |
| | 73,848 |
Personal Products - 0.0% |
Nu Skin Enterprises, Inc. Class A | 139,300 | | 4,190 |
Tobacco - 1.5% |
Philip Morris International, Inc. | 3,734,000 | | 213,734 |
TOTAL CONSUMER STAPLES | | 1,042,186 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 10.4% |
Energy Equipment & Services - 3.8% |
Atwood Oceanics, Inc. (a) | 1,097,900 | | $ 44,377 |
Baker Hughes, Inc. | 756,800 | | 51,848 |
Dresser-Rand Group, Inc. (a) | 276,600 | | 12,704 |
Halliburton Co. | 2,702,700 | | 121,622 |
National Oilwell Varco, Inc. | 1,109,800 | | 82,014 |
Oceaneering International, Inc. (a) | 292,500 | | 22,590 |
Schlumberger Ltd. | 1,301,200 | | 115,794 |
Transocean Ltd. (a) | 1,132,800 | | 90,545 |
| | 541,494 |
Oil, Gas & Consumable Fuels - 6.6% |
Alpha Natural Resources, Inc. (a) | 885,200 | | 47,562 |
Amyris, Inc. | 142,400 | | 4,494 |
Anadarko Petroleum Corp. | 160,700 | | 12,387 |
Chevron Corp. | 366,700 | | 34,811 |
ConocoPhillips | 233,500 | | 16,686 |
Exxon Mobil Corp. | 5,376,400 | | 433,768 |
Hess Corp. | 321,400 | | 27,036 |
Massey Energy Co. | 2,872,053 | | 180,537 |
Occidental Petroleum Corp. | 1,086,600 | | 105,052 |
Paladin Energy Ltd. (a) | 884,432 | | 4,310 |
Tesoro Corp. (a) | 773,100 | | 14,882 |
Uranium One, Inc. | 1,982,900 | | 12,974 |
Valero Energy Corp. | 852,100 | | 21,609 |
Whiting Petroleum Corp. (a) | 125,800 | | 15,886 |
| | 931,994 |
TOTAL ENERGY | | 1,473,488 |
FINANCIALS - 5.7% |
Capital Markets - 1.5% |
BlackRock, Inc. Class A | 177,200 | | 35,089 |
Goldman Sachs Group, Inc. | 201,700 | | 33,002 |
Invesco Ltd. | 289,800 | | 7,170 |
Money Matters Financial Services Ltd. | 1,633,500 | | 4,408 |
Morgan Stanley | 4,198,400 | | 123,433 |
TD Ameritrade Holding Corp. | 841,700 | | 17,188 |
| | 220,290 |
Commercial Banks - 0.6% |
HDFC Bank Ltd. | 252,493 | | 11,305 |
ICICI Bank Ltd. | 666,777 | | 14,980 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Regions Financial Corp. | 1,070,500 | | $ 7,601 |
SunTrust Banks, Inc. | 1,236,300 | | 37,621 |
Synovus Financial Corp. | 3,843,600 | | 10,147 |
| | 81,654 |
Consumer Finance - 0.5% |
Discover Financial Services | 1,400,200 | | 28,830 |
Green Dot Corp. | 214,800 | | 13,513 |
Manappuram General Finance & Leasing Ltd. | 3,328,852 | | 8,416 |
Shriram Transport Finance Co. Ltd. | 1,309,840 | | 19,630 |
| | 70,389 |
Diversified Financial Services - 2.5% |
Bank of America Corp. | 2,236,300 | | 30,704 |
Citigroup, Inc. (a) | 33,307,200 | | 160,541 |
CME Group, Inc. | 205,600 | | 63,440 |
IntercontinentalExchange, Inc. (a) | 163,900 | | 19,748 |
JPMorgan Chase & Co. | 1,795,300 | | 80,681 |
| | 355,114 |
Insurance - 0.3% |
Genworth Financial, Inc. Class A (a) | 3,172,300 | | 43,048 |
Real Estate Management & Development - 0.3% |
CB Richard Ellis Group, Inc. Class A (a) | 858,600 | | 19,052 |
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | | 22,306 |
| | 41,358 |
Thrifts & Mortgage Finance - 0.0% |
Housing Development Finance Corp. Ltd. | 335,144 | | 4,595 |
TOTAL FINANCIALS | | 816,448 |
HEALTH CARE - 6.7% |
Biotechnology - 2.0% |
Alkermes, Inc. (a) | 917,100 | | 11,840 |
Amgen, Inc. (a) | 476,700 | | 26,257 |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | | 29,643 |
ARIAD Pharmaceuticals, Inc. (a) | 885,726 | | 5,647 |
Dendreon Corp. (a) | 735,781 | | 25,782 |
Exelixis, Inc. (a) | 1,194,000 | | 10,352 |
Gilead Sciences, Inc. (a) | 890,200 | | 34,166 |
Human Genome Sciences, Inc. (a) | 1,012,500 | | 24,563 |
InterMune, Inc. (a) | 399,463 | | 14,928 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Micromet, Inc. (a) | 1,322,420 | | $ 8,503 |
SIGA Technologies, Inc. (a) | 918,000 | | 10,534 |
Theravance, Inc. (a) | 208,800 | | 4,393 |
Vertex Pharmaceuticals, Inc. (a) | 2,001,500 | | 77,838 |
| | 284,446 |
Health Care Equipment & Supplies - 0.4% |
C. R. Bard, Inc. | 91,200 | | 8,605 |
Covidien PLC | 477,000 | | 22,643 |
Edwards Lifesciences Corp. (a) | 165,100 | | 13,916 |
Elekta AB (B Shares) | 135,000 | | 5,458 |
Opto Circuits India Ltd. | 1,026,246 | | 5,476 |
William Demant Holding AS (a) | 126,000 | | 10,089 |
| | 66,187 |
Health Care Providers & Services - 2.7% |
Express Scripts, Inc. (a) | 3,314,380 | | 186,699 |
McKesson Corp. | 1,379,100 | | 103,667 |
Medco Health Solutions, Inc. (a) | 1,539,900 | | 93,965 |
| | 384,331 |
Health Care Technology - 0.5% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 597,100 | | 12,605 |
Cerner Corp. (a) | 489,100 | | 48,348 |
SXC Health Solutions Corp. (a) | 163,800 | | 7,886 |
| | 68,839 |
Life Sciences Tools & Services - 0.7% |
Agilent Technologies, Inc. (a) | 1,396,255 | | 58,405 |
Covance, Inc. (a) | 126,400 | | 7,126 |
Illumina, Inc. (a) | 391,000 | | 27,112 |
Thermo Fisher Scientific, Inc. (a) | 74,500 | | 4,267 |
| | 96,910 |
Pharmaceuticals - 0.4% |
Allergan, Inc. | 161,300 | | 11,389 |
AVANIR Pharmaceuticals Class A (a)(d) | 1,264,000 | | 5,119 |
Novo Nordisk AS Series B | 76,779 | | 8,643 |
Perrigo Co. | 50,000 | | 3,637 |
Questcor Pharmaceuticals, Inc. (a) | 181,600 | | 2,808 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Ranbaxy Laboratories Ltd. (a) | 560,099 | | $ 6,659 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 269,300 | | 14,717 |
| | 52,972 |
TOTAL HEALTH CARE | | 953,685 |
INDUSTRIALS - 12.5% |
Aerospace & Defense - 3.7% |
Bombardier, Inc. Class B (sub. vtg.) | 4,930,700 | | 28,074 |
Honeywell International, Inc. | 746,800 | | 41,828 |
Precision Castparts Corp. | 954,700 | | 136,513 |
Rockwell Collins, Inc. | 398,700 | | 25,573 |
The Boeing Co. | 1,665,800 | | 115,740 |
United Technologies Corp. | 2,201,300 | | 178,966 |
| | 526,694 |
Air Freight & Logistics - 0.5% |
United Parcel Service, Inc. Class B | 1,008,600 | | 72,236 |
Airlines - 0.5% |
Copa Holdings SA Class A | 216,000 | | 12,150 |
United Continental Holdings, Inc. (a) | 2,587,455 | | 65,721 |
| | 77,871 |
Building Products - 0.3% |
Armstrong World Industries, Inc. | 670,000 | | 27,209 |
Lennox International, Inc. | 196,000 | | 9,631 |
| | 36,840 |
Construction & Engineering - 1.2% |
Fluor Corp. | 1,360,600 | | 94,140 |
Jacobs Engineering Group, Inc. (a) | 968,471 | | 49,750 |
Shaw Group, Inc. (a) | 616,400 | | 23,281 |
| | 167,171 |
Electrical Equipment - 0.8% |
Emerson Electric Co. | 1,044,700 | | 61,512 |
Polypore International, Inc. (a) | 539,800 | | 25,991 |
Regal-Beloit Corp. | 108,300 | | 7,228 |
Rockwell Automation, Inc. | 295,100 | | 23,906 |
| | 118,637 |
Industrial Conglomerates - 0.1% |
Textron, Inc. | 572,000 | | 15,038 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - 4.0% |
Beml Ltd. | 504,883 | | $ 9,586 |
Caterpillar, Inc. | 1,237,200 | | 120,021 |
Cummins, Inc. | 892,900 | | 94,540 |
Danaher Corp. | 1,490,300 | | 68,643 |
Dover Corp. | 513,100 | | 32,890 |
Fiat Industrial SpA (a) | 617,600 | | 8,358 |
Ingersoll-Rand Co. Ltd. | 2,120,100 | | 100,069 |
PACCAR, Inc. | 1,208,600 | | 68,274 |
Pall Corp. | 686,200 | | 38,022 |
Parker Hannifin Corp. | 168,600 | | 15,075 |
WABCO Holdings, Inc. (a) | 294,200 | | 17,181 |
| | 572,659 |
Professional Services - 0.1% |
Manpower, Inc. | 285,800 | | 18,454 |
Road & Rail - 1.2% |
CSX Corp. | 664,500 | | 46,914 |
Kansas City Southern (a) | 100,000 | | 4,998 |
Swift Transporation Co. | 1,145,300 | | 16,366 |
Union Pacific Corp. | 1,004,500 | | 95,056 |
| | 163,334 |
Trading Companies & Distributors - 0.1% |
Mills Estruturas e Servicos de Engenharia SA | 827,400 | | 10,365 |
TOTAL INDUSTRIALS | | 1,779,299 |
INFORMATION TECHNOLOGY - 36.7% |
Communications Equipment - 5.1% |
Acme Packet, Inc. (a) | 464,200 | | 24,965 |
Ciena Corp. (a) | 373,700 | | 8,233 |
Cisco Systems, Inc. (a) | 4,640,200 | | 98,140 |
HTC Corp. | 1,787,000 | | 60,244 |
Juniper Networks, Inc. (a) | 1,955,400 | | 72,584 |
Motorola Mobility Holdings, Inc. (a) | 527,651 | | 14,706 |
QUALCOMM, Inc. | 7,794,600 | | 421,922 |
Research In Motion Ltd. (a) | 564,700 | | 33,379 |
| | 734,173 |
Computers & Peripherals - 9.5% |
Apple, Inc. (a) | 2,886,200 | | 979,345 |
EMC Corp. (a) | 3,529,900 | | 87,859 |
Hewlett-Packard Co. | 946,200 | | 43,232 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
NetApp, Inc. (a) | 2,039,100 | | $ 111,600 |
SanDisk Corp. (a) | 763,700 | | 34,649 |
Seagate Technology (a) | 2,907,600 | | 40,706 |
Western Digital Corp. (a) | 1,463,200 | | 49,778 |
| | 1,347,169 |
Electronic Equipment & Components - 0.3% |
HLS Systems International Ltd. (a) | 50,000 | | 803 |
Jabil Circuit, Inc. | 1,833,400 | | 37,053 |
TPK Holdings Co. | 16,000 | | 391 |
| | 38,247 |
Internet Software & Services - 6.9% |
Akamai Technologies, Inc. (a) | 2,271,600 | | 109,764 |
Alibaba.com Ltd. | 4,368,000 | | 8,628 |
Baidu.com, Inc. sponsored ADR (a) | 600,400 | | 65,221 |
Bitauto Holdings Ltd. ADR | 1,106,400 | | 11,993 |
Demand Media, Inc. (a) | 286,500 | | 5,810 |
eBay, Inc. (a) | 3,717,518 | | 112,864 |
Google, Inc. Class A (a) | 884,200 | | 530,838 |
INFO Edge India Ltd. | 293,110 | | 3,487 |
Mail.ru Group Ltd. GDR unit (a)(f) | 764,100 | | 27,202 |
OpenTable, Inc. (a) | 264,051 | | 20,760 |
Rackspace Hosting, Inc. (a) | 2,061,200 | | 69,071 |
VistaPrint Ltd. (a) | 138,400 | | 7,009 |
YouKu.com, Inc. ADR (a)(d) | 411,900 | | 12,205 |
| | 984,852 |
IT Services - 2.9% |
Accenture PLC Class A | 548,000 | | 28,206 |
Cognizant Technology Solutions Corp. Class A (a) | 1,141,900 | | 83,302 |
MasterCard, Inc. Class A | 543,600 | | 128,567 |
VeriFone Systems, Inc. (a) | 362,700 | | 14,486 |
Visa, Inc. Class A | 2,310,200 | | 161,367 |
| | 415,928 |
Semiconductors & Semiconductor Equipment - 6.3% |
Altera Corp. | 188,300 | | 7,074 |
Applied Materials, Inc. | 1,867,200 | | 29,296 |
Atmel Corp. (a) | 2,932,500 | | 39,706 |
Avago Technologies Ltd. | 3,661,100 | | 105,110 |
Broadcom Corp. Class A | 2,335,100 | | 105,290 |
GT Solar International, Inc. (a)(d) | 1,761,900 | | 19,460 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Lam Research Corp. (a) | 701,200 | | $ 34,983 |
Marvell Technology Group Ltd. (a) | 4,307,800 | | 81,891 |
Maxim Integrated Products, Inc. | 1,000,800 | | 25,841 |
Micron Technology, Inc. (a) | 895,000 | | 9,433 |
National Semiconductor Corp. | 3,163,000 | | 47,951 |
NVIDIA Corp. (a) | 9,794,422 | | 234,283 |
NXP Semiconductors NV | 2,790,200 | | 71,820 |
Silicon Laboratories, Inc. (a) | 364,700 | | 16,222 |
Skyworks Solutions, Inc. (a) | 974,800 | | 30,969 |
Spreadtrum Communications, Inc. ADR (a) | 720,700 | | 15,495 |
Teradyne, Inc. (a) | 1,000,000 | | 16,680 |
| | 891,504 |
Software - 5.7% |
Adobe Systems, Inc. (a) | 252,300 | | 8,339 |
BMC Software, Inc. (a) | 181,100 | | 8,638 |
BroadSoft, Inc. (a) | 930,000 | | 25,770 |
Check Point Software Technologies Ltd. (a) | 1,510,800 | | 67,306 |
Citrix Systems, Inc. (a) | 913,600 | | 57,721 |
Informatica Corp. (a) | 1,193,700 | | 55,388 |
Intuit, Inc. (a) | 712,600 | | 33,442 |
Microsoft Corp. | 54,500 | | 1,511 |
Nuance Communications, Inc. (a) | 1,387,000 | | 28,198 |
Oracle Corp. | 6,488,000 | | 207,811 |
QLIK Technologies, Inc. | 961,763 | | 22,323 |
RealPage, Inc. | 1,106,300 | | 30,302 |
Red Hat, Inc. (a) | 2,268,900 | | 93,751 |
Rovi Corp. (a) | 456,600 | | 28,200 |
salesforce.com, Inc. (a) | 722,518 | | 93,306 |
SuccessFactors, Inc. (a) | 199,100 | | 5,798 |
Velti Ltd. (a) | 298,100 | | 4,239 |
VMware, Inc. Class A (a) | 417,900 | | 35,739 |
| | 807,782 |
TOTAL INFORMATION TECHNOLOGY | | 5,219,655 |
MATERIALS - 3.5% |
Chemicals - 1.5% |
Cabot Corp. | 439,900 | | 19,026 |
Celanese Corp. Class A | 436,600 | | 18,115 |
CF Industries Holdings, Inc. | 504,600 | | 68,141 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
Grasim Industries Ltd. | 176,744 | | $ 9,382 |
LyondellBasell Industries NV Class A (a) | 1,460,600 | | 52,494 |
Methanex Corp. | 228,300 | | 6,207 |
Monsanto Co. | 98,200 | | 7,206 |
PPG Industries, Inc. | 51,300 | | 4,324 |
Rockwood Holdings, Inc. (a) | 384,600 | | 15,611 |
Sherwin-Williams Co. | 51,200 | | 4,338 |
Valspar Corp. | 118,200 | | 4,417 |
| | 209,261 |
Construction Materials - 0.0% |
ACC Ltd. | 150,000 | | 3,246 |
Containers & Packaging - 0.1% |
Ball Corp. | 220,500 | | 15,684 |
Metals & Mining - 1.9% |
Allegheny Technologies, Inc. | 66,300 | | 4,322 |
Carpenter Technology Corp. | 699,325 | | 28,777 |
Freeport-McMoRan Copper & Gold, Inc. | 708,700 | | 77,071 |
Reliance Steel & Aluminum Co. | 502,700 | | 26,286 |
Silver Wheaton Corp. (a) | 260,500 | | 8,038 |
Stillwater Mining Co. (a) | 393,700 | | 8,535 |
United States Steel Corp. (d) | 1,705,100 | | 98,333 |
Walter Energy, Inc. | 188,000 | | 24,491 |
| | 275,853 |
TOTAL MATERIALS | | 504,044 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
NII Holdings, Inc. (a) | 460,200 | | 19,319 |
TOTAL COMMON STOCKS (Cost $10,352,785) | 14,101,561 |
Nonconvertible Preferred Stocks - 0.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 0.8% |
Automobiles - 0.8% |
Porsche Automobil Holding SE | 416,200 | | $ 38,654 |
Volkswagen AG | 469,600 | | 75,860 |
| | 114,514 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $77,268) | 114,514 |
Money Market Funds - 1.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 49,595,621 | | 49,596 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 159,497,250 | | 159,497 |
TOTAL MONEY MARKET FUNDS (Cost $209,093) | 209,093 |
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $10,639,146) | | 14,425,168 |
NET OTHER ASSETS (LIABILITIES) - (1.3)% | | (189,793) |
NET ASSETS - 100% | $ 14,235,375 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $27,202,000 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 35 |
Fidelity Securities Lending Cash Central Fund | 472 |
Total | $ 507 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Furniture Brands International, Inc. | $ 16,160 | $ - | $ 14,466 | $ - | $ - |
Parsvnath Developers Ltd. | 18,023 | 14,168 | - | - | 22,306 |
Total | $ 34,183 | $ 14,168 | $ 14,466 | $ - | $ 22,306 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 2,407,951 | $ 2,405,371 | $ 2,580 | $ - |
Consumer Staples | 1,042,186 | 998,105 | 44,081 | - |
Energy | 1,473,488 | 1,473,488 | - | - |
Financials | 816,448 | 790,163 | 26,285 | - |
Health Care | 953,685 | 945,042 | 8,643 | - |
Industrials | 1,779,299 | 1,779,299 | - | - |
Information Technology | 5,219,655 | 5,219,655 | - | - |
Materials | 504,044 | 494,662 | 9,382 | - |
Telecommunication Services | 19,319 | 19,319 | - | - |
Money Market Funds | 209,093 | 209,093 | - | - |
Total Investments in Securities: | $ 14,425,168 | $ 14,334,197 | $ 90,971 | $ - |
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 | $ 6,774 |
Total Realized Gain (Loss) | (1,136) |
Total Unrealized Gain (Loss) | 174 |
Cost of Purchases | - |
Proceeds of Sales | (5,812) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.8% |
Ireland | 1.3% |
Germany | 1.1% |
India | 1.1% |
Others (Individually Less Than 1%) | 7.7% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,028,059,000 of which $671,371,000 and $356,688,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $158,006) - See accompanying schedule: Unaffiliated issuers (cost $10,399,202) | $ 14,193,769 | |
Fidelity Central Funds (cost $209,093) | 209,093 | |
Other affiliated issuers (cost $30,851) | 22,306 | |
Total Investments (cost $10,639,146) | | $ 14,425,168 |
Foreign currency held at value (cost $820) | | 820 |
Receivable for investments sold | | 265,133 |
Receivable for fund shares sold | | 32,727 |
Dividends receivable | | 2,801 |
Distributions receivable from Fidelity Central Funds | | 191 |
Prepaid expenses | | 30 |
Other receivables | | 946 |
Total assets | | 14,727,816 |
| | |
Liabilities | | |
Payable to custodian bank | $ 374 | |
Payable for investments purchased | 306,929 | |
Payable for fund shares redeemed | 14,250 | |
Accrued management fee | 8,434 | |
Other affiliated payables | 2,379 | |
Other payables and accrued expenses | 578 | |
Collateral on securities loaned, at value | 159,497 | |
Total liabilities | | 492,441 |
| | |
Net Assets | | $ 14,235,375 |
Net Assets consist of: | | |
Paid in capital | | $ 10,921,318 |
Accumulated net investment loss | | (10,769) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (461,169) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,785,995 |
Net Assets | | $ 14,235,375 |
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, 2011 (Unaudited) |
| | |
Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($12,293,630 ÷ 265,604 shares) | | $ 46.29 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,237,872 ÷ 26,745 shares) | | $ 46.28 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($703,873 ÷ 15,201 shares) | | $ 46.30 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 52,561 |
Interest | | 3 |
Income from Fidelity Central Funds | | 507 |
Total income | | 53,071 |
| | |
Expenses | | |
Management fee
Basic fee | $ 35,632 | |
Performance adjustment | 8,114 | |
Transfer agent fees | 13,009 | |
Accounting and security lending fees | 712 | |
Custodian fees and expenses | 271 | |
Independent trustees' compensation | 35 | |
Registration fees | 74 | |
Audit | 66 | |
Legal | 43 | |
Interest | 12 | |
Miscellaneous | 63 | |
Total expenses before reductions | 58,031 | |
Expense reductions | (894) | 57,137 |
Net investment income (loss) | | (4,066) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 664,639 | |
Other affiliated issuers | (10,044) | |
Foreign currency transactions | (1,905) | |
Total net realized gain (loss) | | 652,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $49) | 1,984,810 | |
Assets and liabilities in foreign currencies | 148 | |
Total change in net unrealized appreciation (depreciation) | | 1,984,958 |
Net gain (loss) | | 2,637,648 |
Net increase (decrease) in net assets resulting from operations | | $ 2,633,582 |
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 January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (4,066) | $ 13,622 |
Net realized gain (loss) | 652,690 | 1,055,028 |
Change in net unrealized appreciation (depreciation) | 1,984,958 | 793,347 |
Net increase (decrease) in net assets resulting
from operations | 2,633,582 | 1,861,997 |
Distributions to shareholders from net investment income | (8,765) | (57,433) |
Distributions to shareholders from net realized gain | (6,091) | - |
Total distributions | (14,856) | (57,433) |
Share transactions - net increase (decrease) | 68,429 | (538,131) |
Total increase (decrease) in net assets | 2,687,155 | 1,266,433 |
| | |
Net Assets | | |
Beginning of period | 11,548,220 | 10,281,787 |
End of period (including accumulated net investment loss of $10,769 and undistributed net investment income of $2,062, respectively) | $ 14,235,375 | $ 11,548,220 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | .04 | .27 | .35 | .32 | .23 |
Net realized and unrealized gain (loss) | 8.72 | 5.80 | (6.36) | (2.89) | 6.19 | (1.06) |
Total from investment operations | 8.70 | 5.84 | (6.09) | (2.54) | 6.51 | (.83) |
Distributions from net investment income | (.02) | (.18) | (.29) | (.33) | (.24) | (.23) |
Distributions from net realized gain | (.02) | - | (.71) | (4.95) | (.93) | - |
Total distributions | (.04) | (.18) | (1.00) | (5.28) | (1.17) | (.23) |
Net asset value, end of period | $ 46.29 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Total Return B, C | 23.12% | 18.29% | (15.85)% | (6.30)% | 16.02% | (1.97)% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of fee waivers, if any | .93% A | .94% | .76% | .58% | .60% | .63% |
Expenses net of all reductions | .92% A | .93% | .76% | .57% | .59% | .61% |
Net investment income (loss) | (.09)% A | .10% | .93% | .81% | .72% | .54% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 12,294 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 | $ 19,571 |
Portfolio turnover rate F | 126% A | 135% | 134% | 82% | 87% | 48% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .02 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 8.72 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 8.74 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.10) | (.25) | (.34) | - |
Distributions from net realized gain | (.02) | - | (.71) | - |
Total distributions | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 46.28 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 23.23% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .76% A | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .76% A | .75% | .53% | .41% A |
Expenses net of all reductions | .74% A | .74% | .52% | .41% A |
Net investment income (loss) | .09% A | .30% | 1.16% | 1.09% A |
Supplemental Data | | | | |
Net assets, end of period
(000 omitted) | $ 1,237,872 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 126% A | 135% | 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .13 | - I |
Net realized and unrealized gain (loss) | 8.71 | 5.80 | 2.82 |
Total from investment operations | 8.74 | 5.93 | 2.82 |
Distributions from net investment income | (.11) | (.22) | - |
Distributions from net realized gain | (.02) | - | - |
Total distributions | (.13) | (.22) | - |
Net asset value, end of period | $ 46.30 | $ 37.69 | $ 31.98 |
Total Return B, C | 23.24% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .71% A | .70% | .51%A |
Expenses net of fee waivers, if any | .71%A | .70% | .51%A |
Expenses net of all reductions | .69%A | .68% | .51%A |
Net investment income (loss) | .14%A | .35% | (.05)%A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 703,873 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 126%A | 135% | 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 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, 2011 (Unaudited)
(Amounts in thousands except ratios)
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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, 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 | $ 3,858,280 |
Gross unrealized depreciation | (125,852) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,732,428 |
Tax cost | $ 10,692,740 |
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 $8,032,085 and $7,929,304, 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 Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% 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 Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. 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
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Blue Chip Growth | $ 12,731 | .23 |
Class K | 278 | .05 |
| $ 13,009 | |
* 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 $269 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 19,315 | .47% | $ 10 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $22 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,013. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $472, including $22 from securities loaned to FCM.
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 $27,562. The weighted average interest rate was .69%. The interest expense amounted to $2 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 $894 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Blue Chip Growth | $ 5,059 | $ 52,296 |
Class K | 2,396 | 4,902 |
Class F | 1,310 | 235 |
Total | $ 8,765 | $ 57,433 |
From net realized gain | | |
Blue Chip Growth | $ 5,301 | $ - |
Class K | 520 | - |
Class F | 270 | - |
Total | $ 6,091 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Blue Chip Growth | | | | |
Shares sold | 24,844 | 41,698 | $ 1,071,524 | $ 1,553,486 |
Conversion to Class K | - | (604) | - | (19,981) |
Reinvestment of distributions | 232 | 1,459 | 10,166 | 51,338 |
Shares redeemed | (33,085) | (72,051) | (1,382,230) | (2,676,741) |
Net increase (decrease) | (8,009) | (29,498) | $ (300,540) | $ (1,091,898) |
Class K | | | | |
Shares sold | 6,451 | 11,377 | $ 271,887 | $ 427,050 |
Conversion from Blue Chip Growth | - | 603 | - | 19,981 |
Reinvestment of distributions | 70 | 139 | 2,916 | 4,902 |
Shares redeemed | (4,511) | (5,839) | (188,331) | (218,811) |
Net increase (decrease) | 2,010 | 6,280 | $ 86,472 | $ 233,122 |
Class F | | | | |
Shares sold | 7,100 | 8,796 | $ 301,794 | $ 331,309 |
Reinvestment of distributions | 38 | 6 | 1,580 | 235 |
Shares redeemed | (465) | (282) | (20,877) | (10,900) |
Net increase (decrease) | 6,673 | 8,520 | $ 282,497 | $ 320,644 |
A Conversion transactions for Class K and Blue Chip Growth are presented for the period August 1, 2009 through August 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
13. 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-K-USAN-0311
1.863115.102
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past 6 months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Actual | .72% | $ 1,000.00 | $ 1,140.00 | $ 3.88 |
Hypothetical (5% return per year before expenses) | | $ 1,000.00 | $ 1,021.58 | $ 3.67 |
* 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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Pfizer, Inc. | 5.5 | 3.3 |
Sprint Nextel Corp. | 4.0 | 0.9 |
Seagate Technology | 3.8 | 0.0 |
General Electric Co. | 3.5 | 1.3 |
Garmin Ltd. | 2.8 | 0.0 |
Chevron Corp. | 2.7 | 3.1 |
Johnson & Johnson | 2.7 | 2.7 |
Grupo Modelo SAB de CV Series C | 2.7 | 0.3 |
JPMorgan Chase & Co. | 2.6 | 5.0 |
Citigroup, Inc. | 2.6 | 1.9 |
| 32.9 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.4 | 29.9 |
Health Care | 16.6 | 13.9 |
Energy | 12.3 | 13.9 |
Information Technology | 11.0 | 7.1 |
Industrials | 9.4 | 11.5 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 97.7% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 2.3% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 22.3% | | ** Foreign investments | 9.3% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.7% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.9% |
Automobiles - 0.7% |
General Motors Co. | 56,132 | | $ 2,048,258 |
Honda Motor Co. Ltd. | 16,100 | | 693,945 |
| | 2,742,203 |
Household Durables - 2.8% |
D.R. Horton, Inc. | 14,700 | | 182,133 |
Garmin Ltd. (d) | 333,559 | | 10,283,624 |
| | 10,465,757 |
Media - 3.9% |
Comcast Corp. Class A (special) (non-vtg.) | 185,597 | | 3,979,200 |
Time Warner, Inc. | 126,500 | | 3,978,425 |
Washington Post Co. Class B (d) | 15,070 | | 6,455,235 |
| | 14,412,860 |
Specialty Retail - 0.5% |
Best Buy Co., Inc. | 52,793 | | 1,794,962 |
TOTAL CONSUMER DISCRETIONARY | | 29,415,782 |
CONSUMER STAPLES - 6.5% |
Beverages - 3.0% |
Grupo Modelo SAB de CV Series C | 1,603,600 | | 9,882,073 |
The Coca-Cola Co. | 18,900 | | 1,187,865 |
| | 11,069,938 |
Food & Staples Retailing - 1.2% |
CVS Caremark Corp. | 116,100 | | 3,970,620 |
Kroger Co. | 32,450 | | 694,430 |
| | 4,665,050 |
Food Products - 1.9% |
Dean Foods Co. (a) | 257,457 | | 2,613,189 |
Kraft Foods, Inc. Class A | 149,460 | | 4,568,992 |
| | 7,182,181 |
Household Products - 0.4% |
Procter & Gamble Co. | 20,900 | | 1,319,417 |
TOTAL CONSUMER STAPLES | | 24,236,586 |
ENERGY - 12.3% |
Energy Equipment & Services - 0.5% |
Transocean Ltd. (a) | 21,100 | | 1,686,523 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 11.8% |
Anadarko Petroleum Corp. | 55,700 | | $ 4,293,356 |
Apache Corp. | 16,100 | | 1,921,696 |
BP PLC sponsored ADR | 164,162 | | 7,792,770 |
Chevron Corp. | 105,600 | | 10,024,608 |
ConocoPhillips | 49,700 | | 3,551,562 |
Exxon Mobil Corp. | 17,750 | | 1,432,070 |
Marathon Oil Corp. | 132,900 | | 6,073,530 |
Occidental Petroleum Corp. | 35,616 | | 3,443,355 |
Suncor Energy, Inc. | 101,800 | | 4,215,990 |
Total SA sponsored ADR | 21,400 | | 1,257,678 |
| | 44,006,615 |
TOTAL ENERGY | | 45,693,138 |
FINANCIALS - 22.4% |
Capital Markets - 5.1% |
Bank of New York Mellon Corp. | 123,600 | | 3,860,028 |
BlackRock, Inc. Class A | 6,099 | | 1,207,724 |
Goldman Sachs Group, Inc. | 30,700 | | 5,023,134 |
Invesco Ltd. | 46,000 | | 1,138,040 |
Morgan Stanley | 85,500 | | 2,513,700 |
Northern Trust Corp. | 55,500 | | 2,884,890 |
State Street Corp. | 50,570 | | 2,362,630 |
| | 18,990,146 |
Commercial Banks - 4.1% |
Aozora Bank Ltd. | 871,000 | | 1,920,699 |
PNC Financial Services Group, Inc. | 9,922 | | 595,320 |
Sumitomo Mitsui Financial Group, Inc. | 118,600 | | 4,032,399 |
Wells Fargo & Co. | 270,998 | | 8,785,755 |
| | 15,334,173 |
Consumer Finance - 0.7% |
Discover Financial Services | 129,100 | | 2,658,169 |
Diversified Financial Services - 6.6% |
Bank of America Corp. | 380,802 | | 5,228,411 |
Citigroup, Inc. (a) | 1,971,560 | | 9,502,919 |
JPMorgan Chase & Co. | 216,552 | | 9,731,847 |
| | 24,463,177 |
Insurance - 5.5% |
Berkshire Hathaway, Inc. Class B (a) | 50,920 | | 4,162,710 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
Everest Re Group Ltd. | 11,044 | | $ 930,788 |
First American Financial Corp. | 156,200 | | 2,422,662 |
Genworth Financial, Inc. Class A (a) | 97,727 | | 1,326,155 |
Lincoln National Corp. | 91,800 | | 2,647,512 |
MetLife, Inc. | 95,000 | | 4,348,150 |
RenaissanceRe Holdings Ltd. | 26,800 | | 1,758,616 |
XL Capital Ltd. Class A | 127,312 | | 2,917,991 |
| | 20,514,584 |
Thrifts & Mortgage Finance - 0.4% |
Radian Group, Inc. | 192,900 | | 1,385,022 |
TOTAL FINANCIALS | | 83,345,271 |
HEALTH CARE - 16.6% |
Biotechnology - 1.4% |
Gilead Sciences, Inc. (a) | 132,200 | | 5,073,836 |
Health Care Equipment & Supplies - 1.3% |
Boston Scientific Corp. (a) | 129,200 | | 901,816 |
CareFusion Corp. (a) | 77,200 | | 1,986,356 |
Covidien PLC | 38,285 | | 1,817,389 |
| | 4,705,561 |
Health Care Providers & Services - 1.4% |
Omnicare, Inc. | 113,979 | | 2,954,336 |
UnitedHealth Group, Inc. | 60,000 | | 2,463,000 |
| | 5,417,336 |
Pharmaceuticals - 12.5% |
Eli Lilly & Co. | 194,489 | | 6,762,383 |
Johnson & Johnson | 166,081 | | 9,926,661 |
Merck & Co., Inc. | 283,515 | | 9,404,193 |
Pfizer, Inc. | 1,116,319 | | 20,339,333 |
| | 46,432,570 |
TOTAL HEALTH CARE | | 61,629,303 |
INDUSTRIALS - 9.4% |
Aerospace & Defense - 1.0% |
United Technologies Corp. | 44,200 | | 3,593,460 |
Building Products - 0.5% |
Armstrong World Industries, Inc. | 42,600 | | 1,729,986 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Construction & Engineering - 1.3% |
Jacobs Engineering Group, Inc. (a) | 61,350 | | $ 3,151,550 |
KBR, Inc. | 57,200 | | 1,836,120 |
| | 4,987,670 |
Electrical Equipment - 0.4% |
Alstom SA | 26,116 | | 1,457,463 |
Industrial Conglomerates - 4.6% |
General Electric Co. | 646,841 | | 13,027,378 |
Siemens AG sponsored ADR | 8,507 | | 1,092,384 |
Textron, Inc. | 108,286 | | 2,846,839 |
| | 16,966,601 |
Machinery - 1.6% |
Ingersoll-Rand Co. Ltd. | 70,600 | | 3,332,320 |
Navistar International Corp. (a) | 43,600 | | 2,827,460 |
| | 6,159,780 |
TOTAL INDUSTRIALS | | 34,894,960 |
INFORMATION TECHNOLOGY - 11.0% |
Communications Equipment - 1.3% |
Comverse Technology, Inc. (a) | 761,300 | | 4,994,128 |
Computers & Peripherals - 4.5% |
Hewlett-Packard Co. | 51,436 | | 2,350,111 |
Seagate Technology (a) | 1,018,095 | | 14,253,330 |
| | 16,603,441 |
Electronic Equipment & Components - 0.9% |
Avnet, Inc. (a) | 48,823 | | 1,739,075 |
Corning, Inc. | 76,429 | | 1,697,488 |
| | 3,436,563 |
Internet Software & Services - 0.4% |
eBay, Inc. (a) | 51,012 | | 1,548,724 |
IT Services - 0.4% |
CoreLogic, Inc. (a) | 67,800 | | 1,359,390 |
Office Electronics - 1.2% |
Xerox Corp. | 408,400 | | 4,337,208 |
Semiconductors & Semiconductor Equipment - 0.6% |
ASML Holding NV | 25,740 | | 1,081,337 |
MEMC Electronic Materials, Inc. (a) | 116,000 | | 1,286,440 |
| | 2,367,777 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - 1.7% |
Microsoft Corp. | 230,528 | | $ 6,391,389 |
TOTAL INFORMATION TECHNOLOGY | | 41,038,620 |
MATERIALS - 2.5% |
Chemicals - 1.6% |
Clariant AG (Reg.) (a) | 203,949 | | 3,600,942 |
Dow Chemical Co. | 67,638 | | 2,399,796 |
| | 6,000,738 |
Metals & Mining - 0.9% |
Goldcorp, Inc. | 84,900 | | 3,408,382 |
TOTAL MATERIALS | | 9,409,120 |
TELECOMMUNICATION SERVICES - 7.5% |
Diversified Telecommunication Services - 2.4% |
AT&T, Inc. | 181,800 | | 5,003,136 |
Verizon Communications, Inc. | 109,418 | | 3,897,469 |
| | 8,900,605 |
Wireless Telecommunication Services - 5.1% |
Sprint Nextel Corp. (a) | 3,255,513 | | 14,714,919 |
Vodafone Group PLC sponsored ADR | 148,692 | | 4,216,905 |
| | 18,931,824 |
TOTAL TELECOMMUNICATION SERVICES | | 27,832,429 |
UTILITIES - 1.6% |
Electric Utilities - 1.6% |
NextEra Energy, Inc. | 63,375 | | 3,388,028 |
PPL Corp. | 98,239 | | 2,533,584 |
| | 5,921,612 |
TOTAL COMMON STOCKS (Cost $354,969,435) | 363,416,821 |
Money Market Funds - 4.2% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 3,845,817 | | $ 3,845,817 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 11,932,853 | | 11,932,853 |
TOTAL MONEY MARKET FUNDS (Cost $15,778,670) | 15,778,670 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $370,748,105) | | 379,195,491 |
NET OTHER ASSETS (LIABILITIES) - (1.9)% | | (7,092,405) |
NET ASSETS - 100% | $ 372,103,086 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,234 |
Fidelity Securities Lending Cash Central Fund | 64,424 |
Total | $ 68,658 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 29,415,782 | $ 28,721,837 | $ 693,945 | $ - |
Consumer Staples | 24,236,586 | 24,236,586 | - | - |
Energy | 45,693,138 | 45,693,138 | - | - |
Financials | 83,345,271 | 79,312,872 | 4,032,399 | - |
Health Care | 61,629,303 | 61,629,303 | - | - |
Industrials | 34,894,960 | 34,894,960 | - | - |
Information Technology | 41,038,620 | 41,038,620 | - | - |
Materials | 9,409,120 | 9,409,120 | - | - |
Telecommunication Services | 27,832,429 | 27,832,429 | - | - |
Utilities | 5,921,612 | 5,921,612 | - | - |
Money Market Funds | 15,778,670 | 15,778,670 | - | - |
Total Investments in Securities: | $ 379,195,491 | $ 374,469,147 | $ 4,726,344 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.7% |
Ireland | 6.0% |
Switzerland | 4.3% |
United Kingdom | 3.2% |
Mexico | 2.7% |
Canada | 2.0% |
Japan | 1.8% |
Bermuda | 1.0% |
Others (Individually Less Than 1%) | 1.3% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $168,260,098 of which $112,736,963 and $55,523,135 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $11,589,670) - See accompanying schedule: Unaffiliated issuers (cost $354,969,435) | $ 363,416,821 | |
Fidelity Central Funds (cost $15,778,670) | 15,778,670 | |
Total Investments (cost $370,748,105) | | $ 379,195,491 |
Receivable for investments sold | | 12,570,061 |
Receivable for fund shares sold | | 446,432 |
Dividends receivable | | 316,400 |
Distributions receivable from Fidelity Central Funds | | 31,642 |
Prepaid expenses | | 841 |
Other receivables | | 7,158 |
Total assets | | 392,568,025 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,957,837 | |
Payable for fund shares redeemed | 1,186,141 | |
Accrued management fee | 99,542 | |
Other affiliated payables | 91,504 | |
Other payables and accrued expenses | 197,062 | |
Collateral on securities loaned, at value | 11,932,853 | |
Total liabilities | | 20,464,939 |
| | |
Net Assets | | $ 372,103,086 |
Net Assets consist of: | | |
Paid in capital | | $ 528,186,478 |
Distributions in excess of net investment income | | (155,259) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (164,212,862) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 8,284,729 |
Net Assets, for 33,704,368 shares outstanding | | $ 372,103,086 |
Net Asset Value, offering price and redemption price per share ($372,103,086 ÷ 33,704,368 shares) | | $ 11.04 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,769,449 |
Income from Fidelity Central Funds | | 68,658 |
Total income | | 2,838,107 |
| | |
Expenses | | |
Management fee
Basic fee | $ 898,650 | |
Performance adjustment | (334,882) | |
Transfer agent fees | 476,749 | |
Accounting and security lending fees | 62,911 | |
Custodian fees and expenses | 22,442 | |
Independent trustees' compensation | 912 | |
Registration fees | 6,878 | |
Audit | 29,103 | |
Legal | 1,040 | |
Miscellaneous | 1,864 | |
Total expenses before reductions | 1,165,667 | |
Expense reductions | (6,154) | 1,159,513 |
Net investment income (loss) | | 1,678,594 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 15,186,227 | |
Foreign currency transactions | (32,274) | |
Total net realized gain (loss) | | 15,153,953 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 25,191,440 | |
Assets and liabilities in foreign currencies | (2,677) | |
Total change in net unrealized appreciation (depreciation) | | 25,188,763 |
Net gain (loss) | | 40,342,716 |
Net increase (decrease) in net assets resulting from operations | | $ 42,021,310 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,678,594 | $ 3,671,908 |
Net realized gain (loss) | 15,153,953 | 15,221,567 |
Change in net unrealized appreciation (depreciation) | 25,188,763 | 18,524,048 |
Net increase (decrease) in net assets resulting
from operations | 42,021,310 | 37,417,523 |
Distributions to shareholders from net investment income | (4,255,614) | (4,762,190) |
Distributions to shareholders from net realized gain | (151,971) | - |
Total distributions | (4,407,585) | (4,762,190) |
Share transactions
Proceeds from sales of shares | 67,243,344 | 59,027,300 |
Reinvestment of distributions | 4,272,411 | 4,632,338 |
Cost of shares redeemed | (61,939,531) | (104,167,012) |
Net increase (decrease) in net assets resulting from share transactions | 9,576,224 | (40,507,374) |
Total increase (decrease) in net assets | 47,189,949 | (7,852,041) |
| | |
Net Assets | | |
Beginning of period | 324,913,137 | 332,765,178 |
End of period (including distributions in excess of net investment income of $155,259 and undistributed net investment income of $2,421,761, respectively) | $ 372,103,086 | $ 324,913,137 |
Other Information Shares | | |
Sold | 6,223,470 | 5,931,222 |
Issued in reinvestment of distributions | 426,327 | 479,700 |
Redeemed | (6,043,291) | (10,487,025) |
Net increase (decrease) | 606,506 | (4,076,103) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.82 | $ 8.95 | $ 12.15 | $ 15.46 | $ 13.95 | $ 13.21 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .10 | .16 | .21 | .19 | .10 |
Net realized and unrealized gain (loss) | 1.31 | .90 | (3.17) | (2.68) | 2.05 | .95 |
Total from investment operations | 1.36 | 1.00 | (3.01) | (2.47) | 2.24 | 1.05 |
Distributions from net investment income | (.14) | (.13) | (.18) | (.16) | (.13) | (.08) |
Distributions from net realized gain | (.01) | - | (.01) | (.68) | (.60) | (.23) |
Total distributions | (.14) H | (.13) | (.19) | (.84) | (.73) | (.31) |
Net asset value, end of period | $ 11.04 | $ 9.82 | $ 8.95 | $ 12.15 | $ 15.46 | $ 13.95 |
Total Return B,C | 14.00% | 11.20% | (24.89)% | (16.86)% | 16.60% | 8.05% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .72% A | .87% | .77% | .92% | .87% | .94% |
Expenses net of fee waivers, if any | .72% A | .87% | .77% | .92% | .87% | .94% |
Expenses net of all reductions | .72% A | .86% | .77% | .91% | .87% | .93% |
Net investment income (loss) | 1.04% A | 1.05% | 1.87% | 1.46% | 1.25% | .76% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 372,103 | $ 324,913 | $ 332,765 | $ 517,730 | $ 731,351 | $ 272,702 |
Portfolio turnover rate F | 189% A | 59% | 69% | 61% | 92% | 74% |
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 Total distributions of $.14 per share is comprised of distributions from net investment income of $.135 and distributions from net realized gain of $.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, 2011 (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 invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales 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 | $ 26,502,952 |
Gross unrealized depreciation | (25,629,606) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 873,346 |
Tax cost | $ 378,322,145 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $301,240,500 and $300,906,687, 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 .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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .35% 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 .30% 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 $8,623 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $579 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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. The value of securities loaned to FCM at period end was $1,541,500. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $64,424, including $7,509 from securities loaned to FCM.
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 $6,154 for the period.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
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
BCV-USAN-0311
1.789732.108
Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Dividend Growth | .93% | | | |
Actual | | $ 1,000.00 | $ 1,233.30 | $ 5.24 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
Class K | .77% | | | |
Actual | | $ 1,000.00 | $ 1,234.20 | $ 4.34 |
HypotheticalA | | $ 1,000.00 | $ 1,021.32 | $ 3.92 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 2.7 | 2.2 |
Wells Fargo & Co. | 1.8 | 1.9 |
JPMorgan Chase & Co. | 1.6 | 1.8 |
Citigroup, Inc. | 1.6 | 0.8 |
General Electric Co. | 1.3 | 1.6 |
The Coca-Cola Co. | 1.3 | 0.8 |
Cisco Systems, Inc. | 1.0 | 1.3 |
Oracle Corp. | 0.9 | 0.9 |
Hewlett-Packard Co. | 0.9 | 1.1 |
Merck & Co., Inc. | 0.9 | 1.1 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 17.3 | 17.4 |
Financials | 15.8 | 17.5 |
Industrials | 14.5 | 13.9 |
Energy | 12.2 | 11.2 |
Consumer Discretionary | 10.7 | 10.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks and Investment Companies 97.8% | | | Stocks and Investment Companies 97.7% | |
 | Bonds 0.0% | | | Bonds 0.3% | |
 | Convertible
Securities 1.1% | | | Convertible
Securities 1.3% | |
| Short-Term
Investments and
Net Other Assets 1.1% | | | Short-Term
Investments and
Net Other Assets 0.7% | |
* Foreign investments | 19.6% | | ** Foreign investments | 16.6% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.3% |
Auto Components - 0.4% |
Exide Industries Ltd. | 306,475 | | $ 859 |
Minth Group Ltd. | 4,494,000 | | 6,801 |
Modine Manufacturing Co. (a) | 641,445 | | 10,584 |
Tenneco, Inc. (a) | 211,707 | | 8,750 |
Tower International, Inc. | 69,197 | | 1,237 |
TRW Automotive Holdings Corp. (a) | 150,864 | | 9,001 |
| | 37,232 |
Automobiles - 0.7% |
Bayerische Motoren Werke AG (BMW) | 149,691 | | 11,492 |
General Motors Co. | 142,548 | | 5,202 |
Harley-Davidson, Inc. | 294,262 | | 11,667 |
Mazda Motor Corp. | 2,500,000 | | 7,371 |
Thor Industries, Inc. | 220,590 | | 8,197 |
Winnebago Industries, Inc. (a)(d)(e) | 1,556,036 | | 23,185 |
| | 67,114 |
Distributors - 0.1% |
Silver Base Group Holdings Ltd. | 11,002,000 | | 7,902 |
Diversified Consumer Services - 0.6% |
Coinstar, Inc. (a) | 204,300 | | 8,456 |
DeVry, Inc. | 261,696 | | 13,637 |
Global Education & Technology Group Ltd. ADR (a) | 57,530 | | 518 |
Grand Canyon Education, Inc. (a) | 163,100 | | 2,950 |
H&R Block, Inc. | 326,600 | | 4,089 |
ITT Educational Services, Inc. (a) | 45,000 | | 2,963 |
Service Corp. International | 1,072,000 | | 9,294 |
Stewart Enterprises, Inc. Class A (d) | 2,248,355 | | 14,345 |
| | 56,252 |
Hotels, Restaurants & Leisure - 2.0% |
Accor SA | 581,822 | | 26,604 |
Ameristar Casinos, Inc. | 272,485 | | 4,185 |
Bravo Brio Restaurant Group, Inc. | 519,449 | | 8,467 |
Brinker International, Inc. | 914,306 | | 21,514 |
Club Mediterranee SA (a) | 98,055 | | 2,249 |
DineEquity, Inc. (a)(d) | 493,765 | | 25,468 |
InterContinental Hotel Group PLC | 448,700 | | 9,461 |
McDonald's Corp. | 204,060 | | 15,033 |
NH Hoteles SA (a) | 2,196,373 | | 12,990 |
O'Charleys, Inc. (a)(e) | 1,496,225 | | 10,354 |
Penn National Gaming, Inc. (a) | 8,187 | | 293 |
Sol Melia SA | 812,867 | | 8,574 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Hotels, Restaurants & Leisure - continued |
Spur Corp. Ltd. | 1,680,051 | | $ 3,271 |
Starbucks Corp. | 163,530 | | 5,156 |
WMS Industries, Inc. (a) | 867,944 | | 36,410 |
Wyndham Worldwide Corp. | 408,509 | | 11,491 |
| | 201,520 |
Household Durables - 0.6% |
Garmin Ltd. (d) | 343,400 | | 10,587 |
La-Z-Boy, Inc. (a) | 323,157 | | 2,689 |
Newell Rubbermaid, Inc. | 367,400 | | 7,072 |
PulteGroup, Inc. (a) | 1,102,075 | | 8,695 |
Stanley Black & Decker, Inc. | 287,339 | | 20,884 |
Techtronic Industries Co. Ltd. | 4,062,000 | | 5,054 |
Tempur-Pedic International, Inc. (a) | 248,000 | | 10,823 |
| | 65,804 |
Internet & Catalog Retail - 0.1% |
Expedia, Inc. | 588,903 | | 14,817 |
Leisure Equipment & Products - 0.1% |
Hasbro, Inc. | 261,601 | | 11,534 |
Media - 2.4% |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | | 9,900 |
Cinemark Holdings, Inc. | 339,188 | | 5,749 |
Comcast Corp.: | | | |
Class A | 51,870 | | 1,180 |
Class A (special) (non-vtg.) | 2,279,067 | | 48,863 |
McGraw-Hill Companies, Inc. | 313,498 | | 12,220 |
MDC Partners, Inc. Class A (sub. vtg.) | 1,398,539 | | 23,398 |
Mood Media Corp. (a) | 1,001,500 | | 2,001 |
News Corp. Class A | 429,081 | | 6,445 |
Saraiva SA Livreiros Editores | 179,400 | | 4,454 |
The Walt Disney Co. | 1,243,725 | | 48,344 |
Time Warner Cable, Inc. | 642,634 | | 43,590 |
Time Warner, Inc. | 845,816 | | 26,601 |
United Business Media Ltd. | 751,111 | | 8,451 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 398,800 | | 9,139 |
| | 250,335 |
Multiline Retail - 0.6% |
Maoye International Holdings Ltd. | 9,689,000 | | 4,300 |
Target Corp. | 1,040,021 | | 57,024 |
| | 61,324 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - 2.3% |
Advance Auto Parts, Inc. | 466,900 | | $ 29,854 |
Asbury Automotive Group, Inc. (a) | 479,969 | | 8,836 |
Best Buy Co., Inc. | 374,842 | | 12,745 |
Big 5 Sporting Goods Corp. | 492,300 | | 6,242 |
Carphone Warehouse Group PLC (a) | 1,419,949 | | 9,165 |
Casual Male Retail Group, Inc. (a) | 2,082,200 | | 8,745 |
Collective Brands, Inc. (a) | 106,250 | | 2,163 |
Express, Inc. | 213,030 | | 3,707 |
Foot Locker, Inc. | 692,827 | | 12,374 |
Foschini Ltd. | 552,000 | | 6,103 |
Hengdeli Holdings Ltd. | 25,940,000 | | 14,606 |
Home Depot, Inc. | 328,168 | | 12,067 |
I.T Ltd. | 4,754,000 | | 3,219 |
Lowe's Companies, Inc. | 2,016,312 | | 50,005 |
Lumber Liquidators Holdings, Inc. (a)(d) | 265,919 | | 7,430 |
MarineMax, Inc. (a) | 679,636 | | 6,144 |
OfficeMax, Inc. (a) | 919,756 | | 14,780 |
Staples, Inc. | 662,378 | | 14,778 |
SuperGroup PLC | 110,926 | | 2,718 |
Urban Outfitters, Inc. (a) | 322,600 | | 10,910 |
| | 236,591 |
Textiles, Apparel & Luxury Goods - 0.4% |
Bosideng International Holdings Ltd. | 21,544,000 | | 6,687 |
G-III Apparel Group Ltd. (a) | 372,829 | | 13,008 |
Maidenform Brands, Inc. (a) | 118,516 | | 3,051 |
Peak Sport Products Co. Ltd. (d) | 7,808,000 | | 5,197 |
Phillips-Van Heusen Corp. | 288,763 | | 16,855 |
| | 44,798 |
TOTAL CONSUMER DISCRETIONARY | | 1,055,223 |
CONSUMER STAPLES - 8.2% |
Beverages - 1.9% |
Anheuser-Busch InBev SA NV | 302,047 | | 16,664 |
Britvic PLC | 830,568 | | 5,968 |
Carlsberg AS Series B | 136,900 | | 13,639 |
Dr Pepper Snapple Group, Inc. | 504,687 | | 17,881 |
Grupo Modelo SAB de CV Series C | 1,687,400 | | 10,398 |
The Coca-Cola Co. | 2,111,041 | | 132,679 |
| | 197,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 2.1% |
CVS Caremark Corp. | 1,043,197 | | $ 35,677 |
Droga Raia SA | 343,000 | | 5,389 |
Drogasil SA | 707,700 | | 5,093 |
Eurocash SA | 102,200 | | 1,130 |
Kroger Co. | 2,269,372 | | 48,565 |
PriceSmart, Inc. | 158,748 | | 5,793 |
Susser Holdings Corp. (a) | 474,400 | | 6,841 |
Wal-Mart Stores, Inc. | 1,004,563 | | 56,326 |
Walgreen Co. | 1,004,818 | | 40,635 |
Winn-Dixie Stores, Inc. (a) | 1,091,635 | | 6,965 |
| | 212,414 |
Food Products - 2.1% |
Archer Daniels Midland Co. | 584,315 | | 19,090 |
Calavo Growers, Inc. | 581,770 | | 13,427 |
Chiquita Brands International, Inc. (a) | 452,692 | | 6,981 |
Darling International, Inc. (a) | 326,900 | | 4,429 |
Flowers Foods, Inc. | 596,212 | | 15,042 |
Global Dairy Holdings Ltd. | 12,877,000 | | 4,112 |
Green Mountain Coffee Roasters, Inc. (a) | 155,300 | | 5,215 |
Kellogg Co. | 146,498 | | 7,369 |
Kraft Foods, Inc. Class A | 1,573,194 | | 48,093 |
M. Dias Branco SA | 12,100 | | 268 |
Marine Harvest ASA (d) | 26,152,624 | | 29,421 |
Nestle SA | 497,616 | | 26,906 |
Sara Lee Corp. | 563,066 | | 9,555 |
Seneca Foods Corp. Class A (a) | 113,852 | | 3,165 |
Shenguan Holdings Group Ltd. | 1,414,000 | | 1,897 |
Smithfield Foods, Inc. (a) | 705,321 | | 14,043 |
The J.M. Smucker Co. | 81,737 | | 5,081 |
| | 214,094 |
Household Products - 0.8% |
Procter & Gamble Co. | 1,158,963 | | 73,165 |
Uni-Charm Corp. | 139,000 | | 5,351 |
Youyuan International Holdings Ltd. | 8,394,000 | | 4,393 |
| | 82,909 |
Personal Products - 0.4% |
Avon Products, Inc. | 692,228 | | 19,597 |
BaWang International (Group) Holding Ltd. (d) | 19,470,000 | | 5,519 |
Estee Lauder Companies, Inc. Class A | 137,835 | | 11,096 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Personal Products - continued |
Hengan International Group Co. Ltd. | 951,500 | | $ 7,121 |
USANA Health Sciences, Inc. (a) | 101,905 | | 3,864 |
| | 47,197 |
Tobacco - 0.9% |
Imperial Tobacco Group PLC | 256,077 | | 7,317 |
Philip Morris International, Inc. | 1,497,419 | | 85,712 |
| | 93,029 |
TOTAL CONSUMER STAPLES | | 846,872 |
ENERGY - 12.2% |
Energy Equipment & Services - 3.9% |
Aker Solutions ASA | 1,215,979 | | 22,111 |
Baker Hughes, Inc. | 402,276 | | 27,560 |
Cathedral Energy Services Ltd. | 409,500 | | 4,050 |
Ensco International Ltd. ADR | 16,300 | | 886 |
Halliburton Co. | 1,161,975 | | 52,289 |
ION Geophysical Corp. (a) | 1,912,478 | | 18,188 |
McDermott International, Inc. (a) | 40,916 | | 850 |
National Oilwell Varco, Inc. | 1,093,270 | | 80,793 |
Noble Corp. | 384,508 | | 14,707 |
Oceaneering International, Inc. (a) | 53,500 | | 4,132 |
Saipem SpA | 265,598 | | 13,286 |
Schlumberger Ltd. | 950,054 | | 84,545 |
Transocean Ltd. (a) | 290,576 | | 23,226 |
Unit Corp. (a) | 20,400 | | 1,044 |
Vantage Drilling Co. (a) | 5,475,916 | | 10,185 |
Weatherford International Ltd. (a) | 1,676,911 | | 39,776 |
| | 397,628 |
Oil, Gas & Consumable Fuels - 8.3% |
Americas Petrogas, Inc. (a) | 1,433,100 | | 2,663 |
Anadarko Petroleum Corp. | 395,417 | | 30,479 |
Apache Corp. | 438,989 | | 52,398 |
Berry Petroleum Co. Class A | 591,038 | | 27,584 |
BP PLC sponsored ADR | 655,859 | | 31,134 |
Buckeye Partners LP (g) | 129,500 | | 7,536 |
Chesapeake Energy Corp. | 253,500 | | 7,486 |
Chevron Corp. | 329,187 | | 31,250 |
Cimarex Energy Co. | 122,247 | | 12,730 |
Compton Petroleum Corp. (a) | 388,200 | | 171 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Concho Resources, Inc. (a) | 39,098 | | $ 3,763 |
Concho Resources, Inc. (a)(g) | 230,820 | | 22,216 |
CVR Energy, Inc. (a) | 1,037,512 | | 17,970 |
Daylight Energy Ltd. | 113,600 | | 1,145 |
Denbury Resources, Inc. (a) | 1,034,899 | | 21,060 |
Double Eagle Petroleum Co. (a) | 167,886 | | 1,308 |
EOG Resources, Inc. | 206,745 | | 21,996 |
Extract Resources Ltd. (a) | 306,808 | | 2,724 |
Exxon Mobil Corp. | 382,880 | | 30,891 |
Gran Tierra Energy, Inc. (a) | 633,600 | | 5,690 |
Heritage Oil PLC | 715,800 | | 3,737 |
Hess Corp. | 24,573 | | 2,067 |
Holly Corp. | 590,935 | | 28,997 |
InterOil Corp. (a)(d) | 244,719 | | 16,935 |
Kodiak Oil & Gas Corp. (a)(d) | 1,928,607 | | 12,247 |
Madalena Ventures, Inc. (a) | 1,472,000 | | 1,323 |
Marathon Oil Corp. | 666,456 | | 30,457 |
Massey Energy Co. | 364,617 | | 22,920 |
Niko Resources Ltd. | 114,100 | | 11,113 |
Noble Energy, Inc. | 304,011 | | 27,695 |
Northern Oil & Gas, Inc. (a) | 2,076,595 | | 57,252 |
OAO Gazprom sponsored ADR | 220,700 | | 5,906 |
Occidental Petroleum Corp. | 461,622 | | 44,630 |
Painted Pony Petroleum Ltd. (a)(f) | 116,500 | | 1,222 |
Painted Pony Petroleum Ltd. Class A (a) | 61,300 | | 643 |
Pan Orient Energy Corp. (a) | 938,500 | | 6,422 |
PetroBakken Energy Ltd. Class A (d) | 281,726 | | 6,034 |
Petrofrontier Corp. | 204,400 | | 755 |
Petrohawk Energy Corp. (a) | 875,568 | | 17,555 |
Petroleum Development Corp. (a) | 122,609 | | 5,580 |
Petroplus Holdings AG | 533,570 | | 8,743 |
Plains Exploration & Production Co. (a) | 634,117 | | 22,448 |
Progress Energy Resources Corp. | 418,000 | | 5,687 |
Repsol YPF SA sponsored ADR | 12,300 | | 390 |
Resolute Energy Corp. (a)(d) | 506,732 | | 9,172 |
Rockhopper Exploration PLC (a) | 565,593 | | 3,225 |
Rodinia Oil Corp. | 592,800 | | 1,528 |
Royal Dutch Shell PLC Class B ADR | 297,716 | | 21,010 |
Southwestern Energy Co. (a) | 315,125 | | 12,447 |
Suncor Energy, Inc. | 355,800 | | 14,735 |
TAG Oil Ltd. (a) | 797,300 | | 5,671 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Talisman Energy, Inc. | 627,900 | | $ 14,388 |
Tesoro Corp. (a) | 925,116 | | 17,808 |
Total SA sponsored ADR | 175,728 | | 10,328 |
Valero Energy Corp. | 1,123,316 | | 28,487 |
Voyager Oil & Gas, Inc. (a) | 100 | | 0* |
Western Refining, Inc. (a) | 163,405 | | 1,990 |
Whiting Petroleum Corp. (a) | 173,985 | | 21,971 |
Williams Companies, Inc. | 768,230 | | 20,735 |
| | 856,447 |
TOTAL ENERGY | | 1,254,075 |
FINANCIALS - 15.3% |
Capital Markets - 2.5% |
American Capital Ltd. (a) | 673,725 | | 5,504 |
Bank of New York Mellon Corp. | 856,352 | | 26,744 |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 170,269 | | 7,827 |
BlackRock, Inc. Class A | 159,000 | | 31,485 |
Deutsche Bank AG (NY Shares) | 28,600 | | 1,675 |
Evercore Partners, Inc. Class A | 42,900 | | 1,386 |
FXCM, Inc. Class A | 305,800 | | 4,150 |
Goldman Sachs Group, Inc. | 348,429 | | 57,010 |
GP Investments, Ltd. unit (a) | 1,348,529 | | 5,499 |
ICAP PLC | 686,000 | | 5,895 |
Invesco Ltd. | 662,787 | | 16,397 |
Medley Capital Corp. (a) | 234,600 | | 2,815 |
Morgan Stanley | 2,004,924 | | 58,945 |
State Street Corp. | 540,841 | | 25,268 |
TD Ameritrade Holding Corp. | 286,217 | | 5,845 |
| | 256,445 |
Commercial Banks - 4.1% |
Associated Banc-Corp. | 1,351,243 | | 18,890 |
Banco do Brasil SA | 592,500 | | 10,574 |
Banco Pine SA | 625,500 | | 5,210 |
CapitalSource, Inc. | 5,651,145 | | 43,627 |
CIT Group, Inc. (a) | 162,663 | | 7,757 |
Comerica, Inc. | 163,602 | | 6,250 |
Commercial Bank of Qatar GDR (Reg. S) | 706,706 | | 3,260 |
Guaranty Trust Bank PLC GDR (Reg. S) | 554,957 | | 3,968 |
Huntington Bancshares, Inc. | 2,935,105 | | 21,250 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Itau Unibanco Banco Multiplo SA ADR (a)(f) | 253,800 | | $ 5,457 |
Lloyds Banking Group PLC (a) | 5,231,900 | | 5,290 |
PNC Financial Services Group, Inc. | 351,038 | | 21,062 |
Regions Financial Corp. | 2,739,959 | | 19,454 |
Seven Bank Ltd. | 694 | | 1,566 |
SunTrust Banks, Inc. | 800,916 | | 24,372 |
Susquehanna Bancshares, Inc., Pennsylvania | 888,625 | | 8,495 |
SVB Financial Group (a) | 422,500 | | 22,169 |
U.S. Bancorp, Delaware | 101,398 | | 2,738 |
Webster Financial Corp. | 65,424 | | 1,497 |
Wells Fargo & Co. | 5,628,041 | | 182,461 |
Wilmington Trust Corp., Delaware | 1,245,858 | | 5,457 |
Zions Bancorporation | 196,302 | | 4,629 |
| | 425,433 |
Consumer Finance - 0.7% |
American Express Co. | 710,857 | | 30,837 |
Capital One Financial Corp. | 225,992 | | 10,884 |
Discover Financial Services | 678,627 | | 13,973 |
International Personal Finance PLC | 122,761 | | 672 |
SLM Corp. (a) | 787,260 | | 11,344 |
| | 67,710 |
Diversified Financial Services - 4.0% |
Bank of America Corp. | 396,300 | | 5,441 |
Citigroup, Inc. (a) | 34,674,685 | | 167,132 |
CME Group, Inc. | 59,027 | | 18,213 |
Deutsche Boerse AG | 128,642 | | 9,749 |
Infrastructure Development Finance Co. Ltd. | 1,797,985 | | 5,777 |
JPMorgan Chase & Co. | 3,759,919 | | 168,971 |
PICO Holdings, Inc. (a)(e) | 1,219,564 | | 37,782 |
| | 413,065 |
Insurance - 1.4% |
AEGON NV (a) | 1,257,527 | | 9,306 |
Allstate Corp. | 69,264 | | 2,157 |
Assured Guaranty Ltd. | 1,750,051 | | 25,306 |
Berkshire Hathaway, Inc. Class B (a) | 81,754 | | 6,683 |
Delphi Financial Group, Inc. Class A | 313,335 | | 9,018 |
Endurance Specialty Holdings Ltd. | 226,900 | | 10,549 |
Genworth Financial, Inc. Class A (a) | 2,711,525 | | 36,795 |
Lincoln National Corp. | 669,350 | | 19,304 |
MetLife, Inc. | 199,500 | | 9,131 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
Platinum Underwriters Holdings Ltd. | 127,000 | | $ 5,613 |
Prudential Financial, Inc. | 187,900 | | 11,558 |
| | 145,420 |
Real Estate Investment Trusts - 1.7% |
alstria office REIT-AG | 101,900 | | 1,437 |
Boston Properties, Inc. | 56,991 | | 5,378 |
CBL & Associates Properties, Inc. | 633,200 | | 10,802 |
Digital Realty Trust, Inc. (d) | 106,321 | | 5,784 |
Education Realty Trust, Inc. | 826,300 | | 6,445 |
Franklin Street Properties Corp. | 606,400 | | 9,090 |
HCP, Inc. | 125,400 | | 4,651 |
ProLogis Trust | 1,593,800 | | 23,779 |
Public Storage | 133,419 | | 14,540 |
Sabra Health Care REIT, Inc. | 300,733 | | 5,597 |
SL Green Realty Corp. | 291,200 | | 21,188 |
The Macerich Co. | 125,654 | | 6,114 |
U-Store-It Trust | 568,200 | | 5,489 |
Vornado Realty Trust | 146,838 | | 12,935 |
Westfield Group unit | 168,768 | | 1,655 |
Westfield Retail Trust unit | 208,666 | | 551 |
Weyerhaeuser Co. | 1,572,556 | | 36,452 |
| | 171,887 |
Real Estate Management & Development - 0.9% |
Beni Stabili SpA Siiq | 4,716,900 | | 4,494 |
CB Richard Ellis Group, Inc. Class A (a) | 2,247,658 | | 49,876 |
Coresite Realty Corp. | 340,335 | | 4,891 |
Iguatemi Empresa de Shopping Centers SA | 432,100 | | 9,329 |
Jones Lang LaSalle, Inc. | 167,934 | | 14,886 |
Kenedix, Inc. (a) | 36,232 | | 9,151 |
| | 92,627 |
TOTAL FINANCIALS | | 1,572,587 |
HEALTH CARE - 9.8% |
Biotechnology - 2.7% |
Alexion Pharmaceuticals, Inc. (a) | 126,500 | | 10,603 |
Amgen, Inc. (a) | 846,059 | | 46,601 |
Amylin Pharmaceuticals, Inc. (a) | 598,370 | | 9,682 |
ARIAD Pharmaceuticals, Inc. (a) | 2,189,679 | | 13,959 |
ArQule, Inc. (a) | 429,200 | | 2,631 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
AVEO Pharmaceuticals, Inc. | 773,000 | | $ 11,077 |
AVEO Pharmaceuticals, Inc. (g) | 290,609 | | 4,164 |
Biogen Idec, Inc. (a) | 296,922 | | 19,439 |
Cephalon, Inc. (a) | 145,400 | | 8,590 |
Clinical Data, Inc. (a)(d) | 408,877 | | 12,160 |
Dynavax Technologies Corp. (a) | 2,621,070 | | 7,863 |
Gilead Sciences, Inc. (a) | 226,500 | | 8,693 |
Human Genome Sciences, Inc. (a) | 577,300 | | 14,005 |
ImmunoGen, Inc. (a) | 376,900 | | 3,113 |
InterMune, Inc. (a) | 218,906 | | 8,181 |
Micromet, Inc. (a) | 1,097,200 | | 7,055 |
NPS Pharmaceuticals, Inc. (a) | 429,035 | | 4,292 |
PDL BioPharma, Inc. | 1,012,800 | | 5,003 |
Renovo Group PLC (a) | 1,935,800 | | 2,279 |
SIGA Technologies, Inc. (a)(d) | 1,484,674 | | 17,037 |
Theravance, Inc. (a) | 1,321,161 | | 27,797 |
Thrombogenics NV (a) | 402,397 | | 12,119 |
United Therapeutics Corp. (a) | 225,400 | | 15,323 |
ZIOPHARM Oncology, Inc. (a) | 983,452 | | 5,738 |
| | 277,404 |
Health Care Equipment & Supplies - 1.6% |
American Medical Systems Holdings, Inc. (a) | 639,316 | | 12,479 |
Boston Scientific Corp. (a) | 1,461,300 | | 10,200 |
C. R. Bard, Inc. | 300,130 | | 28,317 |
Covidien PLC | 513,027 | | 24,353 |
GN Store Nordic AS (a) | 592,874 | | 5,678 |
Hill-Rom Holdings, Inc. | 341,100 | | 13,804 |
Kinetic Concepts, Inc. (a) | 240,125 | | 11,077 |
Orthofix International NV (a) | 432,888 | | 12,381 |
Orthovita, Inc. (a) | 1,626,500 | | 3,342 |
Sirona Dental Systems, Inc. (a) | 20,400 | | 894 |
Symmetry Medical, Inc. (a) | 951,051 | | 9,102 |
William Demant Holding AS (a) | 115,354 | | 9,236 |
Wright Medical Group, Inc. (a) | 712,491 | | 10,588 |
Zimmer Holdings, Inc. (a) | 187,942 | | 11,119 |
| | 162,570 |
Health Care Providers & Services - 2.2% |
Brookdale Senior Living, Inc. (a) | 1,149,700 | | 25,121 |
Catalyst Health Solutions, Inc. (a) | 241,229 | | 10,469 |
CIGNA Corp. | 964,700 | | 40,537 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
DaVita, Inc. (a) | 150,398 | | $ 11,107 |
Emeritus Corp. (a) | 431,073 | | 8,233 |
Express Scripts, Inc. (a) | 820,200 | | 46,202 |
Fresenius Medical Care AG & Co. KGaA | 224,223 | | 13,118 |
McKesson Corp. | 326,946 | | 24,577 |
Medco Health Solutions, Inc. (a) | 537,308 | | 32,787 |
Sun Healthcare Group, Inc. (a) | 1,171,265 | | 14,635 |
Sunrise Senior Living, Inc. (a) | 4,392 | | 35 |
| | 226,821 |
Health Care Technology - 0.2% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 722,300 | | 15,248 |
Life Sciences Tools & Services - 0.8% |
Agilent Technologies, Inc. (a) | 1,185,375 | | 49,584 |
Lonza Group AG | 105,252 | | 8,288 |
PerkinElmer, Inc. | 147,200 | | 3,765 |
QIAGEN NV (a) | 163,100 | | 3,009 |
Thermo Fisher Scientific, Inc. (a) | 378,390 | | 21,670 |
| | 86,316 |
Pharmaceuticals - 2.3% |
Ardea Biosciences, Inc. (a) | 759,132 | | 20,132 |
Cadence Pharmaceuticals, Inc. (a)(d) | 2,395,495 | | 18,601 |
Cardiome Pharma Corp. (a) | 519,000 | | 3,266 |
Columbia Laboratories, Inc. (a) | 776,400 | | 1,755 |
GlaxoSmithKline PLC | 1,163,300 | | 21,002 |
GlaxoSmithKline PLC sponsored ADR | 538,929 | | 19,579 |
Merck & Co., Inc. | 2,690,124 | | 89,231 |
Novo Nordisk AS Series B | 200,837 | | 22,609 |
Pfizer, Inc. | 351,400 | | 6,403 |
Pronova BioPharma ASA (a) | 987,850 | | 1,624 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 376,219 | | 20,560 |
Valeant Pharmaceuticals International, Inc. | 377,700 | | 13,767 |
| | 238,529 |
TOTAL HEALTH CARE | | 1,006,888 |
INDUSTRIALS - 14.5% |
Aerospace & Defense - 2.7% |
Bombardier, Inc. Class B (sub. vtg.) | 2,043,200 | | 11,633 |
DigitalGlobe, Inc. (a) | 283,021 | | 8,692 |
Esterline Technologies Corp. (a) | 153,521 | | 10,928 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Aerospace & Defense - continued |
GeoEye, Inc. (a) | 581,150 | | $ 23,200 |
Goodrich Corp. | 254,477 | | 23,061 |
HEICO Corp. Class A | 408,232 | | 15,578 |
Honeywell International, Inc. | 593,730 | | 33,255 |
Meggitt PLC | 4,061,741 | | 23,094 |
Precision Castparts Corp. | 250,572 | | 35,829 |
Raytheon Co. | 478,526 | | 23,922 |
Rockwell Collins, Inc. | 32,720 | | 2,099 |
United Technologies Corp. | 848,602 | | 68,991 |
| | 280,282 |
Airlines - 0.2% |
Copa Holdings SA Class A | 93,997 | | 5,287 |
Southwest Airlines Co. | 785,995 | | 9,314 |
United Continental Holdings, Inc. (a) | 167,572 | | 4,256 |
| | 18,857 |
Building Products - 0.4% |
Masco Corp. | 1,590,623 | | 21,187 |
Owens Corning (a) | 519,607 | | 17,391 |
Quanex Building Products Corp. | 228,938 | | 4,462 |
| | 43,040 |
Commercial Services & Supplies - 1.0% |
Avery Dennison Corp. | 258,621 | | 10,885 |
Casella Waste Systems, Inc. Class A (a) | 426,952 | | 3,424 |
Interface, Inc. Class A | 861,327 | | 13,997 |
Iron Mountain, Inc. | 166,823 | | 4,069 |
Knoll, Inc. | 748,166 | | 12,524 |
Pitney Bowes, Inc. | 218,912 | | 5,315 |
Quad/Graphics, Inc. (a) | 141,849 | | 6,307 |
R.R. Donnelley & Sons Co. | 558,468 | | 9,896 |
Republic Services, Inc. | 500,465 | | 15,434 |
Schawk, Inc. Class A | 145,563 | | 2,655 |
Steelcase, Inc. Class A | 442,346 | | 4,521 |
The Geo Group, Inc. (a) | 482,449 | | 11,468 |
| | 100,495 |
Construction & Engineering - 1.3% |
Aveng Ltd. | 890,100 | | 4,707 |
Chiyoda Corp. | 151,000 | | 1,341 |
Dycom Industries, Inc. (a) | 573,133 | | 9,210 |
EMCOR Group, Inc. (a) | 196,124 | | 5,939 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - continued |
Fluor Corp. | 493,627 | | $ 34,154 |
Foster Wheeler Ag (a) | 1,169,395 | | 43,045 |
Great Lakes Dredge & Dock Corp. | 646,573 | | 5,373 |
Jacobs Engineering Group, Inc. (a) | 204,300 | | 10,495 |
MasTec, Inc. (a) | 345,300 | | 5,255 |
MYR Group, Inc. (a) | 466,142 | | 10,250 |
Shaw Group, Inc. (a) | 236,983 | | 8,951 |
| | 138,720 |
Electrical Equipment - 1.1% |
Alstom SA | 339,756 | | 18,961 |
AMETEK, Inc. | 293,182 | | 11,956 |
Cooper Industries PLC Class A | 365,312 | | 22,379 |
Emerson Electric Co. | 211,785 | | 12,470 |
Prysmian SpA (d) | 565,000 | | 11,401 |
Regal-Beloit Corp. | 158,974 | | 10,610 |
Schneider Electric SA | 95,607 | | 14,908 |
Zumtobel AG | 450,805 | | 13,167 |
| | 115,852 |
Industrial Conglomerates - 2.3% |
Cookson Group PLC (a) | 898,953 | | 9,568 |
General Electric Co. | 6,874,839 | | 138,459 |
Koninklijke Philips Electronics NV | 518,400 | | 16,151 |
Rheinmetall AG | 228,900 | | 19,598 |
Siemens AG sponsored ADR | 66,560 | | 8,547 |
Textron, Inc. | 1,510,429 | | 39,709 |
| | 232,032 |
Machinery - 2.8% |
Actuant Corp. Class A | 589,902 | | 16,358 |
ArvinMeritor, Inc. (a) | 456,144 | | 9,971 |
Blount International, Inc. (a) | 377,454 | | 5,666 |
Caterpillar, Inc. | 321,411 | | 31,180 |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 5,069,600 | | 11,626 |
China Automation Group Ltd. | 2,775,000 | | 2,121 |
Commercial Vehicle Group, Inc. (a) | 489,100 | | 7,894 |
Cummins, Inc. | 279,394 | | 29,582 |
Dover Corp. | 177,471 | | 11,376 |
Fiat Industrial SpA (a) | 588,400 | | 7,963 |
Hardinge, Inc. | 300,507 | | 2,629 |
Harsco Corp. | 171,653 | | 5,539 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Ingersoll-Rand Co. Ltd. | 605,524 | | $ 28,581 |
Navistar International Corp. (a) | 904,300 | | 58,644 |
NSK Ltd. | 1,224,000 | | 11,721 |
Pall Corp. | 271,128 | | 15,023 |
Schindler Holding AG (participation certificate) | 85,465 | | 9,541 |
SmartHeat, Inc. (a)(d) | 1,573,910 | | 7,492 |
Timken Co. | 211,152 | | 9,928 |
Trinity Industries, Inc. | 200,347 | | 5,588 |
WABCO Holdings, Inc. (a) | 60,198 | | 3,516 |
| | 291,939 |
Professional Services - 0.7% |
CBIZ, Inc. (a) | 680,713 | | 4,745 |
FTI Consulting, Inc. (a) | 282,394 | | 10,299 |
IHS, Inc. Class A (a) | 26,509 | | 2,173 |
Kforce, Inc. (a) | 433,860 | | 7,757 |
Robert Half International, Inc. | 525,300 | | 16,473 |
SR Teleperformance SA | 290,188 | | 10,458 |
Towers Watson & Co. | 331,202 | | 18,060 |
| | 69,965 |
Road & Rail - 1.8% |
Arkansas Best Corp. | 265,197 | | 6,776 |
Con-way, Inc. | 423,386 | | 14,404 |
CSX Corp. | 823,500 | | 58,139 |
Norfolk Southern Corp. | 213,066 | | 13,038 |
Saia, Inc. (a)(e) | 865,075 | | 12,379 |
Union Pacific Corp. | 722,700 | | 68,389 |
Universal Truckload Services, Inc. (a) | 530,923 | | 7,911 |
| | 181,036 |
Trading Companies & Distributors - 0.2% |
Barloworld Ltd. | 555,700 | | 5,358 |
Finning International, Inc. | 202,700 | | 5,900 |
Kaman Corp. | 334,000 | | 9,831 |
| | 21,089 |
TOTAL INDUSTRIALS | | 1,493,307 |
INFORMATION TECHNOLOGY - 17.3% |
Communications Equipment - 2.3% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 1,021,800 | | 3,382 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Calix Networks, Inc. (a)(d) | 1,181,115 | | $ 19,252 |
Cisco Systems, Inc. (a) | 4,640,807 | | 98,153 |
Comtech Telecommunications Corp. | 93,883 | | 2,634 |
Comverse Technology, Inc. (a) | 1,650,800 | | 10,829 |
HTC Corp. | 80,850 | | 2,726 |
Infinera Corp. (a) | 972,768 | | 7,135 |
Juniper Networks, Inc. (a) | 1,210,135 | | 44,920 |
Motorola Mobility Holdings, Inc. (a) | 315,396 | | 8,790 |
Motorola Solutions, Inc. (a) | 274,969 | | 10,661 |
Nokia Corp. sponsored ADR (d) | 196,177 | | 2,099 |
QUALCOMM, Inc. | 485,200 | | 26,264 |
| | 236,845 |
Computers & Peripherals - 3.6% |
Apple, Inc. (a) | 802,976 | | 272,464 |
Hewlett-Packard Co. | 2,094,453 | | 95,696 |
| | 368,160 |
Electronic Equipment & Components - 1.4% |
Arrow Electronics, Inc. (a) | 114,359 | | 4,323 |
Avnet, Inc. (a) | 960,688 | | 34,220 |
Corning, Inc. | 1,525,097 | | 33,872 |
Funtalk China Holdings Ltd. (a) | 2,067,961 | | 12,346 |
HLS Systems International Ltd. (a) | 349,968 | | 5,617 |
Keyence Corp. | 55,000 | | 14,594 |
Molex, Inc. (d) | 523,230 | | 13,682 |
Tyco Electronics Ltd. | 582,256 | | 21,095 |
| | 139,749 |
Internet Software & Services - 0.9% |
eAccess Ltd. (d) | 20,253 | | 12,263 |
eBay, Inc. (a) | 1,078,226 | | 32,735 |
Google, Inc. Class A (a) | 68,225 | | 40,960 |
NHN Corp. (a) | 27,832 | | 4,971 |
| | 90,929 |
IT Services - 1.3% |
Acxiom Corp. (a) | 607,828 | | 10,473 |
Alliance Data Systems Corp. (a) | 273,238 | | 19,329 |
Atos Origin SA (a) | 205,101 | | 11,418 |
Fidelity National Information Services, Inc. | 642,635 | | 19,555 |
Heartland Payment Systems, Inc. | 643,700 | | 10,170 |
MasterCard, Inc. Class A | 80,416 | | 19,019 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Unisys Corp. (a) | 430,385 | | $ 12,193 |
Virtusa Corp. (a) | 221,384 | | 3,564 |
Visa, Inc. Class A | 462,100 | | 32,278 |
| | 137,999 |
Office Electronics - 0.3% |
Xerox Corp. | 3,007,338 | | 31,938 |
Semiconductors & Semiconductor Equipment - 5.3% |
Advanced Micro Devices, Inc. (a) | 815,571 | | 6,386 |
Analog Devices, Inc. | 581,800 | | 22,591 |
ASML Holding NV | 616,749 | | 25,910 |
Atmel Corp. (a) | 2,352,488 | | 31,853 |
Avago Technologies Ltd. | 1,523,359 | | 43,736 |
Cymer, Inc. (a) | 742,789 | | 36,092 |
Entropic Communications, Inc. (a)(d) | 445,384 | | 4,886 |
Fairchild Semiconductor International, Inc. (a) | 2,220,398 | | 39,523 |
GT Solar International, Inc. (a) | 192,033 | | 2,121 |
Himax Technologies, Inc. sponsored ADR | 2,128,823 | | 5,365 |
Intersil Corp. Class A | 698,817 | | 10,566 |
Kulicke & Soffa Industries, Inc. (a) | 1,089,526 | | 10,623 |
Lam Research Corp. (a) | 1,774,905 | | 88,550 |
LTX-Credence Corp. (a)(e) | 3,288,837 | | 29,156 |
Mattson Technology, Inc. (a) | 300,534 | | 688 |
Maxim Integrated Products, Inc. | 789,957 | | 20,397 |
Microchip Technology, Inc. (d) | 162,479 | | 5,926 |
Micron Technology, Inc. (a) | 4,000,552 | | 42,166 |
National Semiconductor Corp. | 1,318,226 | | 19,984 |
NVIDIA Corp. (a) | 649,696 | | 15,541 |
NXP Semiconductors NV | 1,137,300 | | 29,274 |
ON Semiconductor Corp. (a) | 3,189,702 | | 35,246 |
Skyworks Solutions, Inc. (a) | 106,171 | | 3,373 |
Standard Microsystems Corp. (a) | 177,477 | | 4,268 |
Teradyne, Inc. (a) | 57,974 | | 967 |
TriQuint Semiconductor, Inc. (a) | 839,100 | | 11,043 |
| | 546,231 |
Software - 2.2% |
Aspen Technology, Inc. (a) | 396,000 | | 5,603 |
Autodesk, Inc. (a) | 45,000 | | 1,831 |
BMC Software, Inc. (a) | 450,990 | | 21,512 |
CA, Inc. | 959,167 | | 22,828 |
Citrix Systems, Inc. (a) | 235,740 | | 14,894 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
DemandTec, Inc. (a) | 810,662 | | $ 9,768 |
Informatica Corp. (a) | 524,210 | | 24,323 |
JDA Software Group, Inc. (a) | 406,472 | | 12,267 |
Micro Focus International PLC | 1,735,629 | | 11,403 |
NSD Co. Ltd. | 204,200 | | 2,122 |
Oracle Corp. | 3,000,079 | | 96,093 |
Sage Group PLC | 1,057,600 | | 4,999 |
| | 227,643 |
TOTAL INFORMATION TECHNOLOGY | | 1,779,494 |
MATERIALS - 6.1% |
Chemicals - 2.5% |
Air Products & Chemicals, Inc. | 132,211 | | 11,535 |
Ashland, Inc. | 155,250 | | 9,014 |
Cabot Corp. | 40,900 | | 1,769 |
Celanese Corp. Class A | 383,840 | | 15,926 |
CF Industries Holdings, Inc. | 114,335 | | 15,440 |
Clariant AG (Reg.) (a) | 1,135,000 | | 20,040 |
Dow Chemical Co. | 1,132,668 | | 40,187 |
Huabao International Holdings Ltd. | 8,481,461 | | 12,553 |
Israel Chemicals Ltd. | 371,900 | | 5,836 |
LyondellBasell Industries NV Class A (a) | 392,600 | | 14,110 |
Solutia, Inc. (a) | 613,852 | | 14,376 |
Spartech Corp. (a)(e) | 1,840,701 | | 15,370 |
Symrise AG | 32,700 | | 926 |
Syngenta AG (Switzerland) | 23,750 | | 7,658 |
Valspar Corp. | 183,140 | | 6,844 |
W.R. Grace & Co. (a) | 1,353,025 | | 48,019 |
Yara International ASA | 345,300 | | 19,428 |
| | 259,031 |
Construction Materials - 0.2% |
HeidelbergCement AG | 304,444 | | 19,893 |
Containers & Packaging - 0.3% |
Owens-Illinois, Inc. (a) | 532,076 | | 15,691 |
Rock-Tenn Co. Class A | 106,270 | | 7,094 |
Silgan Holdings, Inc. | 181,600 | | 6,779 |
| | 29,564 |
Metals & Mining - 3.1% |
Alcoa, Inc. | 875,476 | | 14,507 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - continued |
Anglo American PLC (United Kingdom) | 225,500 | | $ 11,061 |
Argonaut Gold, Inc. (a) | 49,100 | | 214 |
Centamin Egypt Ltd. (Canada) (a) | 408,600 | | 918 |
Commercial Metals Co. | 1,134,000 | | 18,960 |
Eldorado Gold Corp. | 1,021,878 | | 16,424 |
Freeport-McMoRan Copper & Gold, Inc. | 277,187 | | 30,144 |
Goldcorp, Inc. | 818,600 | | 32,863 |
Grande Cache Coal Corp. (a) | 738,500 | | 7,952 |
Gulf Resources, Inc. (a)(d) | 582,180 | | 5,560 |
Gulf Resources, Inc. (a)(g) | 1,894,460 | | 18,092 |
Ivanhoe Mines Ltd. (a) | 1,850,265 | | 51,399 |
Kinross Gold Corp. | 860,545 | | 14,304 |
Mirabela Nickel Ltd. (a) | 306,652 | | 688 |
Newcrest Mining Ltd. | 907,007 | | 33,425 |
Pan American Silver Corp. | 297,400 | | 9,758 |
Pediment Gold Corp. (a) | 286,000 | | 774 |
Randgold Resources Ltd. sponsored ADR | 368,823 | | 28,211 |
United States Steel Corp. | 358,019 | | 20,647 |
Walter Energy, Inc. | 57,336 | | 7,469 |
| | 323,370 |
TOTAL MATERIALS | | 631,858 |
TELECOMMUNICATION SERVICES - 1.5% |
Diversified Telecommunication Services - 0.7% |
China Unicom (Hong Kong) Ltd. | 6,244,000 | | 10,430 |
Frontier Communications Corp. | 709,869 | | 6,509 |
Iliad Group SA | 129,004 | | 13,696 |
Koninklijke KPN NV | 163,453 | | 2,577 |
Qwest Communications International, Inc. | 4,603,100 | | 32,820 |
Telefonica SA sponsored ADR | 315,960 | | 7,940 |
| | 73,972 |
Wireless Telecommunication Services - 0.8% |
NII Holdings, Inc. (a) | 251,000 | | 10,537 |
SOFTBANK CORP. | 175,200 | | 6,026 |
Sprint Nextel Corp. (a) | 9,619,815 | | 43,482 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - continued |
TIM Participacoes SA | 1,860,000 | | $ 6,871 |
Turkcell Iletisim Hizmet AS | 1,389,000 | | 8,560 |
| | 75,476 |
TOTAL TELECOMMUNICATION SERVICES | | 149,448 |
UTILITIES - 2.3% |
Electric Utilities - 0.7% |
American Electric Power Co., Inc. | 265,462 | | 9,472 |
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR | 502,200 | | 8,266 |
FirstEnergy Corp. (d) | 221,753 | | 8,675 |
NextEra Energy, Inc. | 380,956 | | 20,366 |
NV Energy, Inc. | 355,509 | | 5,109 |
Power Grid Corp. of India Ltd. | 367,766 | | 775 |
PPL Corp. | 637,653 | | 16,445 |
| | 69,108 |
Gas Utilities - 0.1% |
China Gas Holdings Ltd. | 9,504,000 | | 4,132 |
Enn Energy Holdings Ltd. | 3,084,000 | | 9,177 |
| | 13,309 |
Independent Power Producers & Energy Traders - 0.7% |
AES Corp. (a) | 6,036,156 | | 74,848 |
Multi-Utilities - 0.8% |
Alliant Energy Corp. | 138,905 | | 5,162 |
CMS Energy Corp. | 1,183,601 | | 23,080 |
National Grid PLC | 1,145,900 | | 10,161 |
PG&E Corp. | 300,057 | | 13,887 |
Public Service Enterprise Group, Inc. | 423,114 | | 13,722 |
Sempra Energy | 207,722 | | 10,816 |
| | 76,828 |
TOTAL UTILITIES | | 234,093 |
TOTAL COMMON STOCKS (Cost $8,166,176) | 10,023,845 |
Preferred Stocks - 0.7% |
| Shares | | Value (000s) |
Convertible Preferred Stocks - 0.6% |
CONSUMER DISCRETIONARY - 0.3% |
Automobiles - 0.3% |
General Motors Co. 4.75% | 501,900 | | $ 27,258 |
FINANCIALS - 0.2% |
Diversified Financial Services - 0.2% |
Citigroup, Inc. 7.50% | 157,200 | | 21,634 |
UTILITIES - 0.1% |
Electric Utilities - 0.1% |
PPL Corp. 9.50% | 187,100 | | 10,055 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 58,947 |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Volkswagen AG | 85,200 | | 13,763 |
TOTAL PREFERRED STOCKS (Cost $59,563) | 72,710 |
Investment Companies - 0.2% |
| | | |
Ares Capital Corp.
(Cost $13,555) | 1,070,680 | | 17,977 |
Convertible Bonds - 0.5% |
| Principal Amount (000s) | | |
FINANCIALS - 0.3% |
Real Estate Management & Development - 0.1% |
Forest City Enterprises, Inc. 5% 10/15/16 | | $ 6,170 | | 9,031 |
Thrifts & Mortgage Finance - 0.2% |
MGIC Investment Corp. 9% 4/1/63 (f) | | 18,163 | | 18,708 |
TOTAL FINANCIALS | | 27,739 |
HEALTH CARE - 0.2% |
Biotechnology - 0.1% |
Incyte Corp. 4.75% 10/1/15 | | 5,630 | | 10,676 |
Convertible Bonds - continued |
| Principal Amount (000s) | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - 0.1% |
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 | | $ 8,010 | | $ 10,163 |
TOTAL HEALTH CARE | | 20,839 |
INDUSTRIALS - 0.0% |
Trading Companies & Distributors - 0.0% |
Kaman Corp. 3.25% 11/15/17 (f) | | 2,450 | | 2,625 |
TELECOMMUNICATION SERVICES - 0.0% |
Diversified Telecommunication Services - 0.0% |
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (f) | | 4,080 | | 4,391 |
TOTAL CONVERTIBLE BONDS (Cost $37,228) | 55,594 |
Money Market Funds - 1.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 100,796,509 | | 100,797 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 99,351,830 | | 99,352 |
TOTAL MONEY MARKET FUNDS (Cost $200,149) | 200,149 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) #
(Cost $6,976) | $ 6,976 | | $ 6,976 |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $8,483,647) | | 10,377,251 |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | | (93,741) |
NET ASSETS - 100% | $ 10,283,510 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $32,403,000 or 0.3% of net assets. |
(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 $52,008,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
AVEO Pharmaceuticals, Inc. | 10/28/10 | $ 3,923 |
Buckeye Partners LP | 12/20/10 | $ 7,822 |
Concho Resources, Inc. | 7/20/10 | $ 10,456 |
Gulf Resources, Inc. | 12/11/09 | $ 16,103 |
* Amount represents less than $1,000 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000's) |
$6,976,000 due 2/01/11 at 0.23% |
BNP Paribas Securities Corp. | $ 2,149 |
Barclays Capital, Inc. | 1,319 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 3,508 |
| $ 6,976 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 68 |
Fidelity Securities Lending Cash Central Fund | 1,031 |
Total | $ 1,099 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
LTX-Credence Corp. | $ 24,000 | $ 3,810 | $ 915 | $ - | $ 29,156 |
O'Charleys, Inc. | 9,141 | 1,240 | - | - | 10,354 |
PICO Holdings, Inc. | 38,871 | 687 | 1,228 | - | 37,782 |
Saia, Inc. | 11,583 | 1,315 | - | - | 12,379 |
Spartech Corp. | 15,775 | 2,357 | - | - | 15,370 |
Winnebago Industries, Inc. | 16,261 | - | - | - | 23,185 |
Total | $ 115,631 | $ 9,409 | $ 2,143 | $ - | $ 128,226 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,096,244 | $ 1,086,783 | $ 9,461 | $ - |
Consumer Staples | 846,872 | 830,208 | 16,664 | - |
Energy | 1,254,075 | 1,246,539 | 7,536 | - |
Financials | 1,594,221 | 1,557,991 | 36,230 | - |
Health Care | 1,006,888 | 963,277 | 43,611 | - |
Industrials | 1,493,307 | 1,477,156 | 16,151 | - |
Information Technology | 1,779,494 | 1,779,494 | - | - |
Materials | 631,858 | 624,200 | 7,658 | - |
Telecommunication Services | 149,448 | 130,458 | 18,990 | - |
Utilities | 244,148 | 219,800 | 20,216 | 4,132 |
Investment Companies | 17,977 | 17,977 | - | - |
Corporate Bonds | 55,594 | - | 55,594 | - |
Money Market Funds | 200,149 | 200,149 | - | - |
Cash Equivalents | 6,976 | - | 6,976 | - |
Total Investments in Securities: | $ 10,377,251 | $ 10,134,032 | $ 239,087 | $ 4,132 |
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) | (1,057) |
Cost of Purchases | 5,127 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 62 |
Transfers out of Level 3 | - |
Ending Balance | $ 4,132 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (1,057) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.4% |
Canada | 2.8% |
Switzerland | 2.5% |
United Kingdom | 2.1% |
France | 1.1% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 10.0% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $804,929,000 of which $691,258,000 and $113,671,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $97,582 and repurchase agreements of $6,976) - See accompanying schedule: Unaffiliated issuers (cost $8,161,345) | $ 10,048,876 | |
Fidelity Central Funds (cost $200,149) | 200,149 | |
Other affiliated issuers (cost $122,153) | 128,226 | |
Total Investments (cost $8,483,647) | | $ 10,377,251 |
Cash | | 2 |
Foreign currency held at value (cost $578) | | 574 |
Receivable for investments sold | | 106,865 |
Receivable for fund shares sold | | 14,653 |
Dividends receivable | | 4,298 |
Interest receivable | | 824 |
Distributions receivable from Fidelity Central Funds | | 128 |
Prepaid expenses | | 21 |
Other receivables | | 422 |
Total assets | | 10,505,038 |
| | |
Liabilities | | |
Payable for investments purchased | $ 103,337 | |
Payable for fund shares redeemed | 9,710 | |
Accrued management fee | 6,061 | |
Other affiliated payables | 1,721 | |
Other payables and accrued expenses | 1,347 | |
Collateral on securities loaned, at value | 99,352 | |
Total liabilities | | 221,528 |
| | |
Net Assets | | $ 10,283,510 |
Net Assets consist of: | | |
Paid in capital | | $ 9,037,384 |
Distributions in excess of net investment income | | (1,112) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (645,470) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,892,708 |
Net Assets | | $ 10,283,510 |
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, 2011 (Unaudited) |
| | |
Dividend Growth:
Net Asset Value, offering price and redemption price per share ($9,709,090 ÷ 333,220 shares) | | $ 29.14 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($574,420 ÷ 19,716 shares) | | $ 29.13 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 52,679 |
Interest | | 6,444 |
Income from Fidelity Central Funds | | 1,099 |
Total income | | 60,222 |
| | |
Expenses | | |
Management fee
Basic fee | $ 25,078 | |
Performance adjustment | 5,932 | |
Transfer agent fees | 9,411 | |
Accounting and security lending fees | 633 | |
Custodian fees and expenses | 216 | |
Independent trustees' compensation | 26 | |
Registration fees | 58 | |
Audit | 47 | |
Legal | 29 | |
Miscellaneous | 42 | |
Total expenses before reductions | 41,472 | |
Expense reductions | (184) | 41,288 |
Net investment income (loss) | | 18,934 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 271,907 | |
Other affiliated issuers | (559) | |
Foreign currency transactions | (997) | |
Total net realized gain (loss) | | 270,351 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,615,358 | |
Assets and liabilities in foreign currencies | 79 | |
Total change in net unrealized appreciation (depreciation) | | 1,615,437 |
Net gain (loss) | | 1,885,788 |
Net increase (decrease) in net assets resulting from operations | | $ 1,904,722 |
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 January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 18,934 | $ 44,690 |
Net realized gain (loss) | 270,351 | 922,532 |
Change in net unrealized appreciation (depreciation) | 1,615,437 | 264,038 |
Net increase (decrease) in net assets resulting
from operations | 1,904,722 | 1,231,260 |
Distributions to shareholders from net investment income | (51,737) | (39,369) |
Distributions to shareholders from net realized gain | (26,364) | (16,428) |
Total distributions | (78,101) | (55,797) |
Share transactions - net increase (decrease) | 371,477 | 104,895 |
Total increase (decrease) in net assets | 2,198,098 | 1,280,358 |
| | |
Net Assets | | |
Beginning of period | 8,085,412 | 6,805,054 |
End of period (including distributions in excess of net investment income of $1,112 and undistributed net investment income of $31,691, respectively) | $ 10,283,510 | $ 8,085,412 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 |
Income from Investment
Operations | | | | | |
Net investment income (loss) D | .05 | .13 G | .24 | .43 | .52 H | .35 |
Net realized and unrealized gain (loss) | 5.48 | 3.63 | (4.01) | (5.08) | 3.98 | .99 |
Total from investment operations | 5.53 | 3.76 | (3.77) | (4.65) | 4.50 | 1.34 |
Distributions from net investment income | (.15) | (.12) | (.37) | (.45) | (.45) | (.31) |
Distributions from net realized gain | (.08) | (.05) | (1.01) | (2.23) | (.82) | (.38) |
Total distributions | (.23) | (.17) | (1.38) J | (2.68) | (1.27) | (.69) |
Net asset value, end of period | $ 29.14 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 |
Total Return B, C | 23.33% | 18.59% | (15.33)% | (15.45)% | 15.62% | 4.73% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | .93% A | .93% | .62% | .64% | .61% | .60% |
Expenses net of fee waivers, if any | .93%A | .93% | .62% | .64% | .61% | .60% |
Expenses net of all reductions | .93%A | .92% | .62% | .63% | .60% | .59% |
Net investment income (loss) | .41%A | .56%G | 1.34% | 1.47% | 1.62% H | 1.21% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 9,709 | $ 7,730 | $ 6,603 | $ 9,502 | $ 16,265 | $ 15,523 |
Portfolio turnover
rate F | 65%A | 85% | 177% | 52% | 36% | 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 Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
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 January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 H |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations | | | | |
Net investment income (loss)D | .08 | .18G | .26 | .10 |
Net realized and unrealized gain (loss) | 5.46 | 3.63 | (4.00) | (2.41) |
Total from investment operations | 5.54 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.08) | (.05) | (1.01) | - |
Total distributions | (.27) K | (.21) | (1.41)J | - |
Net asset value, end of period | $ 29.13 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B, C | 23.42% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, I | | | | |
Expenses before reductions | .77% A | .72% | .40% | .47%A |
Expenses net of fee waivers, if any | .77% A | .72% | .40% | .47%A |
Expenses net of all reductions | .76% A | .71% | .39% | .47%A |
Net investment income (loss) | .58% A | .76% G | 1.57% | 1.66%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 574,420 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 65% A | 85% | 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 Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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 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.
K Total distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 2,131,228 |
Gross unrealized depreciation | (290,721) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,840,507 |
Tax cost | $ 8,536,744 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 $3,129,771 and $2,864,503, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .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 Dividend Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Dividend Growth | $ 9,300 | .22 |
Class K | 111 | .05 |
| $ 9,411 | |
* 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 $86 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $16 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,574. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,031, including $24 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $184 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Dividend Growth | $ 48,547 | $ 37,603 |
Class K | 3,190 | 1,766 |
Total | $ 51,737 | $ 39,369 |
From net realized gain | | |
Dividend Growth | $ 25,105 | $ 15,884 |
Class K | 1,259 | 544 |
Total | $ 26,364 | $ 16,428 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Dividend Growth | | | | |
Shares sold | 50,155 | 100,583 | $ 1,302,331 | $ 2,382,785 |
Conversion to Class K | - | (734) | - | (15,619) |
Reinvestment of distributions | 2,707 | 2,281 | 68,380 | 51,426 |
Shares redeemed | (43,935) | (104,010) | (1,131,649) | (2,429,464) |
Net increase (decrease) | 8,927 | (1,880) | $ 239,062 | $ (10,872) |
Class K | | | | |
Shares sold | 6,798 | 6,982 | $ 182,411 | $ 165,346 |
Conversion from Dividend Growth | - | 733 | - | 15,619 |
Reinvestment of distributions | 175 | 102 | 4,449 | 2,310 |
Shares redeemed | (2,155) | (2,870) | (54,445) | (67,508) |
Net increase (decrease) | 4,818 | 4,947 | $ 132,415 | $ 115,767 |
A Conversion transactions for Class K and Dividend Growth are presented for the period August 1, 2009 through August 31, 2009.
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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
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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 distributions, and the effects of any sales charges.
Semiannual Report
Investment Adviser
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Automated line for quickest service
DGF-USAN-0311
1.789283.108
Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Dividend Growth | .93% | | | |
Actual | | $ 1,000.00 | $ 1,233.30 | $ 5.24 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
Class K | .77% | | | |
Actual | | $ 1,000.00 | $ 1,234.20 | $ 4.34 |
HypotheticalA | | $ 1,000.00 | $ 1,021.32 | $ 3.92 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 2.7 | 2.2 |
Wells Fargo & Co. | 1.8 | 1.9 |
JPMorgan Chase & Co. | 1.6 | 1.8 |
Citigroup, Inc. | 1.6 | 0.8 |
General Electric Co. | 1.3 | 1.6 |
The Coca-Cola Co. | 1.3 | 0.8 |
Cisco Systems, Inc. | 1.0 | 1.3 |
Oracle Corp. | 0.9 | 0.9 |
Hewlett-Packard Co. | 0.9 | 1.1 |
Merck & Co., Inc. | 0.9 | 1.1 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 17.3 | 17.4 |
Financials | 15.8 | 17.5 |
Industrials | 14.5 | 13.9 |
Energy | 12.2 | 11.2 |
Consumer Discretionary | 10.7 | 10.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks and Investment Companies 97.8% | | | Stocks and Investment Companies 97.7% | |
| Bonds 0.0% | | | Bonds 0.3% | |
| Convertible
Securities 1.1% | | | Convertible
Securities 1.3% | |
| Short-Term
Investments and
Net Other Assets 1.1% | | | Short-Term
Investments and
Net Other Assets 0.7% | |
* Foreign investments | 19.6% | | ** Foreign investments | 16.6% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.3% |
Auto Components - 0.4% |
Exide Industries Ltd. | 306,475 | | $ 859 |
Minth Group Ltd. | 4,494,000 | | 6,801 |
Modine Manufacturing Co. (a) | 641,445 | | 10,584 |
Tenneco, Inc. (a) | 211,707 | | 8,750 |
Tower International, Inc. | 69,197 | | 1,237 |
TRW Automotive Holdings Corp. (a) | 150,864 | | 9,001 |
| | 37,232 |
Automobiles - 0.7% |
Bayerische Motoren Werke AG (BMW) | 149,691 | | 11,492 |
General Motors Co. | 142,548 | | 5,202 |
Harley-Davidson, Inc. | 294,262 | | 11,667 |
Mazda Motor Corp. | 2,500,000 | | 7,371 |
Thor Industries, Inc. | 220,590 | | 8,197 |
Winnebago Industries, Inc. (a)(d)(e) | 1,556,036 | | 23,185 |
| | 67,114 |
Distributors - 0.1% |
Silver Base Group Holdings Ltd. | 11,002,000 | | 7,902 |
Diversified Consumer Services - 0.6% |
Coinstar, Inc. (a) | 204,300 | | 8,456 |
DeVry, Inc. | 261,696 | | 13,637 |
Global Education & Technology Group Ltd. ADR (a) | 57,530 | | 518 |
Grand Canyon Education, Inc. (a) | 163,100 | | 2,950 |
H&R Block, Inc. | 326,600 | | 4,089 |
ITT Educational Services, Inc. (a) | 45,000 | | 2,963 |
Service Corp. International | 1,072,000 | | 9,294 |
Stewart Enterprises, Inc. Class A (d) | 2,248,355 | | 14,345 |
| | 56,252 |
Hotels, Restaurants & Leisure - 2.0% |
Accor SA | 581,822 | | 26,604 |
Ameristar Casinos, Inc. | 272,485 | | 4,185 |
Bravo Brio Restaurant Group, Inc. | 519,449 | | 8,467 |
Brinker International, Inc. | 914,306 | | 21,514 |
Club Mediterranee SA (a) | 98,055 | | 2,249 |
DineEquity, Inc. (a)(d) | 493,765 | | 25,468 |
InterContinental Hotel Group PLC | 448,700 | | 9,461 |
McDonald's Corp. | 204,060 | | 15,033 |
NH Hoteles SA (a) | 2,196,373 | | 12,990 |
O'Charleys, Inc. (a)(e) | 1,496,225 | | 10,354 |
Penn National Gaming, Inc. (a) | 8,187 | | 293 |
Sol Melia SA | 812,867 | | 8,574 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Hotels, Restaurants & Leisure - continued |
Spur Corp. Ltd. | 1,680,051 | | $ 3,271 |
Starbucks Corp. | 163,530 | | 5,156 |
WMS Industries, Inc. (a) | 867,944 | | 36,410 |
Wyndham Worldwide Corp. | 408,509 | | 11,491 |
| | 201,520 |
Household Durables - 0.6% |
Garmin Ltd. (d) | 343,400 | | 10,587 |
La-Z-Boy, Inc. (a) | 323,157 | | 2,689 |
Newell Rubbermaid, Inc. | 367,400 | | 7,072 |
PulteGroup, Inc. (a) | 1,102,075 | | 8,695 |
Stanley Black & Decker, Inc. | 287,339 | | 20,884 |
Techtronic Industries Co. Ltd. | 4,062,000 | | 5,054 |
Tempur-Pedic International, Inc. (a) | 248,000 | | 10,823 |
| | 65,804 |
Internet & Catalog Retail - 0.1% |
Expedia, Inc. | 588,903 | | 14,817 |
Leisure Equipment & Products - 0.1% |
Hasbro, Inc. | 261,601 | | 11,534 |
Media - 2.4% |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | | 9,900 |
Cinemark Holdings, Inc. | 339,188 | | 5,749 |
Comcast Corp.: | | | |
Class A | 51,870 | | 1,180 |
Class A (special) (non-vtg.) | 2,279,067 | | 48,863 |
McGraw-Hill Companies, Inc. | 313,498 | | 12,220 |
MDC Partners, Inc. Class A (sub. vtg.) | 1,398,539 | | 23,398 |
Mood Media Corp. (a) | 1,001,500 | | 2,001 |
News Corp. Class A | 429,081 | | 6,445 |
Saraiva SA Livreiros Editores | 179,400 | | 4,454 |
The Walt Disney Co. | 1,243,725 | | 48,344 |
Time Warner Cable, Inc. | 642,634 | | 43,590 |
Time Warner, Inc. | 845,816 | | 26,601 |
United Business Media Ltd. | 751,111 | | 8,451 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 398,800 | | 9,139 |
| | 250,335 |
Multiline Retail - 0.6% |
Maoye International Holdings Ltd. | 9,689,000 | | 4,300 |
Target Corp. | 1,040,021 | | 57,024 |
| | 61,324 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - 2.3% |
Advance Auto Parts, Inc. | 466,900 | | $ 29,854 |
Asbury Automotive Group, Inc. (a) | 479,969 | | 8,836 |
Best Buy Co., Inc. | 374,842 | | 12,745 |
Big 5 Sporting Goods Corp. | 492,300 | | 6,242 |
Carphone Warehouse Group PLC (a) | 1,419,949 | | 9,165 |
Casual Male Retail Group, Inc. (a) | 2,082,200 | | 8,745 |
Collective Brands, Inc. (a) | 106,250 | | 2,163 |
Express, Inc. | 213,030 | | 3,707 |
Foot Locker, Inc. | 692,827 | | 12,374 |
Foschini Ltd. | 552,000 | | 6,103 |
Hengdeli Holdings Ltd. | 25,940,000 | | 14,606 |
Home Depot, Inc. | 328,168 | | 12,067 |
I.T Ltd. | 4,754,000 | | 3,219 |
Lowe's Companies, Inc. | 2,016,312 | | 50,005 |
Lumber Liquidators Holdings, Inc. (a)(d) | 265,919 | | 7,430 |
MarineMax, Inc. (a) | 679,636 | | 6,144 |
OfficeMax, Inc. (a) | 919,756 | | 14,780 |
Staples, Inc. | 662,378 | | 14,778 |
SuperGroup PLC | 110,926 | | 2,718 |
Urban Outfitters, Inc. (a) | 322,600 | | 10,910 |
| | 236,591 |
Textiles, Apparel & Luxury Goods - 0.4% |
Bosideng International Holdings Ltd. | 21,544,000 | | 6,687 |
G-III Apparel Group Ltd. (a) | 372,829 | | 13,008 |
Maidenform Brands, Inc. (a) | 118,516 | | 3,051 |
Peak Sport Products Co. Ltd. (d) | 7,808,000 | | 5,197 |
Phillips-Van Heusen Corp. | 288,763 | | 16,855 |
| | 44,798 |
TOTAL CONSUMER DISCRETIONARY | | 1,055,223 |
CONSUMER STAPLES - 8.2% |
Beverages - 1.9% |
Anheuser-Busch InBev SA NV | 302,047 | | 16,664 |
Britvic PLC | 830,568 | | 5,968 |
Carlsberg AS Series B | 136,900 | | 13,639 |
Dr Pepper Snapple Group, Inc. | 504,687 | | 17,881 |
Grupo Modelo SAB de CV Series C | 1,687,400 | | 10,398 |
The Coca-Cola Co. | 2,111,041 | | 132,679 |
| | 197,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 2.1% |
CVS Caremark Corp. | 1,043,197 | | $ 35,677 |
Droga Raia SA | 343,000 | | 5,389 |
Drogasil SA | 707,700 | | 5,093 |
Eurocash SA | 102,200 | | 1,130 |
Kroger Co. | 2,269,372 | | 48,565 |
PriceSmart, Inc. | 158,748 | | 5,793 |
Susser Holdings Corp. (a) | 474,400 | | 6,841 |
Wal-Mart Stores, Inc. | 1,004,563 | | 56,326 |
Walgreen Co. | 1,004,818 | | 40,635 |
Winn-Dixie Stores, Inc. (a) | 1,091,635 | | 6,965 |
| | 212,414 |
Food Products - 2.1% |
Archer Daniels Midland Co. | 584,315 | | 19,090 |
Calavo Growers, Inc. | 581,770 | | 13,427 |
Chiquita Brands International, Inc. (a) | 452,692 | | 6,981 |
Darling International, Inc. (a) | 326,900 | | 4,429 |
Flowers Foods, Inc. | 596,212 | | 15,042 |
Global Dairy Holdings Ltd. | 12,877,000 | | 4,112 |
Green Mountain Coffee Roasters, Inc. (a) | 155,300 | | 5,215 |
Kellogg Co. | 146,498 | | 7,369 |
Kraft Foods, Inc. Class A | 1,573,194 | | 48,093 |
M. Dias Branco SA | 12,100 | | 268 |
Marine Harvest ASA (d) | 26,152,624 | | 29,421 |
Nestle SA | 497,616 | | 26,906 |
Sara Lee Corp. | 563,066 | | 9,555 |
Seneca Foods Corp. Class A (a) | 113,852 | | 3,165 |
Shenguan Holdings Group Ltd. | 1,414,000 | | 1,897 |
Smithfield Foods, Inc. (a) | 705,321 | | 14,043 |
The J.M. Smucker Co. | 81,737 | | 5,081 |
| | 214,094 |
Household Products - 0.8% |
Procter & Gamble Co. | 1,158,963 | | 73,165 |
Uni-Charm Corp. | 139,000 | | 5,351 |
Youyuan International Holdings Ltd. | 8,394,000 | | 4,393 |
| | 82,909 |
Personal Products - 0.4% |
Avon Products, Inc. | 692,228 | | 19,597 |
BaWang International (Group) Holding Ltd. (d) | 19,470,000 | | 5,519 |
Estee Lauder Companies, Inc. Class A | 137,835 | | 11,096 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Personal Products - continued |
Hengan International Group Co. Ltd. | 951,500 | | $ 7,121 |
USANA Health Sciences, Inc. (a) | 101,905 | | 3,864 |
| | 47,197 |
Tobacco - 0.9% |
Imperial Tobacco Group PLC | 256,077 | | 7,317 |
Philip Morris International, Inc. | 1,497,419 | | 85,712 |
| | 93,029 |
TOTAL CONSUMER STAPLES | | 846,872 |
ENERGY - 12.2% |
Energy Equipment & Services - 3.9% |
Aker Solutions ASA | 1,215,979 | | 22,111 |
Baker Hughes, Inc. | 402,276 | | 27,560 |
Cathedral Energy Services Ltd. | 409,500 | | 4,050 |
Ensco International Ltd. ADR | 16,300 | | 886 |
Halliburton Co. | 1,161,975 | | 52,289 |
ION Geophysical Corp. (a) | 1,912,478 | | 18,188 |
McDermott International, Inc. (a) | 40,916 | | 850 |
National Oilwell Varco, Inc. | 1,093,270 | | 80,793 |
Noble Corp. | 384,508 | | 14,707 |
Oceaneering International, Inc. (a) | 53,500 | | 4,132 |
Saipem SpA | 265,598 | | 13,286 |
Schlumberger Ltd. | 950,054 | | 84,545 |
Transocean Ltd. (a) | 290,576 | | 23,226 |
Unit Corp. (a) | 20,400 | | 1,044 |
Vantage Drilling Co. (a) | 5,475,916 | | 10,185 |
Weatherford International Ltd. (a) | 1,676,911 | | 39,776 |
| | 397,628 |
Oil, Gas & Consumable Fuels - 8.3% |
Americas Petrogas, Inc. (a) | 1,433,100 | | 2,663 |
Anadarko Petroleum Corp. | 395,417 | | 30,479 |
Apache Corp. | 438,989 | | 52,398 |
Berry Petroleum Co. Class A | 591,038 | | 27,584 |
BP PLC sponsored ADR | 655,859 | | 31,134 |
Buckeye Partners LP (g) | 129,500 | | 7,536 |
Chesapeake Energy Corp. | 253,500 | | 7,486 |
Chevron Corp. | 329,187 | | 31,250 |
Cimarex Energy Co. | 122,247 | | 12,730 |
Compton Petroleum Corp. (a) | 388,200 | | 171 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Concho Resources, Inc. (a) | 39,098 | | $ 3,763 |
Concho Resources, Inc. (a)(g) | 230,820 | | 22,216 |
CVR Energy, Inc. (a) | 1,037,512 | | 17,970 |
Daylight Energy Ltd. | 113,600 | | 1,145 |
Denbury Resources, Inc. (a) | 1,034,899 | | 21,060 |
Double Eagle Petroleum Co. (a) | 167,886 | | 1,308 |
EOG Resources, Inc. | 206,745 | | 21,996 |
Extract Resources Ltd. (a) | 306,808 | | 2,724 |
Exxon Mobil Corp. | 382,880 | | 30,891 |
Gran Tierra Energy, Inc. (a) | 633,600 | | 5,690 |
Heritage Oil PLC | 715,800 | | 3,737 |
Hess Corp. | 24,573 | | 2,067 |
Holly Corp. | 590,935 | | 28,997 |
InterOil Corp. (a)(d) | 244,719 | | 16,935 |
Kodiak Oil & Gas Corp. (a)(d) | 1,928,607 | | 12,247 |
Madalena Ventures, Inc. (a) | 1,472,000 | | 1,323 |
Marathon Oil Corp. | 666,456 | | 30,457 |
Massey Energy Co. | 364,617 | | 22,920 |
Niko Resources Ltd. | 114,100 | | 11,113 |
Noble Energy, Inc. | 304,011 | | 27,695 |
Northern Oil & Gas, Inc. (a) | 2,076,595 | | 57,252 |
OAO Gazprom sponsored ADR | 220,700 | | 5,906 |
Occidental Petroleum Corp. | 461,622 | | 44,630 |
Painted Pony Petroleum Ltd. (a)(f) | 116,500 | | 1,222 |
Painted Pony Petroleum Ltd. Class A (a) | 61,300 | | 643 |
Pan Orient Energy Corp. (a) | 938,500 | | 6,422 |
PetroBakken Energy Ltd. Class A (d) | 281,726 | | 6,034 |
Petrofrontier Corp. | 204,400 | | 755 |
Petrohawk Energy Corp. (a) | 875,568 | | 17,555 |
Petroleum Development Corp. (a) | 122,609 | | 5,580 |
Petroplus Holdings AG | 533,570 | | 8,743 |
Plains Exploration & Production Co. (a) | 634,117 | | 22,448 |
Progress Energy Resources Corp. | 418,000 | | 5,687 |
Repsol YPF SA sponsored ADR | 12,300 | | 390 |
Resolute Energy Corp. (a)(d) | 506,732 | | 9,172 |
Rockhopper Exploration PLC (a) | 565,593 | | 3,225 |
Rodinia Oil Corp. | 592,800 | | 1,528 |
Royal Dutch Shell PLC Class B ADR | 297,716 | | 21,010 |
Southwestern Energy Co. (a) | 315,125 | | 12,447 |
Suncor Energy, Inc. | 355,800 | | 14,735 |
TAG Oil Ltd. (a) | 797,300 | | 5,671 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Talisman Energy, Inc. | 627,900 | | $ 14,388 |
Tesoro Corp. (a) | 925,116 | | 17,808 |
Total SA sponsored ADR | 175,728 | | 10,328 |
Valero Energy Corp. | 1,123,316 | | 28,487 |
Voyager Oil & Gas, Inc. (a) | 100 | | 0* |
Western Refining, Inc. (a) | 163,405 | | 1,990 |
Whiting Petroleum Corp. (a) | 173,985 | | 21,971 |
Williams Companies, Inc. | 768,230 | | 20,735 |
| | 856,447 |
TOTAL ENERGY | | 1,254,075 |
FINANCIALS - 15.3% |
Capital Markets - 2.5% |
American Capital Ltd. (a) | 673,725 | | 5,504 |
Bank of New York Mellon Corp. | 856,352 | | 26,744 |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 170,269 | | 7,827 |
BlackRock, Inc. Class A | 159,000 | | 31,485 |
Deutsche Bank AG (NY Shares) | 28,600 | | 1,675 |
Evercore Partners, Inc. Class A | 42,900 | | 1,386 |
FXCM, Inc. Class A | 305,800 | | 4,150 |
Goldman Sachs Group, Inc. | 348,429 | | 57,010 |
GP Investments, Ltd. unit (a) | 1,348,529 | | 5,499 |
ICAP PLC | 686,000 | | 5,895 |
Invesco Ltd. | 662,787 | | 16,397 |
Medley Capital Corp. (a) | 234,600 | | 2,815 |
Morgan Stanley | 2,004,924 | | 58,945 |
State Street Corp. | 540,841 | | 25,268 |
TD Ameritrade Holding Corp. | 286,217 | | 5,845 |
| | 256,445 |
Commercial Banks - 4.1% |
Associated Banc-Corp. | 1,351,243 | | 18,890 |
Banco do Brasil SA | 592,500 | | 10,574 |
Banco Pine SA | 625,500 | | 5,210 |
CapitalSource, Inc. | 5,651,145 | | 43,627 |
CIT Group, Inc. (a) | 162,663 | | 7,757 |
Comerica, Inc. | 163,602 | | 6,250 |
Commercial Bank of Qatar GDR (Reg. S) | 706,706 | | 3,260 |
Guaranty Trust Bank PLC GDR (Reg. S) | 554,957 | | 3,968 |
Huntington Bancshares, Inc. | 2,935,105 | | 21,250 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Itau Unibanco Banco Multiplo SA ADR (a)(f) | 253,800 | | $ 5,457 |
Lloyds Banking Group PLC (a) | 5,231,900 | | 5,290 |
PNC Financial Services Group, Inc. | 351,038 | | 21,062 |
Regions Financial Corp. | 2,739,959 | | 19,454 |
Seven Bank Ltd. | 694 | | 1,566 |
SunTrust Banks, Inc. | 800,916 | | 24,372 |
Susquehanna Bancshares, Inc., Pennsylvania | 888,625 | | 8,495 |
SVB Financial Group (a) | 422,500 | | 22,169 |
U.S. Bancorp, Delaware | 101,398 | | 2,738 |
Webster Financial Corp. | 65,424 | | 1,497 |
Wells Fargo & Co. | 5,628,041 | | 182,461 |
Wilmington Trust Corp., Delaware | 1,245,858 | | 5,457 |
Zions Bancorporation | 196,302 | | 4,629 |
| | 425,433 |
Consumer Finance - 0.7% |
American Express Co. | 710,857 | | 30,837 |
Capital One Financial Corp. | 225,992 | | 10,884 |
Discover Financial Services | 678,627 | | 13,973 |
International Personal Finance PLC | 122,761 | | 672 |
SLM Corp. (a) | 787,260 | | 11,344 |
| | 67,710 |
Diversified Financial Services - 4.0% |
Bank of America Corp. | 396,300 | | 5,441 |
Citigroup, Inc. (a) | 34,674,685 | | 167,132 |
CME Group, Inc. | 59,027 | | 18,213 |
Deutsche Boerse AG | 128,642 | | 9,749 |
Infrastructure Development Finance Co. Ltd. | 1,797,985 | | 5,777 |
JPMorgan Chase & Co. | 3,759,919 | | 168,971 |
PICO Holdings, Inc. (a)(e) | 1,219,564 | | 37,782 |
| | 413,065 |
Insurance - 1.4% |
AEGON NV (a) | 1,257,527 | | 9,306 |
Allstate Corp. | 69,264 | | 2,157 |
Assured Guaranty Ltd. | 1,750,051 | | 25,306 |
Berkshire Hathaway, Inc. Class B (a) | 81,754 | | 6,683 |
Delphi Financial Group, Inc. Class A | 313,335 | | 9,018 |
Endurance Specialty Holdings Ltd. | 226,900 | | 10,549 |
Genworth Financial, Inc. Class A (a) | 2,711,525 | | 36,795 |
Lincoln National Corp. | 669,350 | | 19,304 |
MetLife, Inc. | 199,500 | | 9,131 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
Platinum Underwriters Holdings Ltd. | 127,000 | | $ 5,613 |
Prudential Financial, Inc. | 187,900 | | 11,558 |
| | 145,420 |
Real Estate Investment Trusts - 1.7% |
alstria office REIT-AG | 101,900 | | 1,437 |
Boston Properties, Inc. | 56,991 | | 5,378 |
CBL & Associates Properties, Inc. | 633,200 | | 10,802 |
Digital Realty Trust, Inc. (d) | 106,321 | | 5,784 |
Education Realty Trust, Inc. | 826,300 | | 6,445 |
Franklin Street Properties Corp. | 606,400 | | 9,090 |
HCP, Inc. | 125,400 | | 4,651 |
ProLogis Trust | 1,593,800 | | 23,779 |
Public Storage | 133,419 | | 14,540 |
Sabra Health Care REIT, Inc. | 300,733 | | 5,597 |
SL Green Realty Corp. | 291,200 | | 21,188 |
The Macerich Co. | 125,654 | | 6,114 |
U-Store-It Trust | 568,200 | | 5,489 |
Vornado Realty Trust | 146,838 | | 12,935 |
Westfield Group unit | 168,768 | | 1,655 |
Westfield Retail Trust unit | 208,666 | | 551 |
Weyerhaeuser Co. | 1,572,556 | | 36,452 |
| | 171,887 |
Real Estate Management & Development - 0.9% |
Beni Stabili SpA Siiq | 4,716,900 | | 4,494 |
CB Richard Ellis Group, Inc. Class A (a) | 2,247,658 | | 49,876 |
Coresite Realty Corp. | 340,335 | | 4,891 |
Iguatemi Empresa de Shopping Centers SA | 432,100 | | 9,329 |
Jones Lang LaSalle, Inc. | 167,934 | | 14,886 |
Kenedix, Inc. (a) | 36,232 | | 9,151 |
| | 92,627 |
TOTAL FINANCIALS | | 1,572,587 |
HEALTH CARE - 9.8% |
Biotechnology - 2.7% |
Alexion Pharmaceuticals, Inc. (a) | 126,500 | | 10,603 |
Amgen, Inc. (a) | 846,059 | | 46,601 |
Amylin Pharmaceuticals, Inc. (a) | 598,370 | | 9,682 |
ARIAD Pharmaceuticals, Inc. (a) | 2,189,679 | | 13,959 |
ArQule, Inc. (a) | 429,200 | | 2,631 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
AVEO Pharmaceuticals, Inc. | 773,000 | | $ 11,077 |
AVEO Pharmaceuticals, Inc. (g) | 290,609 | | 4,164 |
Biogen Idec, Inc. (a) | 296,922 | | 19,439 |
Cephalon, Inc. (a) | 145,400 | | 8,590 |
Clinical Data, Inc. (a)(d) | 408,877 | | 12,160 |
Dynavax Technologies Corp. (a) | 2,621,070 | | 7,863 |
Gilead Sciences, Inc. (a) | 226,500 | | 8,693 |
Human Genome Sciences, Inc. (a) | 577,300 | | 14,005 |
ImmunoGen, Inc. (a) | 376,900 | | 3,113 |
InterMune, Inc. (a) | 218,906 | | 8,181 |
Micromet, Inc. (a) | 1,097,200 | | 7,055 |
NPS Pharmaceuticals, Inc. (a) | 429,035 | | 4,292 |
PDL BioPharma, Inc. | 1,012,800 | | 5,003 |
Renovo Group PLC (a) | 1,935,800 | | 2,279 |
SIGA Technologies, Inc. (a)(d) | 1,484,674 | | 17,037 |
Theravance, Inc. (a) | 1,321,161 | | 27,797 |
Thrombogenics NV (a) | 402,397 | | 12,119 |
United Therapeutics Corp. (a) | 225,400 | | 15,323 |
ZIOPHARM Oncology, Inc. (a) | 983,452 | | 5,738 |
| | 277,404 |
Health Care Equipment & Supplies - 1.6% |
American Medical Systems Holdings, Inc. (a) | 639,316 | | 12,479 |
Boston Scientific Corp. (a) | 1,461,300 | | 10,200 |
C. R. Bard, Inc. | 300,130 | | 28,317 |
Covidien PLC | 513,027 | | 24,353 |
GN Store Nordic AS (a) | 592,874 | | 5,678 |
Hill-Rom Holdings, Inc. | 341,100 | | 13,804 |
Kinetic Concepts, Inc. (a) | 240,125 | | 11,077 |
Orthofix International NV (a) | 432,888 | | 12,381 |
Orthovita, Inc. (a) | 1,626,500 | | 3,342 |
Sirona Dental Systems, Inc. (a) | 20,400 | | 894 |
Symmetry Medical, Inc. (a) | 951,051 | | 9,102 |
William Demant Holding AS (a) | 115,354 | | 9,236 |
Wright Medical Group, Inc. (a) | 712,491 | | 10,588 |
Zimmer Holdings, Inc. (a) | 187,942 | | 11,119 |
| | 162,570 |
Health Care Providers & Services - 2.2% |
Brookdale Senior Living, Inc. (a) | 1,149,700 | | 25,121 |
Catalyst Health Solutions, Inc. (a) | 241,229 | | 10,469 |
CIGNA Corp. | 964,700 | | 40,537 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
DaVita, Inc. (a) | 150,398 | | $ 11,107 |
Emeritus Corp. (a) | 431,073 | | 8,233 |
Express Scripts, Inc. (a) | 820,200 | | 46,202 |
Fresenius Medical Care AG & Co. KGaA | 224,223 | | 13,118 |
McKesson Corp. | 326,946 | | 24,577 |
Medco Health Solutions, Inc. (a) | 537,308 | | 32,787 |
Sun Healthcare Group, Inc. (a) | 1,171,265 | | 14,635 |
Sunrise Senior Living, Inc. (a) | 4,392 | | 35 |
| | 226,821 |
Health Care Technology - 0.2% |
Allscripts-Misys Healthcare Solutions, Inc. (a) | 722,300 | | 15,248 |
Life Sciences Tools & Services - 0.8% |
Agilent Technologies, Inc. (a) | 1,185,375 | | 49,584 |
Lonza Group AG | 105,252 | | 8,288 |
PerkinElmer, Inc. | 147,200 | | 3,765 |
QIAGEN NV (a) | 163,100 | | 3,009 |
Thermo Fisher Scientific, Inc. (a) | 378,390 | | 21,670 |
| | 86,316 |
Pharmaceuticals - 2.3% |
Ardea Biosciences, Inc. (a) | 759,132 | | 20,132 |
Cadence Pharmaceuticals, Inc. (a)(d) | 2,395,495 | | 18,601 |
Cardiome Pharma Corp. (a) | 519,000 | | 3,266 |
Columbia Laboratories, Inc. (a) | 776,400 | | 1,755 |
GlaxoSmithKline PLC | 1,163,300 | | 21,002 |
GlaxoSmithKline PLC sponsored ADR | 538,929 | | 19,579 |
Merck & Co., Inc. | 2,690,124 | | 89,231 |
Novo Nordisk AS Series B | 200,837 | | 22,609 |
Pfizer, Inc. | 351,400 | | 6,403 |
Pronova BioPharma ASA (a) | 987,850 | | 1,624 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 376,219 | | 20,560 |
Valeant Pharmaceuticals International, Inc. | 377,700 | | 13,767 |
| | 238,529 |
TOTAL HEALTH CARE | | 1,006,888 |
INDUSTRIALS - 14.5% |
Aerospace & Defense - 2.7% |
Bombardier, Inc. Class B (sub. vtg.) | 2,043,200 | | 11,633 |
DigitalGlobe, Inc. (a) | 283,021 | | 8,692 |
Esterline Technologies Corp. (a) | 153,521 | | 10,928 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Aerospace & Defense - continued |
GeoEye, Inc. (a) | 581,150 | | $ 23,200 |
Goodrich Corp. | 254,477 | | 23,061 |
HEICO Corp. Class A | 408,232 | | 15,578 |
Honeywell International, Inc. | 593,730 | | 33,255 |
Meggitt PLC | 4,061,741 | | 23,094 |
Precision Castparts Corp. | 250,572 | | 35,829 |
Raytheon Co. | 478,526 | | 23,922 |
Rockwell Collins, Inc. | 32,720 | | 2,099 |
United Technologies Corp. | 848,602 | | 68,991 |
| | 280,282 |
Airlines - 0.2% |
Copa Holdings SA Class A | 93,997 | | 5,287 |
Southwest Airlines Co. | 785,995 | | 9,314 |
United Continental Holdings, Inc. (a) | 167,572 | | 4,256 |
| | 18,857 |
Building Products - 0.4% |
Masco Corp. | 1,590,623 | | 21,187 |
Owens Corning (a) | 519,607 | | 17,391 |
Quanex Building Products Corp. | 228,938 | | 4,462 |
| | 43,040 |
Commercial Services & Supplies - 1.0% |
Avery Dennison Corp. | 258,621 | | 10,885 |
Casella Waste Systems, Inc. Class A (a) | 426,952 | | 3,424 |
Interface, Inc. Class A | 861,327 | | 13,997 |
Iron Mountain, Inc. | 166,823 | | 4,069 |
Knoll, Inc. | 748,166 | | 12,524 |
Pitney Bowes, Inc. | 218,912 | | 5,315 |
Quad/Graphics, Inc. (a) | 141,849 | | 6,307 |
R.R. Donnelley & Sons Co. | 558,468 | | 9,896 |
Republic Services, Inc. | 500,465 | | 15,434 |
Schawk, Inc. Class A | 145,563 | | 2,655 |
Steelcase, Inc. Class A | 442,346 | | 4,521 |
The Geo Group, Inc. (a) | 482,449 | | 11,468 |
| | 100,495 |
Construction & Engineering - 1.3% |
Aveng Ltd. | 890,100 | | 4,707 |
Chiyoda Corp. | 151,000 | | 1,341 |
Dycom Industries, Inc. (a) | 573,133 | | 9,210 |
EMCOR Group, Inc. (a) | 196,124 | | 5,939 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - continued |
Fluor Corp. | 493,627 | | $ 34,154 |
Foster Wheeler Ag (a) | 1,169,395 | | 43,045 |
Great Lakes Dredge & Dock Corp. | 646,573 | | 5,373 |
Jacobs Engineering Group, Inc. (a) | 204,300 | | 10,495 |
MasTec, Inc. (a) | 345,300 | | 5,255 |
MYR Group, Inc. (a) | 466,142 | | 10,250 |
Shaw Group, Inc. (a) | 236,983 | | 8,951 |
| | 138,720 |
Electrical Equipment - 1.1% |
Alstom SA | 339,756 | | 18,961 |
AMETEK, Inc. | 293,182 | | 11,956 |
Cooper Industries PLC Class A | 365,312 | | 22,379 |
Emerson Electric Co. | 211,785 | | 12,470 |
Prysmian SpA (d) | 565,000 | | 11,401 |
Regal-Beloit Corp. | 158,974 | | 10,610 |
Schneider Electric SA | 95,607 | | 14,908 |
Zumtobel AG | 450,805 | | 13,167 |
| | 115,852 |
Industrial Conglomerates - 2.3% |
Cookson Group PLC (a) | 898,953 | | 9,568 |
General Electric Co. | 6,874,839 | | 138,459 |
Koninklijke Philips Electronics NV | 518,400 | | 16,151 |
Rheinmetall AG | 228,900 | | 19,598 |
Siemens AG sponsored ADR | 66,560 | | 8,547 |
Textron, Inc. | 1,510,429 | | 39,709 |
| | 232,032 |
Machinery - 2.8% |
Actuant Corp. Class A | 589,902 | | 16,358 |
ArvinMeritor, Inc. (a) | 456,144 | | 9,971 |
Blount International, Inc. (a) | 377,454 | | 5,666 |
Caterpillar, Inc. | 321,411 | | 31,180 |
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd. (H Shares) | 5,069,600 | | 11,626 |
China Automation Group Ltd. | 2,775,000 | | 2,121 |
Commercial Vehicle Group, Inc. (a) | 489,100 | | 7,894 |
Cummins, Inc. | 279,394 | | 29,582 |
Dover Corp. | 177,471 | | 11,376 |
Fiat Industrial SpA (a) | 588,400 | | 7,963 |
Hardinge, Inc. | 300,507 | | 2,629 |
Harsco Corp. | 171,653 | | 5,539 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Ingersoll-Rand Co. Ltd. | 605,524 | | $ 28,581 |
Navistar International Corp. (a) | 904,300 | | 58,644 |
NSK Ltd. | 1,224,000 | | 11,721 |
Pall Corp. | 271,128 | | 15,023 |
Schindler Holding AG (participation certificate) | 85,465 | | 9,541 |
SmartHeat, Inc. (a)(d) | 1,573,910 | | 7,492 |
Timken Co. | 211,152 | | 9,928 |
Trinity Industries, Inc. | 200,347 | | 5,588 |
WABCO Holdings, Inc. (a) | 60,198 | | 3,516 |
| | 291,939 |
Professional Services - 0.7% |
CBIZ, Inc. (a) | 680,713 | | 4,745 |
FTI Consulting, Inc. (a) | 282,394 | | 10,299 |
IHS, Inc. Class A (a) | 26,509 | | 2,173 |
Kforce, Inc. (a) | 433,860 | | 7,757 |
Robert Half International, Inc. | 525,300 | | 16,473 |
SR Teleperformance SA | 290,188 | | 10,458 |
Towers Watson & Co. | 331,202 | | 18,060 |
| | 69,965 |
Road & Rail - 1.8% |
Arkansas Best Corp. | 265,197 | | 6,776 |
Con-way, Inc. | 423,386 | | 14,404 |
CSX Corp. | 823,500 | | 58,139 |
Norfolk Southern Corp. | 213,066 | | 13,038 |
Saia, Inc. (a)(e) | 865,075 | | 12,379 |
Union Pacific Corp. | 722,700 | | 68,389 |
Universal Truckload Services, Inc. (a) | 530,923 | | 7,911 |
| | 181,036 |
Trading Companies & Distributors - 0.2% |
Barloworld Ltd. | 555,700 | | 5,358 |
Finning International, Inc. | 202,700 | | 5,900 |
Kaman Corp. | 334,000 | | 9,831 |
| | 21,089 |
TOTAL INDUSTRIALS | | 1,493,307 |
INFORMATION TECHNOLOGY - 17.3% |
Communications Equipment - 2.3% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 1,021,800 | | 3,382 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Calix Networks, Inc. (a)(d) | 1,181,115 | | $ 19,252 |
Cisco Systems, Inc. (a) | 4,640,807 | | 98,153 |
Comtech Telecommunications Corp. | 93,883 | | 2,634 |
Comverse Technology, Inc. (a) | 1,650,800 | | 10,829 |
HTC Corp. | 80,850 | | 2,726 |
Infinera Corp. (a) | 972,768 | | 7,135 |
Juniper Networks, Inc. (a) | 1,210,135 | | 44,920 |
Motorola Mobility Holdings, Inc. (a) | 315,396 | | 8,790 |
Motorola Solutions, Inc. (a) | 274,969 | | 10,661 |
Nokia Corp. sponsored ADR (d) | 196,177 | | 2,099 |
QUALCOMM, Inc. | 485,200 | | 26,264 |
| | 236,845 |
Computers & Peripherals - 3.6% |
Apple, Inc. (a) | 802,976 | | 272,464 |
Hewlett-Packard Co. | 2,094,453 | | 95,696 |
| | 368,160 |
Electronic Equipment & Components - 1.4% |
Arrow Electronics, Inc. (a) | 114,359 | | 4,323 |
Avnet, Inc. (a) | 960,688 | | 34,220 |
Corning, Inc. | 1,525,097 | | 33,872 |
Funtalk China Holdings Ltd. (a) | 2,067,961 | | 12,346 |
HLS Systems International Ltd. (a) | 349,968 | | 5,617 |
Keyence Corp. | 55,000 | | 14,594 |
Molex, Inc. (d) | 523,230 | | 13,682 |
Tyco Electronics Ltd. | 582,256 | | 21,095 |
| | 139,749 |
Internet Software & Services - 0.9% |
eAccess Ltd. (d) | 20,253 | | 12,263 |
eBay, Inc. (a) | 1,078,226 | | 32,735 |
Google, Inc. Class A (a) | 68,225 | | 40,960 |
NHN Corp. (a) | 27,832 | | 4,971 |
| | 90,929 |
IT Services - 1.3% |
Acxiom Corp. (a) | 607,828 | | 10,473 |
Alliance Data Systems Corp. (a) | 273,238 | | 19,329 |
Atos Origin SA (a) | 205,101 | | 11,418 |
Fidelity National Information Services, Inc. | 642,635 | | 19,555 |
Heartland Payment Systems, Inc. | 643,700 | | 10,170 |
MasterCard, Inc. Class A | 80,416 | | 19,019 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Unisys Corp. (a) | 430,385 | | $ 12,193 |
Virtusa Corp. (a) | 221,384 | | 3,564 |
Visa, Inc. Class A | 462,100 | | 32,278 |
| | 137,999 |
Office Electronics - 0.3% |
Xerox Corp. | 3,007,338 | | 31,938 |
Semiconductors & Semiconductor Equipment - 5.3% |
Advanced Micro Devices, Inc. (a) | 815,571 | | 6,386 |
Analog Devices, Inc. | 581,800 | | 22,591 |
ASML Holding NV | 616,749 | | 25,910 |
Atmel Corp. (a) | 2,352,488 | | 31,853 |
Avago Technologies Ltd. | 1,523,359 | | 43,736 |
Cymer, Inc. (a) | 742,789 | | 36,092 |
Entropic Communications, Inc. (a)(d) | 445,384 | | 4,886 |
Fairchild Semiconductor International, Inc. (a) | 2,220,398 | | 39,523 |
GT Solar International, Inc. (a) | 192,033 | | 2,121 |
Himax Technologies, Inc. sponsored ADR | 2,128,823 | | 5,365 |
Intersil Corp. Class A | 698,817 | | 10,566 |
Kulicke & Soffa Industries, Inc. (a) | 1,089,526 | | 10,623 |
Lam Research Corp. (a) | 1,774,905 | | 88,550 |
LTX-Credence Corp. (a)(e) | 3,288,837 | | 29,156 |
Mattson Technology, Inc. (a) | 300,534 | | 688 |
Maxim Integrated Products, Inc. | 789,957 | | 20,397 |
Microchip Technology, Inc. (d) | 162,479 | | 5,926 |
Micron Technology, Inc. (a) | 4,000,552 | | 42,166 |
National Semiconductor Corp. | 1,318,226 | | 19,984 |
NVIDIA Corp. (a) | 649,696 | | 15,541 |
NXP Semiconductors NV | 1,137,300 | | 29,274 |
ON Semiconductor Corp. (a) | 3,189,702 | | 35,246 |
Skyworks Solutions, Inc. (a) | 106,171 | | 3,373 |
Standard Microsystems Corp. (a) | 177,477 | | 4,268 |
Teradyne, Inc. (a) | 57,974 | | 967 |
TriQuint Semiconductor, Inc. (a) | 839,100 | | 11,043 |
| | 546,231 |
Software - 2.2% |
Aspen Technology, Inc. (a) | 396,000 | | 5,603 |
Autodesk, Inc. (a) | 45,000 | | 1,831 |
BMC Software, Inc. (a) | 450,990 | | 21,512 |
CA, Inc. | 959,167 | | 22,828 |
Citrix Systems, Inc. (a) | 235,740 | | 14,894 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
DemandTec, Inc. (a) | 810,662 | | $ 9,768 |
Informatica Corp. (a) | 524,210 | | 24,323 |
JDA Software Group, Inc. (a) | 406,472 | | 12,267 |
Micro Focus International PLC | 1,735,629 | | 11,403 |
NSD Co. Ltd. | 204,200 | | 2,122 |
Oracle Corp. | 3,000,079 | | 96,093 |
Sage Group PLC | 1,057,600 | | 4,999 |
| | 227,643 |
TOTAL INFORMATION TECHNOLOGY | | 1,779,494 |
MATERIALS - 6.1% |
Chemicals - 2.5% |
Air Products & Chemicals, Inc. | 132,211 | | 11,535 |
Ashland, Inc. | 155,250 | | 9,014 |
Cabot Corp. | 40,900 | | 1,769 |
Celanese Corp. Class A | 383,840 | | 15,926 |
CF Industries Holdings, Inc. | 114,335 | | 15,440 |
Clariant AG (Reg.) (a) | 1,135,000 | | 20,040 |
Dow Chemical Co. | 1,132,668 | | 40,187 |
Huabao International Holdings Ltd. | 8,481,461 | | 12,553 |
Israel Chemicals Ltd. | 371,900 | | 5,836 |
LyondellBasell Industries NV Class A (a) | 392,600 | | 14,110 |
Solutia, Inc. (a) | 613,852 | | 14,376 |
Spartech Corp. (a)(e) | 1,840,701 | | 15,370 |
Symrise AG | 32,700 | | 926 |
Syngenta AG (Switzerland) | 23,750 | | 7,658 |
Valspar Corp. | 183,140 | | 6,844 |
W.R. Grace & Co. (a) | 1,353,025 | | 48,019 |
Yara International ASA | 345,300 | | 19,428 |
| | 259,031 |
Construction Materials - 0.2% |
HeidelbergCement AG | 304,444 | | 19,893 |
Containers & Packaging - 0.3% |
Owens-Illinois, Inc. (a) | 532,076 | | 15,691 |
Rock-Tenn Co. Class A | 106,270 | | 7,094 |
Silgan Holdings, Inc. | 181,600 | | 6,779 |
| | 29,564 |
Metals & Mining - 3.1% |
Alcoa, Inc. | 875,476 | | 14,507 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - continued |
Anglo American PLC (United Kingdom) | 225,500 | | $ 11,061 |
Argonaut Gold, Inc. (a) | 49,100 | | 214 |
Centamin Egypt Ltd. (Canada) (a) | 408,600 | | 918 |
Commercial Metals Co. | 1,134,000 | | 18,960 |
Eldorado Gold Corp. | 1,021,878 | | 16,424 |
Freeport-McMoRan Copper & Gold, Inc. | 277,187 | | 30,144 |
Goldcorp, Inc. | 818,600 | | 32,863 |
Grande Cache Coal Corp. (a) | 738,500 | | 7,952 |
Gulf Resources, Inc. (a)(d) | 582,180 | | 5,560 |
Gulf Resources, Inc. (a)(g) | 1,894,460 | | 18,092 |
Ivanhoe Mines Ltd. (a) | 1,850,265 | | 51,399 |
Kinross Gold Corp. | 860,545 | | 14,304 |
Mirabela Nickel Ltd. (a) | 306,652 | | 688 |
Newcrest Mining Ltd. | 907,007 | | 33,425 |
Pan American Silver Corp. | 297,400 | | 9,758 |
Pediment Gold Corp. (a) | 286,000 | | 774 |
Randgold Resources Ltd. sponsored ADR | 368,823 | | 28,211 |
United States Steel Corp. | 358,019 | | 20,647 |
Walter Energy, Inc. | 57,336 | | 7,469 |
| | 323,370 |
TOTAL MATERIALS | | 631,858 |
TELECOMMUNICATION SERVICES - 1.5% |
Diversified Telecommunication Services - 0.7% |
China Unicom (Hong Kong) Ltd. | 6,244,000 | | 10,430 |
Frontier Communications Corp. | 709,869 | | 6,509 |
Iliad Group SA | 129,004 | | 13,696 |
Koninklijke KPN NV | 163,453 | | 2,577 |
Qwest Communications International, Inc. | 4,603,100 | | 32,820 |
Telefonica SA sponsored ADR | 315,960 | | 7,940 |
| | 73,972 |
Wireless Telecommunication Services - 0.8% |
NII Holdings, Inc. (a) | 251,000 | | 10,537 |
SOFTBANK CORP. | 175,200 | | 6,026 |
Sprint Nextel Corp. (a) | 9,619,815 | | 43,482 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - continued |
TIM Participacoes SA | 1,860,000 | | $ 6,871 |
Turkcell Iletisim Hizmet AS | 1,389,000 | | 8,560 |
| | 75,476 |
TOTAL TELECOMMUNICATION SERVICES | | 149,448 |
UTILITIES - 2.3% |
Electric Utilities - 0.7% |
American Electric Power Co., Inc. | 265,462 | | 9,472 |
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR | 502,200 | | 8,266 |
FirstEnergy Corp. (d) | 221,753 | | 8,675 |
NextEra Energy, Inc. | 380,956 | | 20,366 |
NV Energy, Inc. | 355,509 | | 5,109 |
Power Grid Corp. of India Ltd. | 367,766 | | 775 |
PPL Corp. | 637,653 | | 16,445 |
| | 69,108 |
Gas Utilities - 0.1% |
China Gas Holdings Ltd. | 9,504,000 | | 4,132 |
Enn Energy Holdings Ltd. | 3,084,000 | | 9,177 |
| | 13,309 |
Independent Power Producers & Energy Traders - 0.7% |
AES Corp. (a) | 6,036,156 | | 74,848 |
Multi-Utilities - 0.8% |
Alliant Energy Corp. | 138,905 | | 5,162 |
CMS Energy Corp. | 1,183,601 | | 23,080 |
National Grid PLC | 1,145,900 | | 10,161 |
PG&E Corp. | 300,057 | | 13,887 |
Public Service Enterprise Group, Inc. | 423,114 | | 13,722 |
Sempra Energy | 207,722 | | 10,816 |
| | 76,828 |
TOTAL UTILITIES | | 234,093 |
TOTAL COMMON STOCKS (Cost $8,166,176) | 10,023,845 |
Preferred Stocks - 0.7% |
| Shares | | Value (000s) |
Convertible Preferred Stocks - 0.6% |
CONSUMER DISCRETIONARY - 0.3% |
Automobiles - 0.3% |
General Motors Co. 4.75% | 501,900 | | $ 27,258 |
FINANCIALS - 0.2% |
Diversified Financial Services - 0.2% |
Citigroup, Inc. 7.50% | 157,200 | | 21,634 |
UTILITIES - 0.1% |
Electric Utilities - 0.1% |
PPL Corp. 9.50% | 187,100 | | 10,055 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 58,947 |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Volkswagen AG | 85,200 | | 13,763 |
TOTAL PREFERRED STOCKS (Cost $59,563) | 72,710 |
Investment Companies - 0.2% |
| | | |
Ares Capital Corp.
(Cost $13,555) | 1,070,680 | | 17,977 |
Convertible Bonds - 0.5% |
| Principal Amount (000s) | | |
FINANCIALS - 0.3% |
Real Estate Management & Development - 0.1% |
Forest City Enterprises, Inc. 5% 10/15/16 | | $ 6,170 | | 9,031 |
Thrifts & Mortgage Finance - 0.2% |
MGIC Investment Corp. 9% 4/1/63 (f) | | 18,163 | | 18,708 |
TOTAL FINANCIALS | | 27,739 |
HEALTH CARE - 0.2% |
Biotechnology - 0.1% |
Incyte Corp. 4.75% 10/1/15 | | 5,630 | | 10,676 |
Convertible Bonds - continued |
| Principal Amount (000s) | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - 0.1% |
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 | | $ 8,010 | | $ 10,163 |
TOTAL HEALTH CARE | | 20,839 |
INDUSTRIALS - 0.0% |
Trading Companies & Distributors - 0.0% |
Kaman Corp. 3.25% 11/15/17 (f) | | 2,450 | | 2,625 |
TELECOMMUNICATION SERVICES - 0.0% |
Diversified Telecommunication Services - 0.0% |
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (f) | | 4,080 | | 4,391 |
TOTAL CONVERTIBLE BONDS (Cost $37,228) | 55,594 |
Money Market Funds - 1.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 100,796,509 | | 100,797 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 99,351,830 | | 99,352 |
TOTAL MONEY MARKET FUNDS (Cost $200,149) | 200,149 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) #
(Cost $6,976) | $ 6,976 | | $ 6,976 |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $8,483,647) | | 10,377,251 |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | | (93,741) |
NET ASSETS - 100% | $ 10,283,510 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $32,403,000 or 0.3% of net assets. |
(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 $52,008,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
AVEO Pharmaceuticals, Inc. | 10/28/10 | $ 3,923 |
Buckeye Partners LP | 12/20/10 | $ 7,822 |
Concho Resources, Inc. | 7/20/10 | $ 10,456 |
Gulf Resources, Inc. | 12/11/09 | $ 16,103 |
* Amount represents less than $1,000 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000's) |
$6,976,000 due 2/01/11 at 0.23% |
BNP Paribas Securities Corp. | $ 2,149 |
Barclays Capital, Inc. | 1,319 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 3,508 |
| $ 6,976 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 68 |
Fidelity Securities Lending Cash Central Fund | 1,031 |
Total | $ 1,099 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
LTX-Credence Corp. | $ 24,000 | $ 3,810 | $ 915 | $ - | $ 29,156 |
O'Charleys, Inc. | 9,141 | 1,240 | - | - | 10,354 |
PICO Holdings, Inc. | 38,871 | 687 | 1,228 | - | 37,782 |
Saia, Inc. | 11,583 | 1,315 | - | - | 12,379 |
Spartech Corp. | 15,775 | 2,357 | - | - | 15,370 |
Winnebago Industries, Inc. | 16,261 | - | - | - | 23,185 |
Total | $ 115,631 | $ 9,409 | $ 2,143 | $ - | $ 128,226 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,096,244 | $ 1,086,783 | $ 9,461 | $ - |
Consumer Staples | 846,872 | 830,208 | 16,664 | - |
Energy | 1,254,075 | 1,246,539 | 7,536 | - |
Financials | 1,594,221 | 1,557,991 | 36,230 | - |
Health Care | 1,006,888 | 963,277 | 43,611 | - |
Industrials | 1,493,307 | 1,477,156 | 16,151 | - |
Information Technology | 1,779,494 | 1,779,494 | - | - |
Materials | 631,858 | 624,200 | 7,658 | - |
Telecommunication Services | 149,448 | 130,458 | 18,990 | - |
Utilities | 244,148 | 219,800 | 20,216 | 4,132 |
Investment Companies | 17,977 | 17,977 | - | - |
Corporate Bonds | 55,594 | - | 55,594 | - |
Money Market Funds | 200,149 | 200,149 | - | - |
Cash Equivalents | 6,976 | - | 6,976 | - |
Total Investments in Securities: | $ 10,377,251 | $ 10,134,032 | $ 239,087 | $ 4,132 |
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) | (1,057) |
Cost of Purchases | 5,127 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 62 |
Transfers out of Level 3 | - |
Ending Balance | $ 4,132 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (1,057) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.4% |
Canada | 2.8% |
Switzerland | 2.5% |
United Kingdom | 2.1% |
France | 1.1% |
Netherlands | 1.1% |
Others (Individually Less Than 1%) | 10.0% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $804,929,000 of which $691,258,000 and $113,671,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $97,582 and repurchase agreements of $6,976) - See accompanying schedule: Unaffiliated issuers (cost $8,161,345) | $ 10,048,876 | |
Fidelity Central Funds (cost $200,149) | 200,149 | |
Other affiliated issuers (cost $122,153) | 128,226 | |
Total Investments (cost $8,483,647) | | $ 10,377,251 |
Cash | | 2 |
Foreign currency held at value (cost $578) | | 574 |
Receivable for investments sold | | 106,865 |
Receivable for fund shares sold | | 14,653 |
Dividends receivable | | 4,298 |
Interest receivable | | 824 |
Distributions receivable from Fidelity Central Funds | | 128 |
Prepaid expenses | | 21 |
Other receivables | | 422 |
Total assets | | 10,505,038 |
| | |
Liabilities | | |
Payable for investments purchased | $ 103,337 | |
Payable for fund shares redeemed | 9,710 | |
Accrued management fee | 6,061 | |
Other affiliated payables | 1,721 | |
Other payables and accrued expenses | 1,347 | |
Collateral on securities loaned, at value | 99,352 | |
Total liabilities | | 221,528 |
| | |
Net Assets | | $ 10,283,510 |
Net Assets consist of: | | |
Paid in capital | | $ 9,037,384 |
Distributions in excess of net investment income | | (1,112) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (645,470) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,892,708 |
Net Assets | | $ 10,283,510 |
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, 2011 (Unaudited) |
| | |
Dividend Growth:
Net Asset Value, offering price and redemption price per share ($9,709,090 ÷ 333,220 shares) | | $ 29.14 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($574,420 ÷ 19,716 shares) | | $ 29.13 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 52,679 |
Interest | | 6,444 |
Income from Fidelity Central Funds | | 1,099 |
Total income | | 60,222 |
| | |
Expenses | | |
Management fee
Basic fee | $ 25,078 | |
Performance adjustment | 5,932 | |
Transfer agent fees | 9,411 | |
Accounting and security lending fees | 633 | |
Custodian fees and expenses | 216 | |
Independent trustees' compensation | 26 | |
Registration fees | 58 | |
Audit | 47 | |
Legal | 29 | |
Miscellaneous | 42 | |
Total expenses before reductions | 41,472 | |
Expense reductions | (184) | 41,288 |
Net investment income (loss) | | 18,934 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 271,907 | |
Other affiliated issuers | (559) | |
Foreign currency transactions | (997) | |
Total net realized gain (loss) | | 270,351 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,615,358 | |
Assets and liabilities in foreign currencies | 79 | |
Total change in net unrealized appreciation (depreciation) | | 1,615,437 |
Net gain (loss) | | 1,885,788 |
Net increase (decrease) in net assets resulting from operations | | $ 1,904,722 |
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 January 31, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 18,934 | $ 44,690 |
Net realized gain (loss) | 270,351 | 922,532 |
Change in net unrealized appreciation (depreciation) | 1,615,437 | 264,038 |
Net increase (decrease) in net assets resulting
from operations | 1,904,722 | 1,231,260 |
Distributions to shareholders from net investment income | (51,737) | (39,369) |
Distributions to shareholders from net realized gain | (26,364) | (16,428) |
Total distributions | (78,101) | (55,797) |
Share transactions - net increase (decrease) | 371,477 | 104,895 |
Total increase (decrease) in net assets | 2,198,098 | 1,280,358 |
| | |
Net Assets | | |
Beginning of period | 8,085,412 | 6,805,054 |
End of period (including distributions in excess of net investment income of $1,112 and undistributed net investment income of $31,691, respectively) | $ 10,283,510 | $ 8,085,412 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 |
Income from Investment
Operations | | | | | |
Net investment income (loss) D | .05 | .13 G | .24 | .43 | .52 H | .35 |
Net realized and unrealized gain (loss) | 5.48 | 3.63 | (4.01) | (5.08) | 3.98 | .99 |
Total from investment operations | 5.53 | 3.76 | (3.77) | (4.65) | 4.50 | 1.34 |
Distributions from net investment income | (.15) | (.12) | (.37) | (.45) | (.45) | (.31) |
Distributions from net realized gain | (.08) | (.05) | (1.01) | (2.23) | (.82) | (.38) |
Total distributions | (.23) | (.17) | (1.38) J | (2.68) | (1.27) | (.69) |
Net asset value, end of period | $ 29.14 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 |
Total Return B, C | 23.33% | 18.59% | (15.33)% | (15.45)% | 15.62% | 4.73% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | .93% A | .93% | .62% | .64% | .61% | .60% |
Expenses net of fee waivers, if any | .93%A | .93% | .62% | .64% | .61% | .60% |
Expenses net of all reductions | .93%A | .92% | .62% | .63% | .60% | .59% |
Net investment income (loss) | .41%A | .56%G | 1.34% | 1.47% | 1.62% H | 1.21% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 9,709 | $ 7,730 | $ 6,603 | $ 9,502 | $ 16,265 | $ 15,523 |
Portfolio turnover
rate F | 65%A | 85% | 177% | 52% | 36% | 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 Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
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 January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 H |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations | | | | |
Net investment income (loss)D | .08 | .18G | .26 | .10 |
Net realized and unrealized gain (loss) | 5.46 | 3.63 | (4.00) | (2.41) |
Total from investment operations | 5.54 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.08) | (.05) | (1.01) | - |
Total distributions | (.27) K | (.21) | (1.41)J | - |
Net asset value, end of period | $ 29.13 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B, C | 23.42% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, I | | | | |
Expenses before reductions | .77% A | .72% | .40% | .47%A |
Expenses net of fee waivers, if any | .77% A | .72% | .40% | .47%A |
Expenses net of all reductions | .76% A | .71% | .39% | .47%A |
Net investment income (loss) | .58% A | .76% G | 1.57% | 1.66%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 574,420 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 65% A | 85% | 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 Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
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 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.
K Total distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 2,131,228 |
Gross unrealized depreciation | (290,721) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,840,507 |
Tax cost | $ 8,536,744 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 $3,129,771 and $2,864,503, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .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 Dividend Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .69% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Dividend Growth | $ 9,300 | .22 |
Class K | 111 | .05 |
| $ 9,411 | |
* 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 $86 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $16 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,574. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,031, including $24 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $184 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Dividend Growth | $ 48,547 | $ 37,603 |
Class K | 3,190 | 1,766 |
Total | $ 51,737 | $ 39,369 |
From net realized gain | | |
Dividend Growth | $ 25,105 | $ 15,884 |
Class K | 1,259 | 544 |
Total | $ 26,364 | $ 16,428 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Dividend Growth | | | | |
Shares sold | 50,155 | 100,583 | $ 1,302,331 | $ 2,382,785 |
Conversion to Class K | - | (734) | - | (15,619) |
Reinvestment of distributions | 2,707 | 2,281 | 68,380 | 51,426 |
Shares redeemed | (43,935) | (104,010) | (1,131,649) | (2,429,464) |
Net increase (decrease) | 8,927 | (1,880) | $ 239,062 | $ (10,872) |
Class K | | | | |
Shares sold | 6,798 | 6,982 | $ 182,411 | $ 165,346 |
Conversion from Dividend Growth | - | 733 | - | 15,619 |
Reinvestment of distributions | 175 | 102 | 4,449 | 2,310 |
Shares redeemed | (2,155) | (2,870) | (54,445) | (67,508) |
Net increase (decrease) | 4,818 | 4,947 | $ 132,415 | $ 115,767 |
A Conversion transactions for Class K and Dividend Growth are presented for the period August 1, 2009 through August 31, 2009.
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 distributions, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
DGF-K-USAN-0311
1.863067.102
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.fidelity.advisor.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Growth & Income | .73% | | | |
Actual | | $ 1,000.00 | $ 1,195.90 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.53 | $ 3.72 |
Class K | .54% | | | |
Actual | | $ 1,000.00 | $ 1,197.30 | $ 2.99 |
HypotheticalA | | $ 1,000.00 | $ 1,022.48 | $ 2.75 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 5.0 | 3.5 |
Apple, Inc. | 3.9 | 3.8 |
JPMorgan Chase & Co. | 2.8 | 2.5 |
Wells Fargo & Co. | 2.5 | 1.9 |
The Coca-Cola Co. | 2.2 | 1.8 |
Schlumberger Ltd. | 2.2 | 0.8 |
United Technologies Corp. | 2.2 | 2.1 |
Citigroup, Inc. | 2.1 | 1.5 |
Google, Inc. Class A | 1.8 | 1.6 |
Philip Morris International, Inc. | 1.5 | 1.5 |
| 26.2 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 19.2 | 19.1 |
Information Technology | 19.1 | 20.8 |
Industrials | 15.5 | 15.6 |
Energy | 13.4 | 11.1 |
Health Care | 10.3 | 9.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 98.2% | | | Stocks 99.6% | |
 | Convertible
Securities 0.2% | |  | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 1.6% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
* Foreign investments | 11.6% | | ** Foreign investments | 8.1% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 9.5% |
Auto Components - 0.4% |
TRW Automotive Holdings Corp. (a) | 395,900 | | $ 23,619 |
Automobiles - 0.6% |
Ford Motor Co. (a) | 1,050,000 | | 16,748 |
General Motors Co. | 529,900 | | 19,336 |
| | 36,084 |
Distributors - 0.3% |
Li & Fung Ltd. | 1,880,000 | | 12,189 |
Pool Corp. | 241,035 | | 5,876 |
| | 18,065 |
Hotels, Restaurants & Leisure - 1.5% |
Accor SA | 315,000 | | 14,403 |
Carnival Corp. unit | 66,100 | | 2,955 |
Darden Restaurants, Inc. | 130,000 | | 6,124 |
Jack in the Box, Inc. (a) | 125,400 | | 2,751 |
Marriott International, Inc. Class A | 630,618 | | 24,903 |
Sonic Corp. (a) | 397,600 | | 3,813 |
Starbucks Corp. | 1,185,000 | | 37,363 |
Yum! Brands, Inc. | 38,800 | | 1,814 |
| | 94,126 |
Household Durables - 2.1% |
D.R. Horton, Inc. | 39,445 | | 489 |
KB Home (d) | 2,250,000 | | 33,390 |
Newell Rubbermaid, Inc. | 405,000 | | 7,796 |
PulteGroup, Inc. (a) | 2,252,370 | | 17,771 |
Ryland Group, Inc. | 1,480,000 | | 26,344 |
Stanley Black & Decker, Inc. | 590,000 | | 42,881 |
Toll Brothers, Inc. (a) | 210,292 | | 4,256 |
Whirlpool Corp. | 13,900 | | 1,188 |
| | 134,115 |
Media - 1.8% |
Comcast Corp. Class A | 1,600,000 | | 36,400 |
DIRECTV (a) | 210,400 | | 8,919 |
Lamar Advertising Co. Class A (a) | 215,000 | | 7,921 |
The Walt Disney Co. | 1,520,000 | | 59,082 |
| | 112,322 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - 1.6% |
Kohl's Corp. (a) | 455,000 | | $ 23,105 |
Target Corp. | 1,396,000 | | 76,543 |
| | 99,648 |
Specialty Retail - 0.7% |
Esprit Holdings Ltd. | 906,400 | | 4,296 |
Kingfisher PLC | 3,048,100 | | 12,303 |
Lowe's Companies, Inc. | 1,020,000 | | 25,296 |
| | 41,895 |
Textiles, Apparel & Luxury Goods - 0.5% |
Hanesbrands, Inc. (a) | 73,300 | | 1,687 |
Polo Ralph Lauren Corp. Class A | 285,000 | | 30,546 |
| | 32,233 |
TOTAL CONSUMER DISCRETIONARY | | 592,107 |
CONSUMER STAPLES - 7.2% |
Beverages - 2.8% |
Coca-Cola Enterprises, Inc. | 775,000 | | 19,499 |
PepsiCo, Inc. | 236,700 | | 15,222 |
The Coca-Cola Co. | 2,195,000 | | 137,956 |
| | 172,677 |
Food & Staples Retailing - 0.4% |
CVS Caremark Corp. | 467,900 | | 16,002 |
Wal-Mart Stores, Inc. | 212,900 | | 11,937 |
| | 27,939 |
Food Products - 1.2% |
Bunge Ltd. | 335,000 | | 22,803 |
Kraft Foods, Inc. Class A | 180,000 | | 5,503 |
Mead Johnson Nutrition Co. Class A | 280,000 | | 16,232 |
Nestle SA | 512,000 | | 27,684 |
| | 72,222 |
Household Products - 1.1% |
Colgate-Palmolive Co. | 400,000 | | 30,708 |
Energizer Holdings, Inc. (a) | 41,500 | | 3,019 |
Procter & Gamble Co. | 410,000 | | 25,883 |
Reckitt Benckiser Group PLC | 169,300 | | 9,206 |
WD-40 Co. | 78,585 | | 3,094 |
| | 71,910 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - 1.7% |
Lorillard, Inc. | 124,100 | | $ 9,337 |
Philip Morris International, Inc. | 1,690,000 | | 96,736 |
| | 106,073 |
TOTAL CONSUMER STAPLES | | 450,821 |
ENERGY - 13.4% |
Energy Equipment & Services - 5.9% |
Cameron International Corp. (a) | 1,309,100 | | 69,775 |
Ensco International Ltd. ADR | 245,000 | | 13,313 |
Exterran Partners LP | 152,900 | | 4,272 |
Halliburton Co. | 1,340,100 | | 60,305 |
Oil States International, Inc. (a) | 232,800 | | 15,775 |
Saipem SpA | 490,000 | | 24,511 |
Schlumberger Ltd. | 1,534,500 | | 136,555 |
Weatherford International Ltd. (a) | 1,791,800 | | 42,501 |
| | 367,007 |
Oil, Gas & Consumable Fuels - 7.5% |
Anadarko Petroleum Corp. | 300,000 | | 23,124 |
Apache Corp. | 330,800 | | 39,484 |
Cimarex Energy Co. | 180,000 | | 18,743 |
Exxon Mobil Corp. | 3,881,300 | | 313,145 |
Massey Energy Co. | 123,804 | | 7,782 |
Peabody Energy Corp. | 425,000 | | 26,954 |
PetroBakken Energy Ltd. Class A | 207,000 | | 4,433 |
Petrohawk Energy Corp. (a) | 695,000 | | 13,935 |
QEP Resources, Inc. | 46,700 | | 1,898 |
Ultra Petroleum Corp. (a) | 280,000 | | 13,364 |
Whiting Petroleum Corp. (a) | 55,000 | | 6,945 |
| | 469,807 |
TOTAL ENERGY | | 836,814 |
FINANCIALS - 19.2% |
Capital Markets - 4.0% |
Ameriprise Financial, Inc. | 435,000 | | 26,818 |
Ashmore Group PLC | 4,172,100 | | 23,321 |
Bank of New York Mellon Corp. | 925,000 | | 28,888 |
BlackRock, Inc. Class A | 170,000 | | 33,663 |
Goldman Sachs Group, Inc. | 161,300 | | 26,392 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
Janus Capital Group, Inc. | 693,375 | | $ 8,951 |
Morgan Stanley | 465,000 | | 13,671 |
State Street Corp. | 1,857,400 | | 86,778 |
| | 248,482 |
Commercial Banks - 5.0% |
Bank of Montreal | 53,500 | | 3,088 |
HSBC Holdings PLC sponsored ADR | 55,700 | | 3,043 |
Huntington Bancshares, Inc. | 888,800 | | 6,435 |
Marshall & Ilsley Corp. | 1,425,000 | | 9,961 |
PNC Financial Services Group, Inc. | 291,900 | | 17,514 |
Regions Financial Corp. | 2,020,000 | | 14,342 |
Standard Chartered PLC (United Kingdom) | 309,270 | | 8,069 |
Sterling Bancshares, Inc. | 705,000 | | 6,253 |
SunTrust Banks, Inc. | 550,000 | | 16,737 |
U.S. Bancorp, Delaware | 2,115,000 | | 57,105 |
Wells Fargo & Co. | 4,767,200 | | 154,553 |
Zions Bancorporation | 645,000 | | 15,209 |
| | 312,309 |
Consumer Finance - 0.4% |
Capital One Financial Corp. | 331,900 | | 15,984 |
Discover Financial Services | 343,321 | | 7,069 |
| | 23,053 |
Diversified Financial Services - 6.3% |
Bank of America Corp. | 4,360,900 | | 59,875 |
Citigroup, Inc. (a) | 27,575,300 | | 132,913 |
JPMorgan Chase & Co. | 3,964,500 | | 178,165 |
KKR Financial Holdings LLC | 1,733,900 | | 16,749 |
MSCI, Inc. Class A (a) | 301,300 | | 10,313 |
| | 398,015 |
Insurance - 1.9% |
Berkshire Hathaway, Inc. Class B (a) | 437,500 | | 35,766 |
Everest Re Group Ltd. | 14,500 | | 1,222 |
Hartford Financial Services Group, Inc. | 365,000 | | 10,140 |
Lincoln National Corp. | 490,000 | | 14,132 |
MetLife, Inc. | 1,225,000 | | 56,068 |
| | 117,328 |
Real Estate Investment Trusts - 1.1% |
CBL & Associates Properties, Inc. | 459,200 | | 7,834 |
ProLogis Trust | 700,000 | | 10,444 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Public Storage | 230,300 | | $ 25,098 |
Simon Property Group, Inc. | 114,121 | | 11,578 |
SL Green Realty Corp. | 161,600 | | 11,758 |
Ventas, Inc. | 56,800 | | 3,150 |
Weyerhaeuser Co. | 136,300 | | 3,159 |
| | 73,021 |
Real Estate Management & Development - 0.4% |
CB Richard Ellis Group, Inc. Class A (a) | 1,080,000 | | 23,965 |
Thrifts & Mortgage Finance - 0.1% |
BankUnited, Inc. (a) | 41,300 | | 1,156 |
Radian Group, Inc. | 575,130 | | 4,129 |
| | 5,285 |
TOTAL FINANCIALS | | 1,201,458 |
HEALTH CARE - 10.1% |
Biotechnology - 1.9% |
Amgen, Inc. (a) | 786,400 | | 43,315 |
Amylin Pharmaceuticals, Inc. (a) | 900,000 | | 14,562 |
ARIAD Pharmaceuticals, Inc. (a) | 939,738 | | 5,991 |
BioMarin Pharmaceutical, Inc. (a) | 281,157 | | 7,147 |
Cephalon, Inc. (a) | 93,000 | | 5,494 |
Gilead Sciences, Inc. (a) | 495,000 | | 18,998 |
SIGA Technologies, Inc. (a) | 400,000 | | 4,590 |
Theravance, Inc. (a) | 249,076 | | 5,241 |
Vertex Pharmaceuticals, Inc. (a) | 360,000 | | 14,000 |
| | 119,338 |
Health Care Equipment & Supplies - 1.4% |
C. R. Bard, Inc. | 215,000 | | 20,285 |
Covidien PLC | 1,105,600 | | 52,483 |
Mako Surgical Corp. (a) | 319,400 | | 4,957 |
Meridian Bioscience, Inc. | 82,400 | | 1,808 |
Mindray Medical International Ltd. sponsored ADR | 195,200 | | 5,106 |
St. Jude Medical, Inc. (a) | 117,800 | | 4,771 |
| | 89,410 |
Health Care Providers & Services - 2.5% |
Brookdale Senior Living, Inc. (a) | 465,000 | | 10,160 |
CIGNA Corp. | 230,000 | | 9,665 |
Express Scripts, Inc. (a) | 784,200 | | 44,174 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Henry Schein, Inc. (a) | 523,400 | | $ 34,366 |
McKesson Corp. | 300,000 | | 22,551 |
Medco Health Solutions, Inc. (a) | 230,000 | | 14,035 |
UnitedHealth Group, Inc. | 465,000 | | 19,088 |
| | 154,039 |
Health Care Technology - 0.1% |
SXC Health Solutions Corp. (a) | 158,800 | | 7,646 |
Life Sciences Tools & Services - 1.1% |
Agilent Technologies, Inc. (a) | 413,000 | | 17,276 |
Illumina, Inc. (a) | 265,000 | | 18,375 |
Life Technologies Corp. (a) | 130,800 | | 7,101 |
Lonza Group AG | 208,334 | | 16,406 |
QIAGEN NV (a) | 401,600 | | 7,410 |
| | 66,568 |
Pharmaceuticals - 3.1% |
Auxilium Pharmaceuticals, Inc. (a) | 140,000 | | 3,177 |
Cardiome Pharma Corp. (a) | 375,600 | | 2,364 |
GlaxoSmithKline PLC sponsored ADR | 760,000 | | 27,611 |
Johnson & Johnson | 1,049,800 | | 62,747 |
Merck & Co., Inc. | 2,098,078 | | 69,593 |
Pfizer, Inc. | 1,252,500 | | 22,821 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 105,000 | | 5,738 |
| | 194,051 |
TOTAL HEALTH CARE | | 631,052 |
INDUSTRIALS - 15.5% |
Aerospace & Defense - 5.0% |
AerCap Holdings NV (a) | 390,000 | | 5,819 |
AeroVironment, Inc. (a) | 119,100 | | 3,359 |
BE Aerospace, Inc. (a) | 626,400 | | 24,235 |
Embraer SA sponsored ADR | 76,200 | | 2,515 |
Goodrich Corp. | 356,300 | | 32,288 |
Honeywell International, Inc. | 430,000 | | 24,084 |
Precision Castparts Corp. | 186,300 | | 26,639 |
Rockwell Collins, Inc. | 225,400 | | 14,457 |
The Boeing Co. | 640,000 | | 44,467 |
United Technologies Corp. | 1,660,000 | | 134,958 |
| | 312,821 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Air Freight & Logistics - 1.1% |
C.H. Robinson Worldwide, Inc. | 205,000 | | $ 15,803 |
United Parcel Service, Inc. Class B | 770,000 | | 55,147 |
| | 70,950 |
Airlines - 0.3% |
Southwest Airlines Co. | 1,365,000 | | 16,175 |
United Continental Holdings, Inc. (a) | 175,000 | | 4,445 |
| | 20,620 |
Building Products - 0.2% |
Lennox International, Inc. | 43,900 | | 2,157 |
Owens Corning (a) | 357,000 | | 11,949 |
Quanex Building Products Corp. | 24,378 | | 475 |
| | 14,581 |
Commercial Services & Supplies - 0.1% |
Avery Dennison Corp. | 155,000 | | 6,524 |
Construction & Engineering - 0.7% |
Fluor Corp. | 333,900 | | 23,103 |
Jacobs Engineering Group, Inc. (a) | 290,000 | | 14,897 |
Orion Marine Group, Inc. (a) | 201,100 | | 2,357 |
| | 40,357 |
Industrial Conglomerates - 1.7% |
3M Co. | 669,700 | | 58,880 |
General Electric Co. | 718,400 | | 14,469 |
Koninklijke Philips Electronics NV unit | 500,900 | | 15,643 |
Textron, Inc. | 622,800 | | 16,373 |
| | 105,365 |
Machinery - 2.9% |
Charter International PLC | 756,468 | | 9,784 |
Cummins, Inc. | 306,100 | | 32,410 |
Danaher Corp. | 910,000 | | 41,915 |
Ingersoll-Rand Co. Ltd. | 1,505,000 | | 71,036 |
PACCAR, Inc. | 480,000 | | 27,115 |
| | 182,260 |
Professional Services - 0.6% |
Bureau Veritas SA | 85,300 | | 6,188 |
FTI Consulting, Inc. (a) | 163,900 | | 5,977 |
IHS, Inc. Class A (a) | 53,461 | | 4,382 |
Robert Half International, Inc. | 627,600 | | 19,682 |
| | 36,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Road & Rail - 2.9% |
CSX Corp. | 1,182,700 | | $ 83,499 |
Landstar System, Inc. | 536,300 | | 22,219 |
Union Pacific Corp. | 760,000 | | 71,919 |
| | 177,637 |
Trading Companies & Distributors - 0.0% |
GATX Corp. | 74,300 | | 2,470 |
Watsco, Inc. | 400 | | 25 |
| | 2,495 |
TOTAL INDUSTRIALS | | 969,839 |
INFORMATION TECHNOLOGY - 19.1% |
Communications Equipment - 3.3% |
Cisco Systems, Inc. (a) | 3,458,900 | | 73,156 |
HTC Corp. | 500,000 | | 16,856 |
Juniper Networks, Inc. (a) | 663,000 | | 24,611 |
Motorola Mobility Holdings, Inc. | 256,250 | | 7,142 |
Motorola Solutions, Inc. | 292,857 | | 11,354 |
QUALCOMM, Inc. | 1,325,000 | | 71,722 |
| | 204,841 |
Computers & Peripherals - 5.3% |
Apple, Inc. (a) | 723,800 | | 245,600 |
EMC Corp. (a) | 1,505,000 | | 37,459 |
Hewlett-Packard Co. | 1,074,700 | | 49,103 |
| | 332,162 |
Electronic Equipment & Components - 0.7% |
Corning, Inc. | 1,896,900 | | 42,130 |
Internet Software & Services - 2.7% |
eBay, Inc. (a) | 1,457,800 | | 44,259 |
Google, Inc. Class A (a) | 188,000 | | 112,868 |
OpenTable, Inc. (a) | 125,000 | | 9,828 |
| | 166,955 |
IT Services - 2.1% |
Cognizant Technology Solutions Corp. Class A (a) | 190,000 | | 13,861 |
Fidelity National Information Services, Inc. | 46,600 | | 1,418 |
Fiserv, Inc. (a) | 260,000 | | 16,060 |
International Business Machines Corp. | 155,000 | | 25,110 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
MasterCard, Inc. Class A | 173,000 | | $ 40,916 |
Visa, Inc. Class A | 482,900 | | 33,731 |
| | 131,096 |
Office Electronics - 0.3% |
Xerox Corp. | 1,535,000 | | 16,302 |
Semiconductors & Semiconductor Equipment - 1.7% |
Broadcom Corp. Class A | 550,000 | | 24,800 |
Intersil Corp. Class A | 895,000 | | 13,532 |
Lam Research Corp. (a) | 544,500 | | 27,165 |
Marvell Technology Group Ltd. (a) | 806,300 | | 15,328 |
Micron Technology, Inc. (a) | 1,305,900 | | 13,764 |
NXP Semiconductors NV | 211,800 | | 5,452 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 1,370,900 | | 9,500 |
| | 109,541 |
Software - 3.0% |
ANSYS, Inc. (a) | 23,600 | | 1,238 |
Autonomy Corp. PLC (a) | 826,100 | | 19,794 |
BMC Software, Inc. (a) | 537,400 | | 25,634 |
Citrix Systems, Inc. (a) | 205,000 | | 12,952 |
Informatica Corp. (a) | 300,000 | | 13,920 |
Microsoft Corp. | 933,100 | | 25,870 |
Nuance Communications, Inc. (a) | 510,000 | | 10,368 |
Oracle Corp. | 2,322,200 | | 74,380 |
Red Hat, Inc. (a) | 140,000 | | 5,785 |
| | 189,941 |
TOTAL INFORMATION TECHNOLOGY | | 1,192,968 |
MATERIALS - 2.8% |
Chemicals - 1.7% |
Albemarle Corp. | 330,200 | | 18,544 |
CF Industries Holdings, Inc. | 90,000 | | 12,154 |
Dow Chemical Co. | 445,000 | | 15,789 |
Ecolab, Inc. | 115,000 | | 5,714 |
FMC Corp. | 264,600 | | 20,125 |
Praxair, Inc. | 183,800 | | 17,101 |
The Mosaic Co. | 225,000 | | 18,234 |
| | 107,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Construction Materials - 0.1% |
Vulcan Materials Co. (d) | 190,000 | | $ 8,086 |
Metals & Mining - 1.0% |
Alcoa, Inc. | 1,875,000 | | 31,069 |
AngloGold Ashanti Ltd. sponsored ADR | 119,700 | | 5,152 |
Barrick Gold Corp. | 53,700 | | 2,546 |
Carpenter Technology Corp. | 273,800 | | 11,267 |
Reliance Steel & Aluminum Co. | 170,000 | | 8,889 |
| | 58,923 |
TOTAL MATERIALS | | 174,670 |
TELECOMMUNICATION SERVICES - 0.9% |
Wireless Telecommunication Services - 0.9% |
American Tower Corp. Class A (a) | 585,000 | | 29,753 |
Sprint Nextel Corp. (a) | 2,725,000 | | 12,317 |
Vodafone Group PLC sponsored ADR | 650,000 | | 18,434 |
| | 60,504 |
UTILITIES - 0.4% |
Multi-Utilities - 0.4% |
National Grid PLC | 1,442,600 | | 12,792 |
Public Service Enterprise Group, Inc. | 360,000 | | 11,675 |
| | 24,467 |
TOTAL COMMON STOCKS (Cost $4,918,420) | 6,134,700 |
Preferred Stocks - 0.2% |
| | | |
Convertible Preferred Stocks - 0.1% |
HEALTH CARE - 0.1% |
Health Care Equipment & Supplies - 0.1% |
Alere, Inc. 3.00% (a) | 22,100 | | 6,122 |
Health Care Providers & Services - 0.0% |
Omnicare Capital Trust II Series B, 4.00% | 79,200 | | 3,082 |
TOTAL HEALTH CARE | | 9,204 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Porsche Automobil Holding SE | 35,400 | | $ 3,288 |
TOTAL PREFERRED STOCKS (Cost $12,707) | 12,492 |
Convertible Bonds - 0.1% |
| Principal Amount (000s) | | |
HEALTH CARE - 0.1% |
Health Care Providers & Services - 0.1% |
Omnicare, Inc. 3.75% 12/15/25 (Cost $6,421) | | $ 5,450 | | 6,240 |
U.S. Treasury Obligations - 0.1% |
|
U.S. Treasury Bills, yield at date of purchase 0.16% 2/24/11
(Cost $4,400) | | 4,400 | | 4,400 |
Money Market Funds - 3.0% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 173,087,080 | | 173,087 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 14,882,450 | | 14,882 |
TOTAL MONEY MARKET FUNDS (Cost $187,969) | 187,969 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | Value (000s) |
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) #
(Cost $7,834) | $ 7,834 | | $ 7,834 |
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $5,137,751) | | 6,353,635 |
NET OTHER ASSETS (LIABILITIES) - (1.6)% | | (102,590) |
NET ASSETS - 100% | $ 6,251,045 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(Amounts in thousands) |
$7,834,000 due 2/01/11 at 0.23% |
BNP Paribas Securities Corp. | $ 2,413 |
Barclays Capital, Inc. | 1,481 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 3,940 |
| $ 7,834 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 82 |
Fidelity Securities Lending Cash Central Fund | 9 |
Total | $ 91 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 595,395 | $ 595,395 | $ - | $ - |
Consumer Staples | 450,821 | 450,821 | - | - |
Energy | 836,814 | 836,814 | - | - |
Financials | 1,201,458 | 1,201,458 | - | - |
Health Care | 640,256 | 637,174 | 3,082 | - |
Industrials | 969,839 | 969,839 | - | - |
Information Technology | 1,192,968 | 1,192,968 | - | - |
Materials | 174,670 | 174,670 | - | - |
Telecommunication Services | 60,504 | 60,504 | - | - |
Utilities | 24,467 | 11,675 | 12,792 | - |
Corporate Bonds | 6,240 | - | 6,240 | - |
U.S. Government and Government Agency Obligations | 4,400 | - | 4,400 | - |
Money Market Funds | 187,969 | 187,969 | - | - |
Cash Equivalents | 7,834 | - | 7,834 | - |
Total Investments in Securities: | $ 6,353,635 | $ 6,319,287 | $ 34,348 | $ - |
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 | $ 3,241 |
Total Realized Gain (Loss) | (544) |
Total Unrealized Gain (Loss) | 83 |
Cost of Purchases | - |
Proceeds of Sales | (2,780) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.4% |
United Kingdom | 2.2% |
Netherlands Antilles | 2.2% |
Ireland | 1.9% |
Switzerland | 1.4% |
Others (Individually Less Than 1%) | 3.9% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $6,214,141,000 of which $3,048,336,000 and $3,165,805,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $14,453 and repurchase agreements of $7,834) - See accompanying schedule: Unaffiliated issuers (cost $4,949,782) | $ 6,165,666 | |
Fidelity Central Funds (cost $187,969) | 187,969 | |
Total Investments (cost $5,137,751) | | $ 6,353,635 |
Cash | | 1 |
Receivable for investments sold | | 56,575 |
Receivable for fund shares sold | | 2,934 |
Dividends receivable | | 2,239 |
Interest receivable | | 31 |
Distributions receivable from Fidelity Central Funds | | 19 |
Prepaid expenses | | 15 |
Other receivables | | 696 |
Total assets | | 6,416,145 |
| | |
Liabilities | | |
Payable for investments purchased | $ 138,713 | |
Payable for fund shares redeemed | 7,248 | |
Accrued management fee | 2,376 | |
Other affiliated payables | 1,221 | |
Other payables and accrued expenses | 660 | |
Collateral on securities loaned, at value | 14,882 | |
Total liabilities | | 165,100 |
| | |
Net Assets | | $ 6,251,045 |
Net Assets consist of: | | |
Paid in capital | | $ 10,972,930 |
Distributions in excess of net investment income | | (3,064) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (5,934,712) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,215,891 |
Net Assets | | $ 6,251,045 |
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, 2011 (Unaudited) |
| | |
Growth and Income:
Net Asset Value, offering price and redemption price per share ($5,618,858 ÷ 299,142 shares) | | $ 18.78 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($632,187 ÷ 33,678 shares) | | $ 18.77 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 34,837 |
Interest | | 2 |
Income from Fidelity Central Funds | | 91 |
Total income | | 34,930 |
| | |
Expenses | | |
Management fee | $ 13,523 | |
Transfer agent fees | 6,701 | |
Accounting and security lending fees | 559 | |
Custodian fees and expenses | 58 | |
Independent trustees' compensation | 20 | |
Registration fees | 25 | |
Audit | 75 | |
Legal | 32 | |
Miscellaneous | 30 | |
Total expenses before reductions | 21,023 | |
Expense reductions | (141) | 20,882 |
Net investment income (loss) | | 14,048 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 341,056 | |
Foreign currency transactions | 81 | |
Futures contracts | 415 | |
Total net realized gain (loss) | | 341,552 |
Change in net unrealized appreciation (depreciation) on: Investment securities | | 707,561 |
Net gain (loss) | | 1,049,113 |
Net increase (decrease) in net assets resulting from operations | | $ 1,063,161 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 14,048 | $ 40,566 |
Net realized gain (loss) | 341,552 | 534,831 |
Change in net unrealized appreciation (depreciation) | 707,561 | 81,662 |
Net increase (decrease) in net assets resulting
from operations | 1,063,161 | 657,059 |
Distributions to shareholders from net investment income | (18,197) | (38,583) |
Distributions to shareholders from net realized gain | - | (3,482) |
Total distributions | (18,197) | (42,065) |
Share transactions - net increase (decrease) | (503,335) | (1,247,688) |
Total increase (decrease) in net assets | 541,629 | (632,694) |
| | |
Net Assets | | |
Beginning of period | 5,709,416 | 6,342,110 |
End of period (including distributions in excess of net investment income of $3,064 and undistributed net investment income of $1,085, respectively) | $ 6,251,045 | $ 5,709,416 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .04 | .10 | .15 | .35 | .27 | .34 |
Net realized and unrealized gain (loss) | 3.04 | 1.37 | (7.43) | (6.25) | 3.84 | .18 |
Total from investment operations | 3.08 | 1.47 | (7.28) | (5.90) | 4.11 | .52 |
Distributions from net investment income | (.05) | (.10) | (.19) | (.33) | (.27) | (.38) |
Distributions from net realized gain | - | (.01) | (.03) | (3.81) | (6.08) | (4.40) |
Total distributions | (.05) | (.10) H | (.22) | (4.14) | (6.35) | (4.78) |
Net asset value, end of period | $ 18.78 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 |
Total Return B, C | 19.59% | 10.25% | (33.32)% | (20.91)% | 14.28% | 1.22% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .73% A | .75% | .78% | .68% | .68% | .69% |
Expenses net of fee waivers, if any | .73% A | .75% | .78% | .68% | .68% | .69% |
Expenses net of all reductions | .72% A | .74% | .78% | .67% | .67% | .65% |
Net investment income (loss) | .46% A | .63% | 1.07% | 1.29% | .84% | .94% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 5,619 | $ 5,417 | $ 5,993 | $ 12,552 | $ 22,693 | $ 28,861 |
Portfolio turnover rate F | 72% A | 98% | 122% | 52% | 52% | 120% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Total distributions of $.10 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.008 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .06 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | 3.04 | 1.37 | (7.40) | (3.45) |
Total from investment operations | 3.10 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.07) | (.13) | (.23) | (.10) |
Distributions from net realized gain | - | (.01) | (.03) | - |
Total distributions | (.07) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 18.77 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B, C | 19.73% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .54% A | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .54% A | .54% | .56% | .55% A |
Expenses net of all reductions | .53% A | .53% | .55% | .55% A |
Net investment income (loss) | .65% A | .84% | 1.29% | 1.73% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 632,187 | $ 292,021 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 72% A | 98% | 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. I Total distributions of $.14 per share is comprised of distributions from net investment income of $.129 and distributions from net realized gain of $.008 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and U.S. government and government agency obligations, 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards, 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 | $ 1,352,867 |
Gross unrealized depreciation | (185,424) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,167,443 |
Tax cost | $ 5,186,192 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty fees in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $415 related to its investment in futures contracts. This amount is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,085,580 and $2,664,179, respectively.
7. 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Growth & Income | $ 6,574 | .24 |
Class K | 127 | .05 |
| $ 6,701 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
7. 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 $91 for the period.
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9. During the period, there were no securities loaned to FCM.
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 $141 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Growth & Income | $ 16,113 | $ 36,263 |
Class K | 2,084 | 2,320 |
Total | $ 18,197 | $ 38,583 |
From net realized gain | | |
Growth & Income | $ - | $ 3,285 |
Class K | - | 197 |
Total | $ - | $ 3,482 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011A | Year ended
July 31,
2010 | Six months ended
January 31,
2011A | Year ended
July 31,
2010 |
Growth & Income | | | | |
Shares sold | 5,989 | 18,939 | $ 102,944 | $ 300,805 |
Conversion to Class K | - | (593) | - | (8,751) |
Reinvestment of distributions | 909 | 2,436 | 15,489 | 38,201 |
Shares redeemed | (51,728) | (93,499) | (859,920) | (1,487,904) |
Net increase (decrease) | (44,830) | (72,717) | $ (741,487) | $ (1,157,649) |
Class K | | | | |
Shares sold | 21,515 | 8,408 | $ 345,983 | $ 133,367 |
Conversion from Growth & Income | - | 593 | - | 8,751 |
Reinvestment of distributions | 122 | 161 | 2,084 | 2,517 |
Shares redeemed | (6,510) | (14,911) | (109,915) | (234,674) |
Net increase (decrease) | 15,127 | (5,749) | $ 238,152 | $ (90,039) |
A Conversion transactions for Class K and Growth & Income are presented for the period August 1, 2009 through August 31, 2009.
13. 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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By Phone
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Fidelity Automated
Service Telephone (FAST®)
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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GAI-USAN-0311
1.789285.108
Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.fidelity.advisor.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Growth & Income | .73% | | | |
Actual | | $ 1,000.00 | $ 1,195.90 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.53 | $ 3.72 |
Class K | .54% | | | |
Actual | | $ 1,000.00 | $ 1,197.30 | $ 2.99 |
HypotheticalA | | $ 1,000.00 | $ 1,022.48 | $ 2.75 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 5.0 | 3.5 |
Apple, Inc. | 3.9 | 3.8 |
JPMorgan Chase & Co. | 2.8 | 2.5 |
Wells Fargo & Co. | 2.5 | 1.9 |
The Coca-Cola Co. | 2.2 | 1.8 |
Schlumberger Ltd. | 2.2 | 0.8 |
United Technologies Corp. | 2.2 | 2.1 |
Citigroup, Inc. | 2.1 | 1.5 |
Google, Inc. Class A | 1.8 | 1.6 |
Philip Morris International, Inc. | 1.5 | 1.5 |
| 26.2 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 19.2 | 19.1 |
Information Technology | 19.1 | 20.8 |
Industrials | 15.5 | 15.6 |
Energy | 13.4 | 11.1 |
Health Care | 10.3 | 9.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 98.2% | | | Stocks 99.6% | |
| Convertible
Securities 0.2% | | | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 1.6% | | | Short-Term
Investments and
Net Other Assets 0.4% | |
* Foreign investments | 11.6% | | ** Foreign investments | 8.1% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 9.5% |
Auto Components - 0.4% |
TRW Automotive Holdings Corp. (a) | 395,900 | | $ 23,619 |
Automobiles - 0.6% |
Ford Motor Co. (a) | 1,050,000 | | 16,748 |
General Motors Co. | 529,900 | | 19,336 |
| | 36,084 |
Distributors - 0.3% |
Li & Fung Ltd. | 1,880,000 | | 12,189 |
Pool Corp. | 241,035 | | 5,876 |
| | 18,065 |
Hotels, Restaurants & Leisure - 1.5% |
Accor SA | 315,000 | | 14,403 |
Carnival Corp. unit | 66,100 | | 2,955 |
Darden Restaurants, Inc. | 130,000 | | 6,124 |
Jack in the Box, Inc. (a) | 125,400 | | 2,751 |
Marriott International, Inc. Class A | 630,618 | | 24,903 |
Sonic Corp. (a) | 397,600 | | 3,813 |
Starbucks Corp. | 1,185,000 | | 37,363 |
Yum! Brands, Inc. | 38,800 | | 1,814 |
| | 94,126 |
Household Durables - 2.1% |
D.R. Horton, Inc. | 39,445 | | 489 |
KB Home (d) | 2,250,000 | | 33,390 |
Newell Rubbermaid, Inc. | 405,000 | | 7,796 |
PulteGroup, Inc. (a) | 2,252,370 | | 17,771 |
Ryland Group, Inc. | 1,480,000 | | 26,344 |
Stanley Black & Decker, Inc. | 590,000 | | 42,881 |
Toll Brothers, Inc. (a) | 210,292 | | 4,256 |
Whirlpool Corp. | 13,900 | | 1,188 |
| | 134,115 |
Media - 1.8% |
Comcast Corp. Class A | 1,600,000 | | 36,400 |
DIRECTV (a) | 210,400 | | 8,919 |
Lamar Advertising Co. Class A (a) | 215,000 | | 7,921 |
The Walt Disney Co. | 1,520,000 | | 59,082 |
| | 112,322 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - 1.6% |
Kohl's Corp. (a) | 455,000 | | $ 23,105 |
Target Corp. | 1,396,000 | | 76,543 |
| | 99,648 |
Specialty Retail - 0.7% |
Esprit Holdings Ltd. | 906,400 | | 4,296 |
Kingfisher PLC | 3,048,100 | | 12,303 |
Lowe's Companies, Inc. | 1,020,000 | | 25,296 |
| | 41,895 |
Textiles, Apparel & Luxury Goods - 0.5% |
Hanesbrands, Inc. (a) | 73,300 | | 1,687 |
Polo Ralph Lauren Corp. Class A | 285,000 | | 30,546 |
| | 32,233 |
TOTAL CONSUMER DISCRETIONARY | | 592,107 |
CONSUMER STAPLES - 7.2% |
Beverages - 2.8% |
Coca-Cola Enterprises, Inc. | 775,000 | | 19,499 |
PepsiCo, Inc. | 236,700 | | 15,222 |
The Coca-Cola Co. | 2,195,000 | | 137,956 |
| | 172,677 |
Food & Staples Retailing - 0.4% |
CVS Caremark Corp. | 467,900 | | 16,002 |
Wal-Mart Stores, Inc. | 212,900 | | 11,937 |
| | 27,939 |
Food Products - 1.2% |
Bunge Ltd. | 335,000 | | 22,803 |
Kraft Foods, Inc. Class A | 180,000 | | 5,503 |
Mead Johnson Nutrition Co. Class A | 280,000 | | 16,232 |
Nestle SA | 512,000 | | 27,684 |
| | 72,222 |
Household Products - 1.1% |
Colgate-Palmolive Co. | 400,000 | | 30,708 |
Energizer Holdings, Inc. (a) | 41,500 | | 3,019 |
Procter & Gamble Co. | 410,000 | | 25,883 |
Reckitt Benckiser Group PLC | 169,300 | | 9,206 |
WD-40 Co. | 78,585 | | 3,094 |
| | 71,910 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - 1.7% |
Lorillard, Inc. | 124,100 | | $ 9,337 |
Philip Morris International, Inc. | 1,690,000 | | 96,736 |
| | 106,073 |
TOTAL CONSUMER STAPLES | | 450,821 |
ENERGY - 13.4% |
Energy Equipment & Services - 5.9% |
Cameron International Corp. (a) | 1,309,100 | | 69,775 |
Ensco International Ltd. ADR | 245,000 | | 13,313 |
Exterran Partners LP | 152,900 | | 4,272 |
Halliburton Co. | 1,340,100 | | 60,305 |
Oil States International, Inc. (a) | 232,800 | | 15,775 |
Saipem SpA | 490,000 | | 24,511 |
Schlumberger Ltd. | 1,534,500 | | 136,555 |
Weatherford International Ltd. (a) | 1,791,800 | | 42,501 |
| | 367,007 |
Oil, Gas & Consumable Fuels - 7.5% |
Anadarko Petroleum Corp. | 300,000 | | 23,124 |
Apache Corp. | 330,800 | | 39,484 |
Cimarex Energy Co. | 180,000 | | 18,743 |
Exxon Mobil Corp. | 3,881,300 | | 313,145 |
Massey Energy Co. | 123,804 | | 7,782 |
Peabody Energy Corp. | 425,000 | | 26,954 |
PetroBakken Energy Ltd. Class A | 207,000 | | 4,433 |
Petrohawk Energy Corp. (a) | 695,000 | | 13,935 |
QEP Resources, Inc. | 46,700 | | 1,898 |
Ultra Petroleum Corp. (a) | 280,000 | | 13,364 |
Whiting Petroleum Corp. (a) | 55,000 | | 6,945 |
| | 469,807 |
TOTAL ENERGY | | 836,814 |
FINANCIALS - 19.2% |
Capital Markets - 4.0% |
Ameriprise Financial, Inc. | 435,000 | | 26,818 |
Ashmore Group PLC | 4,172,100 | | 23,321 |
Bank of New York Mellon Corp. | 925,000 | | 28,888 |
BlackRock, Inc. Class A | 170,000 | | 33,663 |
Goldman Sachs Group, Inc. | 161,300 | | 26,392 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
Janus Capital Group, Inc. | 693,375 | | $ 8,951 |
Morgan Stanley | 465,000 | | 13,671 |
State Street Corp. | 1,857,400 | | 86,778 |
| | 248,482 |
Commercial Banks - 5.0% |
Bank of Montreal | 53,500 | | 3,088 |
HSBC Holdings PLC sponsored ADR | 55,700 | | 3,043 |
Huntington Bancshares, Inc. | 888,800 | | 6,435 |
Marshall & Ilsley Corp. | 1,425,000 | | 9,961 |
PNC Financial Services Group, Inc. | 291,900 | | 17,514 |
Regions Financial Corp. | 2,020,000 | | 14,342 |
Standard Chartered PLC (United Kingdom) | 309,270 | | 8,069 |
Sterling Bancshares, Inc. | 705,000 | | 6,253 |
SunTrust Banks, Inc. | 550,000 | | 16,737 |
U.S. Bancorp, Delaware | 2,115,000 | | 57,105 |
Wells Fargo & Co. | 4,767,200 | | 154,553 |
Zions Bancorporation | 645,000 | | 15,209 |
| | 312,309 |
Consumer Finance - 0.4% |
Capital One Financial Corp. | 331,900 | | 15,984 |
Discover Financial Services | 343,321 | | 7,069 |
| | 23,053 |
Diversified Financial Services - 6.3% |
Bank of America Corp. | 4,360,900 | | 59,875 |
Citigroup, Inc. (a) | 27,575,300 | | 132,913 |
JPMorgan Chase & Co. | 3,964,500 | | 178,165 |
KKR Financial Holdings LLC | 1,733,900 | | 16,749 |
MSCI, Inc. Class A (a) | 301,300 | | 10,313 |
| | 398,015 |
Insurance - 1.9% |
Berkshire Hathaway, Inc. Class B (a) | 437,500 | | 35,766 |
Everest Re Group Ltd. | 14,500 | | 1,222 |
Hartford Financial Services Group, Inc. | 365,000 | | 10,140 |
Lincoln National Corp. | 490,000 | | 14,132 |
MetLife, Inc. | 1,225,000 | | 56,068 |
| | 117,328 |
Real Estate Investment Trusts - 1.1% |
CBL & Associates Properties, Inc. | 459,200 | | 7,834 |
ProLogis Trust | 700,000 | | 10,444 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Public Storage | 230,300 | | $ 25,098 |
Simon Property Group, Inc. | 114,121 | | 11,578 |
SL Green Realty Corp. | 161,600 | | 11,758 |
Ventas, Inc. | 56,800 | | 3,150 |
Weyerhaeuser Co. | 136,300 | | 3,159 |
| | 73,021 |
Real Estate Management & Development - 0.4% |
CB Richard Ellis Group, Inc. Class A (a) | 1,080,000 | | 23,965 |
Thrifts & Mortgage Finance - 0.1% |
BankUnited, Inc. (a) | 41,300 | | 1,156 |
Radian Group, Inc. | 575,130 | | 4,129 |
| | 5,285 |
TOTAL FINANCIALS | | 1,201,458 |
HEALTH CARE - 10.1% |
Biotechnology - 1.9% |
Amgen, Inc. (a) | 786,400 | | 43,315 |
Amylin Pharmaceuticals, Inc. (a) | 900,000 | | 14,562 |
ARIAD Pharmaceuticals, Inc. (a) | 939,738 | | 5,991 |
BioMarin Pharmaceutical, Inc. (a) | 281,157 | | 7,147 |
Cephalon, Inc. (a) | 93,000 | | 5,494 |
Gilead Sciences, Inc. (a) | 495,000 | | 18,998 |
SIGA Technologies, Inc. (a) | 400,000 | | 4,590 |
Theravance, Inc. (a) | 249,076 | | 5,241 |
Vertex Pharmaceuticals, Inc. (a) | 360,000 | | 14,000 |
| | 119,338 |
Health Care Equipment & Supplies - 1.4% |
C. R. Bard, Inc. | 215,000 | | 20,285 |
Covidien PLC | 1,105,600 | | 52,483 |
Mako Surgical Corp. (a) | 319,400 | | 4,957 |
Meridian Bioscience, Inc. | 82,400 | | 1,808 |
Mindray Medical International Ltd. sponsored ADR | 195,200 | | 5,106 |
St. Jude Medical, Inc. (a) | 117,800 | | 4,771 |
| | 89,410 |
Health Care Providers & Services - 2.5% |
Brookdale Senior Living, Inc. (a) | 465,000 | | 10,160 |
CIGNA Corp. | 230,000 | | 9,665 |
Express Scripts, Inc. (a) | 784,200 | | 44,174 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Henry Schein, Inc. (a) | 523,400 | | $ 34,366 |
McKesson Corp. | 300,000 | | 22,551 |
Medco Health Solutions, Inc. (a) | 230,000 | | 14,035 |
UnitedHealth Group, Inc. | 465,000 | | 19,088 |
| | 154,039 |
Health Care Technology - 0.1% |
SXC Health Solutions Corp. (a) | 158,800 | | 7,646 |
Life Sciences Tools & Services - 1.1% |
Agilent Technologies, Inc. (a) | 413,000 | | 17,276 |
Illumina, Inc. (a) | 265,000 | | 18,375 |
Life Technologies Corp. (a) | 130,800 | | 7,101 |
Lonza Group AG | 208,334 | | 16,406 |
QIAGEN NV (a) | 401,600 | | 7,410 |
| | 66,568 |
Pharmaceuticals - 3.1% |
Auxilium Pharmaceuticals, Inc. (a) | 140,000 | | 3,177 |
Cardiome Pharma Corp. (a) | 375,600 | | 2,364 |
GlaxoSmithKline PLC sponsored ADR | 760,000 | | 27,611 |
Johnson & Johnson | 1,049,800 | | 62,747 |
Merck & Co., Inc. | 2,098,078 | | 69,593 |
Pfizer, Inc. | 1,252,500 | | 22,821 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 105,000 | | 5,738 |
| | 194,051 |
TOTAL HEALTH CARE | | 631,052 |
INDUSTRIALS - 15.5% |
Aerospace & Defense - 5.0% |
AerCap Holdings NV (a) | 390,000 | | 5,819 |
AeroVironment, Inc. (a) | 119,100 | | 3,359 |
BE Aerospace, Inc. (a) | 626,400 | | 24,235 |
Embraer SA sponsored ADR | 76,200 | | 2,515 |
Goodrich Corp. | 356,300 | | 32,288 |
Honeywell International, Inc. | 430,000 | | 24,084 |
Precision Castparts Corp. | 186,300 | | 26,639 |
Rockwell Collins, Inc. | 225,400 | | 14,457 |
The Boeing Co. | 640,000 | | 44,467 |
United Technologies Corp. | 1,660,000 | | 134,958 |
| | 312,821 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Air Freight & Logistics - 1.1% |
C.H. Robinson Worldwide, Inc. | 205,000 | | $ 15,803 |
United Parcel Service, Inc. Class B | 770,000 | | 55,147 |
| | 70,950 |
Airlines - 0.3% |
Southwest Airlines Co. | 1,365,000 | | 16,175 |
United Continental Holdings, Inc. (a) | 175,000 | | 4,445 |
| | 20,620 |
Building Products - 0.2% |
Lennox International, Inc. | 43,900 | | 2,157 |
Owens Corning (a) | 357,000 | | 11,949 |
Quanex Building Products Corp. | 24,378 | | 475 |
| | 14,581 |
Commercial Services & Supplies - 0.1% |
Avery Dennison Corp. | 155,000 | | 6,524 |
Construction & Engineering - 0.7% |
Fluor Corp. | 333,900 | | 23,103 |
Jacobs Engineering Group, Inc. (a) | 290,000 | | 14,897 |
Orion Marine Group, Inc. (a) | 201,100 | | 2,357 |
| | 40,357 |
Industrial Conglomerates - 1.7% |
3M Co. | 669,700 | | 58,880 |
General Electric Co. | 718,400 | | 14,469 |
Koninklijke Philips Electronics NV unit | 500,900 | | 15,643 |
Textron, Inc. | 622,800 | | 16,373 |
| | 105,365 |
Machinery - 2.9% |
Charter International PLC | 756,468 | | 9,784 |
Cummins, Inc. | 306,100 | | 32,410 |
Danaher Corp. | 910,000 | | 41,915 |
Ingersoll-Rand Co. Ltd. | 1,505,000 | | 71,036 |
PACCAR, Inc. | 480,000 | | 27,115 |
| | 182,260 |
Professional Services - 0.6% |
Bureau Veritas SA | 85,300 | | 6,188 |
FTI Consulting, Inc. (a) | 163,900 | | 5,977 |
IHS, Inc. Class A (a) | 53,461 | | 4,382 |
Robert Half International, Inc. | 627,600 | | 19,682 |
| | 36,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Road & Rail - 2.9% |
CSX Corp. | 1,182,700 | | $ 83,499 |
Landstar System, Inc. | 536,300 | | 22,219 |
Union Pacific Corp. | 760,000 | | 71,919 |
| | 177,637 |
Trading Companies & Distributors - 0.0% |
GATX Corp. | 74,300 | | 2,470 |
Watsco, Inc. | 400 | | 25 |
| | 2,495 |
TOTAL INDUSTRIALS | | 969,839 |
INFORMATION TECHNOLOGY - 19.1% |
Communications Equipment - 3.3% |
Cisco Systems, Inc. (a) | 3,458,900 | | 73,156 |
HTC Corp. | 500,000 | | 16,856 |
Juniper Networks, Inc. (a) | 663,000 | | 24,611 |
Motorola Mobility Holdings, Inc. | 256,250 | | 7,142 |
Motorola Solutions, Inc. | 292,857 | | 11,354 |
QUALCOMM, Inc. | 1,325,000 | | 71,722 |
| | 204,841 |
Computers & Peripherals - 5.3% |
Apple, Inc. (a) | 723,800 | | 245,600 |
EMC Corp. (a) | 1,505,000 | | 37,459 |
Hewlett-Packard Co. | 1,074,700 | | 49,103 |
| | 332,162 |
Electronic Equipment & Components - 0.7% |
Corning, Inc. | 1,896,900 | | 42,130 |
Internet Software & Services - 2.7% |
eBay, Inc. (a) | 1,457,800 | | 44,259 |
Google, Inc. Class A (a) | 188,000 | | 112,868 |
OpenTable, Inc. (a) | 125,000 | | 9,828 |
| | 166,955 |
IT Services - 2.1% |
Cognizant Technology Solutions Corp. Class A (a) | 190,000 | | 13,861 |
Fidelity National Information Services, Inc. | 46,600 | | 1,418 |
Fiserv, Inc. (a) | 260,000 | | 16,060 |
International Business Machines Corp. | 155,000 | | 25,110 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
MasterCard, Inc. Class A | 173,000 | | $ 40,916 |
Visa, Inc. Class A | 482,900 | | 33,731 |
| | 131,096 |
Office Electronics - 0.3% |
Xerox Corp. | 1,535,000 | | 16,302 |
Semiconductors & Semiconductor Equipment - 1.7% |
Broadcom Corp. Class A | 550,000 | | 24,800 |
Intersil Corp. Class A | 895,000 | | 13,532 |
Lam Research Corp. (a) | 544,500 | | 27,165 |
Marvell Technology Group Ltd. (a) | 806,300 | | 15,328 |
Micron Technology, Inc. (a) | 1,305,900 | | 13,764 |
NXP Semiconductors NV | 211,800 | | 5,452 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 1,370,900 | | 9,500 |
| | 109,541 |
Software - 3.0% |
ANSYS, Inc. (a) | 23,600 | | 1,238 |
Autonomy Corp. PLC (a) | 826,100 | | 19,794 |
BMC Software, Inc. (a) | 537,400 | | 25,634 |
Citrix Systems, Inc. (a) | 205,000 | | 12,952 |
Informatica Corp. (a) | 300,000 | | 13,920 |
Microsoft Corp. | 933,100 | | 25,870 |
Nuance Communications, Inc. (a) | 510,000 | | 10,368 |
Oracle Corp. | 2,322,200 | | 74,380 |
Red Hat, Inc. (a) | 140,000 | | 5,785 |
| | 189,941 |
TOTAL INFORMATION TECHNOLOGY | | 1,192,968 |
MATERIALS - 2.8% |
Chemicals - 1.7% |
Albemarle Corp. | 330,200 | | 18,544 |
CF Industries Holdings, Inc. | 90,000 | | 12,154 |
Dow Chemical Co. | 445,000 | | 15,789 |
Ecolab, Inc. | 115,000 | | 5,714 |
FMC Corp. | 264,600 | | 20,125 |
Praxair, Inc. | 183,800 | | 17,101 |
The Mosaic Co. | 225,000 | | 18,234 |
| | 107,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Construction Materials - 0.1% |
Vulcan Materials Co. (d) | 190,000 | | $ 8,086 |
Metals & Mining - 1.0% |
Alcoa, Inc. | 1,875,000 | | 31,069 |
AngloGold Ashanti Ltd. sponsored ADR | 119,700 | | 5,152 |
Barrick Gold Corp. | 53,700 | | 2,546 |
Carpenter Technology Corp. | 273,800 | | 11,267 |
Reliance Steel & Aluminum Co. | 170,000 | | 8,889 |
| | 58,923 |
TOTAL MATERIALS | | 174,670 |
TELECOMMUNICATION SERVICES - 0.9% |
Wireless Telecommunication Services - 0.9% |
American Tower Corp. Class A (a) | 585,000 | | 29,753 |
Sprint Nextel Corp. (a) | 2,725,000 | | 12,317 |
Vodafone Group PLC sponsored ADR | 650,000 | | 18,434 |
| | 60,504 |
UTILITIES - 0.4% |
Multi-Utilities - 0.4% |
National Grid PLC | 1,442,600 | | 12,792 |
Public Service Enterprise Group, Inc. | 360,000 | | 11,675 |
| | 24,467 |
TOTAL COMMON STOCKS (Cost $4,918,420) | 6,134,700 |
Preferred Stocks - 0.2% |
| | | |
Convertible Preferred Stocks - 0.1% |
HEALTH CARE - 0.1% |
Health Care Equipment & Supplies - 0.1% |
Alere, Inc. 3.00% (a) | 22,100 | | 6,122 |
Health Care Providers & Services - 0.0% |
Omnicare Capital Trust II Series B, 4.00% | 79,200 | | 3,082 |
TOTAL HEALTH CARE | | 9,204 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Porsche Automobil Holding SE | 35,400 | | $ 3,288 |
TOTAL PREFERRED STOCKS (Cost $12,707) | 12,492 |
Convertible Bonds - 0.1% |
| Principal Amount (000s) | | |
HEALTH CARE - 0.1% |
Health Care Providers & Services - 0.1% |
Omnicare, Inc. 3.75% 12/15/25 (Cost $6,421) | | $ 5,450 | | 6,240 |
U.S. Treasury Obligations - 0.1% |
|
U.S. Treasury Bills, yield at date of purchase 0.16% 2/24/11
(Cost $4,400) | | 4,400 | | 4,400 |
Money Market Funds - 3.0% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 173,087,080 | | 173,087 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 14,882,450 | | 14,882 |
TOTAL MONEY MARKET FUNDS (Cost $187,969) | 187,969 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | Value (000s) |
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) #
(Cost $7,834) | $ 7,834 | | $ 7,834 |
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $5,137,751) | | 6,353,635 |
NET OTHER ASSETS (LIABILITIES) - (1.6)% | | (102,590) |
NET ASSETS - 100% | $ 6,251,045 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(Amounts in thousands) |
$7,834,000 due 2/01/11 at 0.23% |
BNP Paribas Securities Corp. | $ 2,413 |
Barclays Capital, Inc. | 1,481 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 3,940 |
| $ 7,834 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 82 |
Fidelity Securities Lending Cash Central Fund | 9 |
Total | $ 91 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 595,395 | $ 595,395 | $ - | $ - |
Consumer Staples | 450,821 | 450,821 | - | - |
Energy | 836,814 | 836,814 | - | - |
Financials | 1,201,458 | 1,201,458 | - | - |
Health Care | 640,256 | 637,174 | 3,082 | - |
Industrials | 969,839 | 969,839 | - | - |
Information Technology | 1,192,968 | 1,192,968 | - | - |
Materials | 174,670 | 174,670 | - | - |
Telecommunication Services | 60,504 | 60,504 | - | - |
Utilities | 24,467 | 11,675 | 12,792 | - |
Corporate Bonds | 6,240 | - | 6,240 | - |
U.S. Government and Government Agency Obligations | 4,400 | - | 4,400 | - |
Money Market Funds | 187,969 | 187,969 | - | - |
Cash Equivalents | 7,834 | - | 7,834 | - |
Total Investments in Securities: | $ 6,353,635 | $ 6,319,287 | $ 34,348 | $ - |
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 | $ 3,241 |
Total Realized Gain (Loss) | (544) |
Total Unrealized Gain (Loss) | 83 |
Cost of Purchases | - |
Proceeds of Sales | (2,780) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.4% |
United Kingdom | 2.2% |
Netherlands Antilles | 2.2% |
Ireland | 1.9% |
Switzerland | 1.4% |
Others (Individually Less Than 1%) | 3.9% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $6,214,141,000 of which $3,048,336,000 and $3,165,805,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $14,453 and repurchase agreements of $7,834) - See accompanying schedule: Unaffiliated issuers (cost $4,949,782) | $ 6,165,666 | |
Fidelity Central Funds (cost $187,969) | 187,969 | |
Total Investments (cost $5,137,751) | | $ 6,353,635 |
Cash | | 1 |
Receivable for investments sold | | 56,575 |
Receivable for fund shares sold | | 2,934 |
Dividends receivable | | 2,239 |
Interest receivable | | 31 |
Distributions receivable from Fidelity Central Funds | | 19 |
Prepaid expenses | | 15 |
Other receivables | | 696 |
Total assets | | 6,416,145 |
| | |
Liabilities | | |
Payable for investments purchased | $ 138,713 | |
Payable for fund shares redeemed | 7,248 | |
Accrued management fee | 2,376 | |
Other affiliated payables | 1,221 | |
Other payables and accrued expenses | 660 | |
Collateral on securities loaned, at value | 14,882 | |
Total liabilities | | 165,100 |
| | |
Net Assets | | $ 6,251,045 |
Net Assets consist of: | | |
Paid in capital | | $ 10,972,930 |
Distributions in excess of net investment income | | (3,064) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (5,934,712) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,215,891 |
Net Assets | | $ 6,251,045 |
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, 2011 (Unaudited) |
| | |
Growth and Income:
Net Asset Value, offering price and redemption price per share ($5,618,858 ÷ 299,142 shares) | | $ 18.78 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($632,187 ÷ 33,678 shares) | | $ 18.77 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 34,837 |
Interest | | 2 |
Income from Fidelity Central Funds | | 91 |
Total income | | 34,930 |
| | |
Expenses | | |
Management fee | $ 13,523 | |
Transfer agent fees | 6,701 | |
Accounting and security lending fees | 559 | |
Custodian fees and expenses | 58 | |
Independent trustees' compensation | 20 | |
Registration fees | 25 | |
Audit | 75 | |
Legal | 32 | |
Miscellaneous | 30 | |
Total expenses before reductions | 21,023 | |
Expense reductions | (141) | 20,882 |
Net investment income (loss) | | 14,048 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 341,056 | |
Foreign currency transactions | 81 | |
Futures contracts | 415 | |
Total net realized gain (loss) | | 341,552 |
Change in net unrealized appreciation (depreciation) on: Investment securities | | 707,561 |
Net gain (loss) | | 1,049,113 |
Net increase (decrease) in net assets resulting from operations | | $ 1,063,161 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 14,048 | $ 40,566 |
Net realized gain (loss) | 341,552 | 534,831 |
Change in net unrealized appreciation (depreciation) | 707,561 | 81,662 |
Net increase (decrease) in net assets resulting
from operations | 1,063,161 | 657,059 |
Distributions to shareholders from net investment income | (18,197) | (38,583) |
Distributions to shareholders from net realized gain | - | (3,482) |
Total distributions | (18,197) | (42,065) |
Share transactions - net increase (decrease) | (503,335) | (1,247,688) |
Total increase (decrease) in net assets | 541,629 | (632,694) |
| | |
Net Assets | | |
Beginning of period | 5,709,416 | 6,342,110 |
End of period (including distributions in excess of net investment income of $3,064 and undistributed net investment income of $1,085, respectively) | $ 6,251,045 | $ 5,709,416 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .04 | .10 | .15 | .35 | .27 | .34 |
Net realized and unrealized gain (loss) | 3.04 | 1.37 | (7.43) | (6.25) | 3.84 | .18 |
Total from investment operations | 3.08 | 1.47 | (7.28) | (5.90) | 4.11 | .52 |
Distributions from net investment income | (.05) | (.10) | (.19) | (.33) | (.27) | (.38) |
Distributions from net realized gain | - | (.01) | (.03) | (3.81) | (6.08) | (4.40) |
Total distributions | (.05) | (.10) H | (.22) | (4.14) | (6.35) | (4.78) |
Net asset value, end of period | $ 18.78 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 |
Total Return B, C | 19.59% | 10.25% | (33.32)% | (20.91)% | 14.28% | 1.22% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .73% A | .75% | .78% | .68% | .68% | .69% |
Expenses net of fee waivers, if any | .73% A | .75% | .78% | .68% | .68% | .69% |
Expenses net of all reductions | .72% A | .74% | .78% | .67% | .67% | .65% |
Net investment income (loss) | .46% A | .63% | 1.07% | 1.29% | .84% | .94% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 5,619 | $ 5,417 | $ 5,993 | $ 12,552 | $ 22,693 | $ 28,861 |
Portfolio turnover rate F | 72% A | 98% | 122% | 52% | 52% | 120% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Total distributions of $.10 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.008 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .06 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | 3.04 | 1.37 | (7.40) | (3.45) |
Total from investment operations | 3.10 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.07) | (.13) | (.23) | (.10) |
Distributions from net realized gain | - | (.01) | (.03) | - |
Total distributions | (.07) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 18.77 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B, C | 19.73% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .54% A | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .54% A | .54% | .56% | .55% A |
Expenses net of all reductions | .53% A | .53% | .55% | .55% A |
Net investment income (loss) | .65% A | .84% | 1.29% | 1.73% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 632,187 | $ 292,021 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 72% A | 98% | 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. I Total distributions of $.14 per share is comprised of distributions from net investment income of $.129 and distributions from net realized gain of $.008 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and U.S. government and government agency obligations, 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards, 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 | $ 1,352,867 |
Gross unrealized depreciation | (185,424) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,167,443 |
Tax cost | $ 5,186,192 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty fees in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $415 related to its investment in futures contracts. This amount is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,085,580 and $2,664,179, respectively.
7. 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Growth & Income | $ 6,574 | .24 |
Class K | 127 | .05 |
| $ 6,701 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
7. 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 $91 for the period.
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9. During the period, there were no securities loaned to FCM.
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 $141 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Growth & Income | $ 16,113 | $ 36,263 |
Class K | 2,084 | 2,320 |
Total | $ 18,197 | $ 38,583 |
From net realized gain | | |
Growth & Income | $ - | $ 3,285 |
Class K | - | 197 |
Total | $ - | $ 3,482 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011A | Year ended
July 31,
2010 | Six months ended
January 31,
2011A | Year ended
July 31,
2010 |
Growth & Income | | | | |
Shares sold | 5,989 | 18,939 | $ 102,944 | $ 300,805 |
Conversion to Class K | - | (593) | - | (8,751) |
Reinvestment of distributions | 909 | 2,436 | 15,489 | 38,201 |
Shares redeemed | (51,728) | (93,499) | (859,920) | (1,487,904) |
Net increase (decrease) | (44,830) | (72,717) | $ (741,487) | $ (1,157,649) |
Class K | | | | |
Shares sold | 21,515 | 8,408 | $ 345,983 | $ 133,367 |
Conversion from Growth & Income | - | 593 | - | 8,751 |
Reinvestment of distributions | 122 | 161 | 2,084 | 2,517 |
Shares redeemed | (6,510) | (14,911) | (109,915) | (234,674) |
Net increase (decrease) | 15,127 | (5,749) | $ 238,152 | $ (90,039) |
A Conversion transactions for Class K and Growth & Income are presented for the period August 1, 2009 through August 31, 2009.
13. 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
GAI-K-USAN-0311
1.863232.102
Fidelity®
International Real Estate
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.50 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.69% | | | |
Actual | | $ 1,000.00 | $ 1,174.30 | $ 9.26 |
Hypothetical A | | $ 1,000.00 | $ 1,016.69 | $ 8.59 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.80 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
International Real Estate | 1.17% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.42 |
Hypothetical A | | $ 1,000.00 | $ 1,019.31 | $ 5.96 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,178.20 | $ 6.37 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Sun Hung Kai Properties Ltd. | 8.1 | 8.6 |
Mitsui Fudosan Co. Ltd. | 6.7 | 5.3 |
Westfield Group unit | 5.5 | 7.4 |
Unibail-Rodamco | 4.3 | 6.6 |
Sumitomo Realty & Development Co. Ltd. | 3.3 | 3.3 |
Wharf Holdings Ltd. | 3.2 | 4.4 |
CapitaLand Ltd. | 3.0 | 3.2 |
Hang Lung Properties Ltd. | 2.8 | 2.8 |
Kerry Properties Ltd. | 2.6 | 2.5 |
Wing Tai Holdings Ltd. | 2.4 | 2.1 |
| 41.9 | |
Top Five Countries as of January 31, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Hong Kong | 21.8 | 23.6 |
Japan | 19.4 | 17.7 |
Australia | 15.5 | 14.1 |
United Kingdom | 11.9 | 9.2 |
France | 7.3 | 7.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Management/Investment | 21.5 | 20.9 |
REITs - Shopping Centers | 7.3 | 4.2 |
REITs - Office Buildings | 5.8 | 6.0 |
REITs - Industrial Buildings | 2.3 | 3.2 |
REITs - Hotels | 0.4 | 0.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 98.8% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 98.8% | | ** Foreign investments | 99.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
| Shares | | Value |
Australia - 15.5% |
Abacus Property Group unit | 880,982 | | $ 1,957,812 |
Charter Hall Group unit | 1,246,962 | | 2,808,412 |
FKP Property Group unit | 2,384,694 | | 1,889,291 |
Goodman Group unit | 11,669,614 | | 7,733,520 |
Macquarie CountryWide Trust | 1,333,061 | | 4,078,378 |
Stockland Corp. Ltd. unit | 1,702,457 | | 6,107,701 |
The GPT Group unit | 2,524,201 | | 7,445,858 |
Westfield Group unit | 2,111,248 | | 20,703,008 |
Westfield Retail Trust unit | 2,311,797 | | 6,105,126 |
TOTAL AUSTRALIA | | 58,829,106 |
Bailiwick of Jersey - 1.1% |
Atrium European Real Estate Ltd. | 680,614 | | 4,134,222 |
Brazil - 1.6% |
Aliansce Shopping Centers SA | 179,200 | | 1,397,061 |
BR Malls Participacoes SA | 78,900 | | 719,208 |
Brascan Residential Properties SA | 232,000 | | 1,068,522 |
Iguatemi Empresa de Shopping Centers SA | 136,400 | | 2,944,768 |
TOTAL BRAZIL | | 6,129,559 |
Cayman Islands - 4.1% |
Central China Real Estate Ltd. | 9,688,000 | | 2,920,018 |
Country Garden Holdings Co. Ltd. | 1,240,000 | | 464,396 |
Evergrande Real Estate Group Ltd. | 4,295,000 | | 2,280,589 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 14,400 | | 485,712 |
KWG Property Holding Ltd. | 4,995,500 | | 3,716,127 |
Powerlong Real Estate Holding Ltd. | 4,057,000 | | 1,399,719 |
SOHO China Ltd. | 5,599,000 | | 4,416,408 |
TOTAL CAYMAN ISLANDS | | 15,682,969 |
China - 0.3% |
BBMG Corp. (H Shares) | 890,000 | | 1,203,135 |
Finland - 0.5% |
Citycon Oyj | 468,511 | | 2,033,211 |
France - 7.3% |
Altarea | 19,556 | | 3,748,103 |
Gecina SA | 15,500 | | 1,852,675 |
Silic SA | 14,200 | | 1,916,959 |
Societe de la Tour Eiffel | 46,511 | | 3,835,058 |
Unibail-Rodamco | 85,207 | | 16,260,785 |
TOTAL FRANCE | | 27,613,580 |
Common Stocks - continued |
| Shares | | Value |
Germany - 1.7% |
alstria office REIT-AG | 250,465 | | $ 3,531,732 |
DIC Asset AG | 227,500 | | 2,791,192 |
IVG Immobilien AG (a) | 23,000 | | 225,132 |
TOTAL GERMANY | | 6,548,056 |
Greece - 0.0% |
Babis Vovos International Technical SA (a) | 69,110 | | 128,672 |
Hong Kong - 21.8% |
Hang Lung Properties Ltd. | 2,469,000 | | 10,830,059 |
Hongkong Land Holdings Ltd. | 1,051,000 | | 7,399,040 |
Hysan Development Co. Ltd. | 767,000 | | 3,659,501 |
Kerry Properties Ltd. | 1,824,500 | | 9,746,361 |
New World Development Co. Ltd. | 4,364,725 | | 8,262,793 |
Sun Hung Kai Properties Ltd. | 1,848,000 | | 30,812,639 |
Wharf Holdings Ltd. | 1,593,000 | | 12,034,129 |
TOTAL HONG KONG | | 82,744,522 |
Italy - 2.7% |
Beni Stabili SpA Siiq | 5,131,700 | | 4,889,607 |
Immobiliare Grande Distribuzione SpA | 2,124,805 | | 4,485,459 |
Pirelli & C. Real Estate SpA (a) | 1,060,200 | | 776,506 |
TOTAL ITALY | | 10,151,572 |
Japan - 19.4% |
Goldcrest Co. Ltd. | 93,610 | | 2,506,759 |
Japan Hotel and Resort, Inc. | 516 | | 1,606,213 |
Japan Retail Fund Investment Corp. | 3,645 | | 6,692,270 |
Kenedix Realty Investment Corp. | 505 | | 2,328,734 |
Kenedix, Inc. (a)(d) | 29,075 | | 7,343,138 |
Mitsubishi Estate Co. Ltd. | 375,000 | | 7,081,506 |
Mitsui Fudosan Co. Ltd. | 1,256,000 | | 25,523,977 |
Nomura Real Estate Holdings, Inc. | 175,500 | | 3,190,132 |
NTT Urban Development Co. | 2,146 | | 2,211,886 |
ORIX JREIT, Inc. (d) | 318 | | 1,968,129 |
Sumitomo Realty & Development Co. Ltd. | 516,000 | | 12,516,521 |
Tosei Corp. (d) | 1,571 | | 762,724 |
TOTAL JAPAN | | 73,731,989 |
Netherlands - 0.8% |
Eurocommercial (Certificaten Van Aandelen) unit | 68,222 | | 3,109,617 |
Poland - 0.7% |
Globe Trade Centre SA (a) | 351,800 | | 2,569,305 |
Common Stocks - continued |
| Shares | | Value |
Russia - 0.6% |
LSR Group OJSC GDR (Reg. S) (a) | 225,100 | | $ 2,194,725 |
Singapore - 6.3% |
Allgreen Properties Ltd. | 2,206,000 | | 1,879,722 |
CapitaLand Ltd. | 4,036,900 | | 11,360,882 |
Parkway Life REIT | 1,093,000 | | 1,529,448 |
Wing Tai Holdings Ltd. | 7,064,000 | | 9,056,410 |
TOTAL SINGAPORE | | 23,826,462 |
Spain - 0.2% |
Realia Business SA (a) | 276,194 | | 578,508 |
Sweden - 2.3% |
Castellum AB | 333,200 | | 4,645,855 |
Wihlborgs Fastigheter AB | 143,700 | | 4,109,724 |
TOTAL SWEDEN | | 8,755,579 |
United Kingdom - 11.9% |
Big Yellow Group PLC | 696,800 | | 3,675,086 |
British Land Co. PLC | 879,729 | | 7,305,758 |
Capital & Counties Properties PLC | 1,057,300 | | 2,497,801 |
Great Portland Estates PLC | 642,354 | | 3,705,832 |
Hammerson PLC | 885,799 | | 6,089,232 |
Helical Bar PLC | 874,500 | | 3,955,416 |
Land Securities Group PLC | 694,777 | | 7,505,766 |
Quintain Estates & Development PLC (a) | 1,179,500 | | 736,767 |
Segro PLC | 1,046,500 | | 4,999,886 |
St. Modwen Properties PLC | 1,766,000 | | 4,709,476 |
TOTAL UNITED KINGDOM | | 45,181,020 |
TOTAL COMMON STOCKS (Cost $377,272,484) | 375,145,809 |
Money Market Funds - 1.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 3,680,321 | | $ 3,680,321 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 3,194,340 | | 3,194,340 |
TOTAL MONEY MARKET FUNDS (Cost $6,874,661) | 6,874,661 |
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $384,147,145) | 382,020,470 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (2,315,889) |
NET ASSETS - 100% | $ 379,704,581 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,522 |
Fidelity Securities Lending Cash Central Fund | 8,940 |
Total | $ 11,462 |
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, 2010, the Fund had a capital loss carryforward of approximately $296,042,629 of which $159,443,097 and $136,599,532 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $17,770,782 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,041,887) - See accompanying schedule: Unaffiliated issuers (cost $377,272,484) | $ 375,145,809 | |
Fidelity Central Funds (cost $6,874,661) | 6,874,661 | |
Total Investments (cost $384,147,145) | | $ 382,020,470 |
Receivable for investments sold | | 3,017,921 |
Receivable for fund shares sold | | 283,548 |
Dividends receivable | | 1,024,260 |
Distributions receivable from Fidelity Central Funds | | 1,242 |
Prepaid expenses | | 881 |
Other receivables | | 70,842 |
Total assets | | 386,419,164 |
| | |
Liabilities | | |
Payable to custodian bank | $ 313 | |
Payable for investments purchased | 2,017,800 | |
Payable for fund shares redeemed | 1,031,830 | |
Accrued management fee | 227,789 | |
Distribution and service plan fees payable | 6,767 | |
Other affiliated payables | 110,689 | |
Other payables and accrued expenses | 125,055 | |
Collateral on securities loaned, at value | 3,194,340 | |
Total liabilities | | 6,714,583 |
| | |
Net Assets | | $ 379,704,581 |
Net Assets consist of: | | |
Paid in capital | | $ 688,607,164 |
Distributions in excess of net investment income | | (72,541) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (306,662,941) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (2,167,101) |
Net Assets | | $ 379,704,581 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($8,189,235 ÷ 882,840 shares) | | $ 9.28 |
| | |
Maximum offering price per share (100/94.25 of $9.28) | | $ 9.85 |
Class T:
Net Asset Value and redemption price per share ($3,062,334 ÷ 331,780 shares) | | $ 9.23 |
| | |
Maximum offering price per share (100/96.50 of $9.23) | | $ 9.56 |
Class B:
Net Asset Value and offering price per share
($673,181 ÷ 73,593 shares)A | | $ 9.15 |
| | |
Class C:
Net Asset Value and offering price per share ($3,711,009 ÷ 406,806 shares)A | | $ 9.12 |
| | |
| | |
International Real Estate:
Net Asset Value, offering price and redemption price per share ($362,279,531 ÷ 38,750,329 shares) | | $ 9.35 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,789,291 ÷ 191,798 shares) | | $ 9.33 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,260,303 |
Special dividends | | 7,319,957 |
Interest | | 162 |
Income from Fidelity Central Funds | | 11,462 |
Income before foreign taxes withheld | | 11,591,884 |
Less foreign taxes withheld | | (411,250) |
Total income | | 11,180,634 |
| | |
Expenses | | |
Management fee | $ 1,297,220 | |
Transfer agent fees | 550,138 | |
Distribution and service plan fees | 38,247 | |
Accounting and security lending fees | 95,007 | |
Custodian fees and expenses | 110,800 | |
Independent trustees' compensation | 1,009 | |
Registration fees | 39,321 | |
Audit | 40,241 | |
Legal | 1,079 | |
Interest | 134 | |
Miscellaneous | 1,904 | |
Total expenses before reductions | 2,175,100 | |
Expense reductions | (94,927) | 2,080,173 |
Net investment income (loss) | | 9,100,461 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 19,483,503 | |
Foreign currency transactions | (229,779) | |
Total net realized gain (loss) | | 19,253,724 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 29,004,175 | |
Assets and liabilities in foreign currencies | (25,964) | |
Total change in net unrealized appreciation (depreciation) | | 28,978,211 |
Net gain (loss) | | 48,231,935 |
Net increase (decrease) in net assets resulting from operations | | $ 57,332,396 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,100,461 | $ 7,955,511 |
Net realized gain (loss) | 19,253,724 | 348,071 |
Change in net unrealized appreciation (depreciation) | 28,978,211 | 9,565,008 |
Net increase (decrease) in net assets resulting
from operations | 57,332,396 | 17,868,590 |
Distributions to shareholders from net investment income | (13,892,744) | (3,235,770) |
Distributions to shareholders from net realized gain | (11,440,782) | (5,017,915) |
Total distributions | (25,333,526) | (8,253,685) |
Share transactions - net increase (decrease) | 14,608,462 | (26,300,777) |
Redemption fees | 49,518 | 80,485 |
Total increase (decrease) in net assets | 46,656,850 | (16,605,387) |
| | |
Net Assets | | |
Beginning of period | 333,047,731 | 349,653,118 |
End of period (including distributions in excess of
net investment income of $72,541 and undistributed net investment income of $4,719,742, respectively) | $ 379,704,581 | $ 333,047,731 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .22 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | 1.23 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.45 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.28 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 17.65% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 4.75% A,H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 8,189 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .74%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .20 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | 1.22 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | 1.42 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.23 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | 17.43% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.63% A | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 4.48% A,H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,062 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .48%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.15 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | 17.18% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | 4.00% A,H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 673 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. IFor the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class C
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.12 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | 17.22% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | 3.99% A,H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,711 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - International Real Estate
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .25 | .31 | .30 |
Net realized and unrealized gain (loss) | 1.24 | .25 | (2.59) | (3.50) | 2.35 | 2.93 |
Total from investment operations | 1.47 | .44 | (2.39) | (3.25) | 2.66 | 3.23 |
Distributions from net investment income | (.35) | (.08) | - | (.31) | (.22) | (.24) |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | (1.42) | (.40) |
Total distributions | (.65) J | (.20) | - | (1.81) | (1.64) | (.64) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 9.35 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Total Return B,C | 17.78% | 5.29% | (22.38)% | (22.97)% | 19.01% | 27.85% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.17% A | 1.19% | 1.19% | 1.11% | 1.07% | 1.12% |
Expenses net of fee waivers, if any | 1.17% A | 1.19% | 1.19% | 1.10% | 1.06% | 1.12% |
Expenses net of all reductions | 1.12% A | 1.14% | 1.16% | 1.07% | .96% | .91% |
Net investment income (loss) | 5.00% A,G | 2.27% | 2.81% | 1.86% | 1.86% | 2.23% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 362,280 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 |
Portfolio turnover rate F | 110% A | 95% | 55% | 63% | 144% | 234% |
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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .99%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | 1.24 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | 1.47 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.65) K | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 9.33 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 17.82% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of fee waivers, if any | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of all reductions | 1.11%A | 1.14% | 1.17% | 1.10% | .97%A |
Net investment income (loss) | 5.00%A,G | 2.27% | 2.81% | 1.83% | 2.27%A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 1,789 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 110% A | 95% | 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. DCalculated 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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been 1.00%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 (Unaudited)
1. Organization.
Fidelity International Real Estate 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 C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, 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 | $ 31,804,024 |
Gross unrealized depreciation | (38,679,794) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (6,875,770) |
| |
Tax cost | $ 388,896,240 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $196,387,580 and $201,339,813, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 9,915 | $ - |
Class T | .25% | .25% | 7,010 | - |
Class B | .75% | .25% | 3,310 | 2,483 |
Class C | .75% | .25% | 18,012 | 3,779 |
| | | $ 38,247 | $ 6,262 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 2,047 |
Class T | 1,159 |
Class B* | 420 |
Class C* | 25 |
| $ 3,651 |
* 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 FIIOC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 11,950 | .30 |
Class T | 4,428 | .32 |
Class B | 994 | .30 |
Class C | 5,431 | .30 |
International Real Estate | 525,000 | .30 |
Institutional Class | 2,335 | .30 |
| $ 550,138 | |
* 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 $25 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 5,592,000 | 0.44% | $ 134 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $644 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $8,940. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $94,927 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 287,564 | $ 58,598 |
Class T | 96,278 | 19,755 |
Class B | 19,520 | 3,225 |
Class C | 109,655 | 14,423 |
International Real Estate | 13,319,427 | 3,124,751 |
Institutional Class | 60,300 | 15,018 |
Total | $ 13,892,744 | $ 3,235,770 |
From net realized gain | | |
Class A | $ 250,090 | $ 101,910 |
Class T | 89,657 | 37,040 |
Class B | 21,506 | 9,214 |
Class C | 114,914 | 39,337 |
International Real Estate | 10,916,536 | 4,807,309 |
Institutional Class | 48,079 | 23,105 |
Total | $ 11,440,782 | $ 5,017,915 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class A | | | | |
Shares sold | 128,465 | 365,681 | $ 1,175,293 | $ 3,120,303 |
Reinvestment of distributions | 50,966 | 15,947 | 451,020 | 134,591 |
Shares redeemed | (153,892) | (343,205) | (1,391,397) | (2,901,988) |
Net increase (decrease) | 25,539 | 38,423 | $ 234,916 | $ 352,906 |
Class T | | | | |
Shares sold | 55,531 | 132,643 | $ 503,297 | $ 1,140,128 |
Reinvestment of distributions | 20,063 | 6,259 | 176,852 | 52,641 |
Shares redeemed | (42,382) | (93,841) | (377,877) | (767,585) |
Net increase (decrease) | 33,212 | 45,061 | $ 302,272 | $ 425,184 |
Semiannual Report
10. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class B | | | | |
Shares sold | 2,114 | 20,099 | $ 19,205 | $ 169,130 |
Reinvestment of distributions | 4,289 | 1,355 | 37,454 | 11,297 |
Shares redeemed | (8,492) | (20,259) | (75,879) | (169,049) |
Net increase (decrease) | (2,089) | 1,195 | $ (19,220) | $ 11,378 |
Class C | | | | |
Shares sold | 65,366 | 164,953 | $ 581,387 | $ 1,381,947 |
Reinvestment of distributions | 21,061 | 5,842 | 183,176 | 48,663 |
Shares redeemed | (65,187) | (92,347) | (580,390) | (761,918) |
Net increase (decrease) | 21,240 | 78,448 | $ 184,173 | $ 668,692 |
International Real Estate | | | | |
Shares sold | 4,982,030 | 9,224,310 | $ 46,871,707 | $ 79,406,931 |
Reinvestment of distributions | 2,559,870 | 875,447 | 22,802,021 | 7,441,303 |
Shares redeemed | (6,084,846) | (13,336,716) | (55,995,301) | (114,385,841) |
Net increase (decrease) | 1,457,054 | (3,236,959) | $ 13,678,427 | $ (27,537,607) |
Institutional Class | | | | |
Shares sold | 44,493 | 40,774 | $ 413,853 | $ 351,025 |
Reinvestment of distributions | 10,892 | 4,247 | 96,908 | 36,016 |
Shares redeemed | (31,054) | (70,819) | (282,867) | (608,371) |
Net increase (decrease) | 24,331 | (25,798) | $ 227,894 | $ (221,330) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL 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.)
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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-0311
1.801329.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International Real Estate
Fund - Class A, Class T,
Class B, and Class C
Semiannual Report
January 31, 2011
(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 | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.50 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.69% | | | |
Actual | | $ 1,000.00 | $ 1,174.30 | $ 9.26 |
Hypothetical A | | $ 1,000.00 | $ 1,016.69 | $ 8.59 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.80 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
International Real Estate | 1.17% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.42 |
Hypothetical A | | $ 1,000.00 | $ 1,019.31 | $ 5.96 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,178.20 | $ 6.37 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Sun Hung Kai Properties Ltd. | 8.1 | 8.6 |
Mitsui Fudosan Co. Ltd. | 6.7 | 5.3 |
Westfield Group unit | 5.5 | 7.4 |
Unibail-Rodamco | 4.3 | 6.6 |
Sumitomo Realty & Development Co. Ltd. | 3.3 | 3.3 |
Wharf Holdings Ltd. | 3.2 | 4.4 |
CapitaLand Ltd. | 3.0 | 3.2 |
Hang Lung Properties Ltd. | 2.8 | 2.8 |
Kerry Properties Ltd. | 2.6 | 2.5 |
Wing Tai Holdings Ltd. | 2.4 | 2.1 |
| 41.9 | |
Top Five Countries as of January 31, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Hong Kong | 21.8 | 23.6 |
Japan | 19.4 | 17.7 |
Australia | 15.5 | 14.1 |
United Kingdom | 11.9 | 9.2 |
France | 7.3 | 7.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Management/Investment | 21.5 | 20.9 |
REITs - Shopping Centers | 7.3 | 4.2 |
REITs - Office Buildings | 5.8 | 6.0 |
REITs - Industrial Buildings | 2.3 | 3.2 |
REITs - Hotels | 0.4 | 0.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 98.8% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 98.8% | | ** Foreign investments | 99.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
| Shares | | Value |
Australia - 15.5% |
Abacus Property Group unit | 880,982 | | $ 1,957,812 |
Charter Hall Group unit | 1,246,962 | | 2,808,412 |
FKP Property Group unit | 2,384,694 | | 1,889,291 |
Goodman Group unit | 11,669,614 | | 7,733,520 |
Macquarie CountryWide Trust | 1,333,061 | | 4,078,378 |
Stockland Corp. Ltd. unit | 1,702,457 | | 6,107,701 |
The GPT Group unit | 2,524,201 | | 7,445,858 |
Westfield Group unit | 2,111,248 | | 20,703,008 |
Westfield Retail Trust unit | 2,311,797 | | 6,105,126 |
TOTAL AUSTRALIA | | 58,829,106 |
Bailiwick of Jersey - 1.1% |
Atrium European Real Estate Ltd. | 680,614 | | 4,134,222 |
Brazil - 1.6% |
Aliansce Shopping Centers SA | 179,200 | | 1,397,061 |
BR Malls Participacoes SA | 78,900 | | 719,208 |
Brascan Residential Properties SA | 232,000 | | 1,068,522 |
Iguatemi Empresa de Shopping Centers SA | 136,400 | | 2,944,768 |
TOTAL BRAZIL | | 6,129,559 |
Cayman Islands - 4.1% |
Central China Real Estate Ltd. | 9,688,000 | | 2,920,018 |
Country Garden Holdings Co. Ltd. | 1,240,000 | | 464,396 |
Evergrande Real Estate Group Ltd. | 4,295,000 | | 2,280,589 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 14,400 | | 485,712 |
KWG Property Holding Ltd. | 4,995,500 | | 3,716,127 |
Powerlong Real Estate Holding Ltd. | 4,057,000 | | 1,399,719 |
SOHO China Ltd. | 5,599,000 | | 4,416,408 |
TOTAL CAYMAN ISLANDS | | 15,682,969 |
China - 0.3% |
BBMG Corp. (H Shares) | 890,000 | | 1,203,135 |
Finland - 0.5% |
Citycon Oyj | 468,511 | | 2,033,211 |
France - 7.3% |
Altarea | 19,556 | | 3,748,103 |
Gecina SA | 15,500 | | 1,852,675 |
Silic SA | 14,200 | | 1,916,959 |
Societe de la Tour Eiffel | 46,511 | | 3,835,058 |
Unibail-Rodamco | 85,207 | | 16,260,785 |
TOTAL FRANCE | | 27,613,580 |
Common Stocks - continued |
| Shares | | Value |
Germany - 1.7% |
alstria office REIT-AG | 250,465 | | $ 3,531,732 |
DIC Asset AG | 227,500 | | 2,791,192 |
IVG Immobilien AG (a) | 23,000 | | 225,132 |
TOTAL GERMANY | | 6,548,056 |
Greece - 0.0% |
Babis Vovos International Technical SA (a) | 69,110 | | 128,672 |
Hong Kong - 21.8% |
Hang Lung Properties Ltd. | 2,469,000 | | 10,830,059 |
Hongkong Land Holdings Ltd. | 1,051,000 | | 7,399,040 |
Hysan Development Co. Ltd. | 767,000 | | 3,659,501 |
Kerry Properties Ltd. | 1,824,500 | | 9,746,361 |
New World Development Co. Ltd. | 4,364,725 | | 8,262,793 |
Sun Hung Kai Properties Ltd. | 1,848,000 | | 30,812,639 |
Wharf Holdings Ltd. | 1,593,000 | | 12,034,129 |
TOTAL HONG KONG | | 82,744,522 |
Italy - 2.7% |
Beni Stabili SpA Siiq | 5,131,700 | | 4,889,607 |
Immobiliare Grande Distribuzione SpA | 2,124,805 | | 4,485,459 |
Pirelli & C. Real Estate SpA (a) | 1,060,200 | | 776,506 |
TOTAL ITALY | | 10,151,572 |
Japan - 19.4% |
Goldcrest Co. Ltd. | 93,610 | | 2,506,759 |
Japan Hotel and Resort, Inc. | 516 | | 1,606,213 |
Japan Retail Fund Investment Corp. | 3,645 | | 6,692,270 |
Kenedix Realty Investment Corp. | 505 | | 2,328,734 |
Kenedix, Inc. (a)(d) | 29,075 | | 7,343,138 |
Mitsubishi Estate Co. Ltd. | 375,000 | | 7,081,506 |
Mitsui Fudosan Co. Ltd. | 1,256,000 | | 25,523,977 |
Nomura Real Estate Holdings, Inc. | 175,500 | | 3,190,132 |
NTT Urban Development Co. | 2,146 | | 2,211,886 |
ORIX JREIT, Inc. (d) | 318 | | 1,968,129 |
Sumitomo Realty & Development Co. Ltd. | 516,000 | | 12,516,521 |
Tosei Corp. (d) | 1,571 | | 762,724 |
TOTAL JAPAN | | 73,731,989 |
Netherlands - 0.8% |
Eurocommercial (Certificaten Van Aandelen) unit | 68,222 | | 3,109,617 |
Poland - 0.7% |
Globe Trade Centre SA (a) | 351,800 | | 2,569,305 |
Common Stocks - continued |
| Shares | | Value |
Russia - 0.6% |
LSR Group OJSC GDR (Reg. S) (a) | 225,100 | | $ 2,194,725 |
Singapore - 6.3% |
Allgreen Properties Ltd. | 2,206,000 | | 1,879,722 |
CapitaLand Ltd. | 4,036,900 | | 11,360,882 |
Parkway Life REIT | 1,093,000 | | 1,529,448 |
Wing Tai Holdings Ltd. | 7,064,000 | | 9,056,410 |
TOTAL SINGAPORE | | 23,826,462 |
Spain - 0.2% |
Realia Business SA (a) | 276,194 | | 578,508 |
Sweden - 2.3% |
Castellum AB | 333,200 | | 4,645,855 |
Wihlborgs Fastigheter AB | 143,700 | | 4,109,724 |
TOTAL SWEDEN | | 8,755,579 |
United Kingdom - 11.9% |
Big Yellow Group PLC | 696,800 | | 3,675,086 |
British Land Co. PLC | 879,729 | | 7,305,758 |
Capital & Counties Properties PLC | 1,057,300 | | 2,497,801 |
Great Portland Estates PLC | 642,354 | | 3,705,832 |
Hammerson PLC | 885,799 | | 6,089,232 |
Helical Bar PLC | 874,500 | | 3,955,416 |
Land Securities Group PLC | 694,777 | | 7,505,766 |
Quintain Estates & Development PLC (a) | 1,179,500 | | 736,767 |
Segro PLC | 1,046,500 | | 4,999,886 |
St. Modwen Properties PLC | 1,766,000 | | 4,709,476 |
TOTAL UNITED KINGDOM | | 45,181,020 |
TOTAL COMMON STOCKS (Cost $377,272,484) | 375,145,809 |
Money Market Funds - 1.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 3,680,321 | | $ 3,680,321 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 3,194,340 | | 3,194,340 |
TOTAL MONEY MARKET FUNDS (Cost $6,874,661) | 6,874,661 |
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $384,147,145) | 382,020,470 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (2,315,889) |
NET ASSETS - 100% | $ 379,704,581 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,522 |
Fidelity Securities Lending Cash Central Fund | 8,940 |
Total | $ 11,462 |
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, 2010, the Fund had a capital loss carryforward of approximately $296,042,629 of which $159,443,097 and $136,599,532 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $17,770,782 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,041,887) - See accompanying schedule: Unaffiliated issuers (cost $377,272,484) | $ 375,145,809 | |
Fidelity Central Funds (cost $6,874,661) | 6,874,661 | |
Total Investments (cost $384,147,145) | | $ 382,020,470 |
Receivable for investments sold | | 3,017,921 |
Receivable for fund shares sold | | 283,548 |
Dividends receivable | | 1,024,260 |
Distributions receivable from Fidelity Central Funds | | 1,242 |
Prepaid expenses | | 881 |
Other receivables | | 70,842 |
Total assets | | 386,419,164 |
| | |
Liabilities | | |
Payable to custodian bank | $ 313 | |
Payable for investments purchased | 2,017,800 | |
Payable for fund shares redeemed | 1,031,830 | |
Accrued management fee | 227,789 | |
Distribution and service plan fees payable | 6,767 | |
Other affiliated payables | 110,689 | |
Other payables and accrued expenses | 125,055 | |
Collateral on securities loaned, at value | 3,194,340 | |
Total liabilities | | 6,714,583 |
| | |
Net Assets | | $ 379,704,581 |
Net Assets consist of: | | |
Paid in capital | | $ 688,607,164 |
Distributions in excess of net investment income | | (72,541) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (306,662,941) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (2,167,101) |
Net Assets | | $ 379,704,581 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($8,189,235 ÷ 882,840 shares) | | $ 9.28 |
| | |
Maximum offering price per share (100/94.25 of $9.28) | | $ 9.85 |
Class T:
Net Asset Value and redemption price per share ($3,062,334 ÷ 331,780 shares) | | $ 9.23 |
| | |
Maximum offering price per share (100/96.50 of $9.23) | | $ 9.56 |
Class B:
Net Asset Value and offering price per share
($673,181 ÷ 73,593 shares)A | | $ 9.15 |
| | |
Class C:
Net Asset Value and offering price per share ($3,711,009 ÷ 406,806 shares)A | | $ 9.12 |
| | |
| | |
International Real Estate:
Net Asset Value, offering price and redemption price per share ($362,279,531 ÷ 38,750,329 shares) | | $ 9.35 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,789,291 ÷ 191,798 shares) | | $ 9.33 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,260,303 |
Special dividends | | 7,319,957 |
Interest | | 162 |
Income from Fidelity Central Funds | | 11,462 |
Income before foreign taxes withheld | | 11,591,884 |
Less foreign taxes withheld | | (411,250) |
Total income | | 11,180,634 |
| | |
Expenses | | |
Management fee | $ 1,297,220 | |
Transfer agent fees | 550,138 | |
Distribution and service plan fees | 38,247 | |
Accounting and security lending fees | 95,007 | |
Custodian fees and expenses | 110,800 | |
Independent trustees' compensation | 1,009 | |
Registration fees | 39,321 | |
Audit | 40,241 | |
Legal | 1,079 | |
Interest | 134 | |
Miscellaneous | 1,904 | |
Total expenses before reductions | 2,175,100 | |
Expense reductions | (94,927) | 2,080,173 |
Net investment income (loss) | | 9,100,461 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 19,483,503 | |
Foreign currency transactions | (229,779) | |
Total net realized gain (loss) | | 19,253,724 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 29,004,175 | |
Assets and liabilities in foreign currencies | (25,964) | |
Total change in net unrealized appreciation (depreciation) | | 28,978,211 |
Net gain (loss) | | 48,231,935 |
Net increase (decrease) in net assets resulting from operations | | $ 57,332,396 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,100,461 | $ 7,955,511 |
Net realized gain (loss) | 19,253,724 | 348,071 |
Change in net unrealized appreciation (depreciation) | 28,978,211 | 9,565,008 |
Net increase (decrease) in net assets resulting
from operations | 57,332,396 | 17,868,590 |
Distributions to shareholders from net investment income | (13,892,744) | (3,235,770) |
Distributions to shareholders from net realized gain | (11,440,782) | (5,017,915) |
Total distributions | (25,333,526) | (8,253,685) |
Share transactions - net increase (decrease) | 14,608,462 | (26,300,777) |
Redemption fees | 49,518 | 80,485 |
Total increase (decrease) in net assets | 46,656,850 | (16,605,387) |
| | |
Net Assets | | |
Beginning of period | 333,047,731 | 349,653,118 |
End of period (including distributions in excess of
net investment income of $72,541 and undistributed net investment income of $4,719,742, respectively) | $ 379,704,581 | $ 333,047,731 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .22 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | 1.23 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.45 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.28 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 17.65% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 4.75% A,H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 8,189 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .74%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .20 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | 1.22 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | 1.42 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.23 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | 17.43% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.63% A | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 4.48% A,H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,062 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .48%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.15 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | 17.18% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | 4.00% A,H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 673 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. IFor the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class C
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.12 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | 17.22% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | 3.99% A,H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,711 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - International Real Estate
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .25 | .31 | .30 |
Net realized and unrealized gain (loss) | 1.24 | .25 | (2.59) | (3.50) | 2.35 | 2.93 |
Total from investment operations | 1.47 | .44 | (2.39) | (3.25) | 2.66 | 3.23 |
Distributions from net investment income | (.35) | (.08) | - | (.31) | (.22) | (.24) |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | (1.42) | (.40) |
Total distributions | (.65) J | (.20) | - | (1.81) | (1.64) | (.64) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 9.35 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Total Return B,C | 17.78% | 5.29% | (22.38)% | (22.97)% | 19.01% | 27.85% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.17% A | 1.19% | 1.19% | 1.11% | 1.07% | 1.12% |
Expenses net of fee waivers, if any | 1.17% A | 1.19% | 1.19% | 1.10% | 1.06% | 1.12% |
Expenses net of all reductions | 1.12% A | 1.14% | 1.16% | 1.07% | .96% | .91% |
Net investment income (loss) | 5.00% A,G | 2.27% | 2.81% | 1.86% | 1.86% | 2.23% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 362,280 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 |
Portfolio turnover rate F | 110% A | 95% | 55% | 63% | 144% | 234% |
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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .99%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | 1.24 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | 1.47 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.65) K | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 9.33 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 17.82% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of fee waivers, if any | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of all reductions | 1.11%A | 1.14% | 1.17% | 1.10% | .97%A |
Net investment income (loss) | 5.00%A,G | 2.27% | 2.81% | 1.83% | 2.27%A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 1,789 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 110% A | 95% | 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. DCalculated 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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been 1.00%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 (Unaudited)
1. Organization.
Fidelity International Real Estate 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 C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, 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 | $ 31,804,024 |
Gross unrealized depreciation | (38,679,794) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (6,875,770) |
| |
Tax cost | $ 388,896,240 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $196,387,580 and $201,339,813, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 9,915 | $ - |
Class T | .25% | .25% | 7,010 | - |
Class B | .75% | .25% | 3,310 | 2,483 |
Class C | .75% | .25% | 18,012 | 3,779 |
| | | $ 38,247 | $ 6,262 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 2,047 |
Class T | 1,159 |
Class B* | 420 |
Class C* | 25 |
| $ 3,651 |
* 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 FIIOC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 11,950 | .30 |
Class T | 4,428 | .32 |
Class B | 994 | .30 |
Class C | 5,431 | .30 |
International Real Estate | 525,000 | .30 |
Institutional Class | 2,335 | .30 |
| $ 550,138 | |
* 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 $25 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 5,592,000 | 0.44% | $ 134 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $644 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $8,940. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $94,927 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 287,564 | $ 58,598 |
Class T | 96,278 | 19,755 |
Class B | 19,520 | 3,225 |
Class C | 109,655 | 14,423 |
International Real Estate | 13,319,427 | 3,124,751 |
Institutional Class | 60,300 | 15,018 |
Total | $ 13,892,744 | $ 3,235,770 |
From net realized gain | | |
Class A | $ 250,090 | $ 101,910 |
Class T | 89,657 | 37,040 |
Class B | 21,506 | 9,214 |
Class C | 114,914 | 39,337 |
International Real Estate | 10,916,536 | 4,807,309 |
Institutional Class | 48,079 | 23,105 |
Total | $ 11,440,782 | $ 5,017,915 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class A | | | | |
Shares sold | 128,465 | 365,681 | $ 1,175,293 | $ 3,120,303 |
Reinvestment of distributions | 50,966 | 15,947 | 451,020 | 134,591 |
Shares redeemed | (153,892) | (343,205) | (1,391,397) | (2,901,988) |
Net increase (decrease) | 25,539 | 38,423 | $ 234,916 | $ 352,906 |
Class T | | | | |
Shares sold | 55,531 | 132,643 | $ 503,297 | $ 1,140,128 |
Reinvestment of distributions | 20,063 | 6,259 | 176,852 | 52,641 |
Shares redeemed | (42,382) | (93,841) | (377,877) | (767,585) |
Net increase (decrease) | 33,212 | 45,061 | $ 302,272 | $ 425,184 |
Semiannual Report
10. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class B | | | | |
Shares sold | 2,114 | 20,099 | $ 19,205 | $ 169,130 |
Reinvestment of distributions | 4,289 | 1,355 | 37,454 | 11,297 |
Shares redeemed | (8,492) | (20,259) | (75,879) | (169,049) |
Net increase (decrease) | (2,089) | 1,195 | $ (19,220) | $ 11,378 |
Class C | | | | |
Shares sold | 65,366 | 164,953 | $ 581,387 | $ 1,381,947 |
Reinvestment of distributions | 21,061 | 5,842 | 183,176 | 48,663 |
Shares redeemed | (65,187) | (92,347) | (580,390) | (761,918) |
Net increase (decrease) | 21,240 | 78,448 | $ 184,173 | $ 668,692 |
International Real Estate | | | | |
Shares sold | 4,982,030 | 9,224,310 | $ 46,871,707 | $ 79,406,931 |
Reinvestment of distributions | 2,559,870 | 875,447 | 22,802,021 | 7,441,303 |
Shares redeemed | (6,084,846) | (13,336,716) | (55,995,301) | (114,385,841) |
Net increase (decrease) | 1,457,054 | (3,236,959) | $ 13,678,427 | $ (27,537,607) |
Institutional Class | | | | |
Shares sold | 44,493 | 40,774 | $ 413,853 | $ 351,025 |
Reinvestment of distributions | 10,892 | 4,247 | 96,908 | 36,016 |
Shares redeemed | (31,054) | (70,819) | (282,867) | (608,371) |
Net increase (decrease) | 24,331 | (25,798) | $ 227,894 | $ (221,330) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL 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-0311
1.843181.103
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Institutional Class is a
class of Fidelity®
International Real Estate Fund
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.50 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.69% | | | |
Actual | | $ 1,000.00 | $ 1,174.30 | $ 9.26 |
Hypothetical A | | $ 1,000.00 | $ 1,016.69 | $ 8.59 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.80 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
International Real Estate | 1.17% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.42 |
Hypothetical A | | $ 1,000.00 | $ 1,019.31 | $ 5.96 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,178.20 | $ 6.37 |
Hypothetical A | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Sun Hung Kai Properties Ltd. | 8.1 | 8.6 |
Mitsui Fudosan Co. Ltd. | 6.7 | 5.3 |
Westfield Group unit | 5.5 | 7.4 |
Unibail-Rodamco | 4.3 | 6.6 |
Sumitomo Realty & Development Co. Ltd. | 3.3 | 3.3 |
Wharf Holdings Ltd. | 3.2 | 4.4 |
CapitaLand Ltd. | 3.0 | 3.2 |
Hang Lung Properties Ltd. | 2.8 | 2.8 |
Kerry Properties Ltd. | 2.6 | 2.5 |
Wing Tai Holdings Ltd. | 2.4 | 2.1 |
| 41.9 | |
Top Five Countries as of January 31, 2011 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Hong Kong | 21.8 | 23.6 |
Japan | 19.4 | 17.7 |
Australia | 15.5 | 14.1 |
United Kingdom | 11.9 | 9.2 |
France | 7.3 | 7.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Management/Investment | 21.5 | 20.9 |
REITs - Shopping Centers | 7.3 | 4.2 |
REITs - Office Buildings | 5.8 | 6.0 |
REITs - Industrial Buildings | 2.3 | 3.2 |
REITs - Hotels | 0.4 | 0.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 98.8% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 98.8% | | ** Foreign investments | 99.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
| Shares | | Value |
Australia - 15.5% |
Abacus Property Group unit | 880,982 | | $ 1,957,812 |
Charter Hall Group unit | 1,246,962 | | 2,808,412 |
FKP Property Group unit | 2,384,694 | | 1,889,291 |
Goodman Group unit | 11,669,614 | | 7,733,520 |
Macquarie CountryWide Trust | 1,333,061 | | 4,078,378 |
Stockland Corp. Ltd. unit | 1,702,457 | | 6,107,701 |
The GPT Group unit | 2,524,201 | | 7,445,858 |
Westfield Group unit | 2,111,248 | | 20,703,008 |
Westfield Retail Trust unit | 2,311,797 | | 6,105,126 |
TOTAL AUSTRALIA | | 58,829,106 |
Bailiwick of Jersey - 1.1% |
Atrium European Real Estate Ltd. | 680,614 | | 4,134,222 |
Brazil - 1.6% |
Aliansce Shopping Centers SA | 179,200 | | 1,397,061 |
BR Malls Participacoes SA | 78,900 | | 719,208 |
Brascan Residential Properties SA | 232,000 | | 1,068,522 |
Iguatemi Empresa de Shopping Centers SA | 136,400 | | 2,944,768 |
TOTAL BRAZIL | | 6,129,559 |
Cayman Islands - 4.1% |
Central China Real Estate Ltd. | 9,688,000 | | 2,920,018 |
Country Garden Holdings Co. Ltd. | 1,240,000 | | 464,396 |
Evergrande Real Estate Group Ltd. | 4,295,000 | | 2,280,589 |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 14,400 | | 485,712 |
KWG Property Holding Ltd. | 4,995,500 | | 3,716,127 |
Powerlong Real Estate Holding Ltd. | 4,057,000 | | 1,399,719 |
SOHO China Ltd. | 5,599,000 | | 4,416,408 |
TOTAL CAYMAN ISLANDS | | 15,682,969 |
China - 0.3% |
BBMG Corp. (H Shares) | 890,000 | | 1,203,135 |
Finland - 0.5% |
Citycon Oyj | 468,511 | | 2,033,211 |
France - 7.3% |
Altarea | 19,556 | | 3,748,103 |
Gecina SA | 15,500 | | 1,852,675 |
Silic SA | 14,200 | | 1,916,959 |
Societe de la Tour Eiffel | 46,511 | | 3,835,058 |
Unibail-Rodamco | 85,207 | | 16,260,785 |
TOTAL FRANCE | | 27,613,580 |
Common Stocks - continued |
| Shares | | Value |
Germany - 1.7% |
alstria office REIT-AG | 250,465 | | $ 3,531,732 |
DIC Asset AG | 227,500 | | 2,791,192 |
IVG Immobilien AG (a) | 23,000 | | 225,132 |
TOTAL GERMANY | | 6,548,056 |
Greece - 0.0% |
Babis Vovos International Technical SA (a) | 69,110 | | 128,672 |
Hong Kong - 21.8% |
Hang Lung Properties Ltd. | 2,469,000 | | 10,830,059 |
Hongkong Land Holdings Ltd. | 1,051,000 | | 7,399,040 |
Hysan Development Co. Ltd. | 767,000 | | 3,659,501 |
Kerry Properties Ltd. | 1,824,500 | | 9,746,361 |
New World Development Co. Ltd. | 4,364,725 | | 8,262,793 |
Sun Hung Kai Properties Ltd. | 1,848,000 | | 30,812,639 |
Wharf Holdings Ltd. | 1,593,000 | | 12,034,129 |
TOTAL HONG KONG | | 82,744,522 |
Italy - 2.7% |
Beni Stabili SpA Siiq | 5,131,700 | | 4,889,607 |
Immobiliare Grande Distribuzione SpA | 2,124,805 | | 4,485,459 |
Pirelli & C. Real Estate SpA (a) | 1,060,200 | | 776,506 |
TOTAL ITALY | | 10,151,572 |
Japan - 19.4% |
Goldcrest Co. Ltd. | 93,610 | | 2,506,759 |
Japan Hotel and Resort, Inc. | 516 | | 1,606,213 |
Japan Retail Fund Investment Corp. | 3,645 | | 6,692,270 |
Kenedix Realty Investment Corp. | 505 | | 2,328,734 |
Kenedix, Inc. (a)(d) | 29,075 | | 7,343,138 |
Mitsubishi Estate Co. Ltd. | 375,000 | | 7,081,506 |
Mitsui Fudosan Co. Ltd. | 1,256,000 | | 25,523,977 |
Nomura Real Estate Holdings, Inc. | 175,500 | | 3,190,132 |
NTT Urban Development Co. | 2,146 | | 2,211,886 |
ORIX JREIT, Inc. (d) | 318 | | 1,968,129 |
Sumitomo Realty & Development Co. Ltd. | 516,000 | | 12,516,521 |
Tosei Corp. (d) | 1,571 | | 762,724 |
TOTAL JAPAN | | 73,731,989 |
Netherlands - 0.8% |
Eurocommercial (Certificaten Van Aandelen) unit | 68,222 | | 3,109,617 |
Poland - 0.7% |
Globe Trade Centre SA (a) | 351,800 | | 2,569,305 |
Common Stocks - continued |
| Shares | | Value |
Russia - 0.6% |
LSR Group OJSC GDR (Reg. S) (a) | 225,100 | | $ 2,194,725 |
Singapore - 6.3% |
Allgreen Properties Ltd. | 2,206,000 | | 1,879,722 |
CapitaLand Ltd. | 4,036,900 | | 11,360,882 |
Parkway Life REIT | 1,093,000 | | 1,529,448 |
Wing Tai Holdings Ltd. | 7,064,000 | | 9,056,410 |
TOTAL SINGAPORE | | 23,826,462 |
Spain - 0.2% |
Realia Business SA (a) | 276,194 | | 578,508 |
Sweden - 2.3% |
Castellum AB | 333,200 | | 4,645,855 |
Wihlborgs Fastigheter AB | 143,700 | | 4,109,724 |
TOTAL SWEDEN | | 8,755,579 |
United Kingdom - 11.9% |
Big Yellow Group PLC | 696,800 | | 3,675,086 |
British Land Co. PLC | 879,729 | | 7,305,758 |
Capital & Counties Properties PLC | 1,057,300 | | 2,497,801 |
Great Portland Estates PLC | 642,354 | | 3,705,832 |
Hammerson PLC | 885,799 | | 6,089,232 |
Helical Bar PLC | 874,500 | | 3,955,416 |
Land Securities Group PLC | 694,777 | | 7,505,766 |
Quintain Estates & Development PLC (a) | 1,179,500 | | 736,767 |
Segro PLC | 1,046,500 | | 4,999,886 |
St. Modwen Properties PLC | 1,766,000 | | 4,709,476 |
TOTAL UNITED KINGDOM | | 45,181,020 |
TOTAL COMMON STOCKS (Cost $377,272,484) | 375,145,809 |
Money Market Funds - 1.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 3,680,321 | | $ 3,680,321 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 3,194,340 | | 3,194,340 |
TOTAL MONEY MARKET FUNDS (Cost $6,874,661) | 6,874,661 |
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $384,147,145) | 382,020,470 |
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (2,315,889) |
NET ASSETS - 100% | $ 379,704,581 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,522 |
Fidelity Securities Lending Cash Central Fund | 8,940 |
Total | $ 11,462 |
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, 2010, the Fund had a capital loss carryforward of approximately $296,042,629 of which $159,443,097 and $136,599,532 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $17,770,782 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $3,041,887) - See accompanying schedule: Unaffiliated issuers (cost $377,272,484) | $ 375,145,809 | |
Fidelity Central Funds (cost $6,874,661) | 6,874,661 | |
Total Investments (cost $384,147,145) | | $ 382,020,470 |
Receivable for investments sold | | 3,017,921 |
Receivable for fund shares sold | | 283,548 |
Dividends receivable | | 1,024,260 |
Distributions receivable from Fidelity Central Funds | | 1,242 |
Prepaid expenses | | 881 |
Other receivables | | 70,842 |
Total assets | | 386,419,164 |
| | |
Liabilities | | |
Payable to custodian bank | $ 313 | |
Payable for investments purchased | 2,017,800 | |
Payable for fund shares redeemed | 1,031,830 | |
Accrued management fee | 227,789 | |
Distribution and service plan fees payable | 6,767 | |
Other affiliated payables | 110,689 | |
Other payables and accrued expenses | 125,055 | |
Collateral on securities loaned, at value | 3,194,340 | |
Total liabilities | | 6,714,583 |
| | |
Net Assets | | $ 379,704,581 |
Net Assets consist of: | | |
Paid in capital | | $ 688,607,164 |
Distributions in excess of net investment income | | (72,541) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (306,662,941) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (2,167,101) |
Net Assets | | $ 379,704,581 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($8,189,235 ÷ 882,840 shares) | | $ 9.28 |
| | |
Maximum offering price per share (100/94.25 of $9.28) | | $ 9.85 |
Class T:
Net Asset Value and redemption price per share ($3,062,334 ÷ 331,780 shares) | | $ 9.23 |
| | |
Maximum offering price per share (100/96.50 of $9.23) | | $ 9.56 |
Class B:
Net Asset Value and offering price per share
($673,181 ÷ 73,593 shares)A | | $ 9.15 |
| | |
Class C:
Net Asset Value and offering price per share ($3,711,009 ÷ 406,806 shares)A | | $ 9.12 |
| | |
| | |
International Real Estate:
Net Asset Value, offering price and redemption price per share ($362,279,531 ÷ 38,750,329 shares) | | $ 9.35 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,789,291 ÷ 191,798 shares) | | $ 9.33 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 4,260,303 |
Special dividends | | 7,319,957 |
Interest | | 162 |
Income from Fidelity Central Funds | | 11,462 |
Income before foreign taxes withheld | | 11,591,884 |
Less foreign taxes withheld | | (411,250) |
Total income | | 11,180,634 |
| | |
Expenses | | |
Management fee | $ 1,297,220 | |
Transfer agent fees | 550,138 | |
Distribution and service plan fees | 38,247 | |
Accounting and security lending fees | 95,007 | |
Custodian fees and expenses | 110,800 | |
Independent trustees' compensation | 1,009 | |
Registration fees | 39,321 | |
Audit | 40,241 | |
Legal | 1,079 | |
Interest | 134 | |
Miscellaneous | 1,904 | |
Total expenses before reductions | 2,175,100 | |
Expense reductions | (94,927) | 2,080,173 |
Net investment income (loss) | | 9,100,461 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 19,483,503 | |
Foreign currency transactions | (229,779) | |
Total net realized gain (loss) | | 19,253,724 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 29,004,175 | |
Assets and liabilities in foreign currencies | (25,964) | |
Total change in net unrealized appreciation (depreciation) | | 28,978,211 |
Net gain (loss) | | 48,231,935 |
Net increase (decrease) in net assets resulting from operations | | $ 57,332,396 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,100,461 | $ 7,955,511 |
Net realized gain (loss) | 19,253,724 | 348,071 |
Change in net unrealized appreciation (depreciation) | 28,978,211 | 9,565,008 |
Net increase (decrease) in net assets resulting
from operations | 57,332,396 | 17,868,590 |
Distributions to shareholders from net investment income | (13,892,744) | (3,235,770) |
Distributions to shareholders from net realized gain | (11,440,782) | (5,017,915) |
Total distributions | (25,333,526) | (8,253,685) |
Share transactions - net increase (decrease) | 14,608,462 | (26,300,777) |
Redemption fees | 49,518 | 80,485 |
Total increase (decrease) in net assets | 46,656,850 | (16,605,387) |
| | |
Net Assets | | |
Beginning of period | 333,047,731 | 349,653,118 |
End of period (including distributions in excess of
net investment income of $72,541 and undistributed net investment income of $4,719,742, respectively) | $ 379,704,581 | $ 333,047,731 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .22 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | 1.23 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.45 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.28 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | 17.65% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.42% A | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 4.75% A,H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 8,189 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .74%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .20 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | 1.22 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | 1.42 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.23 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | 17.43% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.69% A | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.63% A | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 4.48% A,H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,062 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .48%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.15 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | 17.18% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.17% A | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | 4.00% A,H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 673 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. IFor the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - Class C
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .18 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | 1.21 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | 1.39 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 9.12 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | 17.22% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.17% A | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.12% A | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | 3.99% A,H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,711 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 110% A | 95% | 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 Investment income per share reflects special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.01) %. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. 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 - International Real Estate
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 | $ 12.09 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .25 | .31 | .30 |
Net realized and unrealized gain (loss) | 1.24 | .25 | (2.59) | (3.50) | 2.35 | 2.93 |
Total from investment operations | 1.47 | .44 | (2.39) | (3.25) | 2.66 | 3.23 |
Distributions from net investment income | (.35) | (.08) | - | (.31) | (.22) | (.24) |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | (1.42) | (.40) |
Total distributions | (.65) J | (.20) | - | (1.81) | (1.64) | (.64) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | .02 | .01 |
Net asset value, end of period | $ 9.35 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Total Return B,C | 17.78% | 5.29% | (22.38)% | (22.97)% | 19.01% | 27.85% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.17% A | 1.19% | 1.19% | 1.11% | 1.07% | 1.12% |
Expenses net of fee waivers, if any | 1.17% A | 1.19% | 1.19% | 1.10% | 1.06% | 1.12% |
Expenses net of all reductions | 1.12% A | 1.14% | 1.16% | 1.07% | .96% | .91% |
Net investment income (loss) | 5.00% A,G | 2.27% | 2.81% | 1.86% | 1.86% | 2.23% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 362,280 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 | $ 447,854 |
Portfolio turnover rate F | 110% A | 95% | 55% | 63% | 144% | 234% |
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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .99%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .23 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | 1.24 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | 1.47 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.65) K | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 9.33 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | 17.82% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of fee waivers, if any | 1.16%A | 1.18% | 1.19% | 1.13% | 1.08%A |
Expenses net of all reductions | 1.11%A | 1.14% | 1.17% | 1.10% | .97%A |
Net investment income (loss) | 5.00%A,G | 2.27% | 2.81% | 1.83% | 2.27%A |
Supplemental Data | | | | | |
Net assets, end of period
(000 omitted) | $ 1,789 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 110% A | 95% | 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. DCalculated 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 special dividends which amounted to $.18 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been 1.00%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 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, 2011 (Unaudited)
1. Organization.
Fidelity International Real Estate 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 C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, 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 | $ 31,804,024 |
Gross unrealized depreciation | (38,679,794) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (6,875,770) |
| |
Tax cost | $ 388,896,240 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $196,387,580 and $201,339,813, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 9,915 | $ - |
Class T | .25% | .25% | 7,010 | - |
Class B | .75% | .25% | 3,310 | 2,483 |
Class C | .75% | .25% | 18,012 | 3,779 |
| | | $ 38,247 | $ 6,262 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 2,047 |
Class T | 1,159 |
Class B* | 420 |
Class C* | 25 |
| $ 3,651 |
* 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 FIIOC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 11,950 | .30 |
Class T | 4,428 | .32 |
Class B | 994 | .30 |
Class C | 5,431 | .30 |
International Real Estate | 525,000 | .30 |
Institutional Class | 2,335 | .30 |
| $ 550,138 | |
* 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 $25 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 5,592,000 | 0.44% | $ 134 |
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $644 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $8,940. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $94,927 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 287,564 | $ 58,598 |
Class T | 96,278 | 19,755 |
Class B | 19,520 | 3,225 |
Class C | 109,655 | 14,423 |
International Real Estate | 13,319,427 | 3,124,751 |
Institutional Class | 60,300 | 15,018 |
Total | $ 13,892,744 | $ 3,235,770 |
From net realized gain | | |
Class A | $ 250,090 | $ 101,910 |
Class T | 89,657 | 37,040 |
Class B | 21,506 | 9,214 |
Class C | 114,914 | 39,337 |
International Real Estate | 10,916,536 | 4,807,309 |
Institutional Class | 48,079 | 23,105 |
Total | $ 11,440,782 | $ 5,017,915 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class A | | | | |
Shares sold | 128,465 | 365,681 | $ 1,175,293 | $ 3,120,303 |
Reinvestment of distributions | 50,966 | 15,947 | 451,020 | 134,591 |
Shares redeemed | (153,892) | (343,205) | (1,391,397) | (2,901,988) |
Net increase (decrease) | 25,539 | 38,423 | $ 234,916 | $ 352,906 |
Class T | | | | |
Shares sold | 55,531 | 132,643 | $ 503,297 | $ 1,140,128 |
Reinvestment of distributions | 20,063 | 6,259 | 176,852 | 52,641 |
Shares redeemed | (42,382) | (93,841) | (377,877) | (767,585) |
Net increase (decrease) | 33,212 | 45,061 | $ 302,272 | $ 425,184 |
Semiannual Report
10. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
| Six months ended
January 31, 2011 | Year ended
July 31, 2010 | Six months ended
January 31, 2011 | Year ended
July 31, 2010 |
Class B | | | | |
Shares sold | 2,114 | 20,099 | $ 19,205 | $ 169,130 |
Reinvestment of distributions | 4,289 | 1,355 | 37,454 | 11,297 |
Shares redeemed | (8,492) | (20,259) | (75,879) | (169,049) |
Net increase (decrease) | (2,089) | 1,195 | $ (19,220) | $ 11,378 |
Class C | | | | |
Shares sold | 65,366 | 164,953 | $ 581,387 | $ 1,381,947 |
Reinvestment of distributions | 21,061 | 5,842 | 183,176 | 48,663 |
Shares redeemed | (65,187) | (92,347) | (580,390) | (761,918) |
Net increase (decrease) | 21,240 | 78,448 | $ 184,173 | $ 668,692 |
International Real Estate | | | | |
Shares sold | 4,982,030 | 9,224,310 | $ 46,871,707 | $ 79,406,931 |
Reinvestment of distributions | 2,559,870 | 875,447 | 22,802,021 | 7,441,303 |
Shares redeemed | (6,084,846) | (13,336,716) | (55,995,301) | (114,385,841) |
Net increase (decrease) | 1,457,054 | (3,236,959) | $ 13,678,427 | $ (27,537,607) |
Institutional Class | | | | |
Shares sold | 44,493 | 40,774 | $ 413,853 | $ 351,025 |
Reinvestment of distributions | 10,892 | 4,247 | 96,908 | 36,016 |
Shares redeemed | (31,054) | (70,819) | (282,867) | (608,371) |
Net increase (decrease) | 24,331 | (25,798) | $ 227,894 | $ (221,330) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL 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-0311
1.843174.103
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the last six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Leveraged Company Stock | .86% | | | |
Actual | | $ 1,000.00 | $ 1,245.60 | $ 4.87 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
Class K | .69% | | | |
Actual | | $ 1,000.00 | $ 1,246.40 | $ 3.91 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ON Semiconductor Corp. | 5.0 | 3.5 |
AES Corp. | 2.8 | 2.6 |
Service Corp. International | 2.8 | 3.4 |
El Paso Corp. | 2.8 | 2.9 |
Tenet Healthcare Corp. | 2.6 | 2.3 |
Peabody Energy Corp. | 2.6 | 2.1 |
Celanese Corp. Class A | 2.1 | 2.5 |
LyondellBasell Industries NV Class A | 2.1 | 0.6 |
Owens Corning | 1.9 | 2.0 |
Huntington Bancshares, Inc. | 1.7 | 1.5 |
| 26.4 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 17.0 | 16.7 |
Industrials | 17.0 | 18.8 |
Energy | 14.1 | 12.5 |
Materials | 12.6 | 11.3 |
Information Technology | 11.2 | 9.7 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 94.0% | | | Stocks 94.4% | |
| Bonds 1.0% | | | Bonds 2.4% | |
| Convertible
Securities 0.3% | | | Convertible
Securities 0.3% | |
 | Other Investments 0.5% | | | Other Investments 1.4% | |
| Short-Term
Investments and
Net Other Assets 4.2% | | | Short-Term
Investments and
Net Other Assets 1.5% | |
* Foreign investments | 8.6% | | ** Foreign investments | 7.3% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 15.9% |
Auto Components - 1.9% |
Exide Technologies (a) | 3,643,393 | | $ 35,013 |
Johnson Controls, Inc. | 548,300 | | 21,049 |
Tenneco, Inc. (a) | 97,700 | | 4,038 |
The Goodyear Tire & Rubber Co. (a) | 564,063 | | 6,701 |
TRW Automotive Holdings Corp. (a) | 399,400 | | 23,828 |
| | 90,629 |
Automobiles - 0.7% |
Daimler AG (United States) (a) | 209,400 | | 15,311 |
General Motors Co. | 288,400 | | 10,524 |
Toyota Motor Corp. sponsored ADR (e) | 89,500 | | 7,355 |
| | 33,190 |
Diversified Consumer Services - 3.0% |
Service Corp. International (f) | 15,356,618 | | 133,142 |
Stewart Enterprises, Inc. Class A | 1,515,242 | | 9,667 |
| | 142,809 |
Hotels, Restaurants & Leisure - 1.1% |
Bally Technologies, Inc. (a) | 198,560 | | 8,127 |
Biglari Holdings, Inc. (a) | 32,970 | | 14,177 |
Domino's Pizza, Inc. (a) | 641,095 | | 10,514 |
O'Charleys, Inc. (a) | 207,849 | | 1,438 |
Penn National Gaming, Inc. (a) | 537,836 | | 19,217 |
Wendy's/Arby's Group, Inc. | 546,800 | | 2,641 |
| | 56,114 |
Household Durables - 3.3% |
Harman International Industries, Inc. (a) | 1,064,022 | | 46,093 |
Lennar Corp. Class A | 983,400 | | 19,039 |
Newell Rubbermaid, Inc. | 3,304,500 | | 63,612 |
Stanley Black & Decker, Inc. | 392,917 | | 28,557 |
| | 157,301 |
Leisure Equipment & Products - 0.4% |
Callaway Golf Co. | 2,514,010 | | 18,478 |
Media - 2.8% |
Belo Corp. Series A (a) | 163,800 | | 1,104 |
Cablevision Systems Corp. - NY Group Class A | 541,324 | | 18,324 |
Cinemark Holdings, Inc. | 1,554,497 | | 26,349 |
Comcast Corp. Class A | 3,097,400 | | 70,466 |
Gray Television, Inc. (a)(f) | 3,766,164 | | 7,457 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
LIN TV Corp. Class A (a) | 818,437 | | $ 3,945 |
Nexstar Broadcasting Group, Inc. Class A (a)(e) | 1,130,500 | | 5,551 |
| | 133,196 |
Specialty Retail - 0.7% |
Asbury Automotive Group, Inc. (a) | 385,122 | | 7,090 |
Charming Shoppes, Inc. (a) | 3,932,700 | | 12,231 |
GameStop Corp. Class A (a) | 542,795 | | 11,437 |
Sally Beauty Holdings, Inc. (a) | 300,000 | | 3,948 |
| | 34,706 |
Textiles, Apparel & Luxury Goods - 2.0% |
Coach, Inc. | 314,020 | | 16,985 |
Deckers Outdoor Corp. (a) | 544,945 | | 39,994 |
Hanesbrands, Inc. (a) | 404,100 | | 9,302 |
Phillips-Van Heusen Corp. | 548,718 | | 32,029 |
| | 98,310 |
TOTAL CONSUMER DISCRETIONARY | | 764,733 |
CONSUMER STAPLES - 2.1% |
Food & Staples Retailing - 0.9% |
Safeway, Inc. | 464,300 | | 9,606 |
Whole Foods Market, Inc. | 655,080 | | 33,874 |
| | 43,480 |
Food Products - 1.1% |
Darling International, Inc. (a) | 2,997,330 | | 40,614 |
Smithfield Foods, Inc. (a) | 559,606 | | 11,142 |
| | 51,756 |
Personal Products - 0.1% |
Revlon, Inc. (a) | 553,261 | | 5,389 |
TOTAL CONSUMER STAPLES | | 100,625 |
ENERGY - 13.8% |
Energy Equipment & Services - 2.3% |
Baker Hughes, Inc. | 218,000 | | 14,935 |
Ensco International Ltd. ADR | 110,000 | | 5,977 |
Exterran Holdings, Inc. (a) | 1,019,808 | | 25,301 |
Noble Corp. | 524,700 | | 20,070 |
Oil States International, Inc. (a) | 270,700 | | 18,343 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Energy Equipment & Services - continued |
Parker Drilling Co. (a) | 1,200,000 | | $ 5,208 |
Rowan Companies, Inc. (a) | 321,100 | | 11,007 |
Schlumberger Ltd. | 109,400 | | 9,736 |
| | 110,577 |
Oil, Gas & Consumable Fuels - 11.5% |
Alpha Natural Resources, Inc. (a) | 414,438 | | 22,268 |
Arch Coal, Inc. | 388,255 | | 13,298 |
Carrizo Oil & Gas, Inc. (a) | 438,502 | | 14,843 |
Chesapeake Energy Corp. | 1,750,830 | | 51,702 |
ConocoPhillips | 231,500 | | 16,543 |
CONSOL Energy, Inc. | 270,700 | | 13,454 |
El Paso Corp. | 8,366,776 | | 132,864 |
Forest Oil Corp. (a) | 1,314,652 | | 51,008 |
Frontier Oil Corp. | 1,972,600 | | 41,030 |
International Coal Group, Inc. (a) | 1,194,000 | | 11,045 |
Nexen, Inc. | 188,000 | | 4,723 |
Overseas Shipholding Group, Inc. (e) | 943,292 | | 31,355 |
Paladin Energy Ltd. (a) | 2,042,400 | | 9,953 |
Peabody Energy Corp. | 1,955,114 | | 123,993 |
Range Resources Corp. | 272,200 | | 13,575 |
| | 551,654 |
TOTAL ENERGY | | 662,231 |
FINANCIALS - 9.9% |
Commercial Banks - 7.5% |
Huntington Bancshares, Inc. | 11,032,080 | | 79,872 |
KeyCorp | 8,888,459 | | 79,107 |
PNC Financial Services Group, Inc. | 602,508 | | 36,150 |
Regions Financial Corp. | 2,011,695 | | 14,283 |
SunTrust Banks, Inc. | 2,425,100 | | 73,796 |
Wells Fargo & Co. | 2,440,088 | | 79,108 |
| | 362,316 |
Consumer Finance - 0.1% |
American Express Co. | 108,649 | | 4,713 |
Diversified Financial Services - 0.7% |
Bank of America Corp. | 1,762,781 | | 24,203 |
Citigroup, Inc. (a) | 1,638,400 | | 7,897 |
| | 32,100 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.6% |
Assured Guaranty Ltd. | 1,194,784 | | $ 17,277 |
Lincoln National Corp. | 435,700 | | 12,566 |
| | 29,843 |
Real Estate Investment Trusts - 0.8% |
FelCor Lodging Trust, Inc. (a) | 1,085,852 | | 7,634 |
Host Hotels & Resorts, Inc. | 1,016,122 | | 18,808 |
Sabra Health Care REIT, Inc. | 547,507 | | 10,189 |
| | 36,631 |
Thrifts & Mortgage Finance - 0.2% |
First Niagara Financial Group, Inc. | 851,444 | | 11,818 |
TOTAL FINANCIALS | | 477,421 |
HEALTH CARE - 5.8% |
Health Care Equipment & Supplies - 0.4% |
Alere, Inc. (a) | 518,708 | | 20,318 |
Health Care Providers & Services - 4.3% |
Community Health Systems, Inc. (a) | 554,676 | | 19,480 |
DaVita, Inc. (a) | 503,747 | | 37,202 |
RehabCare Group, Inc. (a) | 230,000 | | 5,649 |
Rural/Metro Corp. (a) | 834,200 | | 11,629 |
Sun Healthcare Group, Inc. (a) | 547,506 | | 6,841 |
Tenet Healthcare Corp. (a) | 18,689,259 | | 124,284 |
| | 205,085 |
Health Care Technology - 0.4% |
Cerner Corp. (a) | 220,709 | | 21,817 |
Pharmaceuticals - 0.7% |
Hospira, Inc. (a) | 575,358 | | 31,777 |
TOTAL HEALTH CARE | | 278,997 |
INDUSTRIALS - 16.8% |
Aerospace & Defense - 0.5% |
American Science & Engineering, Inc. | 85,370 | | 7,427 |
Teledyne Technologies, Inc. (a) | 340,694 | | 16,118 |
| | 23,545 |
Airlines - 2.4% |
AirTran Holdings, Inc. (a) | 1,779,700 | | 13,152 |
AMR Corp. (a) | 1,140,630 | | 8,041 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Airlines - continued |
Delta Air Lines, Inc. (a) | 5,499,749 | | $ 64,182 |
United Continental Holdings, Inc. (a) | 370,700 | | 9,416 |
US Airways Group, Inc. (a) | 2,034,580 | | 20,183 |
| | 114,974 |
Building Products - 3.3% |
Armstrong World Industries, Inc. | 1,217,530 | | 49,444 |
Masco Corp. | 1,605,541 | | 21,386 |
Owens Corning (a) | 2,649,712 | | 88,686 |
Owens Corning warrants 10/31/13 (a) | 406,600 | | 1,346 |
| | 160,862 |
Commercial Services & Supplies - 3.0% |
Cenveo, Inc. (a)(f) | 3,858,300 | | 20,758 |
Deluxe Corp. | 1,786,873 | | 43,689 |
R.R. Donnelley & Sons Co. | 450,900 | | 7,990 |
Republic Services, Inc. | 1,317,784 | | 40,640 |
The Brink's Co. | 464,740 | | 12,548 |
Waste Management, Inc. | 483,234 | | 18,300 |
| | 143,925 |
Electrical Equipment - 2.2% |
Belden, Inc. | 1,170,366 | | 40,682 |
Emerson Electric Co. | 163,500 | | 9,627 |
General Cable Corp. (a) | 441,500 | | 16,340 |
Harbin Electric, Inc. (a)(e) | 548,369 | | 10,474 |
Polypore International, Inc. (a) | 548,400 | | 26,405 |
| | 103,528 |
Industrial Conglomerates - 1.0% |
Carlisle Companies, Inc. | 109,910 | | 4,145 |
General Electric Co. | 1,103,883 | | 22,232 |
Textron, Inc. | 550,200 | | 14,465 |
Tyco International Ltd. | 187,433 | | 8,403 |
| | 49,245 |
Machinery - 2.8% |
Accuride Corp. (a) | 5,737 | | 86 |
Accuride Corp. warrants 2/26/12 (a) | 778,347 | | 117 |
Badger Meter, Inc. (e) | 228,561 | | 9,369 |
Fiat Industrial SpA (a) | 1,634,423 | | 22,118 |
Ingersoll-Rand Co. Ltd. | 1,114,900 | | 52,623 |
Mueller Water Products, Inc. Class A | 1,202,599 | | 4,810 |
Navistar International Corp. (a) | 169,800 | | 11,012 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Timken Co. | 464,948 | | $ 21,862 |
WABCO Holdings, Inc. (a) | 211,533 | | 12,354 |
| | 134,351 |
Marine - 0.2% |
Navios Maritime Holdings, Inc. | 2,162,794 | | 10,554 |
Road & Rail - 1.2% |
Avis Budget Group, Inc. (a) | 830,314 | | 11,492 |
CSX Corp. | 109,400 | | 7,724 |
Hertz Global Holdings, Inc. (a)(e) | 2,518,600 | | 37,049 |
| | 56,265 |
Trading Companies & Distributors - 0.2% |
Houston Wire & Cable Co. (e) | 656,176 | | 8,563 |
TOTAL INDUSTRIALS | | 805,812 |
INFORMATION TECHNOLOGY - 11.2% |
Communications Equipment - 0.1% |
JDS Uniphase Corp. (a) | 163,300 | | 2,771 |
Electronic Equipment & Components - 2.3% |
Avnet, Inc. (a) | 328,000 | | 11,683 |
DDi Corp. | 295,899 | | 3,334 |
Flextronics International Ltd. (a) | 9,134,646 | | 72,986 |
TTM Technologies, Inc. (a) | 1,190,636 | | 18,931 |
Viasystems Group, Inc. (a) | 290,108 | | 5,869 |
| | 112,803 |
Internet Software & Services - 0.3% |
NetEase.com, Inc. sponsored ADR (a) | 191,500 | | 7,725 |
VeriSign, Inc. | 194,300 | | 6,538 |
| | 14,263 |
IT Services - 0.9% |
Alliance Data Systems Corp. (a)(e) | 356,809 | | 25,241 |
CACI International, Inc. Class A (a) | 248,000 | | 13,762 |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | | 4,100 |
| | 43,103 |
Semiconductors & Semiconductor Equipment - 7.5% |
Amkor Technology, Inc. (a)(e) | 5,242,218 | | 42,672 |
Cypress Semiconductor Corp. (a) | 651,200 | | 14,098 |
Fairchild Semiconductor International, Inc. (a) | 548,500 | | 9,763 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Intel Corp. | 454,981 | | $ 9,764 |
Micron Technology, Inc. (a) | 1,737,600 | | 18,314 |
National Semiconductor Corp. | 1,714,276 | | 25,988 |
ON Semiconductor Corp. (a) | 21,579,802 | | 238,455 |
| | 359,054 |
Software - 0.1% |
Microsoft Corp. | 108,800 | | 3,016 |
Nuance Communications, Inc. (a) | 163,600 | | 3,326 |
| | 6,342 |
TOTAL INFORMATION TECHNOLOGY | | 538,336 |
MATERIALS - 12.6% |
Chemicals - 9.9% |
Albemarle Corp. | 635,192 | | 35,672 |
Arch Chemicals, Inc. | 344,342 | | 12,479 |
Celanese Corp. Class A | 2,472,953 | | 102,603 |
Dow Chemical Co. | 1,284,894 | | 45,588 |
Ferro Corp. (a) | 722,400 | | 11,139 |
FMC Corp. | 178,600 | | 13,584 |
H.B. Fuller Co. | 1,582,241 | | 36,059 |
LyondellBasell Industries NV Class A (a) | 2,811,151 | | 101,033 |
Nalco Holding Co. | 740,569 | | 22,558 |
OMNOVA Solutions, Inc. (a)(f) | 2,749,107 | | 19,326 |
Phosphate Holdings, Inc. (a) | 307,500 | | 3,998 |
Solutia, Inc. (a) | 657,600 | | 15,401 |
W.R. Grace & Co. (a) | 1,601,519 | | 56,838 |
| | 476,278 |
Containers & Packaging - 0.8% |
Owens-Illinois, Inc. (a) | 421,000 | | 12,415 |
Rock-Tenn Co. Class A (e) | 429,702 | | 28,683 |
| | 41,098 |
Metals & Mining - 1.7% |
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | | 22,643 |
Compass Minerals International, Inc. | 258,500 | | 23,748 |
Ormet Corp. (a) | 330,000 | | 1,964 |
Ormet Corp. (a)(h) | 1,075,000 | | 6,396 |
Teck Resources Ltd. Class B (sub. vtg.) | 417,300 | | 25,281 |
| | 80,032 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Paper & Forest Products - 0.2% |
Neenah Paper, Inc. | 518,300 | | $ 9,982 |
TOTAL MATERIALS | | 607,390 |
TELECOMMUNICATION SERVICES - 2.2% |
Diversified Telecommunication Services - 0.9% |
PAETEC Holding Corp. (a) | 2,980,233 | | 11,772 |
Qwest Communications International, Inc. | 4,637,500 | | 33,065 |
| | 44,837 |
Wireless Telecommunication Services - 1.3% |
Crown Castle International Corp. (a) | 871,891 | | 36,768 |
Sprint Nextel Corp. (a) | 5,692,987 | | 25,732 |
| | 62,500 |
TOTAL TELECOMMUNICATION SERVICES | | 107,337 |
UTILITIES - 3.6% |
Independent Power Producers & Energy Traders - 3.6% |
AES Corp. (a) | 10,901,923 | | 135,184 |
Calpine Corp. (a) | 2,479,900 | | 35,388 |
| | 170,572 |
TOTAL COMMON STOCKS (Cost $3,697,202) | 4,513,454 |
Preferred Stocks - 0.4% |
| | | |
Convertible Preferred Stocks - 0.3% |
ENERGY - 0.3% |
Oil, Gas & Consumable Fuels - 0.3% |
El Paso Corp. 4.99% | 11,200 | | 14,319 |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER STAPLES - 0.1% |
Personal Products - 0.1% |
Revlon, Inc. Series A 12.75% | 639,576 | | 3,633 |
TOTAL PREFERRED STOCKS (Cost $16,677) | 17,952 |
Nonconvertible Bonds - 1.0% |
| Principal Amount (000s) | | Value (000s) |
CONSUMER DISCRETIONARY - 0.9% |
Automobiles - 0.9% |
General Motors Corp.: | | | | |
6.75% 5/1/28 (d) | | $ 3,075 | | $ 1,053 |
7.125% 7/15/13 (d) | | 8,320 | | 2,850 |
7.2% 1/15/49 (d) | | 22,980 | | 7,813 |
8.25% 7/15/23 (d) | | 25,035 | | 8,762 |
8.375% 7/15/33 (d) | | 50,210 | | 17,825 |
8.8% 3/1/21 (d) | | 10,765 | | 3,741 |
| | 42,044 |
Hotels, Restaurants & Leisure - 0.0% |
Station Casinos, Inc.: | | | | |
6% 4/1/12 (d) | | 8,360 | | 1 |
7.75% 8/15/16 (d) | | 9,380 | | 1 |
| | 2 |
TOTAL CONSUMER DISCRETIONARY | | 42,046 |
FINANCIALS - 0.1% |
Commercial Banks - 0.1% |
Regions Bank 6.45% 6/26/37 | | 5,430 | | 4,860 |
INDUSTRIALS - 0.0% |
Airlines - 0.0% |
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | | 7,000 | | 0 |
TOTAL NONCONVERTIBLE BONDS (Cost $29,698) | 46,906 |
Floating Rate Loans - 0.5% |
|
CONSUMER DISCRETIONARY - 0.2% |
Media - 0.2% |
Univision Communications, Inc. term loan 4.51% 3/31/17 (g) | | 9,586 | | 9,418 |
INDUSTRIALS - 0.2% |
Airlines - 0.2% |
US Airways Group, Inc. term loan 2.76% 3/23/14 (g) | | 10,947 | | 10,195 |
Floating Rate Loans - continued |
| Principal Amount (000s) | | Value (000s) |
UTILITIES - 0.1% |
Electric Utilities - 0.1% |
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B2, term loan 3.7864% 10/10/14 (g) | | $ 5,677 | | $ 4,669 |
TOTAL FLOATING RATE LOANS (Cost $22,352) | 24,282 |
Money Market Funds - 5.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 189,091,678 | | 189,092 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 97,495,930 | | 97,496 |
TOTAL MONEY MARKET FUNDS (Cost $286,588) | 286,588 |
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $4,052,517) | | 4,889,182 |
NET OTHER ASSETS (LIABILITIES) - (1.7)% | | (82,815) |
NET ASSETS - 100% | $ 4,806,367 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) 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 $6,396,000 or 0.1% of net assets. |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 102 |
Fidelity Securities Lending Cash Central Fund | 214 |
Total | $ 316 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Cenveo, Inc. | $ 23,767 | $ - | $ - | $ - | $ 20,758 |
Gray Television, Inc. | 7,399 | 1,624 | - | - | 7,457 |
OMNOVA Solutions, Inc. | - | 22,300 | - | - | 19,326 |
ON Semiconductor Corp. | 155,780 | - | 16,844 | - | - |
Service Corp. International | 150,430 | - | 18,657 | 1,323 | 133,142 |
Total | $ 337,376 | $ 23,924 | $ 35,501 | $ 1,323 | $ 180,683 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 764,733 | $ 764,733 | $ - | $ - |
Consumer Staples | 104,258 | 100,625 | - | 3,633 |
Energy | 676,550 | 662,231 | 14,319 | - |
Financials | 477,421 | 477,421 | - | - |
Health Care | 278,997 | 278,997 | - | - |
Industrials | 805,812 | 805,812 | - | - |
Information Technology | 538,336 | 538,336 | - | - |
Materials | 607,390 | 607,390 | - | - |
Telecommunication Services | 107,337 | 107,337 | - | - |
Utilities | 170,572 | 170,572 | - | - |
Corporate Bonds | 46,906 | - | 46,906 | - |
Floating Rate Loans | 24,282 | - | 24,282 | - |
Money Market Funds | 286,588 | 286,588 | - | - |
Total Investments in Securities: | $ 4,889,182 | $ 4,800,042 | $ 85,507 | $ 3,633 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities:
(Amounts in thousands) | |
Beginning Balance | $ 4,950 |
Total Realized Gain (Loss) | (1) |
Total Unrealized Gain (Loss) | 52 |
Cost of Purchases | - |
Proceeds of Sales | (1,632) |
Amortization/Accretion | 264 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,633 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 51 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $988,870,000 of which $297,190,000 and $691,680,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $95,326) - See accompanying schedule: Unaffiliated issuers (cost $3,552,865) | $ 4,421,911 | |
Fidelity Central Funds (cost $286,588) | 286,588 | |
Other affiliated issuers (cost $213,064) | 180,683 | |
Total Investments (cost $4,052,517) | | $ 4,889,182 |
Cash | | 37 |
Receivable for investments sold | | 38,928 |
Receivable for fund shares sold | | 4,512 |
Dividends receivable | | 562 |
Interest receivable | | 95 |
Distributions receivable from Fidelity Central Funds | | 46 |
Prepaid expenses | | 11 |
Other receivables | | 52 |
Total assets | | 4,933,425 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,188 | |
Payable for fund shares redeemed | 7,073 | |
Accrued management fee | 2,418 | |
Other affiliated payables | 843 | |
Other payables and accrued expenses | 40 | |
Collateral on securities loaned, at value | 97,496 | |
Total liabilities | | 127,058 |
| | |
Net Assets | | $ 4,806,367 |
Net Assets consist of: | | |
Paid in capital | | $ 4,896,170 |
Distributions in excess of net investment income | | (6,348) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (920,120) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 836,665 |
Net Assets | | $ 4,806,367 |
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, 2011 (Unaudited) |
| | |
Leveraged Company Stock:
Net Asset Value, offering price and redemption price per share ($4,305,528 ÷ 147,701 shares) | | $ 29.15 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($500,839 ÷ 17,186 shares) | | $ 29.14 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $1,323 earned from other affiliated issuers) | | $ 17,169 |
Interest | | 3,421 |
Income from Fidelity Central Funds | | 316 |
Total income | | 20,906 |
| | |
Expenses | | |
Management fee | $ 13,351 | |
Transfer agent fees | 4,460 | |
Accounting and security lending fees | 536 | |
Custodian fees and expenses | 27 | |
Independent trustees' compensation | 12 | |
Registration fees | 50 | |
Audit | 35 | |
Legal | 36 | |
Miscellaneous | 23 | |
Total expenses before reductions | 18,530 | |
Expense reductions | (53) | 18,477 |
Net investment income (loss) | | 2,429 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 72,097 | |
Other affiliated issuers | 14,205 | |
Foreign currency transactions | (13) | |
Total net realized gain (loss) | | 86,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 873,964 | |
Assets and liabilities in foreign currencies | 2 | |
Total change in net unrealized appreciation (depreciation) | | 873,966 |
Net gain (loss) | | 960,255 |
Net increase (decrease) in net assets resulting from operations | | $ 962,684 |
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, 2011
(Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,429 | $ 13,810 |
Net realized gain (loss) | 86,289 | 201,065 |
Change in net unrealized appreciation (depreciation) | 873,966 | 593,648 |
Net increase (decrease) in net assets resulting
from operations | 962,684 | 808,523 |
Distributions to shareholders from net investment income | (19,058) | (23,690) |
Share transactions - net increase (decrease) | (530,385) | (373,729) |
Redemption fees | 180 | 970 |
Total increase (decrease) in net assets | 413,421 | 412,074 |
| | |
Net Assets | | |
Beginning of period | 4,392,946 | 3,980,872 |
End of period (including distributions in excess of net investment income of $6,348 and undistributed net investment income of $10,281, respectively) | $ 4,806,367 | $ 4,392,946 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .07 | .21 | .14 | .44 G | .16 |
Net realized and unrealized gain (loss) | 5.75 | 3.99 | (11.37) | (1.06) | 6.78 | 3.04 |
Total from investment operations | 5.76 | 4.06 | (11.16) | (.92) | 7.22 | 3.20 |
Distributions from net investment income | (.11) | (.11) | (.14) | (.39) | (.12) | (.21) |
Distributions from net realized gain | - | - | (.25) | (1.39) | (1.40) | (.41) |
Total distributions | (.11) | (.11) | (.39) | (1.78) | (1.52) | (.62) |
Redemption fees added to paid in capital D | - I | - I | .01 | .01 | .01 | .01 |
Net asset value, end of period | $ 29.15 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 |
Total Return B, C | 24.56% | 20.84% | (35.99)% | (2.76)% | 27.08% | 12.80% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .86% A | .88% | .92% | .83% | .83% | .86% |
Expenses net of fee waivers, if any | .86% A | .88% | .92% | .83% | .83% | .86% |
Expenses net of all reductions | .86% A | .88% | .92% | .83% | .83% | .85% |
Net investment income (loss) | .09% A | .29% | 1.17% | .44% | 1.43% G | .60% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 4,306 | $ 3,983 | $ 3,714 | $ 8,032 | $ 7,830 | $ 4,174 |
Portfolio turnover rate F | 11% A | 21% | 34% | 30% | 20% | 23% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 K
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .03 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | 5.74 | 4.00 | (11.35) | (3.04) |
Total from investment operations | 5.77 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | (.25) | - |
Total distributions | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | - I | .01 | - I |
Net asset value, end of period | $ 29.14 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B, C | 24.64% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .69% A | .70% | .71% | .70%A |
Expenses net of fee waivers, if any | .69% A | .70% | .71% | .70%A |
Expenses net of all reductions | .69% A | .69% | .71% | .70%A |
Net investment income (loss) | .26% A | .47% | 1.39% | .58%A |
Supplemental Data | | | | |
Net assets, end of period
(000 omitted) | $ 500,839 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 11% A | 21% | 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 Central Funds, are valued at their closing net asset value each business day 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 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. 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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 1,305,653 |
Gross unrealized depreciation | (485,335) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 820,318 |
Tax cost | $ 4,068,864 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $242,593 and $905,538, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .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. 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Leveraged Company Stock | $ 4,347 | .22 |
Class K | 113 | .05 |
| $ 4,460 | |
* 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.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $214. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $53 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Leveraged Company Stock | $ 16,431 | $ 21,247 |
Class K | 2,627 | 2,443 |
Total | $ 19,058 | $ 23,690 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Leveraged Company Stock | | | | |
Shares sold | 9,382 | 36,532 | $ 247,291 | $ 843,196 |
Conversion to Class K | - | (2,316) | - | (48,185) |
Reinvestment of distributions | 608 | 940 | 15,688 | 20,361 |
Shares redeemed | (31,745) | (55,646) | (789,457) | (1,272,555) |
Net increase (decrease) | (21,755) | (20,490) | $ (526,478) | $ (457,183) |
Class K | | | | |
Shares sold | 2,605 | 5,965 | $ 67,659 | $ 138,844 |
Conversion from Leveraged Company Stock | - | 2,315 | - | 48,185 |
Reinvestment of distributions | 103 | 113 | 2,627 | 2,443 |
Shares redeemed | (2,949) | (4,631) | (74,193) | (106,018) |
Net increase (decrease) | (241) | 3,762 | $ (3,907) | $ 83,454 |
A Conversion transactions for Class K and Leveraged Company Stock are presented 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 distributions, 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.
Arizona
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Colorado
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Connecticut
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Delaware
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Florida
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Maine
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Maryland
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Massachusetts
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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Nevada
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North Carolina
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Ohio
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Oregon
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Pennsylvania
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Utah
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Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
16020 West Bluemound Road
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
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
LSF-USAN-0311
1.789286.108
Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the last six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Leveraged Company Stock | .86% | | | |
Actual | | $ 1,000.00 | $ 1,245.60 | $ 4.87 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
Class K | .69% | | | |
Actual | | $ 1,000.00 | $ 1,246.40 | $ 3.91 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ON Semiconductor Corp. | 5.0 | 3.5 |
AES Corp. | 2.8 | 2.6 |
Service Corp. International | 2.8 | 3.4 |
El Paso Corp. | 2.8 | 2.9 |
Tenet Healthcare Corp. | 2.6 | 2.3 |
Peabody Energy Corp. | 2.6 | 2.1 |
Celanese Corp. Class A | 2.1 | 2.5 |
LyondellBasell Industries NV Class A | 2.1 | 0.6 |
Owens Corning | 1.9 | 2.0 |
Huntington Bancshares, Inc. | 1.7 | 1.5 |
| 26.4 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 17.0 | 16.7 |
Industrials | 17.0 | 18.8 |
Energy | 14.1 | 12.5 |
Materials | 12.6 | 11.3 |
Information Technology | 11.2 | 9.7 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 94.0% | | | Stocks 94.4% | |
| Bonds 1.0% | | | Bonds 2.4% | |
| Convertible
Securities 0.3% | | | Convertible
Securities 0.3% | |
| Other Investments 0.5% | | | Other Investments 1.4% | |
| Short-Term
Investments and
Net Other Assets 4.2% | | | Short-Term
Investments and
Net Other Assets 1.5% | |
* Foreign investments | 8.6% | | ** Foreign investments | 7.3% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 15.9% |
Auto Components - 1.9% |
Exide Technologies (a) | 3,643,393 | | $ 35,013 |
Johnson Controls, Inc. | 548,300 | | 21,049 |
Tenneco, Inc. (a) | 97,700 | | 4,038 |
The Goodyear Tire & Rubber Co. (a) | 564,063 | | 6,701 |
TRW Automotive Holdings Corp. (a) | 399,400 | | 23,828 |
| | 90,629 |
Automobiles - 0.7% |
Daimler AG (United States) (a) | 209,400 | | 15,311 |
General Motors Co. | 288,400 | | 10,524 |
Toyota Motor Corp. sponsored ADR (e) | 89,500 | | 7,355 |
| | 33,190 |
Diversified Consumer Services - 3.0% |
Service Corp. International (f) | 15,356,618 | | 133,142 |
Stewart Enterprises, Inc. Class A | 1,515,242 | | 9,667 |
| | 142,809 |
Hotels, Restaurants & Leisure - 1.1% |
Bally Technologies, Inc. (a) | 198,560 | | 8,127 |
Biglari Holdings, Inc. (a) | 32,970 | | 14,177 |
Domino's Pizza, Inc. (a) | 641,095 | | 10,514 |
O'Charleys, Inc. (a) | 207,849 | | 1,438 |
Penn National Gaming, Inc. (a) | 537,836 | | 19,217 |
Wendy's/Arby's Group, Inc. | 546,800 | | 2,641 |
| | 56,114 |
Household Durables - 3.3% |
Harman International Industries, Inc. (a) | 1,064,022 | | 46,093 |
Lennar Corp. Class A | 983,400 | | 19,039 |
Newell Rubbermaid, Inc. | 3,304,500 | | 63,612 |
Stanley Black & Decker, Inc. | 392,917 | | 28,557 |
| | 157,301 |
Leisure Equipment & Products - 0.4% |
Callaway Golf Co. | 2,514,010 | | 18,478 |
Media - 2.8% |
Belo Corp. Series A (a) | 163,800 | | 1,104 |
Cablevision Systems Corp. - NY Group Class A | 541,324 | | 18,324 |
Cinemark Holdings, Inc. | 1,554,497 | | 26,349 |
Comcast Corp. Class A | 3,097,400 | | 70,466 |
Gray Television, Inc. (a)(f) | 3,766,164 | | 7,457 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
LIN TV Corp. Class A (a) | 818,437 | | $ 3,945 |
Nexstar Broadcasting Group, Inc. Class A (a)(e) | 1,130,500 | | 5,551 |
| | 133,196 |
Specialty Retail - 0.7% |
Asbury Automotive Group, Inc. (a) | 385,122 | | 7,090 |
Charming Shoppes, Inc. (a) | 3,932,700 | | 12,231 |
GameStop Corp. Class A (a) | 542,795 | | 11,437 |
Sally Beauty Holdings, Inc. (a) | 300,000 | | 3,948 |
| | 34,706 |
Textiles, Apparel & Luxury Goods - 2.0% |
Coach, Inc. | 314,020 | | 16,985 |
Deckers Outdoor Corp. (a) | 544,945 | | 39,994 |
Hanesbrands, Inc. (a) | 404,100 | | 9,302 |
Phillips-Van Heusen Corp. | 548,718 | | 32,029 |
| | 98,310 |
TOTAL CONSUMER DISCRETIONARY | | 764,733 |
CONSUMER STAPLES - 2.1% |
Food & Staples Retailing - 0.9% |
Safeway, Inc. | 464,300 | | 9,606 |
Whole Foods Market, Inc. | 655,080 | | 33,874 |
| | 43,480 |
Food Products - 1.1% |
Darling International, Inc. (a) | 2,997,330 | | 40,614 |
Smithfield Foods, Inc. (a) | 559,606 | | 11,142 |
| | 51,756 |
Personal Products - 0.1% |
Revlon, Inc. (a) | 553,261 | | 5,389 |
TOTAL CONSUMER STAPLES | | 100,625 |
ENERGY - 13.8% |
Energy Equipment & Services - 2.3% |
Baker Hughes, Inc. | 218,000 | | 14,935 |
Ensco International Ltd. ADR | 110,000 | | 5,977 |
Exterran Holdings, Inc. (a) | 1,019,808 | | 25,301 |
Noble Corp. | 524,700 | | 20,070 |
Oil States International, Inc. (a) | 270,700 | | 18,343 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Energy Equipment & Services - continued |
Parker Drilling Co. (a) | 1,200,000 | | $ 5,208 |
Rowan Companies, Inc. (a) | 321,100 | | 11,007 |
Schlumberger Ltd. | 109,400 | | 9,736 |
| | 110,577 |
Oil, Gas & Consumable Fuels - 11.5% |
Alpha Natural Resources, Inc. (a) | 414,438 | | 22,268 |
Arch Coal, Inc. | 388,255 | | 13,298 |
Carrizo Oil & Gas, Inc. (a) | 438,502 | | 14,843 |
Chesapeake Energy Corp. | 1,750,830 | | 51,702 |
ConocoPhillips | 231,500 | | 16,543 |
CONSOL Energy, Inc. | 270,700 | | 13,454 |
El Paso Corp. | 8,366,776 | | 132,864 |
Forest Oil Corp. (a) | 1,314,652 | | 51,008 |
Frontier Oil Corp. | 1,972,600 | | 41,030 |
International Coal Group, Inc. (a) | 1,194,000 | | 11,045 |
Nexen, Inc. | 188,000 | | 4,723 |
Overseas Shipholding Group, Inc. (e) | 943,292 | | 31,355 |
Paladin Energy Ltd. (a) | 2,042,400 | | 9,953 |
Peabody Energy Corp. | 1,955,114 | | 123,993 |
Range Resources Corp. | 272,200 | | 13,575 |
| | 551,654 |
TOTAL ENERGY | | 662,231 |
FINANCIALS - 9.9% |
Commercial Banks - 7.5% |
Huntington Bancshares, Inc. | 11,032,080 | | 79,872 |
KeyCorp | 8,888,459 | | 79,107 |
PNC Financial Services Group, Inc. | 602,508 | | 36,150 |
Regions Financial Corp. | 2,011,695 | | 14,283 |
SunTrust Banks, Inc. | 2,425,100 | | 73,796 |
Wells Fargo & Co. | 2,440,088 | | 79,108 |
| | 362,316 |
Consumer Finance - 0.1% |
American Express Co. | 108,649 | | 4,713 |
Diversified Financial Services - 0.7% |
Bank of America Corp. | 1,762,781 | | 24,203 |
Citigroup, Inc. (a) | 1,638,400 | | 7,897 |
| | 32,100 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.6% |
Assured Guaranty Ltd. | 1,194,784 | | $ 17,277 |
Lincoln National Corp. | 435,700 | | 12,566 |
| | 29,843 |
Real Estate Investment Trusts - 0.8% |
FelCor Lodging Trust, Inc. (a) | 1,085,852 | | 7,634 |
Host Hotels & Resorts, Inc. | 1,016,122 | | 18,808 |
Sabra Health Care REIT, Inc. | 547,507 | | 10,189 |
| | 36,631 |
Thrifts & Mortgage Finance - 0.2% |
First Niagara Financial Group, Inc. | 851,444 | | 11,818 |
TOTAL FINANCIALS | | 477,421 |
HEALTH CARE - 5.8% |
Health Care Equipment & Supplies - 0.4% |
Alere, Inc. (a) | 518,708 | | 20,318 |
Health Care Providers & Services - 4.3% |
Community Health Systems, Inc. (a) | 554,676 | | 19,480 |
DaVita, Inc. (a) | 503,747 | | 37,202 |
RehabCare Group, Inc. (a) | 230,000 | | 5,649 |
Rural/Metro Corp. (a) | 834,200 | | 11,629 |
Sun Healthcare Group, Inc. (a) | 547,506 | | 6,841 |
Tenet Healthcare Corp. (a) | 18,689,259 | | 124,284 |
| | 205,085 |
Health Care Technology - 0.4% |
Cerner Corp. (a) | 220,709 | | 21,817 |
Pharmaceuticals - 0.7% |
Hospira, Inc. (a) | 575,358 | | 31,777 |
TOTAL HEALTH CARE | | 278,997 |
INDUSTRIALS - 16.8% |
Aerospace & Defense - 0.5% |
American Science & Engineering, Inc. | 85,370 | | 7,427 |
Teledyne Technologies, Inc. (a) | 340,694 | | 16,118 |
| | 23,545 |
Airlines - 2.4% |
AirTran Holdings, Inc. (a) | 1,779,700 | | 13,152 |
AMR Corp. (a) | 1,140,630 | | 8,041 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Airlines - continued |
Delta Air Lines, Inc. (a) | 5,499,749 | | $ 64,182 |
United Continental Holdings, Inc. (a) | 370,700 | | 9,416 |
US Airways Group, Inc. (a) | 2,034,580 | | 20,183 |
| | 114,974 |
Building Products - 3.3% |
Armstrong World Industries, Inc. | 1,217,530 | | 49,444 |
Masco Corp. | 1,605,541 | | 21,386 |
Owens Corning (a) | 2,649,712 | | 88,686 |
Owens Corning warrants 10/31/13 (a) | 406,600 | | 1,346 |
| | 160,862 |
Commercial Services & Supplies - 3.0% |
Cenveo, Inc. (a)(f) | 3,858,300 | | 20,758 |
Deluxe Corp. | 1,786,873 | | 43,689 |
R.R. Donnelley & Sons Co. | 450,900 | | 7,990 |
Republic Services, Inc. | 1,317,784 | | 40,640 |
The Brink's Co. | 464,740 | | 12,548 |
Waste Management, Inc. | 483,234 | | 18,300 |
| | 143,925 |
Electrical Equipment - 2.2% |
Belden, Inc. | 1,170,366 | | 40,682 |
Emerson Electric Co. | 163,500 | | 9,627 |
General Cable Corp. (a) | 441,500 | | 16,340 |
Harbin Electric, Inc. (a)(e) | 548,369 | | 10,474 |
Polypore International, Inc. (a) | 548,400 | | 26,405 |
| | 103,528 |
Industrial Conglomerates - 1.0% |
Carlisle Companies, Inc. | 109,910 | | 4,145 |
General Electric Co. | 1,103,883 | | 22,232 |
Textron, Inc. | 550,200 | | 14,465 |
Tyco International Ltd. | 187,433 | | 8,403 |
| | 49,245 |
Machinery - 2.8% |
Accuride Corp. (a) | 5,737 | | 86 |
Accuride Corp. warrants 2/26/12 (a) | 778,347 | | 117 |
Badger Meter, Inc. (e) | 228,561 | | 9,369 |
Fiat Industrial SpA (a) | 1,634,423 | | 22,118 |
Ingersoll-Rand Co. Ltd. | 1,114,900 | | 52,623 |
Mueller Water Products, Inc. Class A | 1,202,599 | | 4,810 |
Navistar International Corp. (a) | 169,800 | | 11,012 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Timken Co. | 464,948 | | $ 21,862 |
WABCO Holdings, Inc. (a) | 211,533 | | 12,354 |
| | 134,351 |
Marine - 0.2% |
Navios Maritime Holdings, Inc. | 2,162,794 | | 10,554 |
Road & Rail - 1.2% |
Avis Budget Group, Inc. (a) | 830,314 | | 11,492 |
CSX Corp. | 109,400 | | 7,724 |
Hertz Global Holdings, Inc. (a)(e) | 2,518,600 | | 37,049 |
| | 56,265 |
Trading Companies & Distributors - 0.2% |
Houston Wire & Cable Co. (e) | 656,176 | | 8,563 |
TOTAL INDUSTRIALS | | 805,812 |
INFORMATION TECHNOLOGY - 11.2% |
Communications Equipment - 0.1% |
JDS Uniphase Corp. (a) | 163,300 | | 2,771 |
Electronic Equipment & Components - 2.3% |
Avnet, Inc. (a) | 328,000 | | 11,683 |
DDi Corp. | 295,899 | | 3,334 |
Flextronics International Ltd. (a) | 9,134,646 | | 72,986 |
TTM Technologies, Inc. (a) | 1,190,636 | | 18,931 |
Viasystems Group, Inc. (a) | 290,108 | | 5,869 |
| | 112,803 |
Internet Software & Services - 0.3% |
NetEase.com, Inc. sponsored ADR (a) | 191,500 | | 7,725 |
VeriSign, Inc. | 194,300 | | 6,538 |
| | 14,263 |
IT Services - 0.9% |
Alliance Data Systems Corp. (a)(e) | 356,809 | | 25,241 |
CACI International, Inc. Class A (a) | 248,000 | | 13,762 |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | | 4,100 |
| | 43,103 |
Semiconductors & Semiconductor Equipment - 7.5% |
Amkor Technology, Inc. (a)(e) | 5,242,218 | | 42,672 |
Cypress Semiconductor Corp. (a) | 651,200 | | 14,098 |
Fairchild Semiconductor International, Inc. (a) | 548,500 | | 9,763 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Intel Corp. | 454,981 | | $ 9,764 |
Micron Technology, Inc. (a) | 1,737,600 | | 18,314 |
National Semiconductor Corp. | 1,714,276 | | 25,988 |
ON Semiconductor Corp. (a) | 21,579,802 | | 238,455 |
| | 359,054 |
Software - 0.1% |
Microsoft Corp. | 108,800 | | 3,016 |
Nuance Communications, Inc. (a) | 163,600 | | 3,326 |
| | 6,342 |
TOTAL INFORMATION TECHNOLOGY | | 538,336 |
MATERIALS - 12.6% |
Chemicals - 9.9% |
Albemarle Corp. | 635,192 | | 35,672 |
Arch Chemicals, Inc. | 344,342 | | 12,479 |
Celanese Corp. Class A | 2,472,953 | | 102,603 |
Dow Chemical Co. | 1,284,894 | | 45,588 |
Ferro Corp. (a) | 722,400 | | 11,139 |
FMC Corp. | 178,600 | | 13,584 |
H.B. Fuller Co. | 1,582,241 | | 36,059 |
LyondellBasell Industries NV Class A (a) | 2,811,151 | | 101,033 |
Nalco Holding Co. | 740,569 | | 22,558 |
OMNOVA Solutions, Inc. (a)(f) | 2,749,107 | | 19,326 |
Phosphate Holdings, Inc. (a) | 307,500 | | 3,998 |
Solutia, Inc. (a) | 657,600 | | 15,401 |
W.R. Grace & Co. (a) | 1,601,519 | | 56,838 |
| | 476,278 |
Containers & Packaging - 0.8% |
Owens-Illinois, Inc. (a) | 421,000 | | 12,415 |
Rock-Tenn Co. Class A (e) | 429,702 | | 28,683 |
| | 41,098 |
Metals & Mining - 1.7% |
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | | 22,643 |
Compass Minerals International, Inc. | 258,500 | | 23,748 |
Ormet Corp. (a) | 330,000 | | 1,964 |
Ormet Corp. (a)(h) | 1,075,000 | | 6,396 |
Teck Resources Ltd. Class B (sub. vtg.) | 417,300 | | 25,281 |
| | 80,032 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Paper & Forest Products - 0.2% |
Neenah Paper, Inc. | 518,300 | | $ 9,982 |
TOTAL MATERIALS | | 607,390 |
TELECOMMUNICATION SERVICES - 2.2% |
Diversified Telecommunication Services - 0.9% |
PAETEC Holding Corp. (a) | 2,980,233 | | 11,772 |
Qwest Communications International, Inc. | 4,637,500 | | 33,065 |
| | 44,837 |
Wireless Telecommunication Services - 1.3% |
Crown Castle International Corp. (a) | 871,891 | | 36,768 |
Sprint Nextel Corp. (a) | 5,692,987 | | 25,732 |
| | 62,500 |
TOTAL TELECOMMUNICATION SERVICES | | 107,337 |
UTILITIES - 3.6% |
Independent Power Producers & Energy Traders - 3.6% |
AES Corp. (a) | 10,901,923 | | 135,184 |
Calpine Corp. (a) | 2,479,900 | | 35,388 |
| | 170,572 |
TOTAL COMMON STOCKS (Cost $3,697,202) | 4,513,454 |
Preferred Stocks - 0.4% |
| | | |
Convertible Preferred Stocks - 0.3% |
ENERGY - 0.3% |
Oil, Gas & Consumable Fuels - 0.3% |
El Paso Corp. 4.99% | 11,200 | | 14,319 |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER STAPLES - 0.1% |
Personal Products - 0.1% |
Revlon, Inc. Series A 12.75% | 639,576 | | 3,633 |
TOTAL PREFERRED STOCKS (Cost $16,677) | 17,952 |
Nonconvertible Bonds - 1.0% |
| Principal Amount (000s) | | Value (000s) |
CONSUMER DISCRETIONARY - 0.9% |
Automobiles - 0.9% |
General Motors Corp.: | | | | |
6.75% 5/1/28 (d) | | $ 3,075 | | $ 1,053 |
7.125% 7/15/13 (d) | | 8,320 | | 2,850 |
7.2% 1/15/49 (d) | | 22,980 | | 7,813 |
8.25% 7/15/23 (d) | | 25,035 | | 8,762 |
8.375% 7/15/33 (d) | | 50,210 | | 17,825 |
8.8% 3/1/21 (d) | | 10,765 | | 3,741 |
| | 42,044 |
Hotels, Restaurants & Leisure - 0.0% |
Station Casinos, Inc.: | | | | |
6% 4/1/12 (d) | | 8,360 | | 1 |
7.75% 8/15/16 (d) | | 9,380 | | 1 |
| | 2 |
TOTAL CONSUMER DISCRETIONARY | | 42,046 |
FINANCIALS - 0.1% |
Commercial Banks - 0.1% |
Regions Bank 6.45% 6/26/37 | | 5,430 | | 4,860 |
INDUSTRIALS - 0.0% |
Airlines - 0.0% |
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | | 7,000 | | 0 |
TOTAL NONCONVERTIBLE BONDS (Cost $29,698) | 46,906 |
Floating Rate Loans - 0.5% |
|
CONSUMER DISCRETIONARY - 0.2% |
Media - 0.2% |
Univision Communications, Inc. term loan 4.51% 3/31/17 (g) | | 9,586 | | 9,418 |
INDUSTRIALS - 0.2% |
Airlines - 0.2% |
US Airways Group, Inc. term loan 2.76% 3/23/14 (g) | | 10,947 | | 10,195 |
Floating Rate Loans - continued |
| Principal Amount (000s) | | Value (000s) |
UTILITIES - 0.1% |
Electric Utilities - 0.1% |
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B2, term loan 3.7864% 10/10/14 (g) | | $ 5,677 | | $ 4,669 |
TOTAL FLOATING RATE LOANS (Cost $22,352) | 24,282 |
Money Market Funds - 5.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 189,091,678 | | 189,092 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 97,495,930 | | 97,496 |
TOTAL MONEY MARKET FUNDS (Cost $286,588) | 286,588 |
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $4,052,517) | | 4,889,182 |
NET OTHER ASSETS (LIABILITIES) - (1.7)% | | (82,815) |
NET ASSETS - 100% | $ 4,806,367 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) 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 $6,396,000 or 0.1% of net assets. |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 102 |
Fidelity Securities Lending Cash Central Fund | 214 |
Total | $ 316 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Cenveo, Inc. | $ 23,767 | $ - | $ - | $ - | $ 20,758 |
Gray Television, Inc. | 7,399 | 1,624 | - | - | 7,457 |
OMNOVA Solutions, Inc. | - | 22,300 | - | - | 19,326 |
ON Semiconductor Corp. | 155,780 | - | 16,844 | - | - |
Service Corp. International | 150,430 | - | 18,657 | 1,323 | 133,142 |
Total | $ 337,376 | $ 23,924 | $ 35,501 | $ 1,323 | $ 180,683 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 764,733 | $ 764,733 | $ - | $ - |
Consumer Staples | 104,258 | 100,625 | - | 3,633 |
Energy | 676,550 | 662,231 | 14,319 | - |
Financials | 477,421 | 477,421 | - | - |
Health Care | 278,997 | 278,997 | - | - |
Industrials | 805,812 | 805,812 | - | - |
Information Technology | 538,336 | 538,336 | - | - |
Materials | 607,390 | 607,390 | - | - |
Telecommunication Services | 107,337 | 107,337 | - | - |
Utilities | 170,572 | 170,572 | - | - |
Corporate Bonds | 46,906 | - | 46,906 | - |
Floating Rate Loans | 24,282 | - | 24,282 | - |
Money Market Funds | 286,588 | 286,588 | - | - |
Total Investments in Securities: | $ 4,889,182 | $ 4,800,042 | $ 85,507 | $ 3,633 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities:
(Amounts in thousands) | |
Beginning Balance | $ 4,950 |
Total Realized Gain (Loss) | (1) |
Total Unrealized Gain (Loss) | 52 |
Cost of Purchases | - |
Proceeds of Sales | (1,632) |
Amortization/Accretion | 264 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,633 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 51 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $988,870,000 of which $297,190,000 and $691,680,000 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $95,326) - See accompanying schedule: Unaffiliated issuers (cost $3,552,865) | $ 4,421,911 | |
Fidelity Central Funds (cost $286,588) | 286,588 | |
Other affiliated issuers (cost $213,064) | 180,683 | |
Total Investments (cost $4,052,517) | | $ 4,889,182 |
Cash | | 37 |
Receivable for investments sold | | 38,928 |
Receivable for fund shares sold | | 4,512 |
Dividends receivable | | 562 |
Interest receivable | | 95 |
Distributions receivable from Fidelity Central Funds | | 46 |
Prepaid expenses | | 11 |
Other receivables | | 52 |
Total assets | | 4,933,425 |
| | |
Liabilities | | |
Payable for investments purchased | $ 19,188 | |
Payable for fund shares redeemed | 7,073 | |
Accrued management fee | 2,418 | |
Other affiliated payables | 843 | |
Other payables and accrued expenses | 40 | |
Collateral on securities loaned, at value | 97,496 | |
Total liabilities | | 127,058 |
| | |
Net Assets | | $ 4,806,367 |
Net Assets consist of: | | |
Paid in capital | | $ 4,896,170 |
Distributions in excess of net investment income | | (6,348) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (920,120) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 836,665 |
Net Assets | | $ 4,806,367 |
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, 2011 (Unaudited) |
| | |
Leveraged Company Stock:
Net Asset Value, offering price and redemption price per share ($4,305,528 ÷ 147,701 shares) | | $ 29.15 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($500,839 ÷ 17,186 shares) | | $ 29.14 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $1,323 earned from other affiliated issuers) | | $ 17,169 |
Interest | | 3,421 |
Income from Fidelity Central Funds | | 316 |
Total income | | 20,906 |
| | |
Expenses | | |
Management fee | $ 13,351 | |
Transfer agent fees | 4,460 | |
Accounting and security lending fees | 536 | |
Custodian fees and expenses | 27 | |
Independent trustees' compensation | 12 | |
Registration fees | 50 | |
Audit | 35 | |
Legal | 36 | |
Miscellaneous | 23 | |
Total expenses before reductions | 18,530 | |
Expense reductions | (53) | 18,477 |
Net investment income (loss) | | 2,429 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 72,097 | |
Other affiliated issuers | 14,205 | |
Foreign currency transactions | (13) | |
Total net realized gain (loss) | | 86,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 873,964 | |
Assets and liabilities in foreign currencies | 2 | |
Total change in net unrealized appreciation (depreciation) | | 873,966 |
Net gain (loss) | | 960,255 |
Net increase (decrease) in net assets resulting from operations | | $ 962,684 |
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, 2011
(Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,429 | $ 13,810 |
Net realized gain (loss) | 86,289 | 201,065 |
Change in net unrealized appreciation (depreciation) | 873,966 | 593,648 |
Net increase (decrease) in net assets resulting
from operations | 962,684 | 808,523 |
Distributions to shareholders from net investment income | (19,058) | (23,690) |
Share transactions - net increase (decrease) | (530,385) | (373,729) |
Redemption fees | 180 | 970 |
Total increase (decrease) in net assets | 413,421 | 412,074 |
| | |
Net Assets | | |
Beginning of period | 4,392,946 | 3,980,872 |
End of period (including distributions in excess of net investment income of $6,348 and undistributed net investment income of $10,281, respectively) | $ 4,806,367 | $ 4,392,946 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .07 | .21 | .14 | .44 G | .16 |
Net realized and unrealized gain (loss) | 5.75 | 3.99 | (11.37) | (1.06) | 6.78 | 3.04 |
Total from investment operations | 5.76 | 4.06 | (11.16) | (.92) | 7.22 | 3.20 |
Distributions from net investment income | (.11) | (.11) | (.14) | (.39) | (.12) | (.21) |
Distributions from net realized gain | - | - | (.25) | (1.39) | (1.40) | (.41) |
Total distributions | (.11) | (.11) | (.39) | (1.78) | (1.52) | (.62) |
Redemption fees added to paid in capital D | - I | - I | .01 | .01 | .01 | .01 |
Net asset value, end of period | $ 29.15 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 |
Total Return B, C | 24.56% | 20.84% | (35.99)% | (2.76)% | 27.08% | 12.80% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .86% A | .88% | .92% | .83% | .83% | .86% |
Expenses net of fee waivers, if any | .86% A | .88% | .92% | .83% | .83% | .86% |
Expenses net of all reductions | .86% A | .88% | .92% | .83% | .83% | .85% |
Net investment income (loss) | .09% A | .29% | 1.17% | .44% | 1.43% G | .60% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 4,306 | $ 3,983 | $ 3,714 | $ 8,032 | $ 7,830 | $ 4,174 |
Portfolio turnover rate F | 11% A | 21% | 34% | 30% | 20% | 23% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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 K
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .03 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | 5.74 | 4.00 | (11.35) | (3.04) |
Total from investment operations | 5.77 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | (.25) | - |
Total distributions | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | - I | .01 | - I |
Net asset value, end of period | $ 29.14 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B, C | 24.64% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .69% A | .70% | .71% | .70%A |
Expenses net of fee waivers, if any | .69% A | .70% | .71% | .70%A |
Expenses net of all reductions | .69% A | .69% | .71% | .70%A |
Net investment income (loss) | .26% A | .47% | 1.39% | .58%A |
Supplemental Data | | | | |
Net assets, end of period
(000 omitted) | $ 500,839 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 11% A | 21% | 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 Central Funds, are valued at their closing net asset value each business day 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 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. 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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 1,305,653 |
Gross unrealized depreciation | (485,335) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 820,318 |
Tax cost | $ 4,068,864 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $242,593 and $905,538, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .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. 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Leveraged Company Stock | $ 4,347 | .22 |
Class K | 113 | .05 |
| $ 4,460 | |
* 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.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $214. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $53 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Leveraged Company Stock | $ 16,431 | $ 21,247 |
Class K | 2,627 | 2,443 |
Total | $ 19,058 | $ 23,690 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Leveraged Company Stock | | | | |
Shares sold | 9,382 | 36,532 | $ 247,291 | $ 843,196 |
Conversion to Class K | - | (2,316) | - | (48,185) |
Reinvestment of distributions | 608 | 940 | 15,688 | 20,361 |
Shares redeemed | (31,745) | (55,646) | (789,457) | (1,272,555) |
Net increase (decrease) | (21,755) | (20,490) | $ (526,478) | $ (457,183) |
Class K | | | | |
Shares sold | 2,605 | 5,965 | $ 67,659 | $ 138,844 |
Conversion from Leveraged Company Stock | - | 2,315 | - | 48,185 |
Reinvestment of distributions | 103 | 113 | 2,627 | 2,443 |
Shares redeemed | (2,949) | (4,631) | (74,193) | (106,018) |
Net increase (decrease) | (241) | 3,762 | $ (3,907) | $ 83,454 |
A Conversion transactions for Class K and Leveraged Company Stock are presented 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
LSF-K-USAN-0311
1.863384.102
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
OTC | .91% | | | |
Actual | | $ 1,000.00 | $ 1,269.60 | $ 5.21 |
HypotheticalA | | $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Class K | .76% | | | |
Actual | | $ 1,000.00 | $ 1,270.40 | $ 4.35 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 9.8 | 8.4 |
Google, Inc. Class A | 7.7 | 4.6 |
NVIDIA Corp. | 5.0 | 1.9 |
Rackspace Hosting, Inc. | 3.6 | 2.4 |
Sprint Nextel Corp. | 3.1 | 3.3 |
Oracle Corp. | 2.7 | 3.2 |
Comcast Corp. Class A | 2.5 | 0.7 |
Microsoft Corp. | 2.4 | 4.8 |
Research In Motion Ltd. | 2.3 | 1.0 |
QUALCOMM, Inc. | 2.2 | 2.4 |
| 41.3 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 55.3 | 53.6 |
Consumer Discretionary | 14.5 | 11.2 |
Health Care | 13.2 | 13.5 |
Financials | 5.2 | 7.8 |
Telecommunication Services | 4.1 | 4.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 100.2% | | | Stocks 100.3% | |
 | Short-Term
Investments and
Net Other Assets† (0.2)% | | | Short-Term
Investments and
Net Other Assets† (0.3)% | |
* Foreign investments | 12.5% | | ** Foreign investments | 10.6% | |
† Short-Term Investments and Net Other Assets are not included in the pie chart |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.2% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 14.5% |
Auto Components - 0.8% |
Gentex Corp. | 1,735,500 | | $ 55,657 |
Automobiles - 1.1% |
Bayerische Motoren Werke AG (BMW) ADR | 421,400 | | 10,809 |
Tesla Motors, Inc. (a)(d) | 2,250,100 | | 54,227 |
Volkswagen AG ADR sponsored | 392,400 | | 12,000 |
| | 77,036 |
Diversified Consumer Services - 0.3% |
Coinstar, Inc. (a) | 174,600 | | 7,227 |
Global Education & Technology Group Ltd. ADR (a) | 1,341,600 | | 12,074 |
| | 19,301 |
Hotels, Restaurants & Leisure - 1.6% |
BJ's Restaurants, Inc. (a) | 544,900 | | 19,251 |
Bravo Brio Restaurant Group, Inc. | 215,300 | | 3,509 |
China Lodging Group Ltd. ADR | 435,600 | | 8,725 |
Ctrip.com International Ltd. sponsored ADR (a) | 140,400 | | 5,779 |
Starbucks Corp. | 1,961,900 | | 61,859 |
Wyndham Worldwide Corp. | 248,500 | | 6,990 |
Wynn Resorts Ltd. | 84,200 | | 9,795 |
| | 115,908 |
Household Durables - 1.0% |
Harman International Industries, Inc. (a) | 124,100 | | 5,376 |
iRobot Corp. (a)(d)(e) | 1,615,286 | | 43,613 |
Lennar Corp. Class A | 221,900 | | 4,296 |
PulteGroup, Inc. (a) | 572,400 | | 4,516 |
SodaStream International Ltd. | 89,900 | | 3,865 |
Techtronic Industries Co. Ltd. | 11,022,500 | | 13,713 |
| | 75,379 |
Internet & Catalog Retail - 3.2% |
Amazon.com, Inc. (a) | 915,130 | | 155,243 |
E-Commerce China Dangdang, Inc. ADR | 8,700 | | 246 |
Expedia, Inc. | 377,300 | | 9,493 |
Netflix, Inc. (a) | 98,600 | | 21,108 |
Ocado Group PLC (a) | 2,723,122 | | 9,508 |
Priceline.com, Inc. (a) | 88,800 | | 38,053 |
| | 233,651 |
Media - 3.5% |
Comcast Corp. Class A | 7,868,100 | | 178,999 |
Discovery Communications, Inc. (a) | 1,339,200 | | 52,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Liberty Global, Inc. Class A (a)(d) | 227,500 | | $ 9,227 |
WPP PLC sponsored ADR | 133,200 | | 8,256 |
| | 248,711 |
Specialty Retail - 1.3% |
Bed Bath & Beyond, Inc. (a) | 445,200 | | 21,370 |
Citi Trends, Inc. (a) | 360,137 | | 8,247 |
I.T Ltd. | 7,742,000 | | 5,243 |
O'Reilly Automotive, Inc. (a) | 169,800 | | 9,650 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 516,900 | | 19,146 |
Urban Outfitters, Inc. (a) | 806,600 | | 27,279 |
| | 90,935 |
Textiles, Apparel & Luxury Goods - 1.7% |
Deckers Outdoor Corp. (a) | 285,600 | | 20,960 |
lululemon athletica, Inc. (a)(d) | 826,473 | | 56,762 |
Polo Ralph Lauren Corp. Class A | 86,200 | | 9,239 |
Steven Madden Ltd. (a) | 803,000 | | 30,651 |
Trinity Ltd. | 5,764,000 | | 5,219 |
| | 122,831 |
TOTAL CONSUMER DISCRETIONARY | | 1,039,409 |
CONSUMER STAPLES - 0.6% |
Beverages - 0.1% |
Hansen Natural Corp. (a) | 115,900 | | 6,565 |
Food & Staples Retailing - 0.2% |
Droga Raia SA | 37,000 | | 581 |
Whole Foods Market, Inc. | 279,000 | | 14,427 |
| | 15,008 |
Food Products - 0.3% |
Green Mountain Coffee Roasters, Inc. (a) | 68,200 | | 2,290 |
Tingyi (Cayman Islands) Holding Corp. ADR | 109,100 | | 5,400 |
Want Want China Holdings Ltd. ADR | 217,500 | | 9,038 |
| | 16,728 |
Personal Products - 0.0% |
USANA Health Sciences, Inc. (a) | 44,800 | | 1,699 |
TOTAL CONSUMER STAPLES | | 40,000 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 2.7% |
Energy Equipment & Services - 1.1% |
ION Geophysical Corp. (a) | 3,015,000 | | $ 28,673 |
Oceaneering International, Inc. (a) | 147,400 | | 11,384 |
Saipem SpA ADR | 879,300 | | 22,079 |
Weatherford International Ltd. (a) | 607,400 | | 14,408 |
| | 76,544 |
Oil, Gas & Consumable Fuels - 1.6% |
Alpha Natural Resources, Inc. (a) | 217,300 | | 11,676 |
Amyris, Inc. (d) | 862,900 | | 27,233 |
ATP Oil & Gas Corp. (a)(d) | 1,585,500 | | 26,890 |
Carrizo Oil & Gas, Inc. (a) | 365,000 | | 12,355 |
Massey Energy Co. | 179,100 | | 11,258 |
Petroleum Development Corp. (a) | 236,200 | | 10,749 |
Uranium One, Inc. | 2,109,700 | | 13,903 |
| | 114,064 |
TOTAL ENERGY | | 190,608 |
FINANCIALS - 5.2% |
Commercial Banks - 2.9% |
Associated Banc-Corp. | 2,034,000 | | 28,435 |
FirstMerit Corp. | 532,300 | | 9,752 |
Fulton Financial Corp. | 680,000 | | 7,018 |
Huntington Bancshares, Inc. | 4,903,000 | | 35,498 |
National Penn Bancshares, Inc. | 904,000 | | 7,377 |
Popular, Inc. (a) | 2,611,900 | | 8,384 |
Standard Chartered PLC | 516,200 | | 13,421 |
Susquehanna Bancshares, Inc., Pennsylvania | 144,100 | | 1,378 |
SVB Financial Group (a) | 366,205 | | 19,215 |
Wells Fargo & Co. | 1,344,400 | | 43,585 |
Zions Bancorporation | 1,543,706 | | 36,401 |
| | 210,464 |
Diversified Financial Services - 1.8% |
Citigroup, Inc. (a) | 9,563,800 | | 46,098 |
CME Group, Inc. | 205,100 | | 63,286 |
Hong Kong Exchanges and Clearing Ltd. | 407,600 | | 9,347 |
JPMorgan Chase & Co. | 158,300 | | 7,114 |
NBH Holdings Corp. Class A (a)(f) | 110,800 | | 1,856 |
| | 127,701 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.3% |
Genworth Financial, Inc. Class A (a) | 956,800 | | $ 12,984 |
Protective Life Corp. | 250,800 | | 6,915 |
| | 19,899 |
Real Estate Management & Development - 0.0% |
China Real Estate Information Corp. ADR (a)(d) | 45,463 | | 341 |
Thrifts & Mortgage Finance - 0.2% |
The PMI Group, Inc. (a) | 716,900 | | 2,086 |
Washington Federal, Inc. | 538,270 | | 9,307 |
| | 11,393 |
TOTAL FINANCIALS | | 369,798 |
HEALTH CARE - 13.2% |
Biotechnology - 8.4% |
3SBio, Inc. sponsored ADR (a) | 157,047 | | 2,527 |
Alexion Pharmaceuticals, Inc. (a) | 702,760 | | 58,905 |
Allos Therapeutics, Inc. (a)(d) | 1,352,000 | | 4,543 |
Alnylam Pharmaceuticals, Inc. (a) | 516,200 | | 5,330 |
Amarin Corp. PLC ADR (a) | 6,981,439 | | 61,995 |
Amgen, Inc. (a) | 2,173,300 | | 119,705 |
Amylin Pharmaceuticals, Inc. (a) | 1,478,009 | | 23,914 |
Anthera Pharmaceuticals, Inc. (d) | 1,312,200 | | 5,091 |
ARIAD Pharmaceuticals, Inc. (a) | 2,156,200 | | 13,746 |
BioMarin Pharmaceutical, Inc. (a) | 579,500 | | 14,731 |
Cephalon, Inc. (a) | 101,700 | | 6,008 |
Cepheid, Inc. (a) | 649,600 | | 15,434 |
Dendreon Corp. (a) | 1,201,136 | | 42,088 |
Genomic Health, Inc. (a) | 421,320 | | 9,383 |
Genzyme Corp. (a) | 176,900 | | 12,976 |
Human Genome Sciences, Inc. (a) | 2,414,512 | | 58,576 |
ImmunoGen, Inc. (a) | 297,309 | | 2,456 |
Inhibitex, Inc. (a) | 1,848,100 | | 4,204 |
InterMune, Inc. (a) | 680,820 | | 25,442 |
Isis Pharmaceuticals, Inc. (a)(d) | 1,126,949 | | 10,255 |
NPS Pharmaceuticals, Inc. (a) | 900,800 | | 9,013 |
ONYX Pharmaceuticals, Inc. (a) | 499,100 | | 17,611 |
Pharmasset, Inc. (a) | 171,300 | | 8,301 |
Seattle Genetics, Inc. (a) | 1,402,103 | | 22,980 |
Targacept, Inc. (a) | 216,749 | | 5,583 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a) | 537,800 | | $ 11,315 |
Vertex Pharmaceuticals, Inc. (a) | 775,288 | | 30,151 |
| | 602,263 |
Health Care Equipment & Supplies - 0.7% |
Mako Surgical Corp. (a)(d) | 1,312,863 | | 20,376 |
Masimo Corp. | 652,300 | | 19,553 |
NxStage Medical, Inc. (a) | 481,415 | | 11,573 |
| | 51,502 |
Health Care Providers & Services - 1.3% |
Accretive Health, Inc. (d)(e) | 5,297,602 | | 96,099 |
Health Care Technology - 0.6% |
athenahealth, Inc. (a)(d) | 645,900 | | 27,735 |
SXC Health Solutions Corp. (a) | 233,100 | | 11,223 |
| | 38,958 |
Life Sciences Tools & Services - 1.9% |
Illumina, Inc. (a) | 1,681,982 | | 116,629 |
QIAGEN NV (a) | 923,900 | | 17,046 |
| | 133,675 |
Pharmaceuticals - 0.3% |
Elan Corp. PLC sponsored ADR (a) | 1,182,951 | | 7,985 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 260,800 | | 14,253 |
| | 22,238 |
TOTAL HEALTH CARE | | 944,735 |
INDUSTRIALS - 3.9% |
Aerospace & Defense - 0.5% |
AeroVironment, Inc. (a) | 338,351 | | 9,541 |
BE Aerospace, Inc. (a) | 357,000 | | 13,812 |
Rolls-Royce Group PLC sponsored ADR | 290,900 | | 14,897 |
| | 38,250 |
Air Freight & Logistics - 0.1% |
C.H. Robinson Worldwide, Inc. | 92,500 | | 7,131 |
Airlines - 0.2% |
United Continental Holdings, Inc. (a) | 584,800 | | 14,854 |
Construction & Engineering - 1.2% |
Fluor Corp. | 364,500 | | 25,220 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - continued |
Foster Wheeler Ag (a) | 1,332,600 | | $ 49,053 |
Jacobs Engineering Group, Inc. (a) | 205,500 | | 10,557 |
| | 84,830 |
Electrical Equipment - 0.3% |
Fushi Copperweld, Inc. (a) | 617,600 | | 5,954 |
II-VI, Inc. (a) | 69,210 | | 3,418 |
Polypore International, Inc. (a) | 187,000 | | 9,004 |
| | 18,376 |
Machinery - 1.2% |
Chart Industries, Inc. (a) | 657,000 | | 23,862 |
Joy Global, Inc. | 107,400 | | 9,363 |
PACCAR, Inc. | 643,599 | | 36,357 |
Sandvik AB sponsored ADR | 1,026,300 | | 20,228 |
| | 89,810 |
Road & Rail - 0.1% |
Saia, Inc. (a) | 287,000 | | 4,107 |
Trading Companies & Distributors - 0.3% |
DXP Enterprises, Inc. (a) | 259,915 | | 5,661 |
Kaman Corp. | 487,400 | | 14,347 |
Rush Enterprises, Inc. Class A (a) | 238,500 | | 4,548 |
| | 24,556 |
TOTAL INDUSTRIALS | | 281,914 |
INFORMATION TECHNOLOGY - 55.3% |
Communications Equipment - 7.6% |
Acme Packet, Inc. (a) | 386,674 | | 20,795 |
Aruba Networks, Inc. (a)(d) | 2,197,600 | | 47,358 |
Cisco Systems, Inc. (a) | 1,810,900 | | 38,301 |
HTC Corp. | 504,850 | | 17,020 |
Juniper Networks, Inc. (a) | 1,404,500 | | 52,135 |
Nokia Corp. sponsored ADR | 673,900 | | 7,211 |
QUALCOMM, Inc. | 2,928,300 | | 158,509 |
Research In Motion Ltd. (a) | 2,742,300 | | 162,097 |
Riverbed Technology, Inc. (a) | 948,500 | | 34,023 |
Sandvine Corp. (a) | 2,149,698 | | 6,201 |
| | 543,650 |
Computers & Peripherals - 11.0% |
Apple, Inc. (a) | 2,077,300 | | 704,865 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
NetApp, Inc. (a) | 1,141,800 | | $ 62,491 |
SanDisk Corp. (a) | 520,250 | | 23,604 |
| | 790,960 |
Electronic Equipment & Components - 0.3% |
E Ink Holdings, Inc. GDR (a)(f) | 44,300 | | 808 |
FLIR Systems, Inc. (a) | 237,200 | | 7,363 |
HLS Systems International Ltd. (a) | 305,199 | | 4,898 |
IPG Photonics Corp. (a) | 312,158 | | 10,816 |
| | 23,885 |
Internet Software & Services - 13.8% |
eBay, Inc. (a) | 3,685,100 | | 111,880 |
Google, Inc. Class A (a) | 915,322 | | 549,523 |
LogMeIn, Inc. (a) | 881,040 | | 33,946 |
Mail.ru Group Ltd. GDR unit (a)(f) | 11,300 | | 402 |
OpenTable, Inc. (a)(d) | 186,800 | | 14,686 |
QuinStreet, Inc. (d) | 752,400 | | 16,937 |
Rackspace Hosting, Inc. (a)(d)(e) | 7,801,934 | | 261,443 |
YouKu.com, Inc. ADR (a) | 9,000 | | 267 |
| | 989,084 |
IT Services - 2.1% |
Cognizant Technology Solutions Corp. Class A (a) | 1,485,645 | | 108,378 |
Echo Global Logistics, Inc. (a)(d)(e) | 1,855,790 | | 21,564 |
iGate Corp. | 1,337,200 | | 20,593 |
| | 150,535 |
Semiconductors & Semiconductor Equipment - 9.7% |
Amkor Technology, Inc. (a)(d) | 883,127 | | 7,189 |
ASML Holding NV | 411,300 | | 17,279 |
Broadcom Corp. Class A | 986,800 | | 44,495 |
Cypress Semiconductor Corp. (a) | 696,450 | | 15,078 |
First Solar, Inc. (a)(d) | 66,136 | | 10,223 |
GT Solar International, Inc. (a) | 656,400 | | 7,250 |
Inphi Corp. | 31,700 | | 600 |
Lam Research Corp. (a) | 986,000 | | 49,192 |
Marvell Technology Group Ltd. (a) | 3,076,100 | | 58,477 |
Mellanox Technologies Ltd. (a) | 1,242,951 | | 33,995 |
Micron Technology, Inc. (a) | 3,843,000 | | 40,505 |
NVIDIA Corp. (a) | 15,013,781 | | 359,130 |
Spreadtrum Communications, Inc. ADR (a)(d) | 534,300 | | 11,487 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Standard Microsystems Corp. (a) | 345,700 | | $ 8,314 |
Volterra Semiconductor Corp. (a) | 1,206,500 | | 29,982 |
| | 693,196 |
Software - 10.8% |
Ariba, Inc. (a) | 484,796 | | 13,618 |
BMC Software, Inc. (a) | 127,500 | | 6,082 |
BroadSoft, Inc. (a)(d)(e) | 1,269,870 | | 35,188 |
Check Point Software Technologies Ltd. (a) | 1,081,800 | | 48,194 |
DemandTec, Inc. (a) | 800,233 | | 9,643 |
Fortinet, Inc. (a) | 467,300 | | 17,968 |
Gameloft (a)(e) | 7,439,224 | | 50,616 |
Informatica Corp. (a) | 250,400 | | 11,619 |
Kingdee International Software Group Co. Ltd. | 6,530,000 | | 4,296 |
Microsoft Corp. | 6,124,965 | | 169,815 |
Oracle Corp. | 6,029,700 | | 193,131 |
Pegasystems, Inc. (d) | 1,475,656 | | 50,438 |
Perfect World Co. Ltd. sponsored ADR Class B (a)(d) | 1,688,429 | | 39,205 |
QLIK Technologies, Inc. | 21,500 | | 499 |
salesforce.com, Inc. (a) | 48,400 | | 6,250 |
SolarWinds, Inc. (a) | 753,700 | | 14,245 |
SuccessFactors, Inc. (a) | 911,071 | | 26,530 |
Synchronoss Technologies, Inc. (a) | 1,710,640 | | 48,685 |
Taleo Corp. Class A (a) | 909,722 | | 26,800 |
Velti Ltd. (a) | 13,400 | | 191 |
| | 773,013 |
TOTAL INFORMATION TECHNOLOGY | | 3,964,323 |
MATERIALS - 0.7% |
Chemicals - 0.4% |
Celanese Corp. Class A | 153,900 | | 6,385 |
Dow Chemical Co. | 354,000 | | 12,560 |
Innophos Holdings, Inc. | 320,556 | | 10,633 |
| | 29,578 |
Metals & Mining - 0.3% |
Randgold Resources Ltd. sponsored ADR | 322,100 | | 24,637 |
TOTAL MATERIALS | | 54,215 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 4.1% |
Diversified Telecommunication Services - 0.5% |
Cbeyond, Inc. (a) | 397,790 | | $ 5,828 |
Global Crossing Ltd. (a) | 2,495,900 | | 33,270 |
| | 39,098 |
Wireless Telecommunication Services - 3.6% |
Clearwire Corp. Class A (a)(d) | 6,818,153 | | 36,068 |
Sprint Nextel Corp. (a) | 48,868,206 | | 220,884 |
| | 256,952 |
TOTAL TELECOMMUNICATION SERVICES | | 296,050 |
TOTAL COMMON STOCKS (Cost $5,965,263) | 7,181,052 |
Money Market Funds - 4.2% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 361 | | 0* |
Fidelity Securities Lending Cash Central Fund,
0.21% (b)(c) | 301,422,972 | | 301,423 |
TOTAL MONEY MARKET FUNDS (Cost $301,423) | 301,423 |
TOTAL INVESTMENT PORTFOLIO - 104.4% (Cost $6,266,686) | | 7,482,475 |
NET OTHER ASSETS (LIABILITIES) - (4.4)% | | (312,471) |
NET ASSETS - 100% | $ 7,170,004 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $3,066,000 or 0.0% of net assets. |
* Amount represents less than $1,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 12 |
Fidelity Securities Lending Cash Central Fund | 2,806 |
Total | $ 2,818 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Accretive Health, Inc. | $ 919 | $ 77,613 | $ - | $ - | $ 96,099 |
Alphatec Holdings, Inc. | 21,863 | 1,075 | 11,983 | - | - |
BroadSoft, Inc. | - | 29,967 | 4,408 | - | 35,188 |
Echo Global Logistics, Inc. | 2,905 | 23,108 | - | - | 21,564 |
Gameloft | 36,748 | - | - | - | 50,616 |
iRobot Corp. | 34,374 | - | 1,379 | - | 43,613 |
Rackspace Hosting, Inc. | 142,387 | 41,126 | 30,257 | - | 261,443 |
Total | $ 239,196 | $ 172,889 | $ 48,027 | $ - | $ 508,523 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,039,409 | $ 1,039,409 | $ - | $ - |
Consumer Staples | 40,000 | 40,000 | - | - |
Energy | 190,608 | 190,608 | - | - |
Financials | 369,798 | 367,942 | 1,856 | - |
Health Care | 944,735 | 944,735 | - | - |
Industrials | 281,914 | 281,914 | - | - |
Information Technology | 3,964,323 | 3,964,323 | - | - |
Materials | 54,215 | 54,215 | - | - |
Telecommunication Services | 296,050 | 296,050 | - | - |
Money Market Funds | 301,423 | 301,423 | - | - |
Total Investments in Securities: | $ 7,482,475 | $ 7,480,619 | $ 1,856 | $ - |
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 | $ 2,161 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (2,161) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.5% |
Canada | 2.8% |
Israel | 1.4% |
United Kingdom | 1.4% |
Cayman Islands | 1.3% |
Bermuda | 1.3% |
Others (Individually Less Than 1%) | 4.3% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,651,048,000 of which $1,249,895,000 and $401,153,000 will expire in fiscal 2011 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $295,049) - See accompanying schedule: Unaffiliated issuers (cost $5,625,747) | $ 6,672,529 | |
Fidelity Central Funds (cost $301,423) | 301,423 | |
Other affiliated issuers (cost $339,516) | 508,523 | |
Total Investments (cost $6,266,686) | | $ 7,482,475 |
Foreign currency held at value (cost $515) | | 516 |
Receivable for investments sold | | 84,548 |
Receivable for fund shares sold | | 12,891 |
Dividends receivable | | 356 |
Distributions receivable from Fidelity Central Funds | | 205 |
Prepaid expenses | | 16 |
Other receivables | | 889 |
Total assets | | 7,581,896 |
| | |
Liabilities | | |
Payable to custodian bank | $ 388 | |
Payable for investments purchased | 88,049 | |
Payable for fund shares redeemed | 10,195 | |
Accrued management fee | 4,562 | |
Notes payable | 6,008 | |
Other affiliated payables | 1,055 | |
Other payables and accrued expenses | 212 | |
Collateral on securities loaned, at value | 301,423 | |
Total liabilities | | 411,892 |
| | |
Net Assets | | $ 7,170,004 |
Net Assets consist of: | | |
Paid in capital | | $ 7,357,006 |
Accumulated net investment loss | | (12,933) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,389,792) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,215,723 |
Net Assets | | $ 7,170,004 |
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, 2011 (Unaudited) |
| | |
OTC:
Net Asset Value, offering price and redemption price per share ($5,928,615 ÷ 103,780 shares) | | $ 57.13 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,241,389 ÷ 21,624 shares) | | $ 57.41 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 12,233 |
Interest | | 4 |
Income from Fidelity Central Funds (including $2,806 from security lending) | | 2,818 |
Total income | | 15,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 19,458 | |
Performance adjustment | 2,195 | |
Transfer agent fees | 5,544 | |
Accounting and security lending fees | 594 | |
Custodian fees and expenses | 235 | |
Independent trustees' compensation | 19 | |
Registration fees | 48 | |
Audit | 36 | |
Legal | 22 | |
Interest | 9 | |
Miscellaneous | 31 | |
Total expenses before reductions | 28,191 | |
Expense reductions | (315) | 27,876 |
Net investment income (loss) | | (12,821) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 342,470 | |
Other affiliated issuers | (4,705) | |
Foreign currency transactions | 67 | |
Total net realized gain (loss) | | 337,832 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 1,190,712 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | | 1,190,696 |
Net gain (loss) | | 1,528,528 |
Net increase (decrease) in net assets resulting from operations | | $ 1,515,707 |
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, 2011
(Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (12,821) | $ (29,657) |
Net realized gain (loss) | 337,832 | 1,053,989 |
Change in net unrealized appreciation (depreciation) | 1,190,696 | (204,398) |
Net increase (decrease) in net assets resulting
from operations | 1,515,707 | 819,934 |
Share transactions - net increase (decrease) | (362,099) | 30,686 |
Total increase (decrease) in net assets | 1,153,608 | 850,620 |
| | |
Net Assets | | |
Beginning of period | 6,016,396 | 5,165,776 |
End of period (including accumulated net investment loss of $12,933 and accumulated net investment loss of $112, respectively) | $ 7,170,004 | $ 6,016,396 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 |
Income from Investment
Operations | | | | | |
Net investment income (loss) D | (.11) | (.23) | (.12) | (.20) | (.19) | (.10) G |
Net realized and unrealized gain (loss) | 12.24 | 6.50 | (5.81) | (2.23) | 12.58 | (1.19) |
Total from investment operations | 12.13 | 6.27 | (5.93) | (2.43) | 12.39 | (1.29) |
Net asset value, end of period | $ 57.13 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 |
Total Return B, C | 26.96% | 16.19% | (13.28)% | (5.16)% | 35.71% | (3.58)% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .91% A | 1.06% | 1.13% | 1.06% | .96% | .80% |
Expenses net of fee waivers, if any | .91% A | 1.06% | 1.13% | 1.06% | .96% | .80% |
Expenses net of all reductions | .90% A | 1.04% | 1.13% | 1.05% | .95% | .75% |
Net investment income (loss) | (.43)% A | (.51)% | (.37)% | (.42)% | (.45)% | (.26)% G |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 5,929 | $ 5,080 | $ 4,677 | $ 6,871 | $ 8,778 | $ 7,370 |
Portfolio turnover rate F | 133% A | 163% | 151% | 145% | 121% | 149% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations | | | | |
Net investment income (loss) D | (.07) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 12.29 | 6.52 | (5.80) | (3.06) |
Total from investment operations | 12.22 | 6.36 | (5.85) | (3.11) |
Net asset value, end of period | $ 57.41 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B, C | 27.04% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .76% A | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .76% A | .90% | .92% | .91% A |
Expenses net of all reductions | .75% A | .88% | .92% | .91% A |
Net investment income (loss) | (.28)% A | (.35)% | (.17)% | (.47)% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 1,241,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 133% A | 163% | 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, 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 | $ 1,480,221 |
Gross unrealized depreciation | (352,367) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,127,854 |
Tax cost | $ 6,354,621 |
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 $4,218,500 and $4,600,007, 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 .68% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
OTC | $ 5,270 | .20 |
Class K | 274 | .05 |
| $ 5,544 | |
* 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 $167 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 9,747 | .45% | $ 8 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could
Semiannual Report
8. Security Lending - continued
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. The value of securities loaned to FCM at period end was $9,000. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $72 from securities loaned to FCM.
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 $19,977. The weighted average interest rate was .69%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
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 $315 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010A | Six months ended January 31,
2011 | Year ended
July 31,
2010A |
OTC | | | | |
Shares sold | 8,431 | 27,879 | $ 441,821 | $ 1,242,349 |
Conversion to Class K | - | (520) | - | (20,492) |
Shares redeemed | (17,533) | (35,233) | (855,919) | (1,562,257) |
Net increase (decrease) | (9,102) | (7,874) | $ (414,098) | $ (340,400) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010A | Six months ended January 31,
2011 | Year ended
July 31,
2010A |
Class K | | | | |
Shares sold | 3,587 | 11,838 | $ 183,469 | $ 538,757 |
Conversion from OTC | - | 518 | - | 20,492 |
Shares redeemed | (2,680) | (4,224) | (131,470) | (188,163) |
Net increase (decrease) | 907 | 8,132 | $ 51,999 | $ 371,086 |
A Conversion transactions for Class K and OTC are presented for the period August 1, 2009 through August 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.
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 distributions, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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Semiannual Report
To Write Fidelity
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Making Changes
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(such as changing name, address, bank, etc.)
Fidelity Investments
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(letter_graphic)
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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.
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(U.K.) Inc.
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(Hong Kong) Limited
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(Japan) Inc.
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The Fidelity Telephone Connection
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Automated line for quickest service
OTC-USAN-0311
1.789288.108
Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
OTC | .91% | | | |
Actual | | $ 1,000.00 | $ 1,269.60 | $ 5.21 |
HypotheticalA | | $ 1,000.00 | $ 1,020.62 | $ 4.63 |
Class K | .76% | | | |
Actual | | $ 1,000.00 | $ 1,270.40 | $ 4.35 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 9.8 | 8.4 |
Google, Inc. Class A | 7.7 | 4.6 |
NVIDIA Corp. | 5.0 | 1.9 |
Rackspace Hosting, Inc. | 3.6 | 2.4 |
Sprint Nextel Corp. | 3.1 | 3.3 |
Oracle Corp. | 2.7 | 3.2 |
Comcast Corp. Class A | 2.5 | 0.7 |
Microsoft Corp. | 2.4 | 4.8 |
Research In Motion Ltd. | 2.3 | 1.0 |
QUALCOMM, Inc. | 2.2 | 2.4 |
| 41.3 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 55.3 | 53.6 |
Consumer Discretionary | 14.5 | 11.2 |
Health Care | 13.2 | 13.5 |
Financials | 5.2 | 7.8 |
Telecommunication Services | 4.1 | 4.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 100.2% | | | Stocks 100.3% | |
| Short-Term
Investments and
Net Other Assets† (0.2)% | | | Short-Term
Investments and
Net Other Assets† (0.3)% | |
* Foreign investments | 12.5% | | ** Foreign investments | 10.6% | |
† Short-Term Investments and Net Other Assets are not included in the pie chart |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.2% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 14.5% |
Auto Components - 0.8% |
Gentex Corp. | 1,735,500 | | $ 55,657 |
Automobiles - 1.1% |
Bayerische Motoren Werke AG (BMW) ADR | 421,400 | | 10,809 |
Tesla Motors, Inc. (a)(d) | 2,250,100 | | 54,227 |
Volkswagen AG ADR sponsored | 392,400 | | 12,000 |
| | 77,036 |
Diversified Consumer Services - 0.3% |
Coinstar, Inc. (a) | 174,600 | | 7,227 |
Global Education & Technology Group Ltd. ADR (a) | 1,341,600 | | 12,074 |
| | 19,301 |
Hotels, Restaurants & Leisure - 1.6% |
BJ's Restaurants, Inc. (a) | 544,900 | | 19,251 |
Bravo Brio Restaurant Group, Inc. | 215,300 | | 3,509 |
China Lodging Group Ltd. ADR | 435,600 | | 8,725 |
Ctrip.com International Ltd. sponsored ADR (a) | 140,400 | | 5,779 |
Starbucks Corp. | 1,961,900 | | 61,859 |
Wyndham Worldwide Corp. | 248,500 | | 6,990 |
Wynn Resorts Ltd. | 84,200 | | 9,795 |
| | 115,908 |
Household Durables - 1.0% |
Harman International Industries, Inc. (a) | 124,100 | | 5,376 |
iRobot Corp. (a)(d)(e) | 1,615,286 | | 43,613 |
Lennar Corp. Class A | 221,900 | | 4,296 |
PulteGroup, Inc. (a) | 572,400 | | 4,516 |
SodaStream International Ltd. | 89,900 | | 3,865 |
Techtronic Industries Co. Ltd. | 11,022,500 | | 13,713 |
| | 75,379 |
Internet & Catalog Retail - 3.2% |
Amazon.com, Inc. (a) | 915,130 | | 155,243 |
E-Commerce China Dangdang, Inc. ADR | 8,700 | | 246 |
Expedia, Inc. | 377,300 | | 9,493 |
Netflix, Inc. (a) | 98,600 | | 21,108 |
Ocado Group PLC (a) | 2,723,122 | | 9,508 |
Priceline.com, Inc. (a) | 88,800 | | 38,053 |
| | 233,651 |
Media - 3.5% |
Comcast Corp. Class A | 7,868,100 | | 178,999 |
Discovery Communications, Inc. (a) | 1,339,200 | | 52,229 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Liberty Global, Inc. Class A (a)(d) | 227,500 | | $ 9,227 |
WPP PLC sponsored ADR | 133,200 | | 8,256 |
| | 248,711 |
Specialty Retail - 1.3% |
Bed Bath & Beyond, Inc. (a) | 445,200 | | 21,370 |
Citi Trends, Inc. (a) | 360,137 | | 8,247 |
I.T Ltd. | 7,742,000 | | 5,243 |
O'Reilly Automotive, Inc. (a) | 169,800 | | 9,650 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 516,900 | | 19,146 |
Urban Outfitters, Inc. (a) | 806,600 | | 27,279 |
| | 90,935 |
Textiles, Apparel & Luxury Goods - 1.7% |
Deckers Outdoor Corp. (a) | 285,600 | | 20,960 |
lululemon athletica, Inc. (a)(d) | 826,473 | | 56,762 |
Polo Ralph Lauren Corp. Class A | 86,200 | | 9,239 |
Steven Madden Ltd. (a) | 803,000 | | 30,651 |
Trinity Ltd. | 5,764,000 | | 5,219 |
| | 122,831 |
TOTAL CONSUMER DISCRETIONARY | | 1,039,409 |
CONSUMER STAPLES - 0.6% |
Beverages - 0.1% |
Hansen Natural Corp. (a) | 115,900 | | 6,565 |
Food & Staples Retailing - 0.2% |
Droga Raia SA | 37,000 | | 581 |
Whole Foods Market, Inc. | 279,000 | | 14,427 |
| | 15,008 |
Food Products - 0.3% |
Green Mountain Coffee Roasters, Inc. (a) | 68,200 | | 2,290 |
Tingyi (Cayman Islands) Holding Corp. ADR | 109,100 | | 5,400 |
Want Want China Holdings Ltd. ADR | 217,500 | | 9,038 |
| | 16,728 |
Personal Products - 0.0% |
USANA Health Sciences, Inc. (a) | 44,800 | | 1,699 |
TOTAL CONSUMER STAPLES | | 40,000 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 2.7% |
Energy Equipment & Services - 1.1% |
ION Geophysical Corp. (a) | 3,015,000 | | $ 28,673 |
Oceaneering International, Inc. (a) | 147,400 | | 11,384 |
Saipem SpA ADR | 879,300 | | 22,079 |
Weatherford International Ltd. (a) | 607,400 | | 14,408 |
| | 76,544 |
Oil, Gas & Consumable Fuels - 1.6% |
Alpha Natural Resources, Inc. (a) | 217,300 | | 11,676 |
Amyris, Inc. (d) | 862,900 | | 27,233 |
ATP Oil & Gas Corp. (a)(d) | 1,585,500 | | 26,890 |
Carrizo Oil & Gas, Inc. (a) | 365,000 | | 12,355 |
Massey Energy Co. | 179,100 | | 11,258 |
Petroleum Development Corp. (a) | 236,200 | | 10,749 |
Uranium One, Inc. | 2,109,700 | | 13,903 |
| | 114,064 |
TOTAL ENERGY | | 190,608 |
FINANCIALS - 5.2% |
Commercial Banks - 2.9% |
Associated Banc-Corp. | 2,034,000 | | 28,435 |
FirstMerit Corp. | 532,300 | | 9,752 |
Fulton Financial Corp. | 680,000 | | 7,018 |
Huntington Bancshares, Inc. | 4,903,000 | | 35,498 |
National Penn Bancshares, Inc. | 904,000 | | 7,377 |
Popular, Inc. (a) | 2,611,900 | | 8,384 |
Standard Chartered PLC | 516,200 | | 13,421 |
Susquehanna Bancshares, Inc., Pennsylvania | 144,100 | | 1,378 |
SVB Financial Group (a) | 366,205 | | 19,215 |
Wells Fargo & Co. | 1,344,400 | | 43,585 |
Zions Bancorporation | 1,543,706 | | 36,401 |
| | 210,464 |
Diversified Financial Services - 1.8% |
Citigroup, Inc. (a) | 9,563,800 | | 46,098 |
CME Group, Inc. | 205,100 | | 63,286 |
Hong Kong Exchanges and Clearing Ltd. | 407,600 | | 9,347 |
JPMorgan Chase & Co. | 158,300 | | 7,114 |
NBH Holdings Corp. Class A (a)(f) | 110,800 | | 1,856 |
| | 127,701 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.3% |
Genworth Financial, Inc. Class A (a) | 956,800 | | $ 12,984 |
Protective Life Corp. | 250,800 | | 6,915 |
| | 19,899 |
Real Estate Management & Development - 0.0% |
China Real Estate Information Corp. ADR (a)(d) | 45,463 | | 341 |
Thrifts & Mortgage Finance - 0.2% |
The PMI Group, Inc. (a) | 716,900 | | 2,086 |
Washington Federal, Inc. | 538,270 | | 9,307 |
| | 11,393 |
TOTAL FINANCIALS | | 369,798 |
HEALTH CARE - 13.2% |
Biotechnology - 8.4% |
3SBio, Inc. sponsored ADR (a) | 157,047 | | 2,527 |
Alexion Pharmaceuticals, Inc. (a) | 702,760 | | 58,905 |
Allos Therapeutics, Inc. (a)(d) | 1,352,000 | | 4,543 |
Alnylam Pharmaceuticals, Inc. (a) | 516,200 | | 5,330 |
Amarin Corp. PLC ADR (a) | 6,981,439 | | 61,995 |
Amgen, Inc. (a) | 2,173,300 | | 119,705 |
Amylin Pharmaceuticals, Inc. (a) | 1,478,009 | | 23,914 |
Anthera Pharmaceuticals, Inc. (d) | 1,312,200 | | 5,091 |
ARIAD Pharmaceuticals, Inc. (a) | 2,156,200 | | 13,746 |
BioMarin Pharmaceutical, Inc. (a) | 579,500 | | 14,731 |
Cephalon, Inc. (a) | 101,700 | | 6,008 |
Cepheid, Inc. (a) | 649,600 | | 15,434 |
Dendreon Corp. (a) | 1,201,136 | | 42,088 |
Genomic Health, Inc. (a) | 421,320 | | 9,383 |
Genzyme Corp. (a) | 176,900 | | 12,976 |
Human Genome Sciences, Inc. (a) | 2,414,512 | | 58,576 |
ImmunoGen, Inc. (a) | 297,309 | | 2,456 |
Inhibitex, Inc. (a) | 1,848,100 | | 4,204 |
InterMune, Inc. (a) | 680,820 | | 25,442 |
Isis Pharmaceuticals, Inc. (a)(d) | 1,126,949 | | 10,255 |
NPS Pharmaceuticals, Inc. (a) | 900,800 | | 9,013 |
ONYX Pharmaceuticals, Inc. (a) | 499,100 | | 17,611 |
Pharmasset, Inc. (a) | 171,300 | | 8,301 |
Seattle Genetics, Inc. (a) | 1,402,103 | | 22,980 |
Targacept, Inc. (a) | 216,749 | | 5,583 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a) | 537,800 | | $ 11,315 |
Vertex Pharmaceuticals, Inc. (a) | 775,288 | | 30,151 |
| | 602,263 |
Health Care Equipment & Supplies - 0.7% |
Mako Surgical Corp. (a)(d) | 1,312,863 | | 20,376 |
Masimo Corp. | 652,300 | | 19,553 |
NxStage Medical, Inc. (a) | 481,415 | | 11,573 |
| | 51,502 |
Health Care Providers & Services - 1.3% |
Accretive Health, Inc. (d)(e) | 5,297,602 | | 96,099 |
Health Care Technology - 0.6% |
athenahealth, Inc. (a)(d) | 645,900 | | 27,735 |
SXC Health Solutions Corp. (a) | 233,100 | | 11,223 |
| | 38,958 |
Life Sciences Tools & Services - 1.9% |
Illumina, Inc. (a) | 1,681,982 | | 116,629 |
QIAGEN NV (a) | 923,900 | | 17,046 |
| | 133,675 |
Pharmaceuticals - 0.3% |
Elan Corp. PLC sponsored ADR (a) | 1,182,951 | | 7,985 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 260,800 | | 14,253 |
| | 22,238 |
TOTAL HEALTH CARE | | 944,735 |
INDUSTRIALS - 3.9% |
Aerospace & Defense - 0.5% |
AeroVironment, Inc. (a) | 338,351 | | 9,541 |
BE Aerospace, Inc. (a) | 357,000 | | 13,812 |
Rolls-Royce Group PLC sponsored ADR | 290,900 | | 14,897 |
| | 38,250 |
Air Freight & Logistics - 0.1% |
C.H. Robinson Worldwide, Inc. | 92,500 | | 7,131 |
Airlines - 0.2% |
United Continental Holdings, Inc. (a) | 584,800 | | 14,854 |
Construction & Engineering - 1.2% |
Fluor Corp. | 364,500 | | 25,220 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - continued |
Foster Wheeler Ag (a) | 1,332,600 | | $ 49,053 |
Jacobs Engineering Group, Inc. (a) | 205,500 | | 10,557 |
| | 84,830 |
Electrical Equipment - 0.3% |
Fushi Copperweld, Inc. (a) | 617,600 | | 5,954 |
II-VI, Inc. (a) | 69,210 | | 3,418 |
Polypore International, Inc. (a) | 187,000 | | 9,004 |
| | 18,376 |
Machinery - 1.2% |
Chart Industries, Inc. (a) | 657,000 | | 23,862 |
Joy Global, Inc. | 107,400 | | 9,363 |
PACCAR, Inc. | 643,599 | | 36,357 |
Sandvik AB sponsored ADR | 1,026,300 | | 20,228 |
| | 89,810 |
Road & Rail - 0.1% |
Saia, Inc. (a) | 287,000 | | 4,107 |
Trading Companies & Distributors - 0.3% |
DXP Enterprises, Inc. (a) | 259,915 | | 5,661 |
Kaman Corp. | 487,400 | | 14,347 |
Rush Enterprises, Inc. Class A (a) | 238,500 | | 4,548 |
| | 24,556 |
TOTAL INDUSTRIALS | | 281,914 |
INFORMATION TECHNOLOGY - 55.3% |
Communications Equipment - 7.6% |
Acme Packet, Inc. (a) | 386,674 | | 20,795 |
Aruba Networks, Inc. (a)(d) | 2,197,600 | | 47,358 |
Cisco Systems, Inc. (a) | 1,810,900 | | 38,301 |
HTC Corp. | 504,850 | | 17,020 |
Juniper Networks, Inc. (a) | 1,404,500 | | 52,135 |
Nokia Corp. sponsored ADR | 673,900 | | 7,211 |
QUALCOMM, Inc. | 2,928,300 | | 158,509 |
Research In Motion Ltd. (a) | 2,742,300 | | 162,097 |
Riverbed Technology, Inc. (a) | 948,500 | | 34,023 |
Sandvine Corp. (a) | 2,149,698 | | 6,201 |
| | 543,650 |
Computers & Peripherals - 11.0% |
Apple, Inc. (a) | 2,077,300 | | 704,865 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
NetApp, Inc. (a) | 1,141,800 | | $ 62,491 |
SanDisk Corp. (a) | 520,250 | | 23,604 |
| | 790,960 |
Electronic Equipment & Components - 0.3% |
E Ink Holdings, Inc. GDR (a)(f) | 44,300 | | 808 |
FLIR Systems, Inc. (a) | 237,200 | | 7,363 |
HLS Systems International Ltd. (a) | 305,199 | | 4,898 |
IPG Photonics Corp. (a) | 312,158 | | 10,816 |
| | 23,885 |
Internet Software & Services - 13.8% |
eBay, Inc. (a) | 3,685,100 | | 111,880 |
Google, Inc. Class A (a) | 915,322 | | 549,523 |
LogMeIn, Inc. (a) | 881,040 | | 33,946 |
Mail.ru Group Ltd. GDR unit (a)(f) | 11,300 | | 402 |
OpenTable, Inc. (a)(d) | 186,800 | | 14,686 |
QuinStreet, Inc. (d) | 752,400 | | 16,937 |
Rackspace Hosting, Inc. (a)(d)(e) | 7,801,934 | | 261,443 |
YouKu.com, Inc. ADR (a) | 9,000 | | 267 |
| | 989,084 |
IT Services - 2.1% |
Cognizant Technology Solutions Corp. Class A (a) | 1,485,645 | | 108,378 |
Echo Global Logistics, Inc. (a)(d)(e) | 1,855,790 | | 21,564 |
iGate Corp. | 1,337,200 | | 20,593 |
| | 150,535 |
Semiconductors & Semiconductor Equipment - 9.7% |
Amkor Technology, Inc. (a)(d) | 883,127 | | 7,189 |
ASML Holding NV | 411,300 | | 17,279 |
Broadcom Corp. Class A | 986,800 | | 44,495 |
Cypress Semiconductor Corp. (a) | 696,450 | | 15,078 |
First Solar, Inc. (a)(d) | 66,136 | | 10,223 |
GT Solar International, Inc. (a) | 656,400 | | 7,250 |
Inphi Corp. | 31,700 | | 600 |
Lam Research Corp. (a) | 986,000 | | 49,192 |
Marvell Technology Group Ltd. (a) | 3,076,100 | | 58,477 |
Mellanox Technologies Ltd. (a) | 1,242,951 | | 33,995 |
Micron Technology, Inc. (a) | 3,843,000 | | 40,505 |
NVIDIA Corp. (a) | 15,013,781 | | 359,130 |
Spreadtrum Communications, Inc. ADR (a)(d) | 534,300 | | 11,487 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Standard Microsystems Corp. (a) | 345,700 | | $ 8,314 |
Volterra Semiconductor Corp. (a) | 1,206,500 | | 29,982 |
| | 693,196 |
Software - 10.8% |
Ariba, Inc. (a) | 484,796 | | 13,618 |
BMC Software, Inc. (a) | 127,500 | | 6,082 |
BroadSoft, Inc. (a)(d)(e) | 1,269,870 | | 35,188 |
Check Point Software Technologies Ltd. (a) | 1,081,800 | | 48,194 |
DemandTec, Inc. (a) | 800,233 | | 9,643 |
Fortinet, Inc. (a) | 467,300 | | 17,968 |
Gameloft (a)(e) | 7,439,224 | | 50,616 |
Informatica Corp. (a) | 250,400 | | 11,619 |
Kingdee International Software Group Co. Ltd. | 6,530,000 | | 4,296 |
Microsoft Corp. | 6,124,965 | | 169,815 |
Oracle Corp. | 6,029,700 | | 193,131 |
Pegasystems, Inc. (d) | 1,475,656 | | 50,438 |
Perfect World Co. Ltd. sponsored ADR Class B (a)(d) | 1,688,429 | | 39,205 |
QLIK Technologies, Inc. | 21,500 | | 499 |
salesforce.com, Inc. (a) | 48,400 | | 6,250 |
SolarWinds, Inc. (a) | 753,700 | | 14,245 |
SuccessFactors, Inc. (a) | 911,071 | | 26,530 |
Synchronoss Technologies, Inc. (a) | 1,710,640 | | 48,685 |
Taleo Corp. Class A (a) | 909,722 | | 26,800 |
Velti Ltd. (a) | 13,400 | | 191 |
| | 773,013 |
TOTAL INFORMATION TECHNOLOGY | | 3,964,323 |
MATERIALS - 0.7% |
Chemicals - 0.4% |
Celanese Corp. Class A | 153,900 | | 6,385 |
Dow Chemical Co. | 354,000 | | 12,560 |
Innophos Holdings, Inc. | 320,556 | | 10,633 |
| | 29,578 |
Metals & Mining - 0.3% |
Randgold Resources Ltd. sponsored ADR | 322,100 | | 24,637 |
TOTAL MATERIALS | | 54,215 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 4.1% |
Diversified Telecommunication Services - 0.5% |
Cbeyond, Inc. (a) | 397,790 | | $ 5,828 |
Global Crossing Ltd. (a) | 2,495,900 | | 33,270 |
| | 39,098 |
Wireless Telecommunication Services - 3.6% |
Clearwire Corp. Class A (a)(d) | 6,818,153 | | 36,068 |
Sprint Nextel Corp. (a) | 48,868,206 | | 220,884 |
| | 256,952 |
TOTAL TELECOMMUNICATION SERVICES | | 296,050 |
TOTAL COMMON STOCKS (Cost $5,965,263) | 7,181,052 |
Money Market Funds - 4.2% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 361 | | 0* |
Fidelity Securities Lending Cash Central Fund,
0.21% (b)(c) | 301,422,972 | | 301,423 |
TOTAL MONEY MARKET FUNDS (Cost $301,423) | 301,423 |
TOTAL INVESTMENT PORTFOLIO - 104.4% (Cost $6,266,686) | | 7,482,475 |
NET OTHER ASSETS (LIABILITIES) - (4.4)% | | (312,471) |
NET ASSETS - 100% | $ 7,170,004 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(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 $3,066,000 or 0.0% of net assets. |
* Amount represents less than $1,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 12 |
Fidelity Securities Lending Cash Central Fund | 2,806 |
Total | $ 2,818 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Accretive Health, Inc. | $ 919 | $ 77,613 | $ - | $ - | $ 96,099 |
Alphatec Holdings, Inc. | 21,863 | 1,075 | 11,983 | - | - |
BroadSoft, Inc. | - | 29,967 | 4,408 | - | 35,188 |
Echo Global Logistics, Inc. | 2,905 | 23,108 | - | - | 21,564 |
Gameloft | 36,748 | - | - | - | 50,616 |
iRobot Corp. | 34,374 | - | 1,379 | - | 43,613 |
Rackspace Hosting, Inc. | 142,387 | 41,126 | 30,257 | - | 261,443 |
Total | $ 239,196 | $ 172,889 | $ 48,027 | $ - | $ 508,523 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,039,409 | $ 1,039,409 | $ - | $ - |
Consumer Staples | 40,000 | 40,000 | - | - |
Energy | 190,608 | 190,608 | - | - |
Financials | 369,798 | 367,942 | 1,856 | - |
Health Care | 944,735 | 944,735 | - | - |
Industrials | 281,914 | 281,914 | - | - |
Information Technology | 3,964,323 | 3,964,323 | - | - |
Materials | 54,215 | 54,215 | - | - |
Telecommunication Services | 296,050 | 296,050 | - | - |
Money Market Funds | 301,423 | 301,423 | - | - |
Total Investments in Securities: | $ 7,482,475 | $ 7,480,619 | $ 1,856 | $ - |
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 | $ 2,161 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (2,161) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.5% |
Canada | 2.8% |
Israel | 1.4% |
United Kingdom | 1.4% |
Cayman Islands | 1.3% |
Bermuda | 1.3% |
Others (Individually Less Than 1%) | 4.3% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,651,048,000 of which $1,249,895,000 and $401,153,000 will expire in fiscal 2011 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $295,049) - See accompanying schedule: Unaffiliated issuers (cost $5,625,747) | $ 6,672,529 | |
Fidelity Central Funds (cost $301,423) | 301,423 | |
Other affiliated issuers (cost $339,516) | 508,523 | |
Total Investments (cost $6,266,686) | | $ 7,482,475 |
Foreign currency held at value (cost $515) | | 516 |
Receivable for investments sold | | 84,548 |
Receivable for fund shares sold | | 12,891 |
Dividends receivable | | 356 |
Distributions receivable from Fidelity Central Funds | | 205 |
Prepaid expenses | | 16 |
Other receivables | | 889 |
Total assets | | 7,581,896 |
| | |
Liabilities | | |
Payable to custodian bank | $ 388 | |
Payable for investments purchased | 88,049 | |
Payable for fund shares redeemed | 10,195 | |
Accrued management fee | 4,562 | |
Notes payable | 6,008 | |
Other affiliated payables | 1,055 | |
Other payables and accrued expenses | 212 | |
Collateral on securities loaned, at value | 301,423 | |
Total liabilities | | 411,892 |
| | |
Net Assets | | $ 7,170,004 |
Net Assets consist of: | | |
Paid in capital | | $ 7,357,006 |
Accumulated net investment loss | | (12,933) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,389,792) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,215,723 |
Net Assets | | $ 7,170,004 |
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, 2011 (Unaudited) |
| | |
OTC:
Net Asset Value, offering price and redemption price per share ($5,928,615 ÷ 103,780 shares) | | $ 57.13 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,241,389 ÷ 21,624 shares) | | $ 57.41 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 12,233 |
Interest | | 4 |
Income from Fidelity Central Funds (including $2,806 from security lending) | | 2,818 |
Total income | | 15,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 19,458 | |
Performance adjustment | 2,195 | |
Transfer agent fees | 5,544 | |
Accounting and security lending fees | 594 | |
Custodian fees and expenses | 235 | |
Independent trustees' compensation | 19 | |
Registration fees | 48 | |
Audit | 36 | |
Legal | 22 | |
Interest | 9 | |
Miscellaneous | 31 | |
Total expenses before reductions | 28,191 | |
Expense reductions | (315) | 27,876 |
Net investment income (loss) | | (12,821) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 342,470 | |
Other affiliated issuers | (4,705) | |
Foreign currency transactions | 67 | |
Total net realized gain (loss) | | 337,832 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 1,190,712 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | | 1,190,696 |
Net gain (loss) | | 1,528,528 |
Net increase (decrease) in net assets resulting from operations | | $ 1,515,707 |
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 January 31, 2011
(Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (12,821) | $ (29,657) |
Net realized gain (loss) | 337,832 | 1,053,989 |
Change in net unrealized appreciation (depreciation) | 1,190,696 | (204,398) |
Net increase (decrease) in net assets resulting
from operations | 1,515,707 | 819,934 |
Share transactions - net increase (decrease) | (362,099) | 30,686 |
Total increase (decrease) in net assets | 1,153,608 | 850,620 |
| | |
Net Assets | | |
Beginning of period | 6,016,396 | 5,165,776 |
End of period (including accumulated net investment loss of $12,933 and accumulated net investment loss of $112, respectively) | $ 7,170,004 | $ 6,016,396 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 |
Income from Investment
Operations | | | | | |
Net investment income (loss) D | (.11) | (.23) | (.12) | (.20) | (.19) | (.10) G |
Net realized and unrealized gain (loss) | 12.24 | 6.50 | (5.81) | (2.23) | 12.58 | (1.19) |
Total from investment operations | 12.13 | 6.27 | (5.93) | (2.43) | 12.39 | (1.29) |
Net asset value, end of period | $ 57.13 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 |
Total Return B, C | 26.96% | 16.19% | (13.28)% | (5.16)% | 35.71% | (3.58)% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .91% A | 1.06% | 1.13% | 1.06% | .96% | .80% |
Expenses net of fee waivers, if any | .91% A | 1.06% | 1.13% | 1.06% | .96% | .80% |
Expenses net of all reductions | .90% A | 1.04% | 1.13% | 1.05% | .95% | .75% |
Net investment income (loss) | (.43)% A | (.51)% | (.37)% | (.42)% | (.45)% | (.26)% G |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 5,929 | $ 5,080 | $ 4,677 | $ 6,871 | $ 8,778 | $ 7,370 |
Portfolio turnover rate F | 133% A | 163% | 151% | 145% | 121% | 149% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations | | | | |
Net investment income (loss) D | (.07) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 12.29 | 6.52 | (5.80) | (3.06) |
Total from investment operations | 12.22 | 6.36 | (5.85) | (3.11) |
Net asset value, end of period | $ 57.41 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B, C | 27.04% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .76% A | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .76% A | .90% | .92% | .91% A |
Expenses net of all reductions | .75% A | .88% | .92% | .91% A |
Net investment income (loss) | (.28)% A | (.35)% | (.17)% | (.47)% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 1,241,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 133% A | 163% | 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, 2011 (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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(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 market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, 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 | $ 1,480,221 |
Gross unrealized depreciation | (352,367) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,127,854 |
Tax cost | $ 6,354,621 |
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 $4,218,500 and $4,600,007, 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 .68% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
OTC | $ 5,270 | .20 |
Class K | 274 | .05 |
| $ 5,544 | |
* 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 $167 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 9,747 | .45% | $ 8 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could
Semiannual Report
8. Security Lending - continued
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. The value of securities loaned to FCM at period end was $9,000. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $72 from securities loaned to FCM.
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 $19,977. The weighted average interest rate was .69%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
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 $315 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010A | Six months ended January 31,
2011 | Year ended
July 31,
2010A |
OTC | | | | |
Shares sold | 8,431 | 27,879 | $ 441,821 | $ 1,242,349 |
Conversion to Class K | - | (520) | - | (20,492) |
Shares redeemed | (17,533) | (35,233) | (855,919) | (1,562,257) |
Net increase (decrease) | (9,102) | (7,874) | $ (414,098) | $ (340,400) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010A | Six months ended January 31,
2011 | Year ended
July 31,
2010A |
Class K | | | | |
Shares sold | 3,587 | 11,838 | $ 183,469 | $ 538,757 |
Conversion from OTC | - | 518 | - | 20,492 |
Shares redeemed | (2,680) | (4,224) | (131,470) | (188,163) |
Net increase (decrease) | 907 | 8,132 | $ 51,999 | $ 371,086 |
A Conversion transactions for Class K and OTC are presented for the period August 1, 2009 through August 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.
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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OTC-K-USAN-0311
1.863312.102
Fidelity®
Real Estate Income
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.13% | | | |
Actual | | $ 1,000.00 | $ 1,094.10 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class T | 1.19% | | | |
Actual | | $ 1,000.00 | $ 1,093.70 | $ 6.28 |
HypotheticalA | | $ 1,000.00 | $ 1,019.21 | $ 6.06 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,089.80 | $ 10.11 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Real Estate Income | .94% | | | |
Actual | | $ 1,000.00 | $ 1,095.00 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.47 | $ 4.79 |
Institutional Class | .89% | | | |
Actual | | $ 1,000.00 | $ 1,095.90 | $ 4.70 |
HypotheticalA | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
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 Five Stocks as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Ventas, Inc. | 1.7 | 1.3 |
MFA Financial, Inc. | 1.6 | 1.8 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Cypress Sharpridge Investments, Inc. | 1.2 | 1.3 |
Equity Lifestyle Properties, Inc. | 1.2 | 1.4 |
| 7.1 | |
Top 5 Bonds as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.0103% 11/15/15 | 1.4 | 0.0 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 | 1.0 | 1.4 |
Ventas Realty LP 6.5% 6/1/16 | 0.8 | 1.1 |
Acadia Realty Trust 3.75% 12/15/26 | 0.8 | 1.1 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 | 0.8 | 0.6 |
| 4.8 | |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Shopping Centers | 9.6 | 8.9 |
REITs - Health Care Facilities | 8.4 | 8.3 |
REITs - Management/Investment | 7.1 | 6.6 |
REITs - Mortgage | 6.8 | 8.7 |
REITs - Industrial Buildings | 5.7 | 4.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Common Stocks 25.9% | | | Common Stocks 23.4% | |
| Preferred Stocks 8.6% | | | Preferred Stocks 8.1% | |
 | Bonds 45.8% | | | Bonds 45.1% | |
 | Convertible
Securities 8.8% | | | Convertible
Securities 11.8% | |
 | Other Investments 2.2% | | | Other Investments 1.5% | |
| Short-Term
Investments and
Net Other Assets 8.7% | | | Short-Term
Investments and
Net Other Assets 10.1% | |
* Foreign investments | 3.3% | | ** Foreign investments | 2.3% | |
Semiannual Report
Investments January 31, 2011
Showing Percentage of Net Assets
Common Stocks - 25.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 0.5% |
Hotels, Restaurants & Leisure - 0.3% |
Starwood Hotels & Resorts Worldwide, Inc. | 75,100 | | $ 4,428,647 |
Household Durables - 0.2% |
Stanley Martin Communities LLC Class B (a) | 4,620 | | 3,696,000 |
TOTAL CONSUMER DISCRETIONARY | | 8,124,647 |
FINANCIALS - 23.9% |
Capital Markets - 0.5% |
HFF, Inc. (a) | 546,564 | | 6,892,172 |
Real Estate Investment Trusts - 23.1% |
Acadia Realty Trust (SBI) | 1,151,149 | | 21,273,234 |
Alexandria Real Estate Equities, Inc. | 43,100 | | 3,320,424 |
AMB Property Corp. (SBI) | 287,200 | | 9,635,560 |
American Assets Trust, Inc. (a) | 222,500 | | 4,737,025 |
American Campus Communities, Inc. | 331,400 | | 10,717,476 |
Annaly Capital Management, Inc. | 175,050 | | 3,121,142 |
Anworth Mortgage Asset Corp. | 1,336,610 | | 9,182,511 |
Apartment Investment & Management Co. Class A | 75,041 | | 1,918,048 |
Apollo Commercial Real Estate Finance, Inc. | 77,500 | | 1,273,325 |
Associated Estates Realty Corp. | 484,200 | | 7,171,002 |
AvalonBay Communities, Inc. | 44,625 | | 5,173,376 |
Brandywine Realty Trust (SBI) | 295,700 | | 3,430,120 |
Canadian (REIT) | 15,000 | | 479,473 |
CapLease, Inc. | 124,200 | | 685,584 |
CBL & Associates Properties, Inc. | 296,173 | | 5,052,711 |
Cedar Shopping Centers, Inc. | 271,400 | | 1,641,970 |
Cypress Sharpridge Investments, Inc. | 1,345,588 | | 17,559,923 |
DCT Industrial Trust, Inc. | 666,100 | | 3,690,194 |
Developers Diversified Realty Corp. | 140,000 | | 1,904,000 |
DiamondRock Hospitality Co. (a) | 487,900 | | 5,918,227 |
Digital Realty Trust, Inc. (f) | 190,100 | | 10,341,440 |
Duke Realty LP | 590,283 | | 8,086,877 |
Dynex Capital, Inc. | 826,898 | | 8,831,271 |
Education Realty Trust, Inc. | 140,600 | | 1,096,680 |
Equity Lifestyle Properties, Inc. | 301,530 | | 17,151,026 |
Equity Residential (SBI) | 103,300 | | 5,597,827 |
Excel Trust, Inc. | 316,100 | | 4,039,758 |
Federal Realty Investment Trust (SBI) | 26,700 | | 2,147,481 |
Government Properties Income Trust | 74,500 | | 1,929,550 |
HCP, Inc. | 154,900 | | 5,745,241 |
Healthcare Realty Trust, Inc. | 218,500 | | 4,588,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Highwoods Properties, Inc. (SBI) | 107,900 | | $ 3,535,883 |
Hospitality Properties Trust (SBI) | 96,400 | | 2,397,468 |
LTC Properties, Inc. | 165,213 | | 4,516,923 |
MFA Financial, Inc. | 2,919,281 | | 23,850,526 |
Mid-America Apartment Communities, Inc. | 64,600 | | 4,118,250 |
Monmouth Real Estate Investment Corp. Class A | 455,073 | | 3,745,251 |
National Health Investors, Inc. | 195,606 | | 8,945,062 |
National Retail Properties, Inc. | 219,500 | | 5,454,575 |
Nationwide Health Properties, Inc. | 140,480 | | 5,275,024 |
Omega Healthcare Investors, Inc. | 214,000 | | 4,767,920 |
Pebblebrook Hotel Trust | 204,100 | | 4,196,296 |
ProLogis Trust | 495,966 | | 7,399,813 |
Public Storage | 31,200 | | 3,400,176 |
Rayonier, Inc. | 23,800 | | 1,409,198 |
Regency Centers Corp. | 100,100 | | 4,315,311 |
Senior Housing Properties Trust (SBI) | 75,800 | | 1,699,436 |
Simon Property Group, Inc. | 119,801 | | 12,153,811 |
Sun Communities, Inc. | 12,700 | | 420,624 |
Sunstone Hotel Investors, Inc. (a) | 465,100 | | 4,748,671 |
The Macerich Co. | 99,474 | | 4,840,405 |
Two Harbors Investment Corp. | 143,980 | | 1,446,999 |
Ventas, Inc. | 457,380 | | 25,366,282 |
Vornado Realty Trust | 44,390 | | 3,910,315 |
Weyerhaeuser Co. | 340,429 | | 7,891,144 |
Whitestone REIT Class B | 179,067 | | 2,580,355 |
| | 339,826,694 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 61,400 | | 1,362,466 |
Coresite Realty Corp. | 146,600 | | 2,106,642 |
| | 3,469,108 |
Thrifts & Mortgage Finance - 0.1% |
Walker & Dunlop, Inc. | 168,200 | | 2,018,400 |
Wrightwood Capital LLC warrants 7/31/14 (a)(g) | 60,681 | | 607 |
| | 2,019,007 |
TOTAL FINANCIALS | | 352,206,981 |
HEALTH CARE - 1.5% |
Health Care Providers & Services - 1.5% |
Brookdale Senior Living, Inc. (a) | 541,600 | | 11,833,960 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Capital Senior Living Corp. (a) | 504,850 | | $ 3,448,126 |
Emeritus Corp. (a) | 333,674 | | 6,373,173 |
| | 21,655,259 |
TOTAL COMMON STOCKS (Cost $311,994,867) | 381,986,887 |
Preferred Stocks - 10.5% |
| | | |
Convertible Preferred Stocks - 1.9% |
FINANCIALS - 1.9% |
Real Estate Investment Trusts - 1.7% |
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | | 2,339,375 |
CommonWealth REIT 6.50% | 150,000 | | 3,255,000 |
Excel Trust, Inc. 7.00% (a)(g) | 248,200 | | 6,205,000 |
Lexington Corporate Properties Trust Series C 6.50% | 325,036 | | 13,726,270 |
| | 25,525,645 |
Real Estate Management & Development - 0.2% |
Grubb & Ellis Co. 12.00% (g) | 27,500 | | 2,445,025 |
TOTAL FINANCIALS | | 27,970,670 |
Nonconvertible Preferred Stocks - 8.6% |
CONSUMER DISCRETIONARY - 0.1% |
Household Durables - 0.1% |
M/I Homes, Inc. Series A, 9.75% (a) | 38,200 | | 683,398 |
FINANCIALS - 8.5% |
Diversified Financial Services - 0.3% |
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | | 362,500 |
Red Lion Hotels Capital Trust 9.50% | 163,225 | | 4,157,341 |
| | 4,519,841 |
Real Estate Investment Trusts - 7.8% |
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | | 1,715,870 |
American Home Mortgage Investment Corp.: | | | |
Series A, 9.375% (a) | 120,300 | | 120 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
American Home Mortgage Investment Corp.: - continued | | | |
Series B, 9.25% (a) | 124,100 | | $ 12 |
Annaly Capital Management, Inc. Series A, 7.875% | 164,900 | | 4,254,420 |
Anworth Mortgage Asset Corp. Series A, 8.625% | 285,127 | | 7,182,349 |
Apartment Investment & Management Co.: | | | |
Series T, 8.00% | 57,500 | | 1,452,450 |
Series U, 7.75% | 100,773 | | 2,531,418 |
Brandywine Realty Trust Series C, 7.50% | 37,615 | | 936,990 |
CapLease, Inc. Series A, 8.125% | 43,400 | | 1,079,792 |
CBL & Associates Properties, Inc.: | | | |
(depositary shares) Series C, 7.75% | 47,962 | | 1,168,354 |
7.375% | 140,688 | | 3,335,712 |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | | 7,366,230 |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | | 1,644,500 |
Cogdell Spencer, Inc. 8.50% | 114,300 | | 2,871,216 |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | | 123,650 |
Cousins Properties, Inc. Series A, 7.75% | 93,230 | | 2,274,812 |
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 74,500 | | 1,852,070 |
Duke Realty LP: | | | |
8.375% | 128,517 | | 3,359,434 |
Series L, 6.60% | 10,666 | | 246,491 |
DuPont Fabros Technology, Inc. 7.875% | 40,000 | | 1,001,600 |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | | 40,800 |
First Potomac Realty Trust 7.75% | 80,000 | | 2,009,600 |
Glimcher Realty Trust Series G, 8.125% | 121,111 | | 2,944,208 |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | | 1 |
Hospitality Properties Trust: | | | |
Series B, 8.875% | 88,600 | | 2,283,222 |
Series C, 7.00% | 58,500 | | 1,381,770 |
Kimco Realty Corp. Series G, 7.75% | 97,300 | | 2,487,961 |
Kite Realty Group Trust 8.25% | 96,100 | | 2,354,450 |
LaSalle Hotel Properties: | | | |
7.50% | 100,000 | | 2,495,000 |
Series B, 8.375% | 26,800 | | 671,340 |
Series E, 8.00% | 47,350 | | 1,186,118 |
Series G, 7.25% | 114,485 | | 2,735,047 |
LBA Realty Fund II: | | | |
Series A, 8.75% (a) | 69,000 | | 2,760,000 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
LBA Realty Fund II: - continued | | | |
Series B, 7.625% (a) | 31,240 | | $ 749,760 |
Lexington Corporate Properties Trust Series B, 8.05% | 29,000 | | 720,650 |
Lexington Realty Trust 7.55% | 23,800 | | 561,442 |
LTC Properties, Inc. Series F, 8.00% | 61,240 | | 1,555,496 |
MFA Financial, Inc. Series A, 8.50% | 386,961 | | 9,732,069 |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | | 1,996,000 |
Omega Healthcare Investors, Inc. Series D, 8.375% | 59,600 | | 1,531,720 |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | | 5,923,710 |
ProLogis Trust Series C, 8.54% | 94,446 | | 5,049,914 |
PS Business Parks, Inc.: | | | |
(depositary shares) Series H, 7.00% | 13,300 | | 330,638 |
6.875% | 50,000 | | 1,227,500 |
7.20% | 83,040 | | 2,063,544 |
7.375% | 100,610 | | 2,516,256 |
Series P, 6.70% | 36,000 | | 876,240 |
Public Storage: | | | |
Series I, 7.25% | 10,828 | | 272,866 |
Series K, 7.25% | 128,260 | | 3,230,869 |
Series N, 7.00% | 4,200 | | 105,966 |
Regency Centers Corp.: | | | |
7.25% | 10,500 | | 260,925 |
Series C 7.45% | 18,000 | | 454,500 |
Saul Centers, Inc.: | | | |
8.00% | 93,700 | | 2,398,720 |
Series B (depositary shares) 9.00% | 88,550 | | 2,364,285 |
Sunstone Hotel Investors, Inc. Series A, 8.00% | 62,200 | | 1,499,020 |
Vornado Realty Trust 6.75% | 20,000 | | 482,000 |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | | 1,318,594 |
| | 114,969,691 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Management & Development - 0.4% |
Hudson Pacific Properties, Inc. 8.375% | 186,300 | | $ 4,659,363 |
Vornado Realty LP 7.875% | 50,449 | | 1,356,069 |
| | 6,015,432 |
TOTAL FINANCIALS | | 125,504,964 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 126,188,362 |
TOTAL PREFERRED STOCKS (Cost $159,940,508) | 154,159,032 |
Corporate Bonds - 28.1% |
| Principal Amount (e) | | |
Convertible Bonds - 6.9% |
CONSUMER DISCRETIONARY - 0.1% |
Hotels, Restaurants & Leisure - 0.1% |
Morgans Hotel Group Co. 2.375% 10/15/14 | | $ 1,340,000 | | 1,147,375 |
FINANCIALS - 6.8% |
Real Estate Investment Trusts - 4.2% |
Acadia Realty Trust 3.75% 12/15/26 | | 11,505,000 | | 11,505,000 |
Alexandria Real Estate Equities, Inc. 3.7% 1/15/27 (g) | | 5,895,000 | | 5,976,351 |
Annaly Capital Management, Inc. 4% 2/15/15 | | 1,000,000 | | 1,169,375 |
CapLease, Inc. 7.5% 10/1/27 (g) | | 5,180,000 | | 5,128,200 |
Developers Diversified Realty Corp. 1.75% 11/15/40 | | 1,000,000 | | 1,042,500 |
Hospitality Properties Trust 3.8% 3/15/27 | | 5,100,000 | | 5,100,000 |
Inland Real Estate Corp. 4.625% 11/15/26 | | 10,870,000 | | 10,870,000 |
Lexington Corporate Properties Trust 6% 1/15/30 (g) | | 5,000,000 | | 6,437,500 |
ProLogis Trust: | | | | |
1.875% 11/15/37 | | 2,450,000 | | 2,416,313 |
2.625% 5/15/38 | | 1,500,000 | | 1,494,375 |
The Macerich Co. 3.25% 3/15/12 (g) | | 4,800,000 | | 4,818,000 |
United Dominion Realty Trust, Inc. 3.625% 9/15/11 | | 5,500,000 | | 5,541,250 |
| | 61,498,864 |
Real Estate Management & Development - 2.6% |
BioMed Realty LP 4.5% 10/1/26 (g) | | 2,500,000 | | 2,512,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Convertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Corporate Office Properties LP: | | | | |
3.5% 9/15/26 (g) | | $ 3,280,000 | | $ 3,292,300 |
4.25% 4/15/30 (g) | | 2,000,000 | | 2,065,000 |
Duke Realty LP 3.75% 12/1/11 (g) | | 2,650,000 | | 2,683,125 |
First Potomac Realty Investment LP 4% 12/15/11 (g) | | 2,600,000 | | 2,587,000 |
Grubb & Ellis Co. 7.95% 5/1/15 (g) | | 5,500,000 | | 4,881,250 |
Home Properties, Inc. 4.125% 11/1/26 (g) | | 2,100,000 | | 2,126,250 |
Kilroy Realty LP 3.25% 4/15/12 (g) | | 2,185,000 | | 2,201,388 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 (g) | | 14,950,000 | | 15,006,063 |
MPT Operating Partnership LP 9.25% 4/1/13 (g) | | 1,000,000 | | 1,118,800 |
SL Green Realty Corp. 3% 3/30/27 (g) | | 500,000 | | 493,125 |
| | 38,966,801 |
TOTAL FINANCIALS | | 100,465,665 |
TOTAL CONVERTIBLE BONDS | | 101,613,040 |
Nonconvertible Bonds - 21.2% |
CONSUMER DISCRETIONARY - 5.7% |
Hotels, Restaurants & Leisure - 0.8% |
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 (g) | | 1,945,000 | | 1,996,154 |
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | | 1,000,000 | | 1,050,000 |
Landry's Restaurants, Inc.: | | | | |
11.625% 12/1/15 | | 1,000,000 | | 1,060,000 |
11.625% 12/1/15 (g) | | 325,000 | | 344,500 |
Times Square Hotel Trust 8.528% 8/1/26 (g) | | 3,909,982 | | 3,958,856 |
Vail Resorts, Inc. 6.75% 2/15/14 | | 3,000,000 | | 3,037,500 |
| | 11,447,010 |
Household Durables - 4.4% |
KB Home: | | | | |
5.75% 2/1/14 | | 510,000 | | 512,550 |
5.875% 1/15/15 | | 5,000,000 | | 4,950,000 |
6.25% 6/15/15 | | 8,500,000 | | 8,457,500 |
9.1% 9/15/17 | | 4,000,000 | | 4,230,000 |
Lennar Corp.: | | | | |
5.5% 9/1/14 | | 1,000,000 | | 1,000,000 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Lennar Corp.: - continued | | | | |
5.6% 5/31/15 | | $ 3,000,000 | | $ 2,940,000 |
6.5% 4/15/16 | | 4,000,000 | | 4,000,000 |
6.95% 6/1/18 | | 10,000,000 | | 9,900,000 |
M/I Homes, Inc.: | | | | |
6.875% 4/1/12 | | 2,150,000 | | 2,171,500 |
8.625% 11/15/18 (g) | | 5,905,000 | | 5,964,050 |
Meritage Homes Corp.: | | | | |
6.25% 3/15/15 | | 2,500,000 | | 2,512,500 |
7.15% 4/15/20 | | 1,500,000 | | 1,440,000 |
Ryland Group, Inc. 8.4% 5/15/17 | | 745,000 | | 812,050 |
Standard Pacific Corp.: | | | | |
7% 8/15/15 | | 4,000,000 | | 4,200,000 |
8.375% 5/15/18 | | 2,913,000 | | 3,022,238 |
8.375% 5/15/18 (g) | | 5,645,000 | | 5,856,688 |
10.75% 9/15/16 | | 3,000,000 | | 3,525,000 |
| | 65,494,076 |
Multiline Retail - 0.3% |
Sears Holdings Corp. 6.625% 10/15/18 (g) | | 4,000,000 | | 3,840,000 |
Specialty Retail - 0.2% |
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | | 2,490,000 | | 2,832,375 |
TOTAL CONSUMER DISCRETIONARY | | 83,613,461 |
CONSUMER STAPLES - 0.4% |
Food & Staples Retailing - 0.4% |
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | | 1,195,175 | | 1,338,596 |
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | | 4,400,000 | | 4,356,000 |
| | 5,694,596 |
FINANCIALS - 14.5% |
Commercial Banks - 0.1% |
CapitalSource, Inc. 12.75% 7/15/14 (g) | | 1,500,000 | | 1,807,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Diversified Financial Services - 0.6% |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | | |
7.75% 1/15/16 | | $ 7,320,000 | | $ 7,503,000 |
7.75% 1/15/16 (g) | | 1,500,000 | | 1,537,500 |
| | 9,040,500 |
Real Estate Investment Trusts - 9.0% |
Camden Property Trust 5% 6/15/15 | | 1,100,000 | | 1,174,511 |
Commercial Net Lease Realty, Inc.: | | | | |
6.15% 12/15/15 | | 2,526,000 | | 2,694,168 |
6.25% 6/15/14 | | 5,005,000 | | 5,407,872 |
CommonWealth REIT 5.875% 9/15/20 | | 2,000,000 | | 1,968,894 |
Developers Diversified Realty Corp.: | | | | |
5.375% 10/15/12 | | 500,000 | | 515,744 |
5.5% 5/1/15 | | 2,000,000 | | 2,067,406 |
7.5% 4/1/17 | | 6,000,000 | | 6,765,126 |
7.5% 7/15/18 | | 5,271,000 | | 5,814,071 |
7.875% 9/1/20 | | 4,637,000 | | 5,356,635 |
9.625% 3/15/16 | | 3,836,000 | | 4,614,478 |
Entertainment Properties Trust 7.75% 7/15/20 (g) | | 2,000,000 | | 2,100,000 |
Equity One, Inc.: | | | | |
5.375% 10/15/15 | | 1,500,000 | | 1,537,554 |
6.25% 12/15/14 | | 4,081,000 | | 4,392,535 |
6.25% 1/15/17 | | 3,000,000 | | 3,138,711 |
HCP, Inc. 3.75% 2/1/16 | | 2,000,000 | | 1,999,880 |
Health Care Property Investors, Inc.: | | | | |
6% 3/1/15 | | 1,000,000 | | 1,080,262 |
6.3% 9/15/16 | | 5,250,000 | | 5,884,877 |
7.072% 6/8/15 | | 1,500,000 | | 1,672,280 |
Health Care REIT, Inc.: | | | | |
6% 11/15/13 | | 1,000,000 | | 1,095,717 |
6.2% 6/1/16 | | 750,000 | | 831,961 |
Healthcare Realty Trust, Inc. 6.5% 1/17/17 | | 1,875,000 | | 2,079,008 |
HMB Capital Trust V 3.9016% 12/15/36 (d)(g)(h) | | 2,530,000 | | 0 |
Hospitality Properties Trust: | | | | |
5.625% 3/15/17 | | 915,000 | | 919,283 |
6.75% 2/15/13 | | 610,000 | | 644,022 |
7.875% 8/15/14 | | 1,000,000 | | 1,120,686 |
HRPT Properties Trust: | | | | |
5.75% 11/1/15 | | 3,600,000 | | 3,777,505 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
HRPT Properties Trust: - continued | | | | |
6.25% 8/15/16 | | $ 1,500,000 | | $ 1,601,964 |
6.5% 1/15/13 | | 200,000 | | 210,380 |
iStar Financial, Inc.: | | | | |
5.95% 10/15/13 | | 5,330,000 | | 5,010,200 |
6.05% 4/15/15 | | 1,500,000 | | 1,350,000 |
Kimco Realty Corp. 5.783% 3/15/16 | | 450,000 | | 490,522 |
Nationwide Health Properties, Inc.: | | | | |
6% 5/20/15 | | 3,122,000 | | 3,365,688 |
6.25% 2/1/13 | | 1,000,000 | | 1,070,479 |
8.25% 7/1/12 | | 1,300,000 | | 1,391,883 |
Omega Healthcare Investors, Inc.: | | | | |
6.75% 10/15/22 (g) | | 2,115,000 | | 2,093,850 |
7% 1/15/16 | | 1,295,000 | | 1,328,994 |
7.5% 2/15/20 | | 1,000,000 | | 1,050,000 |
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | | 1,750,000 | | 1,913,886 |
Potlatch Corp. 7.5% 11/1/19 | | 1,000,000 | | 1,057,500 |
ProLogis Trust: | | | | |
6.25% 3/15/17 | | 4,000,000 | | 4,371,652 |
6.625% 5/15/18 | | 6,480,000 | | 7,160,860 |
6.875% 3/15/20 | | 1,500,000 | | 1,675,158 |
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | | 2,000,000 | | 2,176,400 |
Security Capital Industrial Trust 7.625% 7/1/17 | | 4,690,000 | | 5,423,399 |
Senior Housing Properties Trust: | | | | |
4.3% 1/15/16 | | 5,000,000 | | 4,961,425 |
6.75% 4/15/20 | | 2,000,000 | | 2,121,178 |
8.625% 1/15/12 | | 5,900,000 | | 6,187,365 |
UDR, Inc. 5.5% 4/1/14 | | 500,000 | | 531,257 |
United Dominion Realty Trust, Inc.: | | | | |
5.13% 1/15/14 | | 500,000 | | 522,548 |
5.25% 1/15/15 | | 1,000,000 | | 1,052,356 |
5.25% 1/15/16 | | 4,000,000 | | 4,170,536 |
Weingarten Realty Investors 4.857% 1/15/14 | | 2,500,000 | | 2,568,593 |
| | 133,511,259 |
Real Estate Management & Development - 4.7% |
AMB Property LP 5.9% 8/15/13 | | 400,000 | | 426,049 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Brandywine Operating Partnership LP: | | | | |
5.4% 11/1/14 | | $ 6,750,000 | | $ 7,076,032 |
5.75% 4/1/12 | | 1,000,000 | | 1,032,844 |
7.5% 5/15/15 | | 1,000,000 | | 1,110,549 |
CB Richard Ellis Services, Inc.: | | | | |
6.625% 10/15/20 (g) | | 1,205,000 | | 1,205,000 |
11.625% 6/15/17 | | 1,500,000 | | 1,747,500 |
Colonial Properties Trust: | | | | |
6.15% 4/15/13 | | 1,500,000 | | 1,557,717 |
6.25% 6/15/14 | | 1,594,000 | | 1,681,614 |
6.875% 8/15/12 | | 1,000,000 | | 1,047,462 |
Colonial Realty LP 6.05% 9/1/16 | | 2,500,000 | | 2,539,580 |
Duke Realty LP: | | | | |
6.25% 5/15/13 | | 750,000 | | 810,498 |
7.375% 2/15/15 | | 1,500,000 | | 1,706,700 |
DuPont Fabros Technology LP 8.5% 12/15/17 | | 845,000 | | 916,825 |
Forest City Enterprises, Inc.: | | | | |
6.5% 2/1/17 | | 11,560,000 | | 10,635,200 |
7.625% 6/1/15 | | 1,435,000 | | 1,391,950 |
Highwoods/Forsyth LP 5.85% 3/15/17 | | 2,800,000 | | 2,952,555 |
Host Hotels & Resorts LP: | | | | |
6.875% 11/1/14 | | 500,000 | | 515,000 |
9% 5/15/17 | | 750,000 | | 838,125 |
Liberty Property LP 6.375% 8/15/12 | | 2,679,000 | | 2,864,687 |
Post Apartment Homes LP: | | | | |
5.45% 6/1/12 | | 713,000 | | 735,980 |
6.3% 6/1/13 | | 2,000,000 | | 2,149,586 |
Realogy Corp. 7.875% 2/15/19 (g) | | 2,035,000 | | 2,045,175 |
Regency Centers LP: | | | | |
5.25% 8/1/15 | | 4,509,000 | | 4,835,528 |
5.875% 6/15/17 | | 400,000 | | 436,472 |
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | | 1,000,000 | | 1,080,000 |
Ventas Realty LP: | | | | |
3.125% 11/30/15 | | 1,500,000 | | 1,454,085 |
6.5% 6/1/16 | | 2,340,000 | | 2,421,900 |
6.5% 6/1/16 | | 11,370,000 | | 11,767,950 |
| | 68,982,563 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.1% |
Wrightwood Capital LLC 9% 6/1/14 (d)(g) | | $ 4,000,000 | | $ 1,200,000 |
TOTAL FINANCIALS | | 214,541,822 |
HEALTH CARE - 0.6% |
Health Care Equipment & Supplies - 0.2% |
Aviv Healthcare Properties LP 7.75% 2/15/19 (g) | | 2,335,000 | | 2,399,213 |
Health Care Providers & Services - 0.4% |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 (g) | | 3,410,000 | | 3,546,400 |
Skilled Healthcare Group, Inc. 11% 1/15/14 | | 3,080,000 | | 3,164,700 |
| | 6,711,100 |
TOTAL HEALTH CARE | | 9,110,313 |
TOTAL NONCONVERTIBLE BONDS | | 312,960,192 |
TOTAL CORPORATE BONDS (Cost $383,752,362) | 414,573,232 |
Asset-Backed Securities - 4.4% |
|
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (g) | | 1,384,000 | | 1,297,500 |
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.62% 3/23/19 (g)(h) | | 365,848 | | 332,922 |
Brascan Real Estate CDO Ltd./Brascan Real Estate CDO Corp. Series 2004-1A Class A, 0.6531% 1/20/40 (g)(h) | | 849,042 | | 832,061 |
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7606% 3/20/50 (g)(h) | | 2,250,000 | | 67,500 |
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | | 6,875,000 | | 6,840,625 |
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.5391% 1/20/37 (g)(h) | | 1,397,997 | | 922,678 |
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | | 2,383,050 | | 1,906,440 |
Cbre Realty Finance Cdo 2007-1/LLC 0.5528% 4/7/52 (g)(h) | | 6,711,746 | | 4,899,575 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | | $ 500,000 | | $ 392,961 |
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | | | | |
Class B1, 6.065% 12/28/35 (g) | | 1,570,000 | | 1,177,500 |
Class B2, 1.6528% 12/28/35 (g)(h) | | 1,575,000 | | 976,500 |
Class D, 9% 12/28/35 (g) | | 500,000 | | 158,450 |
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A Class D, 9% 6/28/38 (g) | | 997,000 | | 264,205 |
Crest Ltd. Series 2002-IGA: | | | | |
Class A, 0.7544% 7/28/17 (g)(h) | | 637,960 | | 630,438 |
Class B, 1.6544% 7/28/35 (g)(h) | | 1,500,000 | | 1,320,000 |
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | | 9,500,000 | | 8,137,074 |
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6569% 11/28/39 (g)(h) | | 550,000 | | 16,500 |
Green Tree Financial Corp.: | | | | |
Series 1996-4 Class M1, 7.75% 6/15/27 | | 1,788,179 | | 1,609,208 |
Series 1997-3 Class M1, 7.53% 3/15/28 | | 7,949,878 | | 5,951,415 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 6/25/35 (h)(j) | | 1,259,000 | | 83,103 |
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | | | | |
Class D, 1.81% 8/26/30 (g)(h) | | 756,799 | | 83,248 |
Class E, 2.26% 8/26/30 (g)(h) | | 1,472,717 | | 44,182 |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 3/15/28 | | 1,365,083 | | 500,346 |
Merit Securities Corp. Series 13 Class M1, 7.9882% 12/28/33 | | 1,923,000 | | 1,607,435 |
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | | 883,000 | | 693,155 |
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A: | | | | |
Class A2, 4.646% 7/24/39 (g) | | 1,060,054 | | 1,060,054 |
Class D, 5.194% 7/24/39 (g) | | 4,590,000 | | 4,475,250 |
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9359% 2/5/36 (g)(h) | | 3,422,702 | | 342 |
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (g) | | 3,165,000 | | 3,133,350 |
Wachovia Ltd./Wachovia LLC: | | | | |
Series 2006-1 Class 1ML, 0% 9/25/26 (g)(h) | | 2,000,000 | | 540,000 |
Series 2006-1A: | | | | |
Class A1A, 0.5628% 9/25/26 (g)(h) | | 2,439,000 | | 2,036,565 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Wachovia Ltd./Wachovia LLC: - continued | | | | |
Series 2006-1A: | | | | |
Class A1B, 0.6328% 9/25/26 (g)(h) | | $ 6,285,000 | | $ 4,996,575 |
Class A2A, 0.5228% 9/25/26 (g)(h) | | 9,385,000 | | 8,071,100 |
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A Class F, 2.2344% 11/21/40 (g)(h) | | 250,000 | | 50,000 |
TOTAL ASSET-BACKED SECURITIES (Cost $72,123,231) | 65,108,257 |
Collateralized Mortgage Obligations - 2.4% |
|
Private Sponsor - 2.4% |
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4713% 3/15/22 (g)(h) | | 7,770,341 | | 7,612,174 |
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4413% 6/15/22 (g)(h) | | 3,250,000 | | 3,006,771 |
Countrywide Home Loans, Inc.: | | | | |
Series 2002-38 Class B3, 5% 2/25/18 (g) | | 102,634 | | 13,876 |
Series 2002-R2 Class 2B3, 4.4726% 7/25/33 (g)(h) | | 232,454 | | 91,986 |
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | | 145,467 | | 14,110 |
Series 2003-R2 Class B3, 5.5% 5/25/43 (g) | | 265,815 | | 10,189 |
Series 2003-R3: | | | | |
Class B2, 5.5% 11/25/33 (g) | | 1,547,998 | | 436,339 |
Class B3, 5.5% 11/25/33 (g) | | 370,653 | | 19,035 |
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(h) | | 231,482 | | 7,227 |
FREMF Mortgage Trust: | | | | |
Series 2010 K7 Class B, 5.4344% 4/25/20 (g)(h) | | 1,500,000 | | 1,328,400 |
Series 2010-K6 Class B, 5.3576% 12/26/46 (g)(h) | | 4,500,000 | | 3,959,765 |
Merrill Lynch Floating Trust floater Series 2006-1 Class TM, 0.761% 6/15/22 (g)(h) | | 8,485,528 | | 7,933,969 |
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | | 7,120,000 | | 7,212,560 |
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (g) | | 1,600,000 | | 1,643,460 |
RESI Finance LP/RESI Finance DE Corp. floater: | | | | |
Series 2003-B Class B9, 12.2113% 7/10/35 (g)(h) | | 502,236 | | 334,037 |
Series 2005-A Class B6, 2.2613% 3/10/37 (g)(h) | | 1,680,659 | | 312,603 |
Series 2005-B Class B6, 1.8613% 6/10/37 (g)(h) | | 888,208 | | 65,994 |
Series 2005-D Class B6, 2.5113% 12/15/37 (g)(h) | | 448,042 | | 19,087 |
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | | 74,309 | | 28,583 |
RESIX Finance Ltd. floater: | | | | |
Series 2003-D Class B8, 6.7613% 12/10/35 (g)(h) | | 460,412 | | 175,141 |
Collateralized Mortgage Obligations - continued |
| Principal Amount (e) | | Value |
Private Sponsor - continued |
RESIX Finance Ltd. floater: - continued | | | | |
Series 2004-A Class B7, 4.5113% 2/10/36 (g)(h) | | $ 478,992 | | $ 240,885 |
Series 2004-B Class B7, 4.2613% 2/10/36 (g)(h) | | 575,299 | | 217,751 |
Series 2005-C Class B7, 3.3613% 9/10/37 (g)(h) | | 1,830,031 | | 154,455 |
TOTAL PRIVATE SPONSOR | | 34,838,397 |
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) | | 192,091 | | 119,407 |
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 4.0614% 2/25/42 (g)(h) | | 120,527 | | 53,578 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | | 267,698 | | 83,476 |
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 4.0337% 6/25/43 (g)(h) | | 167,016 | | 65,918 |
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 4.2404% 10/25/42 (g)(h) | | 72,654 | | 27,284 |
TOTAL U.S. GOVERNMENT AGENCY | | 349,663 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $39,642,982) | 35,188,060 |
Commercial Mortgage Securities - 17.8% |
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | | 2,000,000 | | 2,146,229 |
Asset Securitization Corp. Series 1997-D4: | | | | |
Class B1, 7.525% 4/14/29 | | 1,565,000 | | 1,619,968 |
Class B2, 7.525% 4/14/29 | | 560,000 | | 574,450 |
Banc of America Commercial Mortgage, Inc.: | | | | |
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | | 4,185,000 | | 4,301,171 |
Series 2005-1 Class CJ, 5.1794% 11/10/42 (h) | | 3,580,000 | | 3,652,174 |
Series 2005-6 Class AJ, 5.1955% 9/10/47 (h) | | 5,000,000 | | 4,990,604 |
Banc of America Large Loan Trust floater Series 2010- HLTN Class HLTN, 2.0103% 11/15/15 (g)(h) | | 22,269,352 | | 19,875,396 |
Banc of America Large Loan, Inc. floater Series 2005- MIB1 Class K, 2.2613% 3/15/22 (g)(h) | | 4,190,000 | | 2,974,900 |
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4558% 3/11/39 (h) | | 5,700,000 | | 5,697,442 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Bear Stearns Commercial Mortgage Securities Trust: | | | | |
floater Series 2006-BBA7: | | | | |
Class D, 0.5213% 3/15/19 (g)(h) | | $ 2,480,000 | | $ 2,215,143 |
Class E, 0.5813% 3/15/19 (g)(h) | | 1,995,000 | | 1,732,628 |
Class F, 0.6013% 3/15/19 (g)(h) | | 1,650,000 | | 1,419,686 |
Class G, 0.7013% 3/15/19 (g)(h) | | 2,760,000 | | 2,284,531 |
Series 2006-T22 Class B, 5.5121% 4/12/38 (g)(h) | | 2,520,000 | | 2,434,237 |
Citigroup Commercial Mortgage Trust floater Series 2007-FL3A Classs MLA2, 1.3113% 4/15/22 (g)(h) | | 637,226 | | 546,397 |
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD2 Class VPM2, 5.6179% 1/15/46 (g)(h) | | 3,500,000 | | 3,443,526 |
COMM pass-thru certificates: | | | | |
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | | 9,964,688 | | 9,889,953 |
Series 2001-J1A Class F, 6.958% 2/16/34 (g) | | 2,600,000 | | 2,594,999 |
Credit Suisse First Boston Mortgage Securities Corp. Series 2004-TF2A Class AX, 0.0118% 11/15/19 (g)(h)(i) | | 4,461,469 | | 45 |
Credit Suisse/Morgan Stanley Commercial Mortgage Trust: | | | | |
floater Series 2006-HC1A: | | | | |
Class A2, 0.5213% 5/15/23 (g)(h) | | 5,800,000 | | 5,647,950 |
Class D, 0.7313% 5/15/23 (g)(h) | | 1,250,000 | | 1,205,847 |
Class F, 0.8613% 5/15/23 (g)(h) | | 1,825,000 | | 1,748,693 |
Series 2006-HC1A Class A1, 0.4513% 5/15/23 (g)(h) | | 2,375,639 | | 2,326,733 |
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.91% 3/25/17 (g)(h) | | 2,512,000 | | 2,054,345 |
CRESIX Finance Ltd. Series 2006-AA: | | | | |
Class F, 4.46% 3/25/17 (g)(h) | | 3,860,000 | | 3,061,463 |
Class G, 7.26% 3/25/17 (g)(h) | | 3,272,000 | | 2,056,248 |
Crest Ltd. Series 2001-1A Class C, 9% 2/25/34 (g) | | 1,000,000 | | 600,000 |
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | | 1,200,000 | | 985,147 |
DLJ Commercial Mortgage Corp.: | | | | |
Series 1998-CG1 Class B4, 7.2253% 6/10/31 (g)(h) | | 2,500,000 | | 2,681,245 |
Series 2000-CKP1 Class B3, 8.0024% 11/10/33 (h) | | 2,970,000 | | 2,964,241 |
First Union National Bank Commercial Mortgage Trust Series 2001-C4: | | | | |
Class H, 7.036% 12/12/33 (g) | | 2,000,000 | | 2,030,146 |
Class K, 6% 12/12/33 (g) | | 2,000,000 | | 1,991,182 |
FREMF Mortgage Trust Series 2010-K9 Class B, 5.163% 9/25/45 (h) | | 4,000,000 | | 3,410,000 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | | $ 7,494,068 | | $ 7,149,341 |
GE Capital Commercial Mortgage Corp.: | | | | |
Series 2001-3 Class C, 6.51% 6/10/38 | | 820,000 | | 841,357 |
Series 2002-1A Class H, 7.1436% 12/10/35 (g)(h) | | 991,000 | | 979,304 |
Global Towers Partners Acquisition Partners I LLC Series 2007-1A Class G, 7.8737% 5/15/37 (g) | | 1,000,000 | | 1,045,000 |
GMAC Commercial Mortgage Securities, Inc.: | | | | |
Series 1997-C2: | | | | |
Class F, 6.75% 4/15/29 (h) | | 2,617,802 | | 2,739,180 |
Class G, 6.75% 4/15/29 (h) | | 1,250,000 | | 1,256,100 |
Series 1999-C3: | | | | |
Class G, 6.974% 8/15/36 (g) | | 1,199,621 | | 1,204,419 |
Class J, 6.974% 8/15/36 (g) | | 1,500,000 | | 1,472,121 |
Series 2000-C1: | | | | |
Class H, 7% 3/15/33 (g) | | 49,259 | | 49,424 |
Class K, 7% 3/15/33 | | 1,100,000 | | 791,297 |
Series 2002-C3 Class D, 5.27% 7/10/39 | | 3,000,000 | | 3,087,784 |
Greenwich Capital Commercial Funding Corp.: | | | | |
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | | 2,000,000 | | 2,055,124 |
Series 2002-C1 Class H, 5.903% 1/11/35 (g) | | 880,000 | | 880,928 |
GS Mortgage Securities Corp. II floater Series 2007-EOP Class L, 1.5606% 3/1/20 (g)(h) | | 1,400,000 | | 1,255,665 |
JP Morgan Chase Commercial Mortgage Securities Corp.: | | | | |
Series 2009-IWST Class D, 7.4453% 12/5/27 (g)(h) | | 5,000,000 | | 5,368,461 |
Series 2010-CNTM Class MZ, 8.5% 8/4/20 (g) | | 4,000,000 | | 3,701,252 |
Series 2010-CNTR: | | | | |
Class D, 6.1838% 8/5/32 (g)(h) | | 3,750,000 | | 3,584,427 |
Class XB, 0.9305% 8/5/32 (g)(i) | | 32,655,000 | | 1,793,520 |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2001-A: | | | | |
Class G, 6% 10/15/32 (g)(h) | | 2,895,000 | | 14,475 |
Class X, 1.3291% 10/15/32 (g)(h)(i) | | 7,200,784 | | 384 |
JPMorgan Chase Commercial Mortgage Securities Trust floater Series 2005-FL1A Class A2, 0.4413% 2/15/19 (g)(h) | | 2,244,141 | | 2,203,632 |
JPMorgan Commercial Mortgage Finance Corp.: | | | | |
Series 1997-C5 Class F, 7.5605% 9/15/29 | | 2,064,384 | | 2,158,336 |
Series 1999-C8: | | | | |
Class G, 6% 7/15/31 (g) | | 1,385,000 | | 1,377,451 |
Class H, 6% 7/15/31 (g) | | 2,638,000 | | 19,785 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | | $ 2,920,000 | | $ 3,007,600 |
LB-UBS Commercial Mortgage Trust: | | | | |
sequential payer: | | | | |
Series 2004-C2 Class E, 4.487% 3/15/36 | | 2,060,000 | | 2,012,229 |
Series 2005-C7 Class AJ, 5.323% 11/15/40 | | 6,000,000 | | 5,899,363 |
Series 2006-C7 Class AM, 5.378% 11/15/38 | | 2,040,000 | | 2,070,738 |
Series 2005-C2 Class AJ, 5.205% 4/15/30 (h) | | 8,910,000 | | 9,042,830 |
Series 2006-C4: | | | | |
Class AJ, 5.9009% 6/15/38 (h) | | 6,005,000 | | 5,704,779 |
Class AM, 5.9009% 6/15/38 (h) | | 6,700,000 | | 6,977,491 |
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | | | | |
Class F, 4.384% 7/12/37 | CAD | 710,000 | | 388,747 |
Class G, 4.384% 7/12/37 | CAD | 355,000 | | 187,705 |
Class H, 4.384% 7/12/37 | CAD | 236,000 | | 120,537 |
Class J, 4.384% 7/12/37 | CAD | 355,000 | | 175,193 |
Class K, 4.384% 7/12/37 | CAD | 355,000 | | 169,324 |
Class L, 4.384% 7/12/37 | CAD | 236,000 | | 108,824 |
Class M, 4.384% 7/12/37 | CAD | 995,000 | | 327,138 |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | | 3,295,748 | | 330 |
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6562% 5/12/39 (h) | | 1,200,000 | | 1,233,433 |
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | | | | |
Class D, 6.988% 1/15/37 | | 750,000 | | 0 |
Class E, 7.983% 1/15/37 | | 1,453,000 | | 0 |
Class IO, 7.9747% 1/15/37 (h)(i) | | 5,415,859 | | 457,640 |
Morgan Stanley Capital I Trust: | | | | |
sequential payer: | | | | |
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | | 1,927,319 | | 1,965,865 |
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | | 8,200,000 | | 8,328,879 |
Series 1997-RR Class F, 7.4398% 4/30/39 (g)(h) | | 2,450,725 | | 2,352,696 |
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | | 2,830,092 | | 1,733,431 |
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | | 7,500,000 | | 7,597,500 |
Morgan Stanley Dean Witter Capital I Trust Series 2001-IQA Class F, 6.79% 12/18/32 (g) | | 1,223,602 | | 1,230,509 |
Multi Security Asset Trust sequential payer Series 2005-RR4A Class A2, 4.83% 11/28/35 (g) | | 1,031,161 | | 986,048 |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | | 3,249,327 | | 3,436,163 |
RBSCF Trust Series 2010-MB1 Class D, 4.6667% 4/15/24 (g)(h) | | 5,820,000 | | 5,538,094 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E5, 6.5% 2/18/34 (g)(h) | | $ 3,000,000 | | $ 3,093,750 |
Structured Asset Securities Corp.: | | | | |
Series 1996-CFL Class I, 7.75% 2/25/28 (g) | | 2,802,245 | | 2,945,159 |
Series 1997-LLI Class F, 7.3% 10/12/34 (g) | | 2,170,000 | | 2,230,684 |
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 6.0489% 8/15/39 (h) | | 2,080,000 | | 2,099,732 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | | 10,630,000 | | 11,161,500 |
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8363% 7/15/24 (g)(h) | | 1,200,000 | | 388,785 |
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/20 (g) | | 2,540,000 | | 2,516,010 |
Wachovia Bank Commercial Mortgage Trust: | | | | |
floater Series 2007-WHL8 Class MH1, 1.0613% 6/15/20 (g)(h) | | 1,437,020 | | 1,267,866 |
Series 2004-C10 Class E, 4.931% 2/15/41 | | 2,000,000 | | 1,992,682 |
Series 2004-C11: | | | | |
Class D, 5.3116% 1/15/41 (h) | | 5,177,000 | | 4,862,809 |
Class E, 5.3616% 1/15/41 (h) | | 3,785,000 | | 3,257,671 |
Series 2004-C12 Class D, 5.3051% 7/15/41 (h) | | 2,750,000 | | 2,584,288 |
Series 2004-C14 Class B, 5.17% 8/15/41 | | 3,180,000 | | 3,178,217 |
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $253,385,370) | 262,817,725 |
Floating Rate Loans - 2.2% |
|
CONSUMER DISCRETIONARY - 0.6% |
Hotels, Restaurants & Leisure - 0.6% |
Extended Stay America, Inc. term loan 9.75% 11/1/15 | | 9,000,000 | | 8,977,500 |
Specialty Retail - 0.0% |
The Pep Boys - Manny, Moe & Jack term loan 2.3% 10/27/13 (h) | | 28,053 | | 28,018 |
TOTAL CONSUMER DISCRETIONARY | | 9,005,518 |
FINANCIALS - 0.9% |
Real Estate Investment Trusts - 0.1% |
Medical Properties Trust, Inc. Tranche B, term loan 5% 5/17/16 (h) | | 1,903,333 | | 1,903,333 |
Floating Rate Loans - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Real Estate Management & Development - 0.8% |
CB Richard Ellis Group, Inc. Tranche B, term loan 3.5113% 11/9/16 (h) | | $ 1,216,950 | | $ 1,230,641 |
Realogy Corp.: | | | | |
Credit-Linked Deposit 3.2606% 10/10/13 (h) | | 835,322 | | 808,174 |
Tranche 2LN, term loan 13.5% 10/15/17 | | 2,500,000 | | 2,775,000 |
Tranche B, term loan 3.2857% 10/10/13 (h) | | 7,048,734 | | 6,819,650 |
| | 11,633,465 |
TOTAL FINANCIALS | | 13,536,798 |
HEALTH CARE - 0.4% |
Health Care Providers & Services - 0.4% |
Skilled Healthcare Group, Inc. term loan 5.25% 4/9/16 (h) | | 3,757,869 | | 3,757,869 |
Universal Health Services, Inc. term loan 5.5% 11/15/16 (h) | | 2,000,000 | | 2,024,000 |
| | 5,781,869 |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
TowerCo Finance LLC term loan: | | | | |
2/2/17 (h) | | 3,000,000 | | 3,015,000 |
6% 11/24/14 (h) | | 565,292 | | 565,292 |
| | 3,580,292 |
TOTAL FLOATING RATE LOANS (Cost $31,050,715) | 31,904,477 |
Preferred Securities - 0.0% |
| | | |
FINANCIALS - 0.0% |
Diversified Financial Services - 0.0% |
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g) | 500,000 | | 15,000 |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g) | 1,220,000 | | 366,000 |
Preferred Securities - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Diversified Financial Services - continued |
Harp High Grade CDO I Ltd. Series 2006-1, 7/8/46 (g)(h) | $ 810,000 | | $ 8 |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(g)(h) | 1,350,000 | | 0 |
| | 381,008 |
TOTAL PREFERRED SECURITIES (Cost $3,376,206) | 381,008 |
Money Market Funds - 9.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 128,144,210 | | 128,144,210 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 10,307,000 | | 10,307,000 |
TOTAL MONEY MARKET FUNDS (Cost $138,451,210) | 138,451,210 |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $1,393,717,451) | 1,484,569,888 |
NET OTHER ASSETS (LIABILITIES) - (0.7)% | | (10,334,143) |
NET ASSETS - 100% | $ 1,474,235,745 |
Currency Abbreviations |
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Principal amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(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 $351,391,995 or 23.8% of net assets. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(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 $285,986 or 0.0% of net assets. |
Additional information on each restricted 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 | $ 166,459 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 201,735 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 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 | $ 107,690 |
Fidelity Securities Lending Cash Central Fund | 9,019 |
Total | $ 116,709 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 8,808,045 | $ 5,112,045 | $ - | $ 3,696,000 |
Financials | 505,682,615 | 468,226,231 | 33,051,144 | 4,405,240 |
Health Care | 21,655,259 | 21,655,259 | - | - |
Corporate Bonds | 414,573,232 | - | 413,373,232 | 1,200,000 |
Asset-Backed Securities | 65,108,257 | - | 32,296,385 | 32,811,872 |
Collateralized Mortgage Obligations | 35,188,060 | - | 34,217,052 | 971,008 |
Commercial Mortgage Securities | 262,817,725 | - | 251,474,555 | 11,343,170 |
Floating Rate Loans | 31,904,477 | - | 22,361,685 | 9,542,792 |
Preferred Securities | 381,008 | - | - | 381,008 |
Money Market Funds | 138,451,210 | 138,451,210 | - | - |
Total Investments in Securities: | $ 1,484,569,888 | $ 633,444,745 | $ 786,774,053 | $ 64,351,090 |
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 | $ 3,696,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,696,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
Equities - Financials | |
Beginning Balance | $ 3,922,244 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 482,996 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,405,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 482,996 |
Corporate Bonds | |
Beginning Balance | $ 1,370,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (170,000) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,200,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (170,000) |
Asset-Backed Securities | |
Beginning Balance | $ 16,886,956 |
Total Realized Gain (Loss) | 544,405 |
Total Unrealized Gain (Loss) | 1,629,207 |
Cost of Purchases | 3,378,507 |
Proceeds of Sales | (3,985,267) |
Amortization/Accretion | 34,853 |
Transfers in to Level 3 | 20,413,769 |
Transfers out of Level 3 | (6,090,558) |
Ending Balance | $ 32,811,872 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 652,011 |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 994,555 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 199,271 |
Cost of Purchases | - |
Proceeds of Sales | (209,037) |
Amortization/Accretion | (61,213) |
Transfers in to Level 3 | 47,432 |
Transfers out of Level 3 | - |
Ending Balance | $ 971,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 199,271 |
Commercial Mortgage Securities | |
Beginning Balance | $ 12,252,746 |
Total Realized Gain (Loss) | 363,698 |
Total Unrealized Gain (Loss) | 719,182 |
Cost of Purchases | 3,846,059 |
Proceeds of Sales | (2,919,781) |
Amortization/Accretion | (360,966) |
Transfers in to Level 3 | 4,496,807 |
Transfers out of Level 3 | (7,054,575) |
Ending Balance | $ 11,343,170 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 719,182 |
Floating Rate Loans | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | 11 |
Total Unrealized Gain (Loss) | 44,772 |
Cost of Purchases | 8,928,750 |
Proceeds of Sales | (2,855) |
Amortization/Accretion | 2,546 |
Transfers in to Level 3 | 569,568 |
Transfers out of Level 3 | - |
Ending Balance | $ 9,542,792 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 44,772 |
Preferred Securities | |
Beginning Balance | $ 365,608 |
Total Realized Gain (Loss) | (1,398,375) |
Total Unrealized Gain (Loss) | 2,420,705 |
Cost of Purchases | - |
Proceeds of Sales | (1,006,771) |
Amortization/Accretion | (159) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 381,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 14,166 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.0%* |
AAA,AA,A | 11.5% |
BBB | 15.7% |
BB | 5.1% |
B | 8.8% |
CCC,CC,C | 2.6% |
D | 0.0%* |
Not Rated | 11.2% |
Equities | 36.4% |
Short-Term Investments and Net Other Assets | 8.7% |
| 100.0% |
* Amount represents less than 0.1% |
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 changes. |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $13,906,408 of which $302,434 and $13,603,974 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $10,194,560) - See accompanying schedule: Unaffiliated issuers (cost $1,255,266,241) | $ 1,346,118,678 | |
Fidelity Central Funds (cost $138,451,210) | 138,451,210 | |
Total Investments (cost $1,393,717,451) | | $ 1,484,569,888 |
Cash | | 53,132 |
Receivable for investments sold | | 778,476 |
Receivable for fund shares sold | | 10,370,364 |
Dividends receivable | | 1,019,759 |
Interest receivable | | 7,391,451 |
Distributions receivable from Fidelity Central Funds | | 24,307 |
Prepaid expenses | | 2,669 |
Other receivables | | 3,298 |
Total assets | | 1,504,213,344 |
| | |
Liabilities | | |
Payable for investments purchased | $ 16,435,998 | |
Payable for fund shares redeemed | 2,131,021 | |
Accrued management fee | 647,651 | |
Distribution and service plan fees payable | 11,465 | |
Other affiliated payables | 362,950 | |
Other payables and accrued expenses | 81,514 | |
Collateral on securities loaned, at value | 10,307,000 | |
Total liabilities | | 29,977,599 |
| | |
Net Assets | | $ 1,474,235,745 |
Net Assets consist of: | | |
Paid in capital | | $ 1,392,502,542 |
Undistributed net investment income | | 3,116,326 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (12,261,001) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 90,877,878 |
Net Assets | | $ 1,474,235,745 |
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, 2011 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,797,617 ÷ 2,351,697 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class T:
Net Asset Value and redemption price per share ($3,286,119 ÷ 311,660 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class C:
Net Asset Value and offering price per share ($8,516,294 ÷ 810,324 shares)A | | $ 10.51 |
| | |
Real Estate Income:
Net Asset Value, offering price and redemption price per share ($1,417,817,158 ÷ 134,211,170 shares) | | $ 10.56 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($19,818,557 ÷ 1,877,576 shares) | | $ 10.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2011 |
| | |
Investment Income | | |
Dividends | | $ 9,995,753 |
Interest | | 24,962,922 |
Income from Fidelity Central Funds | | 116,709 |
Total income | | 35,075,384 |
| | |
Expenses | | |
Management fee | $ 3,378,557 | |
Transfer agent fees | 1,790,117 | |
Distribution and service plan fees | 37,860 | |
Accounting and security lending fees | 248,704 | |
Custodian fees and expenses | 17,249 | |
Independent trustees' compensation | 3,221 | |
Registration fees | 150,609 | |
Audit | 79,287 | |
Legal | 3,127 | |
Interest | 326 | |
Miscellaneous | 5,729 | |
Total expenses before reductions | 5,714,786 | |
Expense reductions | (19,898) | 5,694,888 |
Net investment income (loss) | | 29,380,496 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,085,391 | |
Foreign currency transactions | (475) | |
Total net realized gain (loss) | | 4,084,916 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 76,449,249 | |
Assets and liabilities in foreign currencies | (247) | |
Total change in net unrealized appreciation (depreciation) | | 76,449,002 |
Net gain (loss) | | 80,533,918 |
Net increase (decrease) in net assets resulting from operations | | $ 109,914,414 |
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,
2011 | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 29,380,496 | $ 41,516,164 |
Net realized gain (loss) | 4,084,916 | 20,625,469 |
Change in net unrealized appreciation (depreciation) | 76,449,002 | 102,855,727 |
Net increase (decrease) in net assets resulting
from operations | 109,914,414 | 164,997,360 |
Distributions to shareholders from net investment income | (37,299,617) | (40,150,798) |
Share transactions - net increase (decrease) | 362,602,428 | 450,504,667 |
Redemption fees | 167,937 | 230,512 |
Total increase (decrease) in net assets | 435,385,162 | 575,581,741 |
| | |
Net Assets | | |
Beginning of period | 1,038,850,583 | 463,268,842 |
End of period (including undistributed net investment income of $3,116,326 and undistributed net investment income of $11,035,447, respectively) | $ 1,474,235,745 | $ 1,038,850,583 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .18 |
Net realized and unrealized gain (loss) | .68 | (.04) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.41% | 1.46% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.13% A | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.09% A |
Net investment income (loss) | 4.68% A | 6.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 24,798 | $ 3,830 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .17 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.37% | 1.45% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.19% A | 1.17% A |
Expenses net of fee waivers, if any | 1.19% A | 1.17% A |
Expenses net of all reductions | 1.19% A | 1.17% A |
Net investment income (loss) | 4.62% A | 5.92% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,286 | $ 862 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.93 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .15 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .88 | .12 |
Distributions from net investment income | (.30) | (.14) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.51 | $ 9.93 |
Total Return B,C,D | 8.98% | 1.29% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.92% A | 1.86% A |
Expenses net of fee waivers, if any | 1.92% A | 1.86% A |
Expenses net of all reductions | 1.92% A | 1.86% A |
Net investment income (loss) | 3.89% A | 5.21% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 8,516 | $ 836 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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 - Real Estate Income
| Six months ended
January 31, | Years ended July 31, |
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 | $ 12.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .53 | .54 | .59 | .63 | .66 |
Net realized and unrealized gain (loss) | .68 | 1.73 | (1.27) | (1.48) | (.37) | (.11) |
Total from investment operations | .93 | 2.26 | (.73) | (.89) | .26 | .55 |
Distributions from net investment income | (.32) | (.52) | (.50) | (.66) | (.58) | (.67) |
Distributions from net realized gain | - | - | - | (.24) | (.24) | (.27) |
Total distributions | (.32) | (.52) | (.50) | (.90) | (.82) | (.94) |
Redemption fees added to paid in capital D | - H | - H | .01 | - H | - H | - H |
Net asset value,
end of period | $ 10.56 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Total Return B,C | 9.50% | 28.29% | (6.92)% | (8.43)% | 2.00% | 4.82% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .94% A | .97% | 1.00% | .94% | .88% | .85% |
Expenses net of fee waivers, if any | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Expenses net of all reductions | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Net investment income (loss) | 4.87% A | 5.60% | 7.15% | 5.77% | 5.30% | 5.61% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,417,817 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 | $ 521,265 |
Portfolio turnover rate F | 24% A | 28% | 47% | 32% | 45% | 27% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.95 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) D | .25 | .19 |
Net realized and unrealized gain (loss) | .69 | (.04) |
Total from investment operations | .94 | .15 |
Distributions from net investment income | (.33) | (.15) |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 10.56 | $ 9.95 |
Total Return B,C | 9.59% | 1.58% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | .89% A | .85% A |
Expenses net of fee waivers, if any | .89% A | .85% A |
Expenses net of all reductions | .89% A | .85% A |
Net investment income (loss) | 4.92% A | 6.70% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 19,819 | $ 2,930 |
Portfolio turnover rate F | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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, 2011
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. The Fund offers Class A, Class T, Class C, Real Estate Income 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. 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. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 146,307,298 |
Gross unrealized depreciation | (56,984,059) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 89,323,239 |
| |
Tax cost | $ 1,395,246,649 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $464,534,643 and $134,305,407, 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.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 16,015 | $ 3,066 |
Class T | -% | .25% | 2,354 | 48 |
Class C | .75% | .25% | 19,491 | 13,203 |
| | | $ 37,860 | $ 16,317 |
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and 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 and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,932 |
Class T | 519 |
Class C* | 984 |
| $ 13,435 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 15,004 | .24 |
Class T | 2,738 | .29 |
Class C | 5,205 | .27 |
Real Estate Income | 1,756,852 | .30 |
Institutional Class | 10,318 | .25 |
| $ 1,790,117 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9,698 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,060 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,034,560. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,019, including $1,676 from securities loaned to FCM.
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 $16,530,000. The weighted average interest rate was .71%. The interest expense amounted to $326 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
Semiannual Report
Notes to Financial Statements - continued
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of the Fund's operating expenses. During the period, this reimbursement reduced the Real Estate Income Class expenses by $16,722.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,046 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 $130.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31,
2010 A |
From net investment income | | |
Class A | $ 403,376 | $ 23,172 |
Class T | 62,202 | 6,447 |
Class C | 117,956 | 3,705 |
Real Estate Income | 36,448,945 | 40,107,971 |
Institutional Class | 267,138 | 9,503 |
Total | $ 37,299,617 | $ 40,150,798 |
A Distributions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Class A | | | | |
Shares sold | 2,027,150 | 402,260 | $ 20,844,366 | $ 3,960,293 |
Reinvestment of distributions | 24,886 | 1,072 | 253,502 | 10,302 |
Shares redeemed | (85,489) | (18,182) | (883,868) | (177,559) |
Net increase (decrease) | 1,966,547 | 385,150 | $ 20,214,000 | $ 3,793,036 |
Class T | | | | |
Shares sold | 238,527 | 85,986 | $ 2,458,227 | $ 847,305 |
Reinvestment of distributions | 5,363 | 671 | 54,590 | 6,447 |
Shares redeemed | (18,870) | (17) | (194,365) | (166) |
Net increase (decrease) | 225,020 | 86,640 | $ 2,318,452 | $ 853,586 |
Class C | | | | |
Shares sold | 742,789 | 84,053 | $ 7,631,928 | $ 827,207 |
Reinvestment of distributions | 9,867 | 378 | 100,408 | 3,628 |
Shares redeemed | (26,482) | (281) | (272,618) | (2,700) |
Net increase (decrease) | 726,174 | 84,150 | $ 7,459,718 | $ 828,135 |
Real Estate Income | | | | |
Shares sold | 49,541,592 | 69,175,263 | $ 510,694,454 | $ 650,744,676 |
Reinvestment of distributions | 3,274,977 | 4,018,182 | 33,265,854 | 36,922,410 |
Shares redeemed | (22,123,776) | (26,105,432) | (227,725,959) | (245,525,556) |
Net increase (decrease) | 30,692,793 | 47,088,013 | $ 316,234,349 | $ 442,141,530 |
Institutional Class | | | | |
Shares sold | 1,646,275 | 294,304 | $ 17,032,892 | $ 2,886,826 |
Reinvestment of distributions | 21,882 | 902 | 222,798 | 8,663 |
Shares redeemed | (85,054) | (733) | (879,781) | (7,109) |
Net increase (decrease) | 1,583,103 | 294,473 | $ 16,375,909 | $ 2,888,380 |
A Share transactions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
13. 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
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, 2011, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 the 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, 2011, by correspondence with the custodians 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, 2011, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 17, 2011
Semiannual Report
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Semiannual Report
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Semiannual Report
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REI-USAN-0311
1.789734.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Class A, Class T, and Class C
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Class A , Class T, and
Class C are classes of Fidelity® Real Estate Income Fund
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of the fund's holdings. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.13% | | | |
Actual | | $ 1,000.00 | $ 1,094.10 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class T | 1.19% | | | |
Actual | | $ 1,000.00 | $ 1,093.70 | $ 6.28 |
HypotheticalA | | $ 1,000.00 | $ 1,019.21 | $ 6.06 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,089.80 | $ 10.11 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Real Estate Income | .94% | | | |
Actual | | $ 1,000.00 | $ 1,095.00 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.47 | $ 4.79 |
Institutional Class | .89% | | | |
Actual | | $ 1,000.00 | $ 1,095.90 | $ 4.70 |
HypotheticalA | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
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 Five Stocks as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Ventas, Inc. | 1.7 | 1.3 |
MFA Financial, Inc. | 1.6 | 1.8 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Cypress Sharpridge Investments, Inc. | 1.2 | 1.3 |
Equity Lifestyle Properties, Inc. | 1.2 | 1.4 |
| 7.1 | |
Top 5 Bonds as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.0103% 11/15/15 | 1.4 | 0.0 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 | 1.0 | 1.4 |
Ventas Realty LP 6.5% 6/1/16 | 0.8 | 1.1 |
Acadia Realty Trust 3.75% 12/15/26 | 0.8 | 1.1 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 | 0.8 | 0.6 |
| 4.8 | |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Shopping Centers | 9.6 | 8.9 |
REITs - Health Care Facilities | 8.4 | 8.3 |
REITs - Management/Investment | 7.1 | 6.6 |
REITs - Mortgage | 6.8 | 8.7 |
REITs - Industrial Buildings | 5.7 | 4.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Common Stocks 25.9% | | | Common Stocks 23.4% | |
| Preferred Stocks 8.6% | | | Preferred Stocks 8.1% | |
| Bonds 45.8% | | | Bonds 45.1% | |
| Convertible
Securities 8.8% | | | Convertible
Securities 11.8% | |
| Other Investments 2.2% | | | Other Investments 1.5% | |
| Short-Term
Investments and
Net Other Assets 8.7% | | | Short-Term
Investments and
Net Other Assets 10.1% | |
* Foreign investments | 3.3% | | ** Foreign investments | 2.3% | |
Semiannual Report
Investments January 31, 2011
Showing Percentage of Net Assets
Common Stocks - 25.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 0.5% |
Hotels, Restaurants & Leisure - 0.3% |
Starwood Hotels & Resorts Worldwide, Inc. | 75,100 | | $ 4,428,647 |
Household Durables - 0.2% |
Stanley Martin Communities LLC Class B (a) | 4,620 | | 3,696,000 |
TOTAL CONSUMER DISCRETIONARY | | 8,124,647 |
FINANCIALS - 23.9% |
Capital Markets - 0.5% |
HFF, Inc. (a) | 546,564 | | 6,892,172 |
Real Estate Investment Trusts - 23.1% |
Acadia Realty Trust (SBI) | 1,151,149 | | 21,273,234 |
Alexandria Real Estate Equities, Inc. | 43,100 | | 3,320,424 |
AMB Property Corp. (SBI) | 287,200 | | 9,635,560 |
American Assets Trust, Inc. (a) | 222,500 | | 4,737,025 |
American Campus Communities, Inc. | 331,400 | | 10,717,476 |
Annaly Capital Management, Inc. | 175,050 | | 3,121,142 |
Anworth Mortgage Asset Corp. | 1,336,610 | | 9,182,511 |
Apartment Investment & Management Co. Class A | 75,041 | | 1,918,048 |
Apollo Commercial Real Estate Finance, Inc. | 77,500 | | 1,273,325 |
Associated Estates Realty Corp. | 484,200 | | 7,171,002 |
AvalonBay Communities, Inc. | 44,625 | | 5,173,376 |
Brandywine Realty Trust (SBI) | 295,700 | | 3,430,120 |
Canadian (REIT) | 15,000 | | 479,473 |
CapLease, Inc. | 124,200 | | 685,584 |
CBL & Associates Properties, Inc. | 296,173 | | 5,052,711 |
Cedar Shopping Centers, Inc. | 271,400 | | 1,641,970 |
Cypress Sharpridge Investments, Inc. | 1,345,588 | | 17,559,923 |
DCT Industrial Trust, Inc. | 666,100 | | 3,690,194 |
Developers Diversified Realty Corp. | 140,000 | | 1,904,000 |
DiamondRock Hospitality Co. (a) | 487,900 | | 5,918,227 |
Digital Realty Trust, Inc. (f) | 190,100 | | 10,341,440 |
Duke Realty LP | 590,283 | | 8,086,877 |
Dynex Capital, Inc. | 826,898 | | 8,831,271 |
Education Realty Trust, Inc. | 140,600 | | 1,096,680 |
Equity Lifestyle Properties, Inc. | 301,530 | | 17,151,026 |
Equity Residential (SBI) | 103,300 | | 5,597,827 |
Excel Trust, Inc. | 316,100 | | 4,039,758 |
Federal Realty Investment Trust (SBI) | 26,700 | | 2,147,481 |
Government Properties Income Trust | 74,500 | | 1,929,550 |
HCP, Inc. | 154,900 | | 5,745,241 |
Healthcare Realty Trust, Inc. | 218,500 | | 4,588,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Highwoods Properties, Inc. (SBI) | 107,900 | | $ 3,535,883 |
Hospitality Properties Trust (SBI) | 96,400 | | 2,397,468 |
LTC Properties, Inc. | 165,213 | | 4,516,923 |
MFA Financial, Inc. | 2,919,281 | | 23,850,526 |
Mid-America Apartment Communities, Inc. | 64,600 | | 4,118,250 |
Monmouth Real Estate Investment Corp. Class A | 455,073 | | 3,745,251 |
National Health Investors, Inc. | 195,606 | | 8,945,062 |
National Retail Properties, Inc. | 219,500 | | 5,454,575 |
Nationwide Health Properties, Inc. | 140,480 | | 5,275,024 |
Omega Healthcare Investors, Inc. | 214,000 | | 4,767,920 |
Pebblebrook Hotel Trust | 204,100 | | 4,196,296 |
ProLogis Trust | 495,966 | | 7,399,813 |
Public Storage | 31,200 | | 3,400,176 |
Rayonier, Inc. | 23,800 | | 1,409,198 |
Regency Centers Corp. | 100,100 | | 4,315,311 |
Senior Housing Properties Trust (SBI) | 75,800 | | 1,699,436 |
Simon Property Group, Inc. | 119,801 | | 12,153,811 |
Sun Communities, Inc. | 12,700 | | 420,624 |
Sunstone Hotel Investors, Inc. (a) | 465,100 | | 4,748,671 |
The Macerich Co. | 99,474 | | 4,840,405 |
Two Harbors Investment Corp. | 143,980 | | 1,446,999 |
Ventas, Inc. | 457,380 | | 25,366,282 |
Vornado Realty Trust | 44,390 | | 3,910,315 |
Weyerhaeuser Co. | 340,429 | | 7,891,144 |
Whitestone REIT Class B | 179,067 | | 2,580,355 |
| | 339,826,694 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 61,400 | | 1,362,466 |
Coresite Realty Corp. | 146,600 | | 2,106,642 |
| | 3,469,108 |
Thrifts & Mortgage Finance - 0.1% |
Walker & Dunlop, Inc. | 168,200 | | 2,018,400 |
Wrightwood Capital LLC warrants 7/31/14 (a)(g) | 60,681 | | 607 |
| | 2,019,007 |
TOTAL FINANCIALS | | 352,206,981 |
HEALTH CARE - 1.5% |
Health Care Providers & Services - 1.5% |
Brookdale Senior Living, Inc. (a) | 541,600 | | 11,833,960 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Capital Senior Living Corp. (a) | 504,850 | | $ 3,448,126 |
Emeritus Corp. (a) | 333,674 | | 6,373,173 |
| | 21,655,259 |
TOTAL COMMON STOCKS (Cost $311,994,867) | 381,986,887 |
Preferred Stocks - 10.5% |
| | | |
Convertible Preferred Stocks - 1.9% |
FINANCIALS - 1.9% |
Real Estate Investment Trusts - 1.7% |
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | | 2,339,375 |
CommonWealth REIT 6.50% | 150,000 | | 3,255,000 |
Excel Trust, Inc. 7.00% (a)(g) | 248,200 | | 6,205,000 |
Lexington Corporate Properties Trust Series C 6.50% | 325,036 | | 13,726,270 |
| | 25,525,645 |
Real Estate Management & Development - 0.2% |
Grubb & Ellis Co. 12.00% (g) | 27,500 | | 2,445,025 |
TOTAL FINANCIALS | | 27,970,670 |
Nonconvertible Preferred Stocks - 8.6% |
CONSUMER DISCRETIONARY - 0.1% |
Household Durables - 0.1% |
M/I Homes, Inc. Series A, 9.75% (a) | 38,200 | | 683,398 |
FINANCIALS - 8.5% |
Diversified Financial Services - 0.3% |
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | | 362,500 |
Red Lion Hotels Capital Trust 9.50% | 163,225 | | 4,157,341 |
| | 4,519,841 |
Real Estate Investment Trusts - 7.8% |
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | | 1,715,870 |
American Home Mortgage Investment Corp.: | | | |
Series A, 9.375% (a) | 120,300 | | 120 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
American Home Mortgage Investment Corp.: - continued | | | |
Series B, 9.25% (a) | 124,100 | | $ 12 |
Annaly Capital Management, Inc. Series A, 7.875% | 164,900 | | 4,254,420 |
Anworth Mortgage Asset Corp. Series A, 8.625% | 285,127 | | 7,182,349 |
Apartment Investment & Management Co.: | | | |
Series T, 8.00% | 57,500 | | 1,452,450 |
Series U, 7.75% | 100,773 | | 2,531,418 |
Brandywine Realty Trust Series C, 7.50% | 37,615 | | 936,990 |
CapLease, Inc. Series A, 8.125% | 43,400 | | 1,079,792 |
CBL & Associates Properties, Inc.: | | | |
(depositary shares) Series C, 7.75% | 47,962 | | 1,168,354 |
7.375% | 140,688 | | 3,335,712 |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | | 7,366,230 |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | | 1,644,500 |
Cogdell Spencer, Inc. 8.50% | 114,300 | | 2,871,216 |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | | 123,650 |
Cousins Properties, Inc. Series A, 7.75% | 93,230 | | 2,274,812 |
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 74,500 | | 1,852,070 |
Duke Realty LP: | | | |
8.375% | 128,517 | | 3,359,434 |
Series L, 6.60% | 10,666 | | 246,491 |
DuPont Fabros Technology, Inc. 7.875% | 40,000 | | 1,001,600 |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | | 40,800 |
First Potomac Realty Trust 7.75% | 80,000 | | 2,009,600 |
Glimcher Realty Trust Series G, 8.125% | 121,111 | | 2,944,208 |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | | 1 |
Hospitality Properties Trust: | | | |
Series B, 8.875% | 88,600 | | 2,283,222 |
Series C, 7.00% | 58,500 | | 1,381,770 |
Kimco Realty Corp. Series G, 7.75% | 97,300 | | 2,487,961 |
Kite Realty Group Trust 8.25% | 96,100 | | 2,354,450 |
LaSalle Hotel Properties: | | | |
7.50% | 100,000 | | 2,495,000 |
Series B, 8.375% | 26,800 | | 671,340 |
Series E, 8.00% | 47,350 | | 1,186,118 |
Series G, 7.25% | 114,485 | | 2,735,047 |
LBA Realty Fund II: | | | |
Series A, 8.75% (a) | 69,000 | | 2,760,000 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
LBA Realty Fund II: - continued | | | |
Series B, 7.625% (a) | 31,240 | | $ 749,760 |
Lexington Corporate Properties Trust Series B, 8.05% | 29,000 | | 720,650 |
Lexington Realty Trust 7.55% | 23,800 | | 561,442 |
LTC Properties, Inc. Series F, 8.00% | 61,240 | | 1,555,496 |
MFA Financial, Inc. Series A, 8.50% | 386,961 | | 9,732,069 |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | | 1,996,000 |
Omega Healthcare Investors, Inc. Series D, 8.375% | 59,600 | | 1,531,720 |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | | 5,923,710 |
ProLogis Trust Series C, 8.54% | 94,446 | | 5,049,914 |
PS Business Parks, Inc.: | | | |
(depositary shares) Series H, 7.00% | 13,300 | | 330,638 |
6.875% | 50,000 | | 1,227,500 |
7.20% | 83,040 | | 2,063,544 |
7.375% | 100,610 | | 2,516,256 |
Series P, 6.70% | 36,000 | | 876,240 |
Public Storage: | | | |
Series I, 7.25% | 10,828 | | 272,866 |
Series K, 7.25% | 128,260 | | 3,230,869 |
Series N, 7.00% | 4,200 | | 105,966 |
Regency Centers Corp.: | | | |
7.25% | 10,500 | | 260,925 |
Series C 7.45% | 18,000 | | 454,500 |
Saul Centers, Inc.: | | | |
8.00% | 93,700 | | 2,398,720 |
Series B (depositary shares) 9.00% | 88,550 | | 2,364,285 |
Sunstone Hotel Investors, Inc. Series A, 8.00% | 62,200 | | 1,499,020 |
Vornado Realty Trust 6.75% | 20,000 | | 482,000 |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | | 1,318,594 |
| | 114,969,691 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Management & Development - 0.4% |
Hudson Pacific Properties, Inc. 8.375% | 186,300 | | $ 4,659,363 |
Vornado Realty LP 7.875% | 50,449 | | 1,356,069 |
| | 6,015,432 |
TOTAL FINANCIALS | | 125,504,964 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 126,188,362 |
TOTAL PREFERRED STOCKS (Cost $159,940,508) | 154,159,032 |
Corporate Bonds - 28.1% |
| Principal Amount (e) | | |
Convertible Bonds - 6.9% |
CONSUMER DISCRETIONARY - 0.1% |
Hotels, Restaurants & Leisure - 0.1% |
Morgans Hotel Group Co. 2.375% 10/15/14 | | $ 1,340,000 | | 1,147,375 |
FINANCIALS - 6.8% |
Real Estate Investment Trusts - 4.2% |
Acadia Realty Trust 3.75% 12/15/26 | | 11,505,000 | | 11,505,000 |
Alexandria Real Estate Equities, Inc. 3.7% 1/15/27 (g) | | 5,895,000 | | 5,976,351 |
Annaly Capital Management, Inc. 4% 2/15/15 | | 1,000,000 | | 1,169,375 |
CapLease, Inc. 7.5% 10/1/27 (g) | | 5,180,000 | | 5,128,200 |
Developers Diversified Realty Corp. 1.75% 11/15/40 | | 1,000,000 | | 1,042,500 |
Hospitality Properties Trust 3.8% 3/15/27 | | 5,100,000 | | 5,100,000 |
Inland Real Estate Corp. 4.625% 11/15/26 | | 10,870,000 | | 10,870,000 |
Lexington Corporate Properties Trust 6% 1/15/30 (g) | | 5,000,000 | | 6,437,500 |
ProLogis Trust: | | | | |
1.875% 11/15/37 | | 2,450,000 | | 2,416,313 |
2.625% 5/15/38 | | 1,500,000 | | 1,494,375 |
The Macerich Co. 3.25% 3/15/12 (g) | | 4,800,000 | | 4,818,000 |
United Dominion Realty Trust, Inc. 3.625% 9/15/11 | | 5,500,000 | | 5,541,250 |
| | 61,498,864 |
Real Estate Management & Development - 2.6% |
BioMed Realty LP 4.5% 10/1/26 (g) | | 2,500,000 | | 2,512,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Convertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Corporate Office Properties LP: | | | | |
3.5% 9/15/26 (g) | | $ 3,280,000 | | $ 3,292,300 |
4.25% 4/15/30 (g) | | 2,000,000 | | 2,065,000 |
Duke Realty LP 3.75% 12/1/11 (g) | | 2,650,000 | | 2,683,125 |
First Potomac Realty Investment LP 4% 12/15/11 (g) | | 2,600,000 | | 2,587,000 |
Grubb & Ellis Co. 7.95% 5/1/15 (g) | | 5,500,000 | | 4,881,250 |
Home Properties, Inc. 4.125% 11/1/26 (g) | | 2,100,000 | | 2,126,250 |
Kilroy Realty LP 3.25% 4/15/12 (g) | | 2,185,000 | | 2,201,388 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 (g) | | 14,950,000 | | 15,006,063 |
MPT Operating Partnership LP 9.25% 4/1/13 (g) | | 1,000,000 | | 1,118,800 |
SL Green Realty Corp. 3% 3/30/27 (g) | | 500,000 | | 493,125 |
| | 38,966,801 |
TOTAL FINANCIALS | | 100,465,665 |
TOTAL CONVERTIBLE BONDS | | 101,613,040 |
Nonconvertible Bonds - 21.2% |
CONSUMER DISCRETIONARY - 5.7% |
Hotels, Restaurants & Leisure - 0.8% |
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 (g) | | 1,945,000 | | 1,996,154 |
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | | 1,000,000 | | 1,050,000 |
Landry's Restaurants, Inc.: | | | | |
11.625% 12/1/15 | | 1,000,000 | | 1,060,000 |
11.625% 12/1/15 (g) | | 325,000 | | 344,500 |
Times Square Hotel Trust 8.528% 8/1/26 (g) | | 3,909,982 | | 3,958,856 |
Vail Resorts, Inc. 6.75% 2/15/14 | | 3,000,000 | | 3,037,500 |
| | 11,447,010 |
Household Durables - 4.4% |
KB Home: | | | | |
5.75% 2/1/14 | | 510,000 | | 512,550 |
5.875% 1/15/15 | | 5,000,000 | | 4,950,000 |
6.25% 6/15/15 | | 8,500,000 | | 8,457,500 |
9.1% 9/15/17 | | 4,000,000 | | 4,230,000 |
Lennar Corp.: | | | | |
5.5% 9/1/14 | | 1,000,000 | | 1,000,000 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Lennar Corp.: - continued | | | | |
5.6% 5/31/15 | | $ 3,000,000 | | $ 2,940,000 |
6.5% 4/15/16 | | 4,000,000 | | 4,000,000 |
6.95% 6/1/18 | | 10,000,000 | | 9,900,000 |
M/I Homes, Inc.: | | | | |
6.875% 4/1/12 | | 2,150,000 | | 2,171,500 |
8.625% 11/15/18 (g) | | 5,905,000 | | 5,964,050 |
Meritage Homes Corp.: | | | | |
6.25% 3/15/15 | | 2,500,000 | | 2,512,500 |
7.15% 4/15/20 | | 1,500,000 | | 1,440,000 |
Ryland Group, Inc. 8.4% 5/15/17 | | 745,000 | | 812,050 |
Standard Pacific Corp.: | | | | |
7% 8/15/15 | | 4,000,000 | | 4,200,000 |
8.375% 5/15/18 | | 2,913,000 | | 3,022,238 |
8.375% 5/15/18 (g) | | 5,645,000 | | 5,856,688 |
10.75% 9/15/16 | | 3,000,000 | | 3,525,000 |
| | 65,494,076 |
Multiline Retail - 0.3% |
Sears Holdings Corp. 6.625% 10/15/18 (g) | | 4,000,000 | | 3,840,000 |
Specialty Retail - 0.2% |
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | | 2,490,000 | | 2,832,375 |
TOTAL CONSUMER DISCRETIONARY | | 83,613,461 |
CONSUMER STAPLES - 0.4% |
Food & Staples Retailing - 0.4% |
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | | 1,195,175 | | 1,338,596 |
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | | 4,400,000 | | 4,356,000 |
| | 5,694,596 |
FINANCIALS - 14.5% |
Commercial Banks - 0.1% |
CapitalSource, Inc. 12.75% 7/15/14 (g) | | 1,500,000 | | 1,807,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Diversified Financial Services - 0.6% |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | | |
7.75% 1/15/16 | | $ 7,320,000 | | $ 7,503,000 |
7.75% 1/15/16 (g) | | 1,500,000 | | 1,537,500 |
| | 9,040,500 |
Real Estate Investment Trusts - 9.0% |
Camden Property Trust 5% 6/15/15 | | 1,100,000 | | 1,174,511 |
Commercial Net Lease Realty, Inc.: | | | | |
6.15% 12/15/15 | | 2,526,000 | | 2,694,168 |
6.25% 6/15/14 | | 5,005,000 | | 5,407,872 |
CommonWealth REIT 5.875% 9/15/20 | | 2,000,000 | | 1,968,894 |
Developers Diversified Realty Corp.: | | | | |
5.375% 10/15/12 | | 500,000 | | 515,744 |
5.5% 5/1/15 | | 2,000,000 | | 2,067,406 |
7.5% 4/1/17 | | 6,000,000 | | 6,765,126 |
7.5% 7/15/18 | | 5,271,000 | | 5,814,071 |
7.875% 9/1/20 | | 4,637,000 | | 5,356,635 |
9.625% 3/15/16 | | 3,836,000 | | 4,614,478 |
Entertainment Properties Trust 7.75% 7/15/20 (g) | | 2,000,000 | | 2,100,000 |
Equity One, Inc.: | | | | |
5.375% 10/15/15 | | 1,500,000 | | 1,537,554 |
6.25% 12/15/14 | | 4,081,000 | | 4,392,535 |
6.25% 1/15/17 | | 3,000,000 | | 3,138,711 |
HCP, Inc. 3.75% 2/1/16 | | 2,000,000 | | 1,999,880 |
Health Care Property Investors, Inc.: | | | | |
6% 3/1/15 | | 1,000,000 | | 1,080,262 |
6.3% 9/15/16 | | 5,250,000 | | 5,884,877 |
7.072% 6/8/15 | | 1,500,000 | | 1,672,280 |
Health Care REIT, Inc.: | | | | |
6% 11/15/13 | | 1,000,000 | | 1,095,717 |
6.2% 6/1/16 | | 750,000 | | 831,961 |
Healthcare Realty Trust, Inc. 6.5% 1/17/17 | | 1,875,000 | | 2,079,008 |
HMB Capital Trust V 3.9016% 12/15/36 (d)(g)(h) | | 2,530,000 | | 0 |
Hospitality Properties Trust: | | | | |
5.625% 3/15/17 | | 915,000 | | 919,283 |
6.75% 2/15/13 | | 610,000 | | 644,022 |
7.875% 8/15/14 | | 1,000,000 | | 1,120,686 |
HRPT Properties Trust: | | | | |
5.75% 11/1/15 | | 3,600,000 | | 3,777,505 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
HRPT Properties Trust: - continued | | | | |
6.25% 8/15/16 | | $ 1,500,000 | | $ 1,601,964 |
6.5% 1/15/13 | | 200,000 | | 210,380 |
iStar Financial, Inc.: | | | | |
5.95% 10/15/13 | | 5,330,000 | | 5,010,200 |
6.05% 4/15/15 | | 1,500,000 | | 1,350,000 |
Kimco Realty Corp. 5.783% 3/15/16 | | 450,000 | | 490,522 |
Nationwide Health Properties, Inc.: | | | | |
6% 5/20/15 | | 3,122,000 | | 3,365,688 |
6.25% 2/1/13 | | 1,000,000 | | 1,070,479 |
8.25% 7/1/12 | | 1,300,000 | | 1,391,883 |
Omega Healthcare Investors, Inc.: | | | | |
6.75% 10/15/22 (g) | | 2,115,000 | | 2,093,850 |
7% 1/15/16 | | 1,295,000 | | 1,328,994 |
7.5% 2/15/20 | | 1,000,000 | | 1,050,000 |
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | | 1,750,000 | | 1,913,886 |
Potlatch Corp. 7.5% 11/1/19 | | 1,000,000 | | 1,057,500 |
ProLogis Trust: | | | | |
6.25% 3/15/17 | | 4,000,000 | | 4,371,652 |
6.625% 5/15/18 | | 6,480,000 | | 7,160,860 |
6.875% 3/15/20 | | 1,500,000 | | 1,675,158 |
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | | 2,000,000 | | 2,176,400 |
Security Capital Industrial Trust 7.625% 7/1/17 | | 4,690,000 | | 5,423,399 |
Senior Housing Properties Trust: | | | | |
4.3% 1/15/16 | | 5,000,000 | | 4,961,425 |
6.75% 4/15/20 | | 2,000,000 | | 2,121,178 |
8.625% 1/15/12 | | 5,900,000 | | 6,187,365 |
UDR, Inc. 5.5% 4/1/14 | | 500,000 | | 531,257 |
United Dominion Realty Trust, Inc.: | | | | |
5.13% 1/15/14 | | 500,000 | | 522,548 |
5.25% 1/15/15 | | 1,000,000 | | 1,052,356 |
5.25% 1/15/16 | | 4,000,000 | | 4,170,536 |
Weingarten Realty Investors 4.857% 1/15/14 | | 2,500,000 | | 2,568,593 |
| | 133,511,259 |
Real Estate Management & Development - 4.7% |
AMB Property LP 5.9% 8/15/13 | | 400,000 | | 426,049 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Brandywine Operating Partnership LP: | | | | |
5.4% 11/1/14 | | $ 6,750,000 | | $ 7,076,032 |
5.75% 4/1/12 | | 1,000,000 | | 1,032,844 |
7.5% 5/15/15 | | 1,000,000 | | 1,110,549 |
CB Richard Ellis Services, Inc.: | | | | |
6.625% 10/15/20 (g) | | 1,205,000 | | 1,205,000 |
11.625% 6/15/17 | | 1,500,000 | | 1,747,500 |
Colonial Properties Trust: | | | | |
6.15% 4/15/13 | | 1,500,000 | | 1,557,717 |
6.25% 6/15/14 | | 1,594,000 | | 1,681,614 |
6.875% 8/15/12 | | 1,000,000 | | 1,047,462 |
Colonial Realty LP 6.05% 9/1/16 | | 2,500,000 | | 2,539,580 |
Duke Realty LP: | | | | |
6.25% 5/15/13 | | 750,000 | | 810,498 |
7.375% 2/15/15 | | 1,500,000 | | 1,706,700 |
DuPont Fabros Technology LP 8.5% 12/15/17 | | 845,000 | | 916,825 |
Forest City Enterprises, Inc.: | | | | |
6.5% 2/1/17 | | 11,560,000 | | 10,635,200 |
7.625% 6/1/15 | | 1,435,000 | | 1,391,950 |
Highwoods/Forsyth LP 5.85% 3/15/17 | | 2,800,000 | | 2,952,555 |
Host Hotels & Resorts LP: | | | | |
6.875% 11/1/14 | | 500,000 | | 515,000 |
9% 5/15/17 | | 750,000 | | 838,125 |
Liberty Property LP 6.375% 8/15/12 | | 2,679,000 | | 2,864,687 |
Post Apartment Homes LP: | | | | |
5.45% 6/1/12 | | 713,000 | | 735,980 |
6.3% 6/1/13 | | 2,000,000 | | 2,149,586 |
Realogy Corp. 7.875% 2/15/19 (g) | | 2,035,000 | | 2,045,175 |
Regency Centers LP: | | | | |
5.25% 8/1/15 | | 4,509,000 | | 4,835,528 |
5.875% 6/15/17 | | 400,000 | | 436,472 |
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | | 1,000,000 | | 1,080,000 |
Ventas Realty LP: | | | | |
3.125% 11/30/15 | | 1,500,000 | | 1,454,085 |
6.5% 6/1/16 | | 2,340,000 | | 2,421,900 |
6.5% 6/1/16 | | 11,370,000 | | 11,767,950 |
| | 68,982,563 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.1% |
Wrightwood Capital LLC 9% 6/1/14 (d)(g) | | $ 4,000,000 | | $ 1,200,000 |
TOTAL FINANCIALS | | 214,541,822 |
HEALTH CARE - 0.6% |
Health Care Equipment & Supplies - 0.2% |
Aviv Healthcare Properties LP 7.75% 2/15/19 (g) | | 2,335,000 | | 2,399,213 |
Health Care Providers & Services - 0.4% |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 (g) | | 3,410,000 | | 3,546,400 |
Skilled Healthcare Group, Inc. 11% 1/15/14 | | 3,080,000 | | 3,164,700 |
| | 6,711,100 |
TOTAL HEALTH CARE | | 9,110,313 |
TOTAL NONCONVERTIBLE BONDS | | 312,960,192 |
TOTAL CORPORATE BONDS (Cost $383,752,362) | 414,573,232 |
Asset-Backed Securities - 4.4% |
|
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (g) | | 1,384,000 | | 1,297,500 |
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.62% 3/23/19 (g)(h) | | 365,848 | | 332,922 |
Brascan Real Estate CDO Ltd./Brascan Real Estate CDO Corp. Series 2004-1A Class A, 0.6531% 1/20/40 (g)(h) | | 849,042 | | 832,061 |
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7606% 3/20/50 (g)(h) | | 2,250,000 | | 67,500 |
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | | 6,875,000 | | 6,840,625 |
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.5391% 1/20/37 (g)(h) | | 1,397,997 | | 922,678 |
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | | 2,383,050 | | 1,906,440 |
Cbre Realty Finance Cdo 2007-1/LLC 0.5528% 4/7/52 (g)(h) | | 6,711,746 | | 4,899,575 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | | $ 500,000 | | $ 392,961 |
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | | | | |
Class B1, 6.065% 12/28/35 (g) | | 1,570,000 | | 1,177,500 |
Class B2, 1.6528% 12/28/35 (g)(h) | | 1,575,000 | | 976,500 |
Class D, 9% 12/28/35 (g) | | 500,000 | | 158,450 |
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A Class D, 9% 6/28/38 (g) | | 997,000 | | 264,205 |
Crest Ltd. Series 2002-IGA: | | | | |
Class A, 0.7544% 7/28/17 (g)(h) | | 637,960 | | 630,438 |
Class B, 1.6544% 7/28/35 (g)(h) | | 1,500,000 | | 1,320,000 |
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | | 9,500,000 | | 8,137,074 |
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6569% 11/28/39 (g)(h) | | 550,000 | | 16,500 |
Green Tree Financial Corp.: | | | | |
Series 1996-4 Class M1, 7.75% 6/15/27 | | 1,788,179 | | 1,609,208 |
Series 1997-3 Class M1, 7.53% 3/15/28 | | 7,949,878 | | 5,951,415 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 6/25/35 (h)(j) | | 1,259,000 | | 83,103 |
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | | | | |
Class D, 1.81% 8/26/30 (g)(h) | | 756,799 | | 83,248 |
Class E, 2.26% 8/26/30 (g)(h) | | 1,472,717 | | 44,182 |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 3/15/28 | | 1,365,083 | | 500,346 |
Merit Securities Corp. Series 13 Class M1, 7.9882% 12/28/33 | | 1,923,000 | | 1,607,435 |
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | | 883,000 | | 693,155 |
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A: | | | | |
Class A2, 4.646% 7/24/39 (g) | | 1,060,054 | | 1,060,054 |
Class D, 5.194% 7/24/39 (g) | | 4,590,000 | | 4,475,250 |
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9359% 2/5/36 (g)(h) | | 3,422,702 | | 342 |
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (g) | | 3,165,000 | | 3,133,350 |
Wachovia Ltd./Wachovia LLC: | | | | |
Series 2006-1 Class 1ML, 0% 9/25/26 (g)(h) | | 2,000,000 | | 540,000 |
Series 2006-1A: | | | | |
Class A1A, 0.5628% 9/25/26 (g)(h) | | 2,439,000 | | 2,036,565 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Wachovia Ltd./Wachovia LLC: - continued | | | | |
Series 2006-1A: | | | | |
Class A1B, 0.6328% 9/25/26 (g)(h) | | $ 6,285,000 | | $ 4,996,575 |
Class A2A, 0.5228% 9/25/26 (g)(h) | | 9,385,000 | | 8,071,100 |
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A Class F, 2.2344% 11/21/40 (g)(h) | | 250,000 | | 50,000 |
TOTAL ASSET-BACKED SECURITIES (Cost $72,123,231) | 65,108,257 |
Collateralized Mortgage Obligations - 2.4% |
|
Private Sponsor - 2.4% |
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4713% 3/15/22 (g)(h) | | 7,770,341 | | 7,612,174 |
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4413% 6/15/22 (g)(h) | | 3,250,000 | | 3,006,771 |
Countrywide Home Loans, Inc.: | | | | |
Series 2002-38 Class B3, 5% 2/25/18 (g) | | 102,634 | | 13,876 |
Series 2002-R2 Class 2B3, 4.4726% 7/25/33 (g)(h) | | 232,454 | | 91,986 |
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | | 145,467 | | 14,110 |
Series 2003-R2 Class B3, 5.5% 5/25/43 (g) | | 265,815 | | 10,189 |
Series 2003-R3: | | | | |
Class B2, 5.5% 11/25/33 (g) | | 1,547,998 | | 436,339 |
Class B3, 5.5% 11/25/33 (g) | | 370,653 | | 19,035 |
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(h) | | 231,482 | | 7,227 |
FREMF Mortgage Trust: | | | | |
Series 2010 K7 Class B, 5.4344% 4/25/20 (g)(h) | | 1,500,000 | | 1,328,400 |
Series 2010-K6 Class B, 5.3576% 12/26/46 (g)(h) | | 4,500,000 | | 3,959,765 |
Merrill Lynch Floating Trust floater Series 2006-1 Class TM, 0.761% 6/15/22 (g)(h) | | 8,485,528 | | 7,933,969 |
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | | 7,120,000 | | 7,212,560 |
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (g) | | 1,600,000 | | 1,643,460 |
RESI Finance LP/RESI Finance DE Corp. floater: | | | | |
Series 2003-B Class B9, 12.2113% 7/10/35 (g)(h) | | 502,236 | | 334,037 |
Series 2005-A Class B6, 2.2613% 3/10/37 (g)(h) | | 1,680,659 | | 312,603 |
Series 2005-B Class B6, 1.8613% 6/10/37 (g)(h) | | 888,208 | | 65,994 |
Series 2005-D Class B6, 2.5113% 12/15/37 (g)(h) | | 448,042 | | 19,087 |
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | | 74,309 | | 28,583 |
RESIX Finance Ltd. floater: | | | | |
Series 2003-D Class B8, 6.7613% 12/10/35 (g)(h) | | 460,412 | | 175,141 |
Collateralized Mortgage Obligations - continued |
| Principal Amount (e) | | Value |
Private Sponsor - continued |
RESIX Finance Ltd. floater: - continued | | | | |
Series 2004-A Class B7, 4.5113% 2/10/36 (g)(h) | | $ 478,992 | | $ 240,885 |
Series 2004-B Class B7, 4.2613% 2/10/36 (g)(h) | | 575,299 | | 217,751 |
Series 2005-C Class B7, 3.3613% 9/10/37 (g)(h) | | 1,830,031 | | 154,455 |
TOTAL PRIVATE SPONSOR | | 34,838,397 |
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) | | 192,091 | | 119,407 |
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 4.0614% 2/25/42 (g)(h) | | 120,527 | | 53,578 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | | 267,698 | | 83,476 |
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 4.0337% 6/25/43 (g)(h) | | 167,016 | | 65,918 |
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 4.2404% 10/25/42 (g)(h) | | 72,654 | | 27,284 |
TOTAL U.S. GOVERNMENT AGENCY | | 349,663 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $39,642,982) | 35,188,060 |
Commercial Mortgage Securities - 17.8% |
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | | 2,000,000 | | 2,146,229 |
Asset Securitization Corp. Series 1997-D4: | | | | |
Class B1, 7.525% 4/14/29 | | 1,565,000 | | 1,619,968 |
Class B2, 7.525% 4/14/29 | | 560,000 | | 574,450 |
Banc of America Commercial Mortgage, Inc.: | | | | |
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | | 4,185,000 | | 4,301,171 |
Series 2005-1 Class CJ, 5.1794% 11/10/42 (h) | | 3,580,000 | | 3,652,174 |
Series 2005-6 Class AJ, 5.1955% 9/10/47 (h) | | 5,000,000 | | 4,990,604 |
Banc of America Large Loan Trust floater Series 2010- HLTN Class HLTN, 2.0103% 11/15/15 (g)(h) | | 22,269,352 | | 19,875,396 |
Banc of America Large Loan, Inc. floater Series 2005- MIB1 Class K, 2.2613% 3/15/22 (g)(h) | | 4,190,000 | | 2,974,900 |
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4558% 3/11/39 (h) | | 5,700,000 | | 5,697,442 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Bear Stearns Commercial Mortgage Securities Trust: | | | | |
floater Series 2006-BBA7: | | | | |
Class D, 0.5213% 3/15/19 (g)(h) | | $ 2,480,000 | | $ 2,215,143 |
Class E, 0.5813% 3/15/19 (g)(h) | | 1,995,000 | | 1,732,628 |
Class F, 0.6013% 3/15/19 (g)(h) | | 1,650,000 | | 1,419,686 |
Class G, 0.7013% 3/15/19 (g)(h) | | 2,760,000 | | 2,284,531 |
Series 2006-T22 Class B, 5.5121% 4/12/38 (g)(h) | | 2,520,000 | | 2,434,237 |
Citigroup Commercial Mortgage Trust floater Series 2007-FL3A Classs MLA2, 1.3113% 4/15/22 (g)(h) | | 637,226 | | 546,397 |
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD2 Class VPM2, 5.6179% 1/15/46 (g)(h) | | 3,500,000 | | 3,443,526 |
COMM pass-thru certificates: | | | | |
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | | 9,964,688 | | 9,889,953 |
Series 2001-J1A Class F, 6.958% 2/16/34 (g) | | 2,600,000 | | 2,594,999 |
Credit Suisse First Boston Mortgage Securities Corp. Series 2004-TF2A Class AX, 0.0118% 11/15/19 (g)(h)(i) | | 4,461,469 | | 45 |
Credit Suisse/Morgan Stanley Commercial Mortgage Trust: | | | | |
floater Series 2006-HC1A: | | | | |
Class A2, 0.5213% 5/15/23 (g)(h) | | 5,800,000 | | 5,647,950 |
Class D, 0.7313% 5/15/23 (g)(h) | | 1,250,000 | | 1,205,847 |
Class F, 0.8613% 5/15/23 (g)(h) | | 1,825,000 | | 1,748,693 |
Series 2006-HC1A Class A1, 0.4513% 5/15/23 (g)(h) | | 2,375,639 | | 2,326,733 |
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.91% 3/25/17 (g)(h) | | 2,512,000 | | 2,054,345 |
CRESIX Finance Ltd. Series 2006-AA: | | | | |
Class F, 4.46% 3/25/17 (g)(h) | | 3,860,000 | | 3,061,463 |
Class G, 7.26% 3/25/17 (g)(h) | | 3,272,000 | | 2,056,248 |
Crest Ltd. Series 2001-1A Class C, 9% 2/25/34 (g) | | 1,000,000 | | 600,000 |
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | | 1,200,000 | | 985,147 |
DLJ Commercial Mortgage Corp.: | | | | |
Series 1998-CG1 Class B4, 7.2253% 6/10/31 (g)(h) | | 2,500,000 | | 2,681,245 |
Series 2000-CKP1 Class B3, 8.0024% 11/10/33 (h) | | 2,970,000 | | 2,964,241 |
First Union National Bank Commercial Mortgage Trust Series 2001-C4: | | | | |
Class H, 7.036% 12/12/33 (g) | | 2,000,000 | | 2,030,146 |
Class K, 6% 12/12/33 (g) | | 2,000,000 | | 1,991,182 |
FREMF Mortgage Trust Series 2010-K9 Class B, 5.163% 9/25/45 (h) | | 4,000,000 | | 3,410,000 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | | $ 7,494,068 | | $ 7,149,341 |
GE Capital Commercial Mortgage Corp.: | | | | |
Series 2001-3 Class C, 6.51% 6/10/38 | | 820,000 | | 841,357 |
Series 2002-1A Class H, 7.1436% 12/10/35 (g)(h) | | 991,000 | | 979,304 |
Global Towers Partners Acquisition Partners I LLC Series 2007-1A Class G, 7.8737% 5/15/37 (g) | | 1,000,000 | | 1,045,000 |
GMAC Commercial Mortgage Securities, Inc.: | | | | |
Series 1997-C2: | | | | |
Class F, 6.75% 4/15/29 (h) | | 2,617,802 | | 2,739,180 |
Class G, 6.75% 4/15/29 (h) | | 1,250,000 | | 1,256,100 |
Series 1999-C3: | | | | |
Class G, 6.974% 8/15/36 (g) | | 1,199,621 | | 1,204,419 |
Class J, 6.974% 8/15/36 (g) | | 1,500,000 | | 1,472,121 |
Series 2000-C1: | | | | |
Class H, 7% 3/15/33 (g) | | 49,259 | | 49,424 |
Class K, 7% 3/15/33 | | 1,100,000 | | 791,297 |
Series 2002-C3 Class D, 5.27% 7/10/39 | | 3,000,000 | | 3,087,784 |
Greenwich Capital Commercial Funding Corp.: | | | | |
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | | 2,000,000 | | 2,055,124 |
Series 2002-C1 Class H, 5.903% 1/11/35 (g) | | 880,000 | | 880,928 |
GS Mortgage Securities Corp. II floater Series 2007-EOP Class L, 1.5606% 3/1/20 (g)(h) | | 1,400,000 | | 1,255,665 |
JP Morgan Chase Commercial Mortgage Securities Corp.: | | | | |
Series 2009-IWST Class D, 7.4453% 12/5/27 (g)(h) | | 5,000,000 | | 5,368,461 |
Series 2010-CNTM Class MZ, 8.5% 8/4/20 (g) | | 4,000,000 | | 3,701,252 |
Series 2010-CNTR: | | | | |
Class D, 6.1838% 8/5/32 (g)(h) | | 3,750,000 | | 3,584,427 |
Class XB, 0.9305% 8/5/32 (g)(i) | | 32,655,000 | | 1,793,520 |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2001-A: | | | | |
Class G, 6% 10/15/32 (g)(h) | | 2,895,000 | | 14,475 |
Class X, 1.3291% 10/15/32 (g)(h)(i) | | 7,200,784 | | 384 |
JPMorgan Chase Commercial Mortgage Securities Trust floater Series 2005-FL1A Class A2, 0.4413% 2/15/19 (g)(h) | | 2,244,141 | | 2,203,632 |
JPMorgan Commercial Mortgage Finance Corp.: | | | | |
Series 1997-C5 Class F, 7.5605% 9/15/29 | | 2,064,384 | | 2,158,336 |
Series 1999-C8: | | | | |
Class G, 6% 7/15/31 (g) | | 1,385,000 | | 1,377,451 |
Class H, 6% 7/15/31 (g) | | 2,638,000 | | 19,785 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | | $ 2,920,000 | | $ 3,007,600 |
LB-UBS Commercial Mortgage Trust: | | | | |
sequential payer: | | | | |
Series 2004-C2 Class E, 4.487% 3/15/36 | | 2,060,000 | | 2,012,229 |
Series 2005-C7 Class AJ, 5.323% 11/15/40 | | 6,000,000 | | 5,899,363 |
Series 2006-C7 Class AM, 5.378% 11/15/38 | | 2,040,000 | | 2,070,738 |
Series 2005-C2 Class AJ, 5.205% 4/15/30 (h) | | 8,910,000 | | 9,042,830 |
Series 2006-C4: | | | | |
Class AJ, 5.9009% 6/15/38 (h) | | 6,005,000 | | 5,704,779 |
Class AM, 5.9009% 6/15/38 (h) | | 6,700,000 | | 6,977,491 |
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | | | | |
Class F, 4.384% 7/12/37 | CAD | 710,000 | | 388,747 |
Class G, 4.384% 7/12/37 | CAD | 355,000 | | 187,705 |
Class H, 4.384% 7/12/37 | CAD | 236,000 | | 120,537 |
Class J, 4.384% 7/12/37 | CAD | 355,000 | | 175,193 |
Class K, 4.384% 7/12/37 | CAD | 355,000 | | 169,324 |
Class L, 4.384% 7/12/37 | CAD | 236,000 | | 108,824 |
Class M, 4.384% 7/12/37 | CAD | 995,000 | | 327,138 |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | | 3,295,748 | | 330 |
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6562% 5/12/39 (h) | | 1,200,000 | | 1,233,433 |
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | | | | |
Class D, 6.988% 1/15/37 | | 750,000 | | 0 |
Class E, 7.983% 1/15/37 | | 1,453,000 | | 0 |
Class IO, 7.9747% 1/15/37 (h)(i) | | 5,415,859 | | 457,640 |
Morgan Stanley Capital I Trust: | | | | |
sequential payer: | | | | |
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | | 1,927,319 | | 1,965,865 |
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | | 8,200,000 | | 8,328,879 |
Series 1997-RR Class F, 7.4398% 4/30/39 (g)(h) | | 2,450,725 | | 2,352,696 |
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | | 2,830,092 | | 1,733,431 |
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | | 7,500,000 | | 7,597,500 |
Morgan Stanley Dean Witter Capital I Trust Series 2001-IQA Class F, 6.79% 12/18/32 (g) | | 1,223,602 | | 1,230,509 |
Multi Security Asset Trust sequential payer Series 2005-RR4A Class A2, 4.83% 11/28/35 (g) | | 1,031,161 | | 986,048 |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | | 3,249,327 | | 3,436,163 |
RBSCF Trust Series 2010-MB1 Class D, 4.6667% 4/15/24 (g)(h) | | 5,820,000 | | 5,538,094 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E5, 6.5% 2/18/34 (g)(h) | | $ 3,000,000 | | $ 3,093,750 |
Structured Asset Securities Corp.: | | | | |
Series 1996-CFL Class I, 7.75% 2/25/28 (g) | | 2,802,245 | | 2,945,159 |
Series 1997-LLI Class F, 7.3% 10/12/34 (g) | | 2,170,000 | | 2,230,684 |
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 6.0489% 8/15/39 (h) | | 2,080,000 | | 2,099,732 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | | 10,630,000 | | 11,161,500 |
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8363% 7/15/24 (g)(h) | | 1,200,000 | | 388,785 |
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/20 (g) | | 2,540,000 | | 2,516,010 |
Wachovia Bank Commercial Mortgage Trust: | | | | |
floater Series 2007-WHL8 Class MH1, 1.0613% 6/15/20 (g)(h) | | 1,437,020 | | 1,267,866 |
Series 2004-C10 Class E, 4.931% 2/15/41 | | 2,000,000 | | 1,992,682 |
Series 2004-C11: | | | | |
Class D, 5.3116% 1/15/41 (h) | | 5,177,000 | | 4,862,809 |
Class E, 5.3616% 1/15/41 (h) | | 3,785,000 | | 3,257,671 |
Series 2004-C12 Class D, 5.3051% 7/15/41 (h) | | 2,750,000 | | 2,584,288 |
Series 2004-C14 Class B, 5.17% 8/15/41 | | 3,180,000 | | 3,178,217 |
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $253,385,370) | 262,817,725 |
Floating Rate Loans - 2.2% |
|
CONSUMER DISCRETIONARY - 0.6% |
Hotels, Restaurants & Leisure - 0.6% |
Extended Stay America, Inc. term loan 9.75% 11/1/15 | | 9,000,000 | | 8,977,500 |
Specialty Retail - 0.0% |
The Pep Boys - Manny, Moe & Jack term loan 2.3% 10/27/13 (h) | | 28,053 | | 28,018 |
TOTAL CONSUMER DISCRETIONARY | | 9,005,518 |
FINANCIALS - 0.9% |
Real Estate Investment Trusts - 0.1% |
Medical Properties Trust, Inc. Tranche B, term loan 5% 5/17/16 (h) | | 1,903,333 | | 1,903,333 |
Floating Rate Loans - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Real Estate Management & Development - 0.8% |
CB Richard Ellis Group, Inc. Tranche B, term loan 3.5113% 11/9/16 (h) | | $ 1,216,950 | | $ 1,230,641 |
Realogy Corp.: | | | | |
Credit-Linked Deposit 3.2606% 10/10/13 (h) | | 835,322 | | 808,174 |
Tranche 2LN, term loan 13.5% 10/15/17 | | 2,500,000 | | 2,775,000 |
Tranche B, term loan 3.2857% 10/10/13 (h) | | 7,048,734 | | 6,819,650 |
| | 11,633,465 |
TOTAL FINANCIALS | | 13,536,798 |
HEALTH CARE - 0.4% |
Health Care Providers & Services - 0.4% |
Skilled Healthcare Group, Inc. term loan 5.25% 4/9/16 (h) | | 3,757,869 | | 3,757,869 |
Universal Health Services, Inc. term loan 5.5% 11/15/16 (h) | | 2,000,000 | | 2,024,000 |
| | 5,781,869 |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
TowerCo Finance LLC term loan: | | | | |
2/2/17 (h) | | 3,000,000 | | 3,015,000 |
6% 11/24/14 (h) | | 565,292 | | 565,292 |
| | 3,580,292 |
TOTAL FLOATING RATE LOANS (Cost $31,050,715) | 31,904,477 |
Preferred Securities - 0.0% |
| | | |
FINANCIALS - 0.0% |
Diversified Financial Services - 0.0% |
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g) | 500,000 | | 15,000 |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g) | 1,220,000 | | 366,000 |
Preferred Securities - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Diversified Financial Services - continued |
Harp High Grade CDO I Ltd. Series 2006-1, 7/8/46 (g)(h) | $ 810,000 | | $ 8 |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(g)(h) | 1,350,000 | | 0 |
| | 381,008 |
TOTAL PREFERRED SECURITIES (Cost $3,376,206) | 381,008 |
Money Market Funds - 9.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 128,144,210 | | 128,144,210 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 10,307,000 | | 10,307,000 |
TOTAL MONEY MARKET FUNDS (Cost $138,451,210) | 138,451,210 |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $1,393,717,451) | 1,484,569,888 |
NET OTHER ASSETS (LIABILITIES) - (0.7)% | | (10,334,143) |
NET ASSETS - 100% | $ 1,474,235,745 |
Currency Abbreviations |
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Principal amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(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 $351,391,995 or 23.8% of net assets. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(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 $285,986 or 0.0% of net assets. |
Additional information on each restricted 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 | $ 166,459 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 201,735 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 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 | $ 107,690 |
Fidelity Securities Lending Cash Central Fund | 9,019 |
Total | $ 116,709 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 8,808,045 | $ 5,112,045 | $ - | $ 3,696,000 |
Financials | 505,682,615 | 468,226,231 | 33,051,144 | 4,405,240 |
Health Care | 21,655,259 | 21,655,259 | - | - |
Corporate Bonds | 414,573,232 | - | 413,373,232 | 1,200,000 |
Asset-Backed Securities | 65,108,257 | - | 32,296,385 | 32,811,872 |
Collateralized Mortgage Obligations | 35,188,060 | - | 34,217,052 | 971,008 |
Commercial Mortgage Securities | 262,817,725 | - | 251,474,555 | 11,343,170 |
Floating Rate Loans | 31,904,477 | - | 22,361,685 | 9,542,792 |
Preferred Securities | 381,008 | - | - | 381,008 |
Money Market Funds | 138,451,210 | 138,451,210 | - | - |
Total Investments in Securities: | $ 1,484,569,888 | $ 633,444,745 | $ 786,774,053 | $ 64,351,090 |
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 | $ 3,696,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,696,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
Equities - Financials | |
Beginning Balance | $ 3,922,244 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 482,996 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,405,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 482,996 |
Corporate Bonds | |
Beginning Balance | $ 1,370,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (170,000) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,200,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (170,000) |
Asset-Backed Securities | |
Beginning Balance | $ 16,886,956 |
Total Realized Gain (Loss) | 544,405 |
Total Unrealized Gain (Loss) | 1,629,207 |
Cost of Purchases | 3,378,507 |
Proceeds of Sales | (3,985,267) |
Amortization/Accretion | 34,853 |
Transfers in to Level 3 | 20,413,769 |
Transfers out of Level 3 | (6,090,558) |
Ending Balance | $ 32,811,872 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 652,011 |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 994,555 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 199,271 |
Cost of Purchases | - |
Proceeds of Sales | (209,037) |
Amortization/Accretion | (61,213) |
Transfers in to Level 3 | 47,432 |
Transfers out of Level 3 | - |
Ending Balance | $ 971,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 199,271 |
Commercial Mortgage Securities | |
Beginning Balance | $ 12,252,746 |
Total Realized Gain (Loss) | 363,698 |
Total Unrealized Gain (Loss) | 719,182 |
Cost of Purchases | 3,846,059 |
Proceeds of Sales | (2,919,781) |
Amortization/Accretion | (360,966) |
Transfers in to Level 3 | 4,496,807 |
Transfers out of Level 3 | (7,054,575) |
Ending Balance | $ 11,343,170 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 719,182 |
Floating Rate Loans | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | 11 |
Total Unrealized Gain (Loss) | 44,772 |
Cost of Purchases | 8,928,750 |
Proceeds of Sales | (2,855) |
Amortization/Accretion | 2,546 |
Transfers in to Level 3 | 569,568 |
Transfers out of Level 3 | - |
Ending Balance | $ 9,542,792 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 44,772 |
Preferred Securities | |
Beginning Balance | $ 365,608 |
Total Realized Gain (Loss) | (1,398,375) |
Total Unrealized Gain (Loss) | 2,420,705 |
Cost of Purchases | - |
Proceeds of Sales | (1,006,771) |
Amortization/Accretion | (159) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 381,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 14,166 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.0%* |
AAA,AA,A | 11.5% |
BBB | 15.7% |
BB | 5.1% |
B | 8.8% |
CCC,CC,C | 2.6% |
D | 0.0%* |
Not Rated | 11.2% |
Equities | 36.4% |
Short-Term Investments and Net Other Assets | 8.7% |
| 100.0% |
* Amount represents less than 0.1% |
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 changes. |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $13,906,408 of which $302,434 and $13,603,974 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $10,194,560) - See accompanying schedule: Unaffiliated issuers (cost $1,255,266,241) | $ 1,346,118,678 | |
Fidelity Central Funds (cost $138,451,210) | 138,451,210 | |
Total Investments (cost $1,393,717,451) | | $ 1,484,569,888 |
Cash | | 53,132 |
Receivable for investments sold | | 778,476 |
Receivable for fund shares sold | | 10,370,364 |
Dividends receivable | | 1,019,759 |
Interest receivable | | 7,391,451 |
Distributions receivable from Fidelity Central Funds | | 24,307 |
Prepaid expenses | | 2,669 |
Other receivables | | 3,298 |
Total assets | | 1,504,213,344 |
| | |
Liabilities | | |
Payable for investments purchased | $ 16,435,998 | |
Payable for fund shares redeemed | 2,131,021 | |
Accrued management fee | 647,651 | |
Distribution and service plan fees payable | 11,465 | |
Other affiliated payables | 362,950 | |
Other payables and accrued expenses | 81,514 | |
Collateral on securities loaned, at value | 10,307,000 | |
Total liabilities | | 29,977,599 |
| | |
Net Assets | | $ 1,474,235,745 |
Net Assets consist of: | | |
Paid in capital | | $ 1,392,502,542 |
Undistributed net investment income | | 3,116,326 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (12,261,001) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 90,877,878 |
Net Assets | | $ 1,474,235,745 |
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, 2011 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,797,617 ÷ 2,351,697 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class T:
Net Asset Value and redemption price per share ($3,286,119 ÷ 311,660 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class C:
Net Asset Value and offering price per share ($8,516,294 ÷ 810,324 shares)A | | $ 10.51 |
| | |
Real Estate Income:
Net Asset Value, offering price and redemption price per share ($1,417,817,158 ÷ 134,211,170 shares) | | $ 10.56 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($19,818,557 ÷ 1,877,576 shares) | | $ 10.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2011 |
| | |
Investment Income | | |
Dividends | | $ 9,995,753 |
Interest | | 24,962,922 |
Income from Fidelity Central Funds | | 116,709 |
Total income | | 35,075,384 |
| | |
Expenses | | |
Management fee | $ 3,378,557 | |
Transfer agent fees | 1,790,117 | |
Distribution and service plan fees | 37,860 | |
Accounting and security lending fees | 248,704 | |
Custodian fees and expenses | 17,249 | |
Independent trustees' compensation | 3,221 | |
Registration fees | 150,609 | |
Audit | 79,287 | |
Legal | 3,127 | |
Interest | 326 | |
Miscellaneous | 5,729 | |
Total expenses before reductions | 5,714,786 | |
Expense reductions | (19,898) | 5,694,888 |
Net investment income (loss) | | 29,380,496 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,085,391 | |
Foreign currency transactions | (475) | |
Total net realized gain (loss) | | 4,084,916 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 76,449,249 | |
Assets and liabilities in foreign currencies | (247) | |
Total change in net unrealized appreciation (depreciation) | | 76,449,002 |
Net gain (loss) | | 80,533,918 |
Net increase (decrease) in net assets resulting from operations | | $ 109,914,414 |
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,
2011 | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 29,380,496 | $ 41,516,164 |
Net realized gain (loss) | 4,084,916 | 20,625,469 |
Change in net unrealized appreciation (depreciation) | 76,449,002 | 102,855,727 |
Net increase (decrease) in net assets resulting
from operations | 109,914,414 | 164,997,360 |
Distributions to shareholders from net investment income | (37,299,617) | (40,150,798) |
Share transactions - net increase (decrease) | 362,602,428 | 450,504,667 |
Redemption fees | 167,937 | 230,512 |
Total increase (decrease) in net assets | 435,385,162 | 575,581,741 |
| | |
Net Assets | | |
Beginning of period | 1,038,850,583 | 463,268,842 |
End of period (including undistributed net investment income of $3,116,326 and undistributed net investment income of $11,035,447, respectively) | $ 1,474,235,745 | $ 1,038,850,583 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .18 |
Net realized and unrealized gain (loss) | .68 | (.04) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.41% | 1.46% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.13% A | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.09% A |
Net investment income (loss) | 4.68% A | 6.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 24,798 | $ 3,830 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .17 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.37% | 1.45% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.19% A | 1.17% A |
Expenses net of fee waivers, if any | 1.19% A | 1.17% A |
Expenses net of all reductions | 1.19% A | 1.17% A |
Net investment income (loss) | 4.62% A | 5.92% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,286 | $ 862 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.93 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .15 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .88 | .12 |
Distributions from net investment income | (.30) | (.14) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.51 | $ 9.93 |
Total Return B,C,D | 8.98% | 1.29% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.92% A | 1.86% A |
Expenses net of fee waivers, if any | 1.92% A | 1.86% A |
Expenses net of all reductions | 1.92% A | 1.86% A |
Net investment income (loss) | 3.89% A | 5.21% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 8,516 | $ 836 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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 - Real Estate Income
| Six months ended
January 31, | Years ended July 31, |
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 | $ 12.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .53 | .54 | .59 | .63 | .66 |
Net realized and unrealized gain (loss) | .68 | 1.73 | (1.27) | (1.48) | (.37) | (.11) |
Total from investment operations | .93 | 2.26 | (.73) | (.89) | .26 | .55 |
Distributions from net investment income | (.32) | (.52) | (.50) | (.66) | (.58) | (.67) |
Distributions from net realized gain | - | - | - | (.24) | (.24) | (.27) |
Total distributions | (.32) | (.52) | (.50) | (.90) | (.82) | (.94) |
Redemption fees added to paid in capital D | - H | - H | .01 | - H | - H | - H |
Net asset value,
end of period | $ 10.56 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Total Return B,C | 9.50% | 28.29% | (6.92)% | (8.43)% | 2.00% | 4.82% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .94% A | .97% | 1.00% | .94% | .88% | .85% |
Expenses net of fee waivers, if any | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Expenses net of all reductions | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Net investment income (loss) | 4.87% A | 5.60% | 7.15% | 5.77% | 5.30% | 5.61% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,417,817 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 | $ 521,265 |
Portfolio turnover rate F | 24% A | 28% | 47% | 32% | 45% | 27% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.95 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) D | .25 | .19 |
Net realized and unrealized gain (loss) | .69 | (.04) |
Total from investment operations | .94 | .15 |
Distributions from net investment income | (.33) | (.15) |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 10.56 | $ 9.95 |
Total Return B,C | 9.59% | 1.58% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | .89% A | .85% A |
Expenses net of fee waivers, if any | .89% A | .85% A |
Expenses net of all reductions | .89% A | .85% A |
Net investment income (loss) | 4.92% A | 6.70% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 19,819 | $ 2,930 |
Portfolio turnover rate F | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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, 2011
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. The Fund offers Class A, Class T, Class C, Real Estate Income 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. 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. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 146,307,298 |
Gross unrealized depreciation | (56,984,059) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 89,323,239 |
| |
Tax cost | $ 1,395,246,649 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $464,534,643 and $134,305,407, 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.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 16,015 | $ 3,066 |
Class T | -% | .25% | 2,354 | 48 |
Class C | .75% | .25% | 19,491 | 13,203 |
| | | $ 37,860 | $ 16,317 |
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and 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 and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,932 |
Class T | 519 |
Class C* | 984 |
| $ 13,435 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 15,004 | .24 |
Class T | 2,738 | .29 |
Class C | 5,205 | .27 |
Real Estate Income | 1,756,852 | .30 |
Institutional Class | 10,318 | .25 |
| $ 1,790,117 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9,698 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,060 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,034,560. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,019, including $1,676 from securities loaned to FCM.
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 $16,530,000. The weighted average interest rate was .71%. The interest expense amounted to $326 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
Semiannual Report
Notes to Financial Statements - continued
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of the Fund's operating expenses. During the period, this reimbursement reduced the Real Estate Income Class expenses by $16,722.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,046 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 $130.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31,
2010 A |
From net investment income | | |
Class A | $ 403,376 | $ 23,172 |
Class T | 62,202 | 6,447 |
Class C | 117,956 | 3,705 |
Real Estate Income | 36,448,945 | 40,107,971 |
Institutional Class | 267,138 | 9,503 |
Total | $ 37,299,617 | $ 40,150,798 |
A Distributions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Class A | | | | |
Shares sold | 2,027,150 | 402,260 | $ 20,844,366 | $ 3,960,293 |
Reinvestment of distributions | 24,886 | 1,072 | 253,502 | 10,302 |
Shares redeemed | (85,489) | (18,182) | (883,868) | (177,559) |
Net increase (decrease) | 1,966,547 | 385,150 | $ 20,214,000 | $ 3,793,036 |
Class T | | | | |
Shares sold | 238,527 | 85,986 | $ 2,458,227 | $ 847,305 |
Reinvestment of distributions | 5,363 | 671 | 54,590 | 6,447 |
Shares redeemed | (18,870) | (17) | (194,365) | (166) |
Net increase (decrease) | 225,020 | 86,640 | $ 2,318,452 | $ 853,586 |
Class C | | | | |
Shares sold | 742,789 | 84,053 | $ 7,631,928 | $ 827,207 |
Reinvestment of distributions | 9,867 | 378 | 100,408 | 3,628 |
Shares redeemed | (26,482) | (281) | (272,618) | (2,700) |
Net increase (decrease) | 726,174 | 84,150 | $ 7,459,718 | $ 828,135 |
Real Estate Income | | | | |
Shares sold | 49,541,592 | 69,175,263 | $ 510,694,454 | $ 650,744,676 |
Reinvestment of distributions | 3,274,977 | 4,018,182 | 33,265,854 | 36,922,410 |
Shares redeemed | (22,123,776) | (26,105,432) | (227,725,959) | (245,525,556) |
Net increase (decrease) | 30,692,793 | 47,088,013 | $ 316,234,349 | $ 442,141,530 |
Institutional Class | | | | |
Shares sold | 1,646,275 | 294,304 | $ 17,032,892 | $ 2,886,826 |
Reinvestment of distributions | 21,882 | 902 | 222,798 | 8,663 |
Shares redeemed | (85,054) | (733) | (879,781) | (7,109) |
Net increase (decrease) | 1,583,103 | 294,473 | $ 16,375,909 | $ 2,888,380 |
A Share transactions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
13. 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
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, 2011, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 the 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, 2011, by correspondence with the custodians 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, 2011, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 17, 2011
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) 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
REIA-USAN-0311
1.907551.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Institutional Class
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Real Estate Income Fund
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of the fund's holdings. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense
Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.13% | | | |
Actual | | $ 1,000.00 | $ 1,094.10 | $ 5.96 |
HypotheticalA | | $ 1,000.00 | $ 1,019.51 | $ 5.75 |
Class T | 1.19% | | | |
Actual | | $ 1,000.00 | $ 1,093.70 | $ 6.28 |
HypotheticalA | | $ 1,000.00 | $ 1,019.21 | $ 6.06 |
Class C | 1.92% | | | |
Actual | | $ 1,000.00 | $ 1,089.80 | $ 10.11 |
HypotheticalA | | $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Real Estate Income | .94% | | | |
Actual | | $ 1,000.00 | $ 1,095.00 | $ 4.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.47 | $ 4.79 |
Institutional Class | .89% | | | |
Actual | | $ 1,000.00 | $ 1,095.90 | $ 4.70 |
HypotheticalA | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
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 Five Stocks as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Ventas, Inc. | 1.7 | 1.3 |
MFA Financial, Inc. | 1.6 | 1.8 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Cypress Sharpridge Investments, Inc. | 1.2 | 1.3 |
Equity Lifestyle Properties, Inc. | 1.2 | 1.4 |
| 7.1 | |
Top 5 Bonds as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.0103% 11/15/15 | 1.4 | 0.0 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 | 1.0 | 1.4 |
Ventas Realty LP 6.5% 6/1/16 | 0.8 | 1.1 |
Acadia Realty Trust 3.75% 12/15/26 | 0.8 | 1.1 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 | 0.8 | 0.6 |
| 4.8 | |
Top Five REIT Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Shopping Centers | 9.6 | 8.9 |
REITs - Health Care Facilities | 8.4 | 8.3 |
REITs - Management/Investment | 7.1 | 6.6 |
REITs - Mortgage | 6.8 | 8.7 |
REITs - Industrial Buildings | 5.7 | 4.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Common Stocks 25.9% | | | Common Stocks 23.4% | |
| Preferred Stocks 8.6% | | | Preferred Stocks 8.1% | |
| Bonds 45.8% | | | Bonds 45.1% | |
| Convertible
Securities 8.8% | | | Convertible
Securities 11.8% | |
| Other Investments 2.2% | | | Other Investments 1.5% | |
| Short-Term
Investments and
Net Other Assets 8.7% | | | Short-Term
Investments and
Net Other Assets 10.1% | |
* Foreign investments | 3.3% | | ** Foreign investments | 2.3% | |
Semiannual Report
Investments January 31, 2011
Showing Percentage of Net Assets
Common Stocks - 25.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 0.5% |
Hotels, Restaurants & Leisure - 0.3% |
Starwood Hotels & Resorts Worldwide, Inc. | 75,100 | | $ 4,428,647 |
Household Durables - 0.2% |
Stanley Martin Communities LLC Class B (a) | 4,620 | | 3,696,000 |
TOTAL CONSUMER DISCRETIONARY | | 8,124,647 |
FINANCIALS - 23.9% |
Capital Markets - 0.5% |
HFF, Inc. (a) | 546,564 | | 6,892,172 |
Real Estate Investment Trusts - 23.1% |
Acadia Realty Trust (SBI) | 1,151,149 | | 21,273,234 |
Alexandria Real Estate Equities, Inc. | 43,100 | | 3,320,424 |
AMB Property Corp. (SBI) | 287,200 | | 9,635,560 |
American Assets Trust, Inc. (a) | 222,500 | | 4,737,025 |
American Campus Communities, Inc. | 331,400 | | 10,717,476 |
Annaly Capital Management, Inc. | 175,050 | | 3,121,142 |
Anworth Mortgage Asset Corp. | 1,336,610 | | 9,182,511 |
Apartment Investment & Management Co. Class A | 75,041 | | 1,918,048 |
Apollo Commercial Real Estate Finance, Inc. | 77,500 | | 1,273,325 |
Associated Estates Realty Corp. | 484,200 | | 7,171,002 |
AvalonBay Communities, Inc. | 44,625 | | 5,173,376 |
Brandywine Realty Trust (SBI) | 295,700 | | 3,430,120 |
Canadian (REIT) | 15,000 | | 479,473 |
CapLease, Inc. | 124,200 | | 685,584 |
CBL & Associates Properties, Inc. | 296,173 | | 5,052,711 |
Cedar Shopping Centers, Inc. | 271,400 | | 1,641,970 |
Cypress Sharpridge Investments, Inc. | 1,345,588 | | 17,559,923 |
DCT Industrial Trust, Inc. | 666,100 | | 3,690,194 |
Developers Diversified Realty Corp. | 140,000 | | 1,904,000 |
DiamondRock Hospitality Co. (a) | 487,900 | | 5,918,227 |
Digital Realty Trust, Inc. (f) | 190,100 | | 10,341,440 |
Duke Realty LP | 590,283 | | 8,086,877 |
Dynex Capital, Inc. | 826,898 | | 8,831,271 |
Education Realty Trust, Inc. | 140,600 | | 1,096,680 |
Equity Lifestyle Properties, Inc. | 301,530 | | 17,151,026 |
Equity Residential (SBI) | 103,300 | | 5,597,827 |
Excel Trust, Inc. | 316,100 | | 4,039,758 |
Federal Realty Investment Trust (SBI) | 26,700 | | 2,147,481 |
Government Properties Income Trust | 74,500 | | 1,929,550 |
HCP, Inc. | 154,900 | | 5,745,241 |
Healthcare Realty Trust, Inc. | 218,500 | | 4,588,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
Highwoods Properties, Inc. (SBI) | 107,900 | | $ 3,535,883 |
Hospitality Properties Trust (SBI) | 96,400 | | 2,397,468 |
LTC Properties, Inc. | 165,213 | | 4,516,923 |
MFA Financial, Inc. | 2,919,281 | | 23,850,526 |
Mid-America Apartment Communities, Inc. | 64,600 | | 4,118,250 |
Monmouth Real Estate Investment Corp. Class A | 455,073 | | 3,745,251 |
National Health Investors, Inc. | 195,606 | | 8,945,062 |
National Retail Properties, Inc. | 219,500 | | 5,454,575 |
Nationwide Health Properties, Inc. | 140,480 | | 5,275,024 |
Omega Healthcare Investors, Inc. | 214,000 | | 4,767,920 |
Pebblebrook Hotel Trust | 204,100 | | 4,196,296 |
ProLogis Trust | 495,966 | | 7,399,813 |
Public Storage | 31,200 | | 3,400,176 |
Rayonier, Inc. | 23,800 | | 1,409,198 |
Regency Centers Corp. | 100,100 | | 4,315,311 |
Senior Housing Properties Trust (SBI) | 75,800 | | 1,699,436 |
Simon Property Group, Inc. | 119,801 | | 12,153,811 |
Sun Communities, Inc. | 12,700 | | 420,624 |
Sunstone Hotel Investors, Inc. (a) | 465,100 | | 4,748,671 |
The Macerich Co. | 99,474 | | 4,840,405 |
Two Harbors Investment Corp. | 143,980 | | 1,446,999 |
Ventas, Inc. | 457,380 | | 25,366,282 |
Vornado Realty Trust | 44,390 | | 3,910,315 |
Weyerhaeuser Co. | 340,429 | | 7,891,144 |
Whitestone REIT Class B | 179,067 | | 2,580,355 |
| | 339,826,694 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 61,400 | | 1,362,466 |
Coresite Realty Corp. | 146,600 | | 2,106,642 |
| | 3,469,108 |
Thrifts & Mortgage Finance - 0.1% |
Walker & Dunlop, Inc. | 168,200 | | 2,018,400 |
Wrightwood Capital LLC warrants 7/31/14 (a)(g) | 60,681 | | 607 |
| | 2,019,007 |
TOTAL FINANCIALS | | 352,206,981 |
HEALTH CARE - 1.5% |
Health Care Providers & Services - 1.5% |
Brookdale Senior Living, Inc. (a) | 541,600 | | 11,833,960 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Capital Senior Living Corp. (a) | 504,850 | | $ 3,448,126 |
Emeritus Corp. (a) | 333,674 | | 6,373,173 |
| | 21,655,259 |
TOTAL COMMON STOCKS (Cost $311,994,867) | 381,986,887 |
Preferred Stocks - 10.5% |
| | | |
Convertible Preferred Stocks - 1.9% |
FINANCIALS - 1.9% |
Real Estate Investment Trusts - 1.7% |
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | | 2,339,375 |
CommonWealth REIT 6.50% | 150,000 | | 3,255,000 |
Excel Trust, Inc. 7.00% (a)(g) | 248,200 | | 6,205,000 |
Lexington Corporate Properties Trust Series C 6.50% | 325,036 | | 13,726,270 |
| | 25,525,645 |
Real Estate Management & Development - 0.2% |
Grubb & Ellis Co. 12.00% (g) | 27,500 | | 2,445,025 |
TOTAL FINANCIALS | | 27,970,670 |
Nonconvertible Preferred Stocks - 8.6% |
CONSUMER DISCRETIONARY - 0.1% |
Household Durables - 0.1% |
M/I Homes, Inc. Series A, 9.75% (a) | 38,200 | | 683,398 |
FINANCIALS - 8.5% |
Diversified Financial Services - 0.3% |
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | | 362,500 |
Red Lion Hotels Capital Trust 9.50% | 163,225 | | 4,157,341 |
| | 4,519,841 |
Real Estate Investment Trusts - 7.8% |
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | | 1,715,870 |
American Home Mortgage Investment Corp.: | | | |
Series A, 9.375% (a) | 120,300 | | 120 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
American Home Mortgage Investment Corp.: - continued | | | |
Series B, 9.25% (a) | 124,100 | | $ 12 |
Annaly Capital Management, Inc. Series A, 7.875% | 164,900 | | 4,254,420 |
Anworth Mortgage Asset Corp. Series A, 8.625% | 285,127 | | 7,182,349 |
Apartment Investment & Management Co.: | | | |
Series T, 8.00% | 57,500 | | 1,452,450 |
Series U, 7.75% | 100,773 | | 2,531,418 |
Brandywine Realty Trust Series C, 7.50% | 37,615 | | 936,990 |
CapLease, Inc. Series A, 8.125% | 43,400 | | 1,079,792 |
CBL & Associates Properties, Inc.: | | | |
(depositary shares) Series C, 7.75% | 47,962 | | 1,168,354 |
7.375% | 140,688 | | 3,335,712 |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | | 7,366,230 |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | | 1,644,500 |
Cogdell Spencer, Inc. 8.50% | 114,300 | | 2,871,216 |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | | 123,650 |
Cousins Properties, Inc. Series A, 7.75% | 93,230 | | 2,274,812 |
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 74,500 | | 1,852,070 |
Duke Realty LP: | | | |
8.375% | 128,517 | | 3,359,434 |
Series L, 6.60% | 10,666 | | 246,491 |
DuPont Fabros Technology, Inc. 7.875% | 40,000 | | 1,001,600 |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | | 40,800 |
First Potomac Realty Trust 7.75% | 80,000 | | 2,009,600 |
Glimcher Realty Trust Series G, 8.125% | 121,111 | | 2,944,208 |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | | 1 |
Hospitality Properties Trust: | | | |
Series B, 8.875% | 88,600 | | 2,283,222 |
Series C, 7.00% | 58,500 | | 1,381,770 |
Kimco Realty Corp. Series G, 7.75% | 97,300 | | 2,487,961 |
Kite Realty Group Trust 8.25% | 96,100 | | 2,354,450 |
LaSalle Hotel Properties: | | | |
7.50% | 100,000 | | 2,495,000 |
Series B, 8.375% | 26,800 | | 671,340 |
Series E, 8.00% | 47,350 | | 1,186,118 |
Series G, 7.25% | 114,485 | | 2,735,047 |
LBA Realty Fund II: | | | |
Series A, 8.75% (a) | 69,000 | | 2,760,000 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
LBA Realty Fund II: - continued | | | |
Series B, 7.625% (a) | 31,240 | | $ 749,760 |
Lexington Corporate Properties Trust Series B, 8.05% | 29,000 | | 720,650 |
Lexington Realty Trust 7.55% | 23,800 | | 561,442 |
LTC Properties, Inc. Series F, 8.00% | 61,240 | | 1,555,496 |
MFA Financial, Inc. Series A, 8.50% | 386,961 | | 9,732,069 |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | | 1,996,000 |
Omega Healthcare Investors, Inc. Series D, 8.375% | 59,600 | | 1,531,720 |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | | 5,923,710 |
ProLogis Trust Series C, 8.54% | 94,446 | | 5,049,914 |
PS Business Parks, Inc.: | | | |
(depositary shares) Series H, 7.00% | 13,300 | | 330,638 |
6.875% | 50,000 | | 1,227,500 |
7.20% | 83,040 | | 2,063,544 |
7.375% | 100,610 | | 2,516,256 |
Series P, 6.70% | 36,000 | | 876,240 |
Public Storage: | | | |
Series I, 7.25% | 10,828 | | 272,866 |
Series K, 7.25% | 128,260 | | 3,230,869 |
Series N, 7.00% | 4,200 | | 105,966 |
Regency Centers Corp.: | | | |
7.25% | 10,500 | | 260,925 |
Series C 7.45% | 18,000 | | 454,500 |
Saul Centers, Inc.: | | | |
8.00% | 93,700 | | 2,398,720 |
Series B (depositary shares) 9.00% | 88,550 | | 2,364,285 |
Sunstone Hotel Investors, Inc. Series A, 8.00% | 62,200 | | 1,499,020 |
Vornado Realty Trust 6.75% | 20,000 | | 482,000 |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | | 1,318,594 |
| | 114,969,691 |
Preferred Stocks - continued |
| Shares | | Value |
Nonconvertible Preferred Stocks - continued |
FINANCIALS - continued |
Real Estate Management & Development - 0.4% |
Hudson Pacific Properties, Inc. 8.375% | 186,300 | | $ 4,659,363 |
Vornado Realty LP 7.875% | 50,449 | | 1,356,069 |
| | 6,015,432 |
TOTAL FINANCIALS | | 125,504,964 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 126,188,362 |
TOTAL PREFERRED STOCKS (Cost $159,940,508) | 154,159,032 |
Corporate Bonds - 28.1% |
| Principal Amount (e) | | |
Convertible Bonds - 6.9% |
CONSUMER DISCRETIONARY - 0.1% |
Hotels, Restaurants & Leisure - 0.1% |
Morgans Hotel Group Co. 2.375% 10/15/14 | | $ 1,340,000 | | 1,147,375 |
FINANCIALS - 6.8% |
Real Estate Investment Trusts - 4.2% |
Acadia Realty Trust 3.75% 12/15/26 | | 11,505,000 | | 11,505,000 |
Alexandria Real Estate Equities, Inc. 3.7% 1/15/27 (g) | | 5,895,000 | | 5,976,351 |
Annaly Capital Management, Inc. 4% 2/15/15 | | 1,000,000 | | 1,169,375 |
CapLease, Inc. 7.5% 10/1/27 (g) | | 5,180,000 | | 5,128,200 |
Developers Diversified Realty Corp. 1.75% 11/15/40 | | 1,000,000 | | 1,042,500 |
Hospitality Properties Trust 3.8% 3/15/27 | | 5,100,000 | | 5,100,000 |
Inland Real Estate Corp. 4.625% 11/15/26 | | 10,870,000 | | 10,870,000 |
Lexington Corporate Properties Trust 6% 1/15/30 (g) | | 5,000,000 | | 6,437,500 |
ProLogis Trust: | | | | |
1.875% 11/15/37 | | 2,450,000 | | 2,416,313 |
2.625% 5/15/38 | | 1,500,000 | | 1,494,375 |
The Macerich Co. 3.25% 3/15/12 (g) | | 4,800,000 | | 4,818,000 |
United Dominion Realty Trust, Inc. 3.625% 9/15/11 | | 5,500,000 | | 5,541,250 |
| | 61,498,864 |
Real Estate Management & Development - 2.6% |
BioMed Realty LP 4.5% 10/1/26 (g) | | 2,500,000 | | 2,512,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Convertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Corporate Office Properties LP: | | | | |
3.5% 9/15/26 (g) | | $ 3,280,000 | | $ 3,292,300 |
4.25% 4/15/30 (g) | | 2,000,000 | | 2,065,000 |
Duke Realty LP 3.75% 12/1/11 (g) | | 2,650,000 | | 2,683,125 |
First Potomac Realty Investment LP 4% 12/15/11 (g) | | 2,600,000 | | 2,587,000 |
Grubb & Ellis Co. 7.95% 5/1/15 (g) | | 5,500,000 | | 4,881,250 |
Home Properties, Inc. 4.125% 11/1/26 (g) | | 2,100,000 | | 2,126,250 |
Kilroy Realty LP 3.25% 4/15/12 (g) | | 2,185,000 | | 2,201,388 |
Lexington Master Ltd. Partnership 5.45% 1/15/27 (g) | | 14,950,000 | | 15,006,063 |
MPT Operating Partnership LP 9.25% 4/1/13 (g) | | 1,000,000 | | 1,118,800 |
SL Green Realty Corp. 3% 3/30/27 (g) | | 500,000 | | 493,125 |
| | 38,966,801 |
TOTAL FINANCIALS | | 100,465,665 |
TOTAL CONVERTIBLE BONDS | | 101,613,040 |
Nonconvertible Bonds - 21.2% |
CONSUMER DISCRETIONARY - 5.7% |
Hotels, Restaurants & Leisure - 0.8% |
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 (g) | | 1,945,000 | | 1,996,154 |
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | | 1,000,000 | | 1,050,000 |
Landry's Restaurants, Inc.: | | | | |
11.625% 12/1/15 | | 1,000,000 | | 1,060,000 |
11.625% 12/1/15 (g) | | 325,000 | | 344,500 |
Times Square Hotel Trust 8.528% 8/1/26 (g) | | 3,909,982 | | 3,958,856 |
Vail Resorts, Inc. 6.75% 2/15/14 | | 3,000,000 | | 3,037,500 |
| | 11,447,010 |
Household Durables - 4.4% |
KB Home: | | | | |
5.75% 2/1/14 | | 510,000 | | 512,550 |
5.875% 1/15/15 | | 5,000,000 | | 4,950,000 |
6.25% 6/15/15 | | 8,500,000 | | 8,457,500 |
9.1% 9/15/17 | | 4,000,000 | | 4,230,000 |
Lennar Corp.: | | | | |
5.5% 9/1/14 | | 1,000,000 | | 1,000,000 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Lennar Corp.: - continued | | | | |
5.6% 5/31/15 | | $ 3,000,000 | | $ 2,940,000 |
6.5% 4/15/16 | | 4,000,000 | | 4,000,000 |
6.95% 6/1/18 | | 10,000,000 | | 9,900,000 |
M/I Homes, Inc.: | | | | |
6.875% 4/1/12 | | 2,150,000 | | 2,171,500 |
8.625% 11/15/18 (g) | | 5,905,000 | | 5,964,050 |
Meritage Homes Corp.: | | | | |
6.25% 3/15/15 | | 2,500,000 | | 2,512,500 |
7.15% 4/15/20 | | 1,500,000 | | 1,440,000 |
Ryland Group, Inc. 8.4% 5/15/17 | | 745,000 | | 812,050 |
Standard Pacific Corp.: | | | | |
7% 8/15/15 | | 4,000,000 | | 4,200,000 |
8.375% 5/15/18 | | 2,913,000 | | 3,022,238 |
8.375% 5/15/18 (g) | | 5,645,000 | | 5,856,688 |
10.75% 9/15/16 | | 3,000,000 | | 3,525,000 |
| | 65,494,076 |
Multiline Retail - 0.3% |
Sears Holdings Corp. 6.625% 10/15/18 (g) | | 4,000,000 | | 3,840,000 |
Specialty Retail - 0.2% |
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | | 2,490,000 | | 2,832,375 |
TOTAL CONSUMER DISCRETIONARY | | 83,613,461 |
CONSUMER STAPLES - 0.4% |
Food & Staples Retailing - 0.4% |
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | | 1,195,175 | | 1,338,596 |
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | | 4,400,000 | | 4,356,000 |
| | 5,694,596 |
FINANCIALS - 14.5% |
Commercial Banks - 0.1% |
CapitalSource, Inc. 12.75% 7/15/14 (g) | | 1,500,000 | | 1,807,500 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Diversified Financial Services - 0.6% |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | | |
7.75% 1/15/16 | | $ 7,320,000 | | $ 7,503,000 |
7.75% 1/15/16 (g) | | 1,500,000 | | 1,537,500 |
| | 9,040,500 |
Real Estate Investment Trusts - 9.0% |
Camden Property Trust 5% 6/15/15 | | 1,100,000 | | 1,174,511 |
Commercial Net Lease Realty, Inc.: | | | | |
6.15% 12/15/15 | | 2,526,000 | | 2,694,168 |
6.25% 6/15/14 | | 5,005,000 | | 5,407,872 |
CommonWealth REIT 5.875% 9/15/20 | | 2,000,000 | | 1,968,894 |
Developers Diversified Realty Corp.: | | | | |
5.375% 10/15/12 | | 500,000 | | 515,744 |
5.5% 5/1/15 | | 2,000,000 | | 2,067,406 |
7.5% 4/1/17 | | 6,000,000 | | 6,765,126 |
7.5% 7/15/18 | | 5,271,000 | | 5,814,071 |
7.875% 9/1/20 | | 4,637,000 | | 5,356,635 |
9.625% 3/15/16 | | 3,836,000 | | 4,614,478 |
Entertainment Properties Trust 7.75% 7/15/20 (g) | | 2,000,000 | | 2,100,000 |
Equity One, Inc.: | | | | |
5.375% 10/15/15 | | 1,500,000 | | 1,537,554 |
6.25% 12/15/14 | | 4,081,000 | | 4,392,535 |
6.25% 1/15/17 | | 3,000,000 | | 3,138,711 |
HCP, Inc. 3.75% 2/1/16 | | 2,000,000 | | 1,999,880 |
Health Care Property Investors, Inc.: | | | | |
6% 3/1/15 | | 1,000,000 | | 1,080,262 |
6.3% 9/15/16 | | 5,250,000 | | 5,884,877 |
7.072% 6/8/15 | | 1,500,000 | | 1,672,280 |
Health Care REIT, Inc.: | | | | |
6% 11/15/13 | | 1,000,000 | | 1,095,717 |
6.2% 6/1/16 | | 750,000 | | 831,961 |
Healthcare Realty Trust, Inc. 6.5% 1/17/17 | | 1,875,000 | | 2,079,008 |
HMB Capital Trust V 3.9016% 12/15/36 (d)(g)(h) | | 2,530,000 | | 0 |
Hospitality Properties Trust: | | | | |
5.625% 3/15/17 | | 915,000 | | 919,283 |
6.75% 2/15/13 | | 610,000 | | 644,022 |
7.875% 8/15/14 | | 1,000,000 | | 1,120,686 |
HRPT Properties Trust: | | | | |
5.75% 11/1/15 | | 3,600,000 | | 3,777,505 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
HRPT Properties Trust: - continued | | | | |
6.25% 8/15/16 | | $ 1,500,000 | | $ 1,601,964 |
6.5% 1/15/13 | | 200,000 | | 210,380 |
iStar Financial, Inc.: | | | | |
5.95% 10/15/13 | | 5,330,000 | | 5,010,200 |
6.05% 4/15/15 | | 1,500,000 | | 1,350,000 |
Kimco Realty Corp. 5.783% 3/15/16 | | 450,000 | | 490,522 |
Nationwide Health Properties, Inc.: | | | | |
6% 5/20/15 | | 3,122,000 | | 3,365,688 |
6.25% 2/1/13 | | 1,000,000 | | 1,070,479 |
8.25% 7/1/12 | | 1,300,000 | | 1,391,883 |
Omega Healthcare Investors, Inc.: | | | | |
6.75% 10/15/22 (g) | | 2,115,000 | | 2,093,850 |
7% 1/15/16 | | 1,295,000 | | 1,328,994 |
7.5% 2/15/20 | | 1,000,000 | | 1,050,000 |
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | | 1,750,000 | | 1,913,886 |
Potlatch Corp. 7.5% 11/1/19 | | 1,000,000 | | 1,057,500 |
ProLogis Trust: | | | | |
6.25% 3/15/17 | | 4,000,000 | | 4,371,652 |
6.625% 5/15/18 | | 6,480,000 | | 7,160,860 |
6.875% 3/15/20 | | 1,500,000 | | 1,675,158 |
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | | 2,000,000 | | 2,176,400 |
Security Capital Industrial Trust 7.625% 7/1/17 | | 4,690,000 | | 5,423,399 |
Senior Housing Properties Trust: | | | | |
4.3% 1/15/16 | | 5,000,000 | | 4,961,425 |
6.75% 4/15/20 | | 2,000,000 | | 2,121,178 |
8.625% 1/15/12 | | 5,900,000 | | 6,187,365 |
UDR, Inc. 5.5% 4/1/14 | | 500,000 | | 531,257 |
United Dominion Realty Trust, Inc.: | | | | |
5.13% 1/15/14 | | 500,000 | | 522,548 |
5.25% 1/15/15 | | 1,000,000 | | 1,052,356 |
5.25% 1/15/16 | | 4,000,000 | | 4,170,536 |
Weingarten Realty Investors 4.857% 1/15/14 | | 2,500,000 | | 2,568,593 |
| | 133,511,259 |
Real Estate Management & Development - 4.7% |
AMB Property LP 5.9% 8/15/13 | | 400,000 | | 426,049 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Real Estate Management & Development - continued |
Brandywine Operating Partnership LP: | | | | |
5.4% 11/1/14 | | $ 6,750,000 | | $ 7,076,032 |
5.75% 4/1/12 | | 1,000,000 | | 1,032,844 |
7.5% 5/15/15 | | 1,000,000 | | 1,110,549 |
CB Richard Ellis Services, Inc.: | | | | |
6.625% 10/15/20 (g) | | 1,205,000 | | 1,205,000 |
11.625% 6/15/17 | | 1,500,000 | | 1,747,500 |
Colonial Properties Trust: | | | | |
6.15% 4/15/13 | | 1,500,000 | | 1,557,717 |
6.25% 6/15/14 | | 1,594,000 | | 1,681,614 |
6.875% 8/15/12 | | 1,000,000 | | 1,047,462 |
Colonial Realty LP 6.05% 9/1/16 | | 2,500,000 | | 2,539,580 |
Duke Realty LP: | | | | |
6.25% 5/15/13 | | 750,000 | | 810,498 |
7.375% 2/15/15 | | 1,500,000 | | 1,706,700 |
DuPont Fabros Technology LP 8.5% 12/15/17 | | 845,000 | | 916,825 |
Forest City Enterprises, Inc.: | | | | |
6.5% 2/1/17 | | 11,560,000 | | 10,635,200 |
7.625% 6/1/15 | | 1,435,000 | | 1,391,950 |
Highwoods/Forsyth LP 5.85% 3/15/17 | | 2,800,000 | | 2,952,555 |
Host Hotels & Resorts LP: | | | | |
6.875% 11/1/14 | | 500,000 | | 515,000 |
9% 5/15/17 | | 750,000 | | 838,125 |
Liberty Property LP 6.375% 8/15/12 | | 2,679,000 | | 2,864,687 |
Post Apartment Homes LP: | | | | |
5.45% 6/1/12 | | 713,000 | | 735,980 |
6.3% 6/1/13 | | 2,000,000 | | 2,149,586 |
Realogy Corp. 7.875% 2/15/19 (g) | | 2,035,000 | | 2,045,175 |
Regency Centers LP: | | | | |
5.25% 8/1/15 | | 4,509,000 | | 4,835,528 |
5.875% 6/15/17 | | 400,000 | | 436,472 |
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | | 1,000,000 | | 1,080,000 |
Ventas Realty LP: | | | | |
3.125% 11/30/15 | | 1,500,000 | | 1,454,085 |
6.5% 6/1/16 | | 2,340,000 | | 2,421,900 |
6.5% 6/1/16 | | 11,370,000 | | 11,767,950 |
| | 68,982,563 |
Corporate Bonds - continued |
| Principal Amount (e) | | Value |
Nonconvertible Bonds - continued |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.1% |
Wrightwood Capital LLC 9% 6/1/14 (d)(g) | | $ 4,000,000 | | $ 1,200,000 |
TOTAL FINANCIALS | | 214,541,822 |
HEALTH CARE - 0.6% |
Health Care Equipment & Supplies - 0.2% |
Aviv Healthcare Properties LP 7.75% 2/15/19 (g) | | 2,335,000 | | 2,399,213 |
Health Care Providers & Services - 0.4% |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 (g) | | 3,410,000 | | 3,546,400 |
Skilled Healthcare Group, Inc. 11% 1/15/14 | | 3,080,000 | | 3,164,700 |
| | 6,711,100 |
TOTAL HEALTH CARE | | 9,110,313 |
TOTAL NONCONVERTIBLE BONDS | | 312,960,192 |
TOTAL CORPORATE BONDS (Cost $383,752,362) | 414,573,232 |
Asset-Backed Securities - 4.4% |
|
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (g) | | 1,384,000 | | 1,297,500 |
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.62% 3/23/19 (g)(h) | | 365,848 | | 332,922 |
Brascan Real Estate CDO Ltd./Brascan Real Estate CDO Corp. Series 2004-1A Class A, 0.6531% 1/20/40 (g)(h) | | 849,042 | | 832,061 |
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7606% 3/20/50 (g)(h) | | 2,250,000 | | 67,500 |
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | | 6,875,000 | | 6,840,625 |
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.5391% 1/20/37 (g)(h) | | 1,397,997 | | 922,678 |
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | | 2,383,050 | | 1,906,440 |
Cbre Realty Finance Cdo 2007-1/LLC 0.5528% 4/7/52 (g)(h) | | 6,711,746 | | 4,899,575 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | | $ 500,000 | | $ 392,961 |
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | | | | |
Class B1, 6.065% 12/28/35 (g) | | 1,570,000 | | 1,177,500 |
Class B2, 1.6528% 12/28/35 (g)(h) | | 1,575,000 | | 976,500 |
Class D, 9% 12/28/35 (g) | | 500,000 | | 158,450 |
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A Class D, 9% 6/28/38 (g) | | 997,000 | | 264,205 |
Crest Ltd. Series 2002-IGA: | | | | |
Class A, 0.7544% 7/28/17 (g)(h) | | 637,960 | | 630,438 |
Class B, 1.6544% 7/28/35 (g)(h) | | 1,500,000 | | 1,320,000 |
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | | 9,500,000 | | 8,137,074 |
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6569% 11/28/39 (g)(h) | | 550,000 | | 16,500 |
Green Tree Financial Corp.: | | | | |
Series 1996-4 Class M1, 7.75% 6/15/27 | | 1,788,179 | | 1,609,208 |
Series 1997-3 Class M1, 7.53% 3/15/28 | | 7,949,878 | | 5,951,415 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 6/25/35 (h)(j) | | 1,259,000 | | 83,103 |
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | | | | |
Class D, 1.81% 8/26/30 (g)(h) | | 756,799 | | 83,248 |
Class E, 2.26% 8/26/30 (g)(h) | | 1,472,717 | | 44,182 |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 3/15/28 | | 1,365,083 | | 500,346 |
Merit Securities Corp. Series 13 Class M1, 7.9882% 12/28/33 | | 1,923,000 | | 1,607,435 |
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | | 883,000 | | 693,155 |
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A: | | | | |
Class A2, 4.646% 7/24/39 (g) | | 1,060,054 | | 1,060,054 |
Class D, 5.194% 7/24/39 (g) | | 4,590,000 | | 4,475,250 |
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9359% 2/5/36 (g)(h) | | 3,422,702 | | 342 |
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (g) | | 3,165,000 | | 3,133,350 |
Wachovia Ltd./Wachovia LLC: | | | | |
Series 2006-1 Class 1ML, 0% 9/25/26 (g)(h) | | 2,000,000 | | 540,000 |
Series 2006-1A: | | | | |
Class A1A, 0.5628% 9/25/26 (g)(h) | | 2,439,000 | | 2,036,565 |
Asset-Backed Securities - continued |
| Principal Amount (e) | | Value |
Wachovia Ltd./Wachovia LLC: - continued | | | | |
Series 2006-1A: | | | | |
Class A1B, 0.6328% 9/25/26 (g)(h) | | $ 6,285,000 | | $ 4,996,575 |
Class A2A, 0.5228% 9/25/26 (g)(h) | | 9,385,000 | | 8,071,100 |
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A Class F, 2.2344% 11/21/40 (g)(h) | | 250,000 | | 50,000 |
TOTAL ASSET-BACKED SECURITIES (Cost $72,123,231) | 65,108,257 |
Collateralized Mortgage Obligations - 2.4% |
|
Private Sponsor - 2.4% |
Banc of America Large Loan, Inc. Series 2005-MIB1 Class A2, 0.4713% 3/15/22 (g)(h) | | 7,770,341 | | 7,612,174 |
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4413% 6/15/22 (g)(h) | | 3,250,000 | | 3,006,771 |
Countrywide Home Loans, Inc.: | | | | |
Series 2002-38 Class B3, 5% 2/25/18 (g) | | 102,634 | | 13,876 |
Series 2002-R2 Class 2B3, 4.4726% 7/25/33 (g)(h) | | 232,454 | | 91,986 |
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | | 145,467 | | 14,110 |
Series 2003-R2 Class B3, 5.5% 5/25/43 (g) | | 265,815 | | 10,189 |
Series 2003-R3: | | | | |
Class B2, 5.5% 11/25/33 (g) | | 1,547,998 | | 436,339 |
Class B3, 5.5% 11/25/33 (g) | | 370,653 | | 19,035 |
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(h) | | 231,482 | | 7,227 |
FREMF Mortgage Trust: | | | | |
Series 2010 K7 Class B, 5.4344% 4/25/20 (g)(h) | | 1,500,000 | | 1,328,400 |
Series 2010-K6 Class B, 5.3576% 12/26/46 (g)(h) | | 4,500,000 | | 3,959,765 |
Merrill Lynch Floating Trust floater Series 2006-1 Class TM, 0.761% 6/15/22 (g)(h) | | 8,485,528 | | 7,933,969 |
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | | 7,120,000 | | 7,212,560 |
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (g) | | 1,600,000 | | 1,643,460 |
RESI Finance LP/RESI Finance DE Corp. floater: | | | | |
Series 2003-B Class B9, 12.2113% 7/10/35 (g)(h) | | 502,236 | | 334,037 |
Series 2005-A Class B6, 2.2613% 3/10/37 (g)(h) | | 1,680,659 | | 312,603 |
Series 2005-B Class B6, 1.8613% 6/10/37 (g)(h) | | 888,208 | | 65,994 |
Series 2005-D Class B6, 2.5113% 12/15/37 (g)(h) | | 448,042 | | 19,087 |
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | | 74,309 | | 28,583 |
RESIX Finance Ltd. floater: | | | | |
Series 2003-D Class B8, 6.7613% 12/10/35 (g)(h) | | 460,412 | | 175,141 |
Collateralized Mortgage Obligations - continued |
| Principal Amount (e) | | Value |
Private Sponsor - continued |
RESIX Finance Ltd. floater: - continued | | | | |
Series 2004-A Class B7, 4.5113% 2/10/36 (g)(h) | | $ 478,992 | | $ 240,885 |
Series 2004-B Class B7, 4.2613% 2/10/36 (g)(h) | | 575,299 | | 217,751 |
Series 2005-C Class B7, 3.3613% 9/10/37 (g)(h) | | 1,830,031 | | 154,455 |
TOTAL PRIVATE SPONSOR | | 34,838,397 |
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) | | 192,091 | | 119,407 |
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 4.0614% 2/25/42 (g)(h) | | 120,527 | | 53,578 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | | 267,698 | | 83,476 |
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 4.0337% 6/25/43 (g)(h) | | 167,016 | | 65,918 |
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 4.2404% 10/25/42 (g)(h) | | 72,654 | | 27,284 |
TOTAL U.S. GOVERNMENT AGENCY | | 349,663 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $39,642,982) | 35,188,060 |
Commercial Mortgage Securities - 17.8% |
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | | 2,000,000 | | 2,146,229 |
Asset Securitization Corp. Series 1997-D4: | | | | |
Class B1, 7.525% 4/14/29 | | 1,565,000 | | 1,619,968 |
Class B2, 7.525% 4/14/29 | | 560,000 | | 574,450 |
Banc of America Commercial Mortgage, Inc.: | | | | |
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | | 4,185,000 | | 4,301,171 |
Series 2005-1 Class CJ, 5.1794% 11/10/42 (h) | | 3,580,000 | | 3,652,174 |
Series 2005-6 Class AJ, 5.1955% 9/10/47 (h) | | 5,000,000 | | 4,990,604 |
Banc of America Large Loan Trust floater Series 2010- HLTN Class HLTN, 2.0103% 11/15/15 (g)(h) | | 22,269,352 | | 19,875,396 |
Banc of America Large Loan, Inc. floater Series 2005- MIB1 Class K, 2.2613% 3/15/22 (g)(h) | | 4,190,000 | | 2,974,900 |
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4558% 3/11/39 (h) | | 5,700,000 | | 5,697,442 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Bear Stearns Commercial Mortgage Securities Trust: | | | | |
floater Series 2006-BBA7: | | | | |
Class D, 0.5213% 3/15/19 (g)(h) | | $ 2,480,000 | | $ 2,215,143 |
Class E, 0.5813% 3/15/19 (g)(h) | | 1,995,000 | | 1,732,628 |
Class F, 0.6013% 3/15/19 (g)(h) | | 1,650,000 | | 1,419,686 |
Class G, 0.7013% 3/15/19 (g)(h) | | 2,760,000 | | 2,284,531 |
Series 2006-T22 Class B, 5.5121% 4/12/38 (g)(h) | | 2,520,000 | | 2,434,237 |
Citigroup Commercial Mortgage Trust floater Series 2007-FL3A Classs MLA2, 1.3113% 4/15/22 (g)(h) | | 637,226 | | 546,397 |
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2006-CD2 Class VPM2, 5.6179% 1/15/46 (g)(h) | | 3,500,000 | | 3,443,526 |
COMM pass-thru certificates: | | | | |
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | | 9,964,688 | | 9,889,953 |
Series 2001-J1A Class F, 6.958% 2/16/34 (g) | | 2,600,000 | | 2,594,999 |
Credit Suisse First Boston Mortgage Securities Corp. Series 2004-TF2A Class AX, 0.0118% 11/15/19 (g)(h)(i) | | 4,461,469 | | 45 |
Credit Suisse/Morgan Stanley Commercial Mortgage Trust: | | | | |
floater Series 2006-HC1A: | | | | |
Class A2, 0.5213% 5/15/23 (g)(h) | | 5,800,000 | | 5,647,950 |
Class D, 0.7313% 5/15/23 (g)(h) | | 1,250,000 | | 1,205,847 |
Class F, 0.8613% 5/15/23 (g)(h) | | 1,825,000 | | 1,748,693 |
Series 2006-HC1A Class A1, 0.4513% 5/15/23 (g)(h) | | 2,375,639 | | 2,326,733 |
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.91% 3/25/17 (g)(h) | | 2,512,000 | | 2,054,345 |
CRESIX Finance Ltd. Series 2006-AA: | | | | |
Class F, 4.46% 3/25/17 (g)(h) | | 3,860,000 | | 3,061,463 |
Class G, 7.26% 3/25/17 (g)(h) | | 3,272,000 | | 2,056,248 |
Crest Ltd. Series 2001-1A Class C, 9% 2/25/34 (g) | | 1,000,000 | | 600,000 |
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | | 1,200,000 | | 985,147 |
DLJ Commercial Mortgage Corp.: | | | | |
Series 1998-CG1 Class B4, 7.2253% 6/10/31 (g)(h) | | 2,500,000 | | 2,681,245 |
Series 2000-CKP1 Class B3, 8.0024% 11/10/33 (h) | | 2,970,000 | | 2,964,241 |
First Union National Bank Commercial Mortgage Trust Series 2001-C4: | | | | |
Class H, 7.036% 12/12/33 (g) | | 2,000,000 | | 2,030,146 |
Class K, 6% 12/12/33 (g) | | 2,000,000 | | 1,991,182 |
FREMF Mortgage Trust Series 2010-K9 Class B, 5.163% 9/25/45 (h) | | 4,000,000 | | 3,410,000 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | | $ 7,494,068 | | $ 7,149,341 |
GE Capital Commercial Mortgage Corp.: | | | | |
Series 2001-3 Class C, 6.51% 6/10/38 | | 820,000 | | 841,357 |
Series 2002-1A Class H, 7.1436% 12/10/35 (g)(h) | | 991,000 | | 979,304 |
Global Towers Partners Acquisition Partners I LLC Series 2007-1A Class G, 7.8737% 5/15/37 (g) | | 1,000,000 | | 1,045,000 |
GMAC Commercial Mortgage Securities, Inc.: | | | | |
Series 1997-C2: | | | | |
Class F, 6.75% 4/15/29 (h) | | 2,617,802 | | 2,739,180 |
Class G, 6.75% 4/15/29 (h) | | 1,250,000 | | 1,256,100 |
Series 1999-C3: | | | | |
Class G, 6.974% 8/15/36 (g) | | 1,199,621 | | 1,204,419 |
Class J, 6.974% 8/15/36 (g) | | 1,500,000 | | 1,472,121 |
Series 2000-C1: | | | | |
Class H, 7% 3/15/33 (g) | | 49,259 | | 49,424 |
Class K, 7% 3/15/33 | | 1,100,000 | | 791,297 |
Series 2002-C3 Class D, 5.27% 7/10/39 | | 3,000,000 | | 3,087,784 |
Greenwich Capital Commercial Funding Corp.: | | | | |
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | | 2,000,000 | | 2,055,124 |
Series 2002-C1 Class H, 5.903% 1/11/35 (g) | | 880,000 | | 880,928 |
GS Mortgage Securities Corp. II floater Series 2007-EOP Class L, 1.5606% 3/1/20 (g)(h) | | 1,400,000 | | 1,255,665 |
JP Morgan Chase Commercial Mortgage Securities Corp.: | | | | |
Series 2009-IWST Class D, 7.4453% 12/5/27 (g)(h) | | 5,000,000 | | 5,368,461 |
Series 2010-CNTM Class MZ, 8.5% 8/4/20 (g) | | 4,000,000 | | 3,701,252 |
Series 2010-CNTR: | | | | |
Class D, 6.1838% 8/5/32 (g)(h) | | 3,750,000 | | 3,584,427 |
Class XB, 0.9305% 8/5/32 (g)(i) | | 32,655,000 | | 1,793,520 |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2001-A: | | | | |
Class G, 6% 10/15/32 (g)(h) | | 2,895,000 | | 14,475 |
Class X, 1.3291% 10/15/32 (g)(h)(i) | | 7,200,784 | | 384 |
JPMorgan Chase Commercial Mortgage Securities Trust floater Series 2005-FL1A Class A2, 0.4413% 2/15/19 (g)(h) | | 2,244,141 | | 2,203,632 |
JPMorgan Commercial Mortgage Finance Corp.: | | | | |
Series 1997-C5 Class F, 7.5605% 9/15/29 | | 2,064,384 | | 2,158,336 |
Series 1999-C8: | | | | |
Class G, 6% 7/15/31 (g) | | 1,385,000 | | 1,377,451 |
Class H, 6% 7/15/31 (g) | | 2,638,000 | | 19,785 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | | $ 2,920,000 | | $ 3,007,600 |
LB-UBS Commercial Mortgage Trust: | | | | |
sequential payer: | | | | |
Series 2004-C2 Class E, 4.487% 3/15/36 | | 2,060,000 | | 2,012,229 |
Series 2005-C7 Class AJ, 5.323% 11/15/40 | | 6,000,000 | | 5,899,363 |
Series 2006-C7 Class AM, 5.378% 11/15/38 | | 2,040,000 | | 2,070,738 |
Series 2005-C2 Class AJ, 5.205% 4/15/30 (h) | | 8,910,000 | | 9,042,830 |
Series 2006-C4: | | | | |
Class AJ, 5.9009% 6/15/38 (h) | | 6,005,000 | | 5,704,779 |
Class AM, 5.9009% 6/15/38 (h) | | 6,700,000 | | 6,977,491 |
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | | | | |
Class F, 4.384% 7/12/37 | CAD | 710,000 | | 388,747 |
Class G, 4.384% 7/12/37 | CAD | 355,000 | | 187,705 |
Class H, 4.384% 7/12/37 | CAD | 236,000 | | 120,537 |
Class J, 4.384% 7/12/37 | CAD | 355,000 | | 175,193 |
Class K, 4.384% 7/12/37 | CAD | 355,000 | | 169,324 |
Class L, 4.384% 7/12/37 | CAD | 236,000 | | 108,824 |
Class M, 4.384% 7/12/37 | CAD | 995,000 | | 327,138 |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | | 3,295,748 | | 330 |
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6562% 5/12/39 (h) | | 1,200,000 | | 1,233,433 |
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | | | | |
Class D, 6.988% 1/15/37 | | 750,000 | | 0 |
Class E, 7.983% 1/15/37 | | 1,453,000 | | 0 |
Class IO, 7.9747% 1/15/37 (h)(i) | | 5,415,859 | | 457,640 |
Morgan Stanley Capital I Trust: | | | | |
sequential payer: | | | | |
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | | 1,927,319 | | 1,965,865 |
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | | 8,200,000 | | 8,328,879 |
Series 1997-RR Class F, 7.4398% 4/30/39 (g)(h) | | 2,450,725 | | 2,352,696 |
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | | 2,830,092 | | 1,733,431 |
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | | 7,500,000 | | 7,597,500 |
Morgan Stanley Dean Witter Capital I Trust Series 2001-IQA Class F, 6.79% 12/18/32 (g) | | 1,223,602 | | 1,230,509 |
Multi Security Asset Trust sequential payer Series 2005-RR4A Class A2, 4.83% 11/28/35 (g) | | 1,031,161 | | 986,048 |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | | 3,249,327 | | 3,436,163 |
RBSCF Trust Series 2010-MB1 Class D, 4.6667% 4/15/24 (g)(h) | | 5,820,000 | | 5,538,094 |
Commercial Mortgage Securities - continued |
| Principal Amount (e) | | Value |
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E5, 6.5% 2/18/34 (g)(h) | | $ 3,000,000 | | $ 3,093,750 |
Structured Asset Securities Corp.: | | | | |
Series 1996-CFL Class I, 7.75% 2/25/28 (g) | | 2,802,245 | | 2,945,159 |
Series 1997-LLI Class F, 7.3% 10/12/34 (g) | | 2,170,000 | | 2,230,684 |
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 6.0489% 8/15/39 (h) | | 2,080,000 | | 2,099,732 |
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | | 10,630,000 | | 11,161,500 |
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8363% 7/15/24 (g)(h) | | 1,200,000 | | 388,785 |
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/20 (g) | | 2,540,000 | | 2,516,010 |
Wachovia Bank Commercial Mortgage Trust: | | | | |
floater Series 2007-WHL8 Class MH1, 1.0613% 6/15/20 (g)(h) | | 1,437,020 | | 1,267,866 |
Series 2004-C10 Class E, 4.931% 2/15/41 | | 2,000,000 | | 1,992,682 |
Series 2004-C11: | | | | |
Class D, 5.3116% 1/15/41 (h) | | 5,177,000 | | 4,862,809 |
Class E, 5.3616% 1/15/41 (h) | | 3,785,000 | | 3,257,671 |
Series 2004-C12 Class D, 5.3051% 7/15/41 (h) | | 2,750,000 | | 2,584,288 |
Series 2004-C14 Class B, 5.17% 8/15/41 | | 3,180,000 | | 3,178,217 |
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $253,385,370) | 262,817,725 |
Floating Rate Loans - 2.2% |
|
CONSUMER DISCRETIONARY - 0.6% |
Hotels, Restaurants & Leisure - 0.6% |
Extended Stay America, Inc. term loan 9.75% 11/1/15 | | 9,000,000 | | 8,977,500 |
Specialty Retail - 0.0% |
The Pep Boys - Manny, Moe & Jack term loan 2.3% 10/27/13 (h) | | 28,053 | | 28,018 |
TOTAL CONSUMER DISCRETIONARY | | 9,005,518 |
FINANCIALS - 0.9% |
Real Estate Investment Trusts - 0.1% |
Medical Properties Trust, Inc. Tranche B, term loan 5% 5/17/16 (h) | | 1,903,333 | | 1,903,333 |
Floating Rate Loans - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Real Estate Management & Development - 0.8% |
CB Richard Ellis Group, Inc. Tranche B, term loan 3.5113% 11/9/16 (h) | | $ 1,216,950 | | $ 1,230,641 |
Realogy Corp.: | | | | |
Credit-Linked Deposit 3.2606% 10/10/13 (h) | | 835,322 | | 808,174 |
Tranche 2LN, term loan 13.5% 10/15/17 | | 2,500,000 | | 2,775,000 |
Tranche B, term loan 3.2857% 10/10/13 (h) | | 7,048,734 | | 6,819,650 |
| | 11,633,465 |
TOTAL FINANCIALS | | 13,536,798 |
HEALTH CARE - 0.4% |
Health Care Providers & Services - 0.4% |
Skilled Healthcare Group, Inc. term loan 5.25% 4/9/16 (h) | | 3,757,869 | | 3,757,869 |
Universal Health Services, Inc. term loan 5.5% 11/15/16 (h) | | 2,000,000 | | 2,024,000 |
| | 5,781,869 |
TELECOMMUNICATION SERVICES - 0.3% |
Wireless Telecommunication Services - 0.3% |
TowerCo Finance LLC term loan: | | | | |
2/2/17 (h) | | 3,000,000 | | 3,015,000 |
6% 11/24/14 (h) | | 565,292 | | 565,292 |
| | 3,580,292 |
TOTAL FLOATING RATE LOANS (Cost $31,050,715) | 31,904,477 |
Preferred Securities - 0.0% |
| | | |
FINANCIALS - 0.0% |
Diversified Financial Services - 0.0% |
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g) | 500,000 | | 15,000 |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g) | 1,220,000 | | 366,000 |
Preferred Securities - continued |
| Principal Amount (e) | | Value |
FINANCIALS - continued |
Diversified Financial Services - continued |
Harp High Grade CDO I Ltd. Series 2006-1, 7/8/46 (g)(h) | $ 810,000 | | $ 8 |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(g)(h) | 1,350,000 | | 0 |
| | 381,008 |
TOTAL PREFERRED SECURITIES (Cost $3,376,206) | 381,008 |
Money Market Funds - 9.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 128,144,210 | | 128,144,210 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 10,307,000 | | 10,307,000 |
TOTAL MONEY MARKET FUNDS (Cost $138,451,210) | 138,451,210 |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $1,393,717,451) | 1,484,569,888 |
NET OTHER ASSETS (LIABILITIES) - (0.7)% | | (10,334,143) |
NET ASSETS - 100% | $ 1,474,235,745 |
Currency Abbreviations |
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Principal amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(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 $351,391,995 or 23.8% of net assets. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(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 $285,986 or 0.0% of net assets. |
Additional information on each restricted 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 | $ 166,459 |
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 201,735 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.76% 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 | $ 107,690 |
Fidelity Securities Lending Cash Central Fund | 9,019 |
Total | $ 116,709 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 8,808,045 | $ 5,112,045 | $ - | $ 3,696,000 |
Financials | 505,682,615 | 468,226,231 | 33,051,144 | 4,405,240 |
Health Care | 21,655,259 | 21,655,259 | - | - |
Corporate Bonds | 414,573,232 | - | 413,373,232 | 1,200,000 |
Asset-Backed Securities | 65,108,257 | - | 32,296,385 | 32,811,872 |
Collateralized Mortgage Obligations | 35,188,060 | - | 34,217,052 | 971,008 |
Commercial Mortgage Securities | 262,817,725 | - | 251,474,555 | 11,343,170 |
Floating Rate Loans | 31,904,477 | - | 22,361,685 | 9,542,792 |
Preferred Securities | 381,008 | - | - | 381,008 |
Money Market Funds | 138,451,210 | 138,451,210 | - | - |
Total Investments in Securities: | $ 1,484,569,888 | $ 633,444,745 | $ 786,774,053 | $ 64,351,090 |
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 | $ 3,696,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 3,696,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
Equities - Financials | |
Beginning Balance | $ 3,922,244 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 482,996 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,405,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 482,996 |
Corporate Bonds | |
Beginning Balance | $ 1,370,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (170,000) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1,200,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (170,000) |
Asset-Backed Securities | |
Beginning Balance | $ 16,886,956 |
Total Realized Gain (Loss) | 544,405 |
Total Unrealized Gain (Loss) | 1,629,207 |
Cost of Purchases | 3,378,507 |
Proceeds of Sales | (3,985,267) |
Amortization/Accretion | 34,853 |
Transfers in to Level 3 | 20,413,769 |
Transfers out of Level 3 | (6,090,558) |
Ending Balance | $ 32,811,872 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 652,011 |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 994,555 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 199,271 |
Cost of Purchases | - |
Proceeds of Sales | (209,037) |
Amortization/Accretion | (61,213) |
Transfers in to Level 3 | 47,432 |
Transfers out of Level 3 | - |
Ending Balance | $ 971,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 199,271 |
Commercial Mortgage Securities | |
Beginning Balance | $ 12,252,746 |
Total Realized Gain (Loss) | 363,698 |
Total Unrealized Gain (Loss) | 719,182 |
Cost of Purchases | 3,846,059 |
Proceeds of Sales | (2,919,781) |
Amortization/Accretion | (360,966) |
Transfers in to Level 3 | 4,496,807 |
Transfers out of Level 3 | (7,054,575) |
Ending Balance | $ 11,343,170 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 719,182 |
Floating Rate Loans | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | 11 |
Total Unrealized Gain (Loss) | 44,772 |
Cost of Purchases | 8,928,750 |
Proceeds of Sales | (2,855) |
Amortization/Accretion | 2,546 |
Transfers in to Level 3 | 569,568 |
Transfers out of Level 3 | - |
Ending Balance | $ 9,542,792 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 44,772 |
Preferred Securities | |
Beginning Balance | $ 365,608 |
Total Realized Gain (Loss) | (1,398,375) |
Total Unrealized Gain (Loss) | 2,420,705 |
Cost of Purchases | - |
Proceeds of Sales | (1,006,771) |
Amortization/Accretion | (159) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 381,008 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ 14,166 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.0%* |
AAA,AA,A | 11.5% |
BBB | 15.7% |
BB | 5.1% |
B | 8.8% |
CCC,CC,C | 2.6% |
D | 0.0%* |
Not Rated | 11.2% |
Equities | 36.4% |
Short-Term Investments and Net Other Assets | 8.7% |
| 100.0% |
* Amount represents less than 0.1% |
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 changes. |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $13,906,408 of which $302,434 and $13,603,974 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $10,194,560) - See accompanying schedule: Unaffiliated issuers (cost $1,255,266,241) | $ 1,346,118,678 | |
Fidelity Central Funds (cost $138,451,210) | 138,451,210 | |
Total Investments (cost $1,393,717,451) | | $ 1,484,569,888 |
Cash | | 53,132 |
Receivable for investments sold | | 778,476 |
Receivable for fund shares sold | | 10,370,364 |
Dividends receivable | | 1,019,759 |
Interest receivable | | 7,391,451 |
Distributions receivable from Fidelity Central Funds | | 24,307 |
Prepaid expenses | | 2,669 |
Other receivables | | 3,298 |
Total assets | | 1,504,213,344 |
| | |
Liabilities | | |
Payable for investments purchased | $ 16,435,998 | |
Payable for fund shares redeemed | 2,131,021 | |
Accrued management fee | 647,651 | |
Distribution and service plan fees payable | 11,465 | |
Other affiliated payables | 362,950 | |
Other payables and accrued expenses | 81,514 | |
Collateral on securities loaned, at value | 10,307,000 | |
Total liabilities | | 29,977,599 |
| | |
Net Assets | | $ 1,474,235,745 |
Net Assets consist of: | | |
Paid in capital | | $ 1,392,502,542 |
Undistributed net investment income | | 3,116,326 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (12,261,001) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 90,877,878 |
Net Assets | | $ 1,474,235,745 |
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, 2011 |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($24,797,617 ÷ 2,351,697 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class T:
Net Asset Value and redemption price per share ($3,286,119 ÷ 311,660 shares) | | $ 10.54 |
| | |
Maximum offering price per share (100/96.00 of $10.54) | | $ 10.98 |
Class C:
Net Asset Value and offering price per share ($8,516,294 ÷ 810,324 shares)A | | $ 10.51 |
| | |
Real Estate Income:
Net Asset Value, offering price and redemption price per share ($1,417,817,158 ÷ 134,211,170 shares) | | $ 10.56 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($19,818,557 ÷ 1,877,576 shares) | | $ 10.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2011 |
| | |
Investment Income | | |
Dividends | | $ 9,995,753 |
Interest | | 24,962,922 |
Income from Fidelity Central Funds | | 116,709 |
Total income | | 35,075,384 |
| | |
Expenses | | |
Management fee | $ 3,378,557 | |
Transfer agent fees | 1,790,117 | |
Distribution and service plan fees | 37,860 | |
Accounting and security lending fees | 248,704 | |
Custodian fees and expenses | 17,249 | |
Independent trustees' compensation | 3,221 | |
Registration fees | 150,609 | |
Audit | 79,287 | |
Legal | 3,127 | |
Interest | 326 | |
Miscellaneous | 5,729 | |
Total expenses before reductions | 5,714,786 | |
Expense reductions | (19,898) | 5,694,888 |
Net investment income (loss) | | 29,380,496 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 4,085,391 | |
Foreign currency transactions | (475) | |
Total net realized gain (loss) | | 4,084,916 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 76,449,249 | |
Assets and liabilities in foreign currencies | (247) | |
Total change in net unrealized appreciation (depreciation) | | 76,449,002 |
Net gain (loss) | | 80,533,918 |
Net increase (decrease) in net assets resulting from operations | | $ 109,914,414 |
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,
2011 | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 29,380,496 | $ 41,516,164 |
Net realized gain (loss) | 4,084,916 | 20,625,469 |
Change in net unrealized appreciation (depreciation) | 76,449,002 | 102,855,727 |
Net increase (decrease) in net assets resulting
from operations | 109,914,414 | 164,997,360 |
Distributions to shareholders from net investment income | (37,299,617) | (40,150,798) |
Share transactions - net increase (decrease) | 362,602,428 | 450,504,667 |
Redemption fees | 167,937 | 230,512 |
Total increase (decrease) in net assets | 435,385,162 | 575,581,741 |
| | |
Net Assets | | |
Beginning of period | 1,038,850,583 | 463,268,842 |
End of period (including undistributed net investment income of $3,116,326 and undistributed net investment income of $11,035,447, respectively) | $ 1,474,235,745 | $ 1,038,850,583 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .18 |
Net realized and unrealized gain (loss) | .68 | (.04) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.41% | 1.46% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.13% A | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.09% A |
Net investment income (loss) | 4.68% A | 6.23% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 24,798 | $ 3,830 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.94 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .24 | .17 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .92 | .14 |
Distributions from net investment income | (.32) | (.15) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.54 | $ 9.94 |
Total Return B,C,D | 9.37% | 1.45% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.19% A | 1.17% A |
Expenses net of fee waivers, if any | 1.19% A | 1.17% A |
Expenses net of all reductions | 1.19% A | 1.17% A |
Net investment income (loss) | 4.62% A | 5.92% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,286 | $ 862 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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
January 31, | Year ended
July 31, |
| 2011 | 2010 H |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.93 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) E | .20 | .15 |
Net realized and unrealized gain (loss) | .68 | (.03) |
Total from investment operations | .88 | .12 |
Distributions from net investment income | (.30) | (.14) |
Redemption fees added to paid in capital E,J | - | - |
Net asset value, end of period | $ 10.51 | $ 9.93 |
Total Return B,C,D | 8.98% | 1.29% |
Ratios to Average Net Assets F, I | | |
Expenses before reductions | 1.92% A | 1.86% A |
Expenses net of fee waivers, if any | 1.92% A | 1.86% A |
Expenses net of all reductions | 1.92% A | 1.86% A |
Net investment income (loss) | 3.89% A | 5.21% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 8,516 | $ 836 |
Portfolio turnover rate G | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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 - Real Estate Income
| Six months ended
January 31, | Years ended July 31, |
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 | $ 12.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .53 | .54 | .59 | .63 | .66 |
Net realized and unrealized gain (loss) | .68 | 1.73 | (1.27) | (1.48) | (.37) | (.11) |
Total from investment operations | .93 | 2.26 | (.73) | (.89) | .26 | .55 |
Distributions from net investment income | (.32) | (.52) | (.50) | (.66) | (.58) | (.67) |
Distributions from net realized gain | - | - | - | (.24) | (.24) | (.27) |
Total distributions | (.32) | (.52) | (.50) | (.90) | (.82) | (.94) |
Redemption fees added to paid in capital D | - H | - H | .01 | - H | - H | - H |
Net asset value,
end of period | $ 10.56 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Total Return B,C | 9.50% | 28.29% | (6.92)% | (8.43)% | 2.00% | 4.82% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .94% A | .97% | 1.00% | .94% | .88% | .85% |
Expenses net of fee waivers, if any | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Expenses net of all reductions | .94% A | .96% | 1.00% | .94% | .88% | .85% |
Net investment income (loss) | 4.87% A | 5.60% | 7.15% | 5.77% | 5.30% | 5.61% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,417,817 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 | $ 521,265 |
Portfolio turnover rate F | 24% A | 28% | 47% | 32% | 45% | 27% |
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 class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, | Year ended
July 31, |
| 2011 | 2010 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 9.95 | $ 9.95 |
Income from Investment Operations | | |
Net investment income (loss) D | .25 | .19 |
Net realized and unrealized gain (loss) | .69 | (.04) |
Total from investment operations | .94 | .15 |
Distributions from net investment income | (.33) | (.15) |
Redemption fees added to paid in capital D,I | - | - |
Net asset value, end of period | $ 10.56 | $ 9.95 |
Total Return B,C | 9.59% | 1.58% |
Ratios to Average Net Assets E,H | | |
Expenses before reductions | .89% A | .85% A |
Expenses net of fee waivers, if any | .89% A | .85% A |
Expenses net of all reductions | .89% A | .85% A |
Net investment income (loss) | 4.92% A | 6.70% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 19,819 | $ 2,930 |
Portfolio turnover rate F | 24% A | 28% |
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 14, 2010 (commencement of sale of shares) to July 31, 2010.
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, 2011
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. The Fund offers Class A, Class T, Class C, Real Estate Income 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. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For 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 matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. 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. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Income in the accompanying financial statements.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $ 146,307,298 |
Gross unrealized depreciation | (56,984,059) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 89,323,239 |
| |
Tax cost | $ 1,395,246,649 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $464,534,643 and $134,305,407, 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.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 16,015 | $ 3,066 |
Class T | -% | .25% | 2,354 | 48 |
Class C | .75% | .25% | 19,491 | 13,203 |
| | | $ 37,860 | $ 16,317 |
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and 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 and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,932 |
Class T | 519 |
Class C* | 984 |
| $ 13,435 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 15,004 | .24 |
Class T | 2,738 | .29 |
Class C | 5,205 | .27 |
Real Estate Income | 1,756,852 | .30 |
Institutional Class | 10,318 | .25 |
| $ 1,790,117 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9,698 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,060 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,034,560. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,019, including $1,676 from securities loaned to FCM.
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 $16,530,000. The weighted average interest rate was .71%. The interest expense amounted to $326 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
Semiannual Report
Notes to Financial Statements - continued
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of the Fund's operating expenses. During the period, this reimbursement reduced the Real Estate Income Class expenses by $16,722.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,046 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 $130.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31,
2010 A |
From net investment income | | |
Class A | $ 403,376 | $ 23,172 |
Class T | 62,202 | 6,447 |
Class C | 117,956 | 3,705 |
Real Estate Income | 36,448,945 | 40,107,971 |
Institutional Class | 267,138 | 9,503 |
Total | $ 37,299,617 | $ 40,150,798 |
A Distributions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 A | Six months ended
January 31,
2011 | Year ended
July 31,
2010 A |
Class A | | | | |
Shares sold | 2,027,150 | 402,260 | $ 20,844,366 | $ 3,960,293 |
Reinvestment of distributions | 24,886 | 1,072 | 253,502 | 10,302 |
Shares redeemed | (85,489) | (18,182) | (883,868) | (177,559) |
Net increase (decrease) | 1,966,547 | 385,150 | $ 20,214,000 | $ 3,793,036 |
Class T | | | | |
Shares sold | 238,527 | 85,986 | $ 2,458,227 | $ 847,305 |
Reinvestment of distributions | 5,363 | 671 | 54,590 | 6,447 |
Shares redeemed | (18,870) | (17) | (194,365) | (166) |
Net increase (decrease) | 225,020 | 86,640 | $ 2,318,452 | $ 853,586 |
Class C | | | | |
Shares sold | 742,789 | 84,053 | $ 7,631,928 | $ 827,207 |
Reinvestment of distributions | 9,867 | 378 | 100,408 | 3,628 |
Shares redeemed | (26,482) | (281) | (272,618) | (2,700) |
Net increase (decrease) | 726,174 | 84,150 | $ 7,459,718 | $ 828,135 |
Real Estate Income | | | | |
Shares sold | 49,541,592 | 69,175,263 | $ 510,694,454 | $ 650,744,676 |
Reinvestment of distributions | 3,274,977 | 4,018,182 | 33,265,854 | 36,922,410 |
Shares redeemed | (22,123,776) | (26,105,432) | (227,725,959) | (245,525,556) |
Net increase (decrease) | 30,692,793 | 47,088,013 | $ 316,234,349 | $ 442,141,530 |
Institutional Class | | | | |
Shares sold | 1,646,275 | 294,304 | $ 17,032,892 | $ 2,886,826 |
Reinvestment of distributions | 21,882 | 902 | 222,798 | 8,663 |
Shares redeemed | (85,054) | (733) | (879,781) | (7,109) |
Net increase (decrease) | 1,583,103 | 294,473 | $ 16,375,909 | $ 2,888,380 |
A Share transactions for Class A, Class T, Class C and Institutional Class are for the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
13. 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
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, 2011, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 the 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, 2011, by correspondence with the custodians 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, 2011, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2011 and for the year ended July 31, 2010, and the financial highlights for the six months ended January 31, 2011 and 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 17, 2011
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) 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
REII-USAN-0311
1.907543.100
Fidelity®
Series Small Cap Opportunities
Fund
Fidelity Series Small Cap Opportunities Fund
Class F
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010
to January 31, 2011 |
Series Small Cap Opportunities | 1.10% | | | |
Actual | | $ 1,000.00 | $ 1,252.90 | $ 6.25 |
Hypothetical A | | $ 1,000.00 | $ 1,019.66 | $ 5.60 |
Class F | .88% | | | |
Actual | | $ 1,000.00 | $ 1,253.10 | $ 5.00 |
Hypothetical A | | $ 1,000.00 | $ 1,020.77 | $ 4.48 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
CapitalSource, Inc. | 1.2 | 1.0 |
Franklin Street Properties Corp. | 1.2 | 0.5 |
National Penn Bancshares, Inc. | 1.2 | 1.1 |
Forestar Group, Inc. | 1.1 | 1.1 |
Waddell & Reed Financial, Inc. Class A | 1.1 | 0.9 |
Platinum Underwriters Holdings Ltd. | 1.1 | 1.1 |
G-III Apparel Group Ltd. | 1.0 | 0.9 |
Tenneco, Inc. | 1.0 | 1.0 |
SM Energy Co. | 1.0 | 0.8 |
Petroleum Development Corp. | 1.0 | 0.0 |
| 10.9 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.0 | 20.9 |
Information Technology | 19.0 | 19.6 |
Industrials | 15.7 | 13.5 |
Consumer Discretionary | 13.4 | 14.1 |
Health Care | 11.3 | 12.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks and
Equity Futures 98.6% | | | Stocks and
Equity Futures 98.9% | |
| Short-Term
Investments and
Net Other Assets 1.4% | | | Short-Term
Investments and
Net Other Assets 1.1% | |
* Foreign investments | 7.6% | | ** Foreign investments | 7.7% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 13.4% |
Auto Components - 1.4% |
BorgWarner, Inc. (a) | 124,100 | | $ 8,364,340 |
Tenneco, Inc. (a) | 445,786 | | 18,424,335 |
| | 26,788,675 |
Hotels, Restaurants & Leisure - 1.6% |
Red Robin Gourmet Burgers, Inc. (a) | 160 | | 3,302 |
Vail Resorts, Inc. (a) | 245,200 | | 11,781,860 |
WMS Industries, Inc. (a) | 183,700 | | 7,706,215 |
Wyndham Worldwide Corp. | 372,100 | | 10,467,173 |
| | 29,958,550 |
Household Durables - 2.5% |
iRobot Corp. (a)(d) | 312,283 | | 8,431,641 |
Meritage Homes Corp. (a) | 466,600 | | 10,713,136 |
Mohawk Industries, Inc. (a) | 171,700 | | 9,537,935 |
Tempur-Pedic International, Inc. (a) | 391,354 | | 17,078,689 |
| | 45,761,401 |
Media - 1.0% |
Lamar Advertising Co. Class A (a) | 299,000 | | 11,015,160 |
MDC Partners, Inc. Class A (sub. vtg.) | 425,500 | | 7,118,618 |
| | 18,133,778 |
Multiline Retail - 1.0% |
Dollarama, Inc. (a) | 260,666 | | 7,433,837 |
Retail Ventures, Inc. (a) | 775,184 | | 11,689,775 |
| | 19,123,612 |
Specialty Retail - 3.9% |
Cabela's, Inc. Class A (a)(d) | 620,338 | | 15,446,416 |
Fourlis Holdings SA | 612,800 | | 4,689,581 |
RadioShack Corp. | 469,800 | | 7,117,470 |
Shoe Carnival, Inc. (a) | 552,714 | | 13,679,672 |
Signet Jewelers Ltd. (a) | 351,800 | | 14,944,464 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 321,781 | | 11,918,768 |
West Marine, Inc. (a) | 322,400 | | 4,123,496 |
| | 71,919,867 |
Textiles, Apparel & Luxury Goods - 2.0% |
Deckers Outdoor Corp. (a) | 110,233 | | 8,090,000 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - continued |
G-III Apparel Group Ltd. (a) | 532,700 | | $ 18,585,903 |
Phillips-Van Heusen Corp. | 193,400 | | 11,288,758 |
| | 37,964,661 |
TOTAL CONSUMER DISCRETIONARY | | 249,650,544 |
CONSUMER STAPLES - 2.4% |
Beverages - 0.3% |
Hansen Natural Corp. (a) | 114,400 | | 6,479,616 |
Food & Staples Retailing - 0.6% |
BJ's Wholesale Club, Inc. (a) | 142,700 | | 6,270,238 |
Fresh Market, Inc. | 1,600 | | 58,832 |
United Natural Foods, Inc. (a) | 156,755 | | 5,799,935 |
| | 12,129,005 |
Food Products - 0.8% |
Chiquita Brands International, Inc. (a) | 350,730 | | 5,408,257 |
Green Mountain Coffee Roasters, Inc. (a)(d) | 218,300 | | 7,330,514 |
Snyders-Lance, Inc. | 80,577 | | 1,671,167 |
| | 14,409,938 |
Personal Products - 0.7% |
Elizabeth Arden, Inc. (a) | 382,145 | | 9,779,091 |
Nutraceutical International Corp. (a) | 185,888 | | 2,578,267 |
| | 12,357,358 |
TOTAL CONSUMER STAPLES | | 45,375,917 |
ENERGY - 6.3% |
Energy Equipment & Services - 1.6% |
Newpark Resources, Inc. (a) | 1,006,728 | | 6,020,233 |
Superior Energy Services, Inc. (a) | 315,300 | | 11,073,336 |
Willbros Group, Inc. (a) | 1,123,300 | | 13,434,668 |
| | 30,528,237 |
Oil, Gas & Consumable Fuels - 4.7% |
Atlas Pipeline Partners, LP | 401,329 | | 9,736,242 |
Berry Petroleum Co. Class A | 320,000 | | 14,934,400 |
Cloud Peak Energy, Inc. (a) | 560,300 | | 12,758,031 |
Petroleum Development Corp. (a) | 400,829 | | 18,241,728 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
SM Energy Co. | 293,732 | | $ 18,258,381 |
Whiting Petroleum Corp. (a) | 100,935 | | 12,746,072 |
| | 86,674,854 |
TOTAL ENERGY | | 117,203,091 |
FINANCIALS - 20.0% |
Capital Markets - 2.8% |
Affiliated Managers Group, Inc. (a) | 164,500 | | 16,751,035 |
optionsXpress Holdings, Inc. | 942,802 | | 14,010,038 |
Waddell & Reed Financial, Inc. Class A | 575,100 | | 20,772,612 |
| | 51,533,685 |
Commercial Banks - 6.0% |
Associated Banc-Corp. | 1,090,028 | | 15,238,591 |
CapitalSource, Inc. | 2,886,700 | | 22,285,322 |
City National Corp. | 278,500 | | 16,094,515 |
National Penn Bancshares, Inc. | 2,659,700 | | 21,703,152 |
PacWest Bancorp | 667,900 | | 13,177,667 |
TCF Financial Corp. | 1,208,331 | | 18,052,465 |
Western Liberty Bancorp (a)(e) | 1,000,000 | | 4,600,000 |
| | 111,151,712 |
Insurance - 3.5% |
Alterra Capital Holdings Ltd. | 636,311 | | 13,712,502 |
Amerisafe, Inc. (a) | 807,100 | | 14,374,451 |
Endurance Specialty Holdings Ltd. | 365,000 | | 16,968,850 |
Platinum Underwriters Holdings Ltd. | 458,699 | | 20,274,496 |
| | 65,330,299 |
Real Estate Investment Trusts - 4.8% |
American Assets Trust, Inc. (a) | 660,500 | | 14,062,045 |
Franklin Street Properties Corp. | 1,455,100 | | 21,811,949 |
Highwoods Properties, Inc. (SBI) | 424,200 | | 13,901,034 |
Home Properties, Inc. | 224,800 | | 12,516,864 |
National Retail Properties, Inc. | 459,900 | | 11,428,515 |
Ramco-Gershenson Properties Trust (SBI) | 1,190,800 | | 15,313,688 |
| | 89,034,095 |
Real Estate Management & Development - 1.4% |
Forestar Group, Inc. (a) | 1,115,500 | | 20,815,230 |
Jones Lang LaSalle, Inc. | 68,200 | | 6,045,248 |
| | 26,860,478 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 1.5% |
Astoria Financial Corp. | 897,600 | | $ 12,781,824 |
Washington Federal, Inc. | 935,800 | | 16,179,982 |
| | 28,961,806 |
TOTAL FINANCIALS | | 372,872,075 |
HEALTH CARE - 11.3% |
Biotechnology - 3.0% |
Allos Therapeutics, Inc. (a)(d) | 742,100 | | 2,493,456 |
Amarin Corp. PLC ADR (a) | 375,567 | | 3,335,035 |
ARIAD Pharmaceuticals, Inc. (a) | 844,782 | | 5,385,485 |
ArQule, Inc. (a) | 498,642 | | 3,056,675 |
BioMarin Pharmaceutical, Inc. (a) | 143,600 | | 3,650,312 |
Chelsea Therapeutics International Ltd. (a) | 465,937 | | 2,776,985 |
Dynavax Technologies Corp. (a) | 1,663,159 | | 4,989,477 |
Emergent BioSolutions, Inc. (a) | 132,600 | | 2,816,424 |
InterMune, Inc. (a) | 500 | | 18,685 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 578,375 | | 2,313,500 |
Lexicon Pharmaceuticals, Inc. (a) | 362,981 | | 613,438 |
Medivation, Inc. (a) | 227,492 | | 3,203,087 |
Pharmasset, Inc. (a) | 76,326 | | 3,698,758 |
SIGA Technologies, Inc. (a)(d) | 275,503 | | 3,161,397 |
Targacept, Inc. (a) | 154,378 | | 3,976,777 |
Telik, Inc. (a) | 1,117,857 | | 1,252,000 |
Theravance, Inc. (a) | 213,319 | | 4,488,232 |
ZIOPHARM Oncology, Inc. (a) | 751,550 | | 4,385,294 |
| | 55,615,017 |
Health Care Equipment & Supplies - 1.2% |
American Medical Systems Holdings, Inc. (a) | 398,607 | | 7,780,809 |
Analogic Corp. | 47,504 | | 2,426,029 |
Endologix, Inc. (a) | 1,551 | | 9,042 |
Masimo Corp. | 256,889 | | 7,700,248 |
NxStage Medical, Inc. (a) | 197,824 | | 4,755,689 |
| | 22,671,817 |
Health Care Providers & Services - 4.7% |
Accretive Health, Inc. (d) | 394,125 | | 7,149,428 |
Air Methods Corp. (a) | 124,278 | | 6,368,005 |
Catalyst Health Solutions, Inc. (a) | 179,772 | | 7,802,105 |
Centene Corp. (a) | 403,870 | | 11,195,276 |
Corvel Corp. (a) | 74,300 | | 3,750,664 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Hanger Orthopedic Group, Inc. (a) | 231,202 | | $ 4,751,201 |
HMS Holdings Corp. (a) | 150,886 | | 9,708,005 |
Humana, Inc. (a) | 121,481 | | 7,042,254 |
MWI Veterinary Supply, Inc. (a) | 138,046 | | 8,580,939 |
Omnicare, Inc. | 213,800 | | 5,541,696 |
Skilled Healthcare Group, Inc. (a) | 353,505 | | 3,796,644 |
The Ensign Group, Inc. | 268,814 | | 6,494,546 |
Wellcare Health Plans, Inc. (a) | 172,075 | | 5,145,043 |
| | 87,325,806 |
Life Sciences Tools & Services - 1.2% |
eResearchTechnology, Inc. (a) | 913,339 | | 5,872,770 |
Illumina, Inc. (a) | 150,500 | | 10,435,670 |
QIAGEN NV (a) | 320,800 | | 5,918,760 |
Sequenom, Inc. (a) | 18,319 | | 125,485 |
| | 22,352,685 |
Pharmaceuticals - 1.2% |
Ardea Biosciences, Inc. (a) | 194,301 | | 5,152,863 |
Cardiome Pharma Corp. (a) | 424,143 | | 2,669,165 |
Columbia Laboratories, Inc. (a) | 730,232 | | 1,650,324 |
Jazz Pharmaceuticals, Inc. (a) | 225,612 | | 5,044,684 |
Questcor Pharmaceuticals, Inc. (a) | 456,092 | | 7,051,182 |
| | 21,568,218 |
TOTAL HEALTH CARE | | 209,533,543 |
INDUSTRIALS - 15.7% |
Aerospace & Defense - 1.1% |
Teledyne Technologies, Inc. (a) | 233,557 | | 11,049,582 |
Triumph Group, Inc. | 102,480 | | 9,841,154 |
| | 20,890,736 |
Air Freight & Logistics - 0.6% |
UTI Worldwide, Inc. | 543,600 | | 11,904,840 |
Building Products - 1.9% |
A.O. Smith Corp. | 356,261 | | 15,251,533 |
AAON, Inc. | 339,100 | | 9,131,963 |
Armstrong World Industries, Inc. | 264,074 | | 10,724,045 |
| | 35,107,541 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Commercial Services & Supplies - 1.4% |
Sykes Enterprises, Inc. (a) | 738,698 | | $ 14,389,837 |
United Stationers, Inc. (a) | 199,400 | | 12,418,632 |
| | 26,808,469 |
Construction & Engineering - 1.7% |
Foster Wheeler Ag (a) | 361,028 | | 13,289,441 |
Granite Construction, Inc. | 335,600 | | 8,671,904 |
Shaw Group, Inc. (a) | 233,613 | | 8,823,563 |
| | 30,784,908 |
Electrical Equipment - 2.0% |
General Cable Corp. (a) | 432,185 | | 15,995,167 |
GrafTech International Ltd. (a) | 483,603 | | 10,155,663 |
Regal-Beloit Corp. | 161,500 | | 10,778,510 |
| | 36,929,340 |
Industrial Conglomerates - 0.5% |
Carlisle Companies, Inc. | 232,800 | | 8,778,888 |
Machinery - 3.5% |
Accuride Corp. (a) | 760,785 | | 11,381,344 |
Actuant Corp. Class A | 488,531 | | 13,546,965 |
CLARCOR, Inc. | 299,886 | | 12,949,077 |
John Bean Technologies Corp. | 513,800 | | 9,274,090 |
Manitowoc Co., Inc. | 677,700 | | 9,101,511 |
Wabtec Corp. | 155,554 | | 8,431,027 |
| | 64,684,014 |
Professional Services - 0.4% |
Advisory Board Co. (a) | 167,045 | | 8,262,046 |
Road & Rail - 0.5% |
Kansas City Southern (a) | 186,100 | | 9,301,278 |
Trading Companies & Distributors - 2.1% |
Interline Brands, Inc. (a) | 564,100 | | 11,975,843 |
Watsco, Inc. (d) | 170,936 | | 10,721,106 |
WESCO International, Inc. (a) | 296,100 | | 16,596,405 |
| | 39,293,354 |
TOTAL INDUSTRIALS | | 292,745,414 |
INFORMATION TECHNOLOGY - 19.0% |
Communications Equipment - 3.8% |
Blue Coat Systems, Inc. (a) | 229,175 | | 6,602,532 |
Comtech Telecommunications Corp. | 120,361 | | 3,377,330 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
DG FastChannel, Inc. (a) | 336,615 | | $ 9,226,617 |
Emulex Corp. (a) | 1,210,400 | | 13,810,664 |
Ixia (a) | 858,108 | | 13,498,039 |
NETGEAR, Inc. (a) | 408,257 | | 14,148,146 |
Oclaro, Inc. (a) | 784,285 | | 10,885,876 |
| | 71,549,204 |
Computers & Peripherals - 2.9% |
NCR Corp. (a) | 517,000 | | 8,478,800 |
OCZ Technology Group, Inc. (a)(d) | 447,329 | | 3,565,212 |
Quantum Corp. (a) | 4,960,146 | | 13,342,793 |
Super Micro Computer, Inc. (a) | 956,944 | | 13,468,987 |
Synaptics, Inc. (a)(d) | 555,177 | | 15,800,337 |
| | 54,656,129 |
Electronic Equipment & Components - 1.6% |
Avnet, Inc. (a) | 419,370 | | 14,937,959 |
Electro Scientific Industries, Inc. (a) | 74,601 | | 1,243,599 |
Jabil Circuit, Inc. | 336,800 | | 6,806,728 |
Plexus Corp. (a) | 282,822 | | 7,647,507 |
| | 30,635,793 |
Internet Software & Services - 3.3% |
Constant Contact, Inc. (a) | 273,272 | | 7,648,883 |
Rackspace Hosting, Inc. (a)(d) | 374,099 | | 12,536,057 |
SAVVIS, Inc. (a) | 285,567 | | 8,786,897 |
Terremark Worldwide, Inc. (a)(d) | 748,832 | | 14,182,878 |
VeriSign, Inc. | 529,809 | | 17,828,073 |
| | 60,982,788 |
IT Services - 0.6% |
Alliance Data Systems Corp. (a)(d) | 145,352 | | 10,282,200 |
Semiconductors & Semiconductor Equipment - 2.1% |
Micron Technology, Inc. (a) | 946,376 | | 9,974,803 |
Power Integrations, Inc. | 140,483 | | 5,188,037 |
Standard Microsystems Corp. (a) | 278,125 | | 6,688,906 |
TriQuint Semiconductor, Inc. (a) | 852,306 | | 11,216,347 |
Varian Semiconductor Equipment Associates, Inc. (a) | 130,195 | | 5,787,168 |
| | 38,855,261 |
Software - 4.7% |
AutoNavi Holdings Ltd. ADR | 358,100 | | 5,858,516 |
Blackboard, Inc. (a)(d) | 357,760 | | 13,902,554 |
JDA Software Group, Inc. (a) | 487,007 | | 14,697,871 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Kenexa Corp. (a) | 319,345 | | $ 6,623,215 |
Mentor Graphics Corp. (a) | 547,661 | | 6,974,463 |
Nuance Communications, Inc. (a) | 741,400 | | 15,072,662 |
Parametric Technology Corp. (a) | 589,130 | | 13,096,360 |
Synchronoss Technologies, Inc. (a) | 401,374 | | 11,423,104 |
| | 87,648,745 |
TOTAL INFORMATION TECHNOLOGY | | 354,610,120 |
MATERIALS - 5.4% |
Chemicals - 2.5% |
Cabot Corp. | 342,500 | | 14,813,125 |
Rockwood Holdings, Inc. (a) | 412,700 | | 16,751,493 |
Solutia, Inc. (a) | 639,810 | | 14,984,350 |
| | 46,548,968 |
Construction Materials - 0.3% |
Texas Industries, Inc. (d) | 157,300 | | 6,249,529 |
Metals & Mining - 2.6% |
Carpenter Technology Corp. | 333,700 | | 13,731,755 |
Coeur d'Alene Mines Corp. (a) | 375,700 | | 8,783,866 |
Compass Minerals International, Inc. | 154,500 | | 14,193,915 |
HudBay Minerals, Inc. | 652,100 | | 10,799,938 |
| | 47,509,474 |
TOTAL MATERIALS | | 100,307,971 |
TELECOMMUNICATION SERVICES - 1.0% |
Diversified Telecommunication Services - 0.8% |
AboveNet, Inc. | 93,114 | | 5,545,870 |
Cbeyond, Inc. (a) | 216,550 | | 3,172,458 |
Global Crossing Ltd. (a) | 301,792 | | 4,022,887 |
PAETEC Holding Corp. (a) | 560,521 | | 2,214,058 |
| | 14,955,273 |
Wireless Telecommunication Services - 0.2% |
Clearwire Corp. Class A (a) | 568,300 | | 3,006,307 |
TOTAL TELECOMMUNICATION SERVICES | | 17,961,580 |
Common Stocks - continued |
| Shares | | Value |
UTILITIES - 3.0% |
Electric Utilities - 1.7% |
Cleco Corp. | 279,900 | | $ 8,749,674 |
Great Plains Energy, Inc. | 358,900 | | 7,063,152 |
IDACORP, Inc. | 212,293 | | 7,933,389 |
Westar Energy, Inc. | 267,900 | | 6,831,450 |
| | 30,577,665 |
Gas Utilities - 0.9% |
Northwest Natural Gas Co. | 145,500 | | 6,483,480 |
Southwest Gas Corp. | 281,000 | | 10,464,440 |
| | 16,947,920 |
Multi-Utilities - 0.4% |
NorthWestern Energy Corp. | 270,000 | | 7,624,800 |
TOTAL UTILITIES | | 55,150,385 |
TOTAL COMMON STOCKS (Cost $1,408,003,093) | 1,815,410,640 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | |
U.S. Treasury Bills, yield at date of purchase 0.14% to 0.16% 2/24/11 to 4/14/11 (f)
(Cost $1,824,721) | | $ 1,825,000 | | 1,824,746 |
Money Market Funds - 4.6% |
| Shares | | |
Fidelity Cash Central Fund, 0.19% (b) | 39,839,431 | | 39,839,431 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 45,091,775 | | 45,091,775 |
TOTAL MONEY MARKET FUNDS (Cost $84,931,206) | 84,931,206 |
TOTAL INVESTMENT PORTFOLIO - 102.2% (Cost $1,494,759,020) | | 1,902,166,592 |
NET OTHER ASSETS (LIABILITIES) - (2.2)% | | (41,143,761) |
NET ASSETS - 100% | $ 1,861,022,831 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value | | Unrealized Appreciation/
(Depreciation) |
Purchased |
Equity Index Contracts |
273 NYFE Russell Mini Index Contracts | March 2011 | | $ 21,299,460 | | $ (112,617) |
The face value of futures purchased as a percentage of net assets is 1.1% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $1,334,789. |
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 | $ 42,824 |
Fidelity Securities Lending Cash Central Fund | 327,534 |
Total | $ 370,358 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Western Liberty Bancorp | $ 6,240,000 | $ - | $ - | $ - | $ 4,600,000 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 249,650,544 | $ 249,650,544 | $ - | $ - |
Consumer Staples | 45,375,917 | 45,375,917 | - | - |
Energy | 117,203,091 | 117,203,091 | - | - |
Financials | 372,872,075 | 372,872,075 | - | - |
Health Care | 209,533,543 | 209,533,543 | - | - |
Industrials | 292,745,414 | 292,745,414 | - | - |
Information Technology | 354,610,120 | 354,610,120 | - | - |
Materials | 100,307,971 | 100,307,971 | - | - |
Telecommunication Services | 17,961,580 | 17,961,580 | - | - |
Utilities | 55,150,385 | 55,150,385 | - | - |
U.S. Government and Government Agency Obligations | 1,824,746 | - | 1,824,746 | - |
Money Market Funds | 84,931,206 | 84,931,206 | - | - |
Total Investments in Securities: | $ 1,902,166,592 | $ 1,900,341,846 | $ 1,824,746 | $ - |
Derivative Instruments: | | | | |
Liabilities | | | | |
Futures Contracts | $ (112,617) | $ (112,617) | $ - | $ - |
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, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value |
| Asset | Liability |
Equity Risk | | |
Futures Contracts | $ - | $ (112,617) |
Total Value of Derivatives (a) | $ - | $ (112,617) |
(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, 2010, the Fund had a capital loss carryforward of approximately $299,856,941 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $44,117,135) - See accompanying schedule: Unaffiliated issuers (cost $1,400,167,328) | $ 1,812,635,386 | |
Fidelity Central Funds (cost $84,931,206) | 84,931,206 | |
Other affiliated issuers (cost $9,660,486) | 4,600,000 | |
Total Investments (cost $1,494,759,020) | | $ 1,902,166,592 |
Cash | | 2,065 |
Receivable for investments sold | | 14,386,322 |
Receivable for fund shares sold | | 1,373,221 |
Dividends receivable | | 858,554 |
Distributions receivable from Fidelity Central Funds | | 23,579 |
Receivable for daily variation on futures contracts | | 147,387 |
Prepaid expenses | | 3,901 |
Other receivables | | 70,743 |
Total assets | | 1,919,032,364 |
| | |
Liabilities | | |
Payable for investments purchased | $ 11,105,499 | |
Payable for fund shares redeemed | 134,063 | |
Accrued management fee | 1,320,436 | |
Other affiliated payables | 314,030 | |
Other payables and accrued expenses | 43,730 | |
Collateral on securities loaned, at value | 45,091,775 | |
Total liabilities | | 58,009,533 |
| | |
Net Assets | | $ 1,861,022,831 |
Net Assets consist of: | | |
Paid in capital | | $ 1,588,786,557 |
Accumulated net investment loss | | (3,001,554) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (132,059,163) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 407,296,991 |
Net Assets | | $ 1,861,022,831 |
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, 2011 (Unaudited) |
| | |
Series Small Cap Opportunities:
Net Asset Value, offering price and redemption price per share ($1,496,593,894 ÷ 136,803,329 shares) | | $ 10.94 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($364,428,937 ÷ 33,208,370 shares) | | $ 10.97 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 7,512,723 |
Special dividends | | 4,242,609 |
Interest | | 1,242 |
Income from Fidelity Central Funds | | 370,358 |
Total income | | 12,126,932 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,912,652 | |
Performance adjustment | 1,079,879 | |
Transfer agent fees | 1,543,414 | |
Accounting and security lending fees | 263,666 | |
Custodian fees and expenses | 39,903 | |
Independent trustees' compensation | 4,562 | |
Audit | 33,432 | |
Legal | 9,753 | |
Miscellaneous | 8,790 | |
Total expenses before reductions | 8,896,051 | |
Expense reductions | (19,297) | 8,876,754 |
Net investment income (loss) | | 3,250,178 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 169,209,821 | |
Foreign currency transactions | 52,058 | |
Futures contracts | 2,057,318 | |
Total net realized gain (loss) | | 171,319,197 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 203,560,979 | |
Assets and liabilities in foreign currencies | (6,281) | |
Futures contracts | (58,849) | |
Total change in net unrealized appreciation (depreciation) | | 203,495,849 |
Net gain (loss) | | 374,815,046 |
Net increase (decrease) in net assets resulting from operations | | $ 378,065,224 |
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, 2011
(Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,250,178 | $ (828,847) |
Net realized gain (loss) | 171,319,197 | 289,207,936 |
Change in net unrealized appreciation (depreciation) | 203,495,849 | 50,277,887 |
Net increase (decrease) in net assets resulting
from operations | 378,065,224 | 338,656,976 |
Distributions to shareholders from net investment income | (6,204,046) | - |
Share transactions - net increase (decrease) | (49,267,965) | (84,503,551) |
Total increase (decrease) in net assets | 322,593,213 | 254,153,425 |
| | |
Net Assets | | |
Beginning of period | 1,538,429,618 | 1,284,276,193 |
End of period (including accumulated net investment loss of $3,001,554 and accumulated net investment loss of $47,686, respectively) | $ 1,861,022,831 | $ 1,538,429,618 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Small Cap Opportunities
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.76 | $ 6.94 | $ 7.97 | $ 9.65 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .02 G | (.01) | .03 | .02 | .01 |
Net realized and unrealized gain (loss) | 2.20 | 1.83 | (1.02) | (1.66) | (.36) |
Total from investment operations | 2.22 | 1.82 | (.99) | (1.64) | (.35) |
Distributions from net investment income | (.04) | - | (.04) | (.02) | - |
Distributions from net realized gain | - | - | - | (.02) | - |
Total distributions | (.04) | - | (.04) | (.04) | - |
Redemption fees added to paid in capital J | - | - | - | - D, K | - D, K |
Net asset value, end of period | $ 10.94 | $ 8.76 | $ 6.94 | $ 7.97 | $ 9.65 |
Total Return B, C | 25.29% | 26.22% | (12.34)% | (17.10)% | (3.50)% |
Ratios to Average Net Assets E, I | | | | |
Expenses before reductions | 1.10% A | 1.02% | .93% | .93% | 1.00% A |
Expenses net of fee waivers, if any | 1.10% A | 1.02% | .93% | .93% | 1.00% A |
Expenses net of all reductions | 1.10% A | 1.01% | .93% | .92% | .98% A |
Net investment income (loss) | .36% A, G | (.07)% | .49% | .20% | .20% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,496,594 | $ 1,363,646 | $ 1,284,079 | $ 1,348,258 | $ 984,470 |
Portfolio turnover rate F | 79% A | 104% | 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 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 (.15)%.
H For the period March 22, 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 The redemption fee was eliminated during the year ended July 31, 2009.
K 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 8.79 | $ 6.94 | $ 6.24 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 G | .01 | - J |
Net realized and unrealized gain (loss) | 2.19 | 1.84 | .70 |
Total from investment operations | 2.22 | 1.85 | .70 |
Distributions from net investment income | (.04) | - | - |
Net asset value, end of period | $ 10.97 | $ 8.79 | $ 6.94 |
Total Return B, C | 25.31% | 26.66% | 11.22% |
Ratios to Average Net Assets E, I | | | |
Expenses before reductions | .88% A | .78% | .68% A |
Expenses net of fee waivers, if any | .88% A | .78% | .68% A |
Expenses net of all reductions | .88% A | .77% | .68% A |
Net investment income (loss) | .58% A, G | .17% | .11% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 364,429 | $ 174,783 | $ 197 |
Portfolio turnover rate F | 79% A | 104% | 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 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 .07%.
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, 2011 (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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures transactions, foreign currency transactions, market discount, partnerships, net operating losses, 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 | $ 444,728,627 |
Gross unrealized depreciation | (40,286,047) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 404,442,580 |
| |
Tax cost | $ 1,497,724,012 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty fees in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $2,057,318 and a change in net unrealized appreciation (depreciation) of $(58,849) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $641,383,176 and $708,959,807, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of 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 .84% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 Series Small Cap Opportunities. 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Series Small Cap Opportunities | $ 1,543,414 | .22 |
* 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 $33,346 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,908 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is
Semiannual Report
8. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $327,534. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $19,297 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Series Small Cap Opportunities | $ 4,912,758 | $ - |
Class F | 1,291,288 | - |
Total | $ 6,204,046 | $ - |
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
January 31,
2011 | Year ended
July 31,
2010 | Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
Series Small Cap Opportunities | | | | |
Shares sold | 8,668,939 | 23,783,608 | $ 84,668,449 | $ 194,753,795 |
Reinvestment of distributions | 455,386 | - | 4,912,758 | - |
Shares redeemed | (27,968,418) | (53,284,371) | (271,511,794) | (444,895,516) |
Net increase (decrease) | (18,844,093) | (29,500,763) | $ (181,930,587) | $ (250,141,721) |
Class F | | | | |
Shares sold | 15,103,527 | 21,585,308 | $ 149,978,119 | $ 180,598,380 |
Reinvestment of distributions | 119,471 | - | 1,291,288 | - |
Shares redeemed | (1,907,554) | (1,720,780) | (18,606,785) | (14,960,210) |
Net increase (decrease) | 13,315,444 | 19,864,528 | $ 132,662,622 | $ 165,638,170 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the 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 distributions, 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 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
SMO-SANN-0311
1.839810.103
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,225.90 | $ 6.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 6.26 |
Class T | 1.49% | | | |
Actual | | $ 1,000.00 | $ 1,223.50 | $ 8.35 |
HypotheticalA | | $ 1,000.00 | $ 1,017.69 | $ 7.58 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,222.00 | $ 11.15 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,221.50 | $ 11.14 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Small Cap Growth | .96% | | | |
Actual | | $ 1,000.00 | $ 1,227.70 | $ 5.39 |
HypotheticalA | | $ 1,000.00 | $ 1,020.37 | $ 4.89 |
Class F | .69% | | | |
Actual | | $ 1,000.00 | $ 1,229.90 | $ 3.88 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 1,228.20 | $ 5.22 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Zumtobel AG | 1.5 | 1.1 |
Rackspace Hosting, Inc. | 1.4 | 0.8 |
NETGEAR, Inc. | 1.4 | 1.1 |
Esterline Technologies Corp. | 1.3 | 0.8 |
WESCO International, Inc. | 1.3 | 0.0 |
Petroleum Development Corp. | 1.3 | 0.0 |
Triumph Group, Inc. | 1.2 | 1.1 |
Regal-Beloit Corp. | 1.2 | 0.9 |
TIBCO Software, Inc. | 1.2 | 0.0 |
Adtran, Inc. | 1.2 | 1.1 |
| 13.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.3 | 27.1 |
Industrials | 20.9 | 18.5 |
Health Care | 17.8 | 20.6 |
Consumer Discretionary | 16.1 | 17.8 |
Energy | 3.8 | 2.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 97.5% | | | Stocks 95.2% | |
| Short-Term
Investments and
Net Other Assets 2.5% | | | Short-Term
Investments and
Net Other Assets 4.8% | |
* Foreign investments | 13.8% | | ** Foreign investments | 16.2% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 1.4% |
ElringKlinger AG | 400,000 | | $ 12,786,460 |
Modine Manufacturing Co. (a) | 730,095 | | 12,046,568 |
| | 24,833,028 |
Diversified Consumer Services - 0.6% |
Steiner Leisure Ltd. (a) | 231,300 | | 10,251,216 |
Hotels, Restaurants & Leisure - 1.2% |
Life Time Fitness, Inc. (a) | 223,000 | | 8,893,240 |
Wyndham Worldwide Corp. | 435,000 | | 12,236,550 |
| | 21,129,790 |
Household Durables - 0.8% |
Tempur-Pedic International, Inc. (a) | 334,000 | | 14,575,760 |
Multiline Retail - 0.7% |
Dollarama, Inc. (a) | 415,000 | | 11,835,231 |
Specialty Retail - 5.7% |
Citi Trends, Inc. (a) | 495,000 | | 11,335,500 |
Delticom AG | 111,910 | | 9,299,531 |
DSW, Inc. Class A (a)(d) | 547,000 | | 18,209,630 |
Jos. A. Bank Clothiers, Inc. (a)(d) | 226,500 | | 9,678,345 |
Sally Beauty Holdings, Inc. (a) | 922,000 | | 12,133,520 |
Signet Jewelers Ltd. (a) | 376,400 | | 15,989,472 |
Tom Tailor Holding AG | 585,000 | | 11,676,612 |
Tractor Supply Co. | 283,000 | | 14,520,730 |
| | 102,843,340 |
Textiles, Apparel & Luxury Goods - 5.7% |
Fossil, Inc. (a) | 227,000 | | 16,128,350 |
G-III Apparel Group Ltd. (a) | 370,300 | | 12,919,767 |
Maidenform Brands, Inc. (a) | 473,088 | | 12,177,285 |
Phillips-Van Heusen Corp. | 242,900 | | 14,178,073 |
Steven Madden Ltd. (a) | 400,000 | | 15,268,000 |
Ted Baker PLC | 1,265,609 | | 13,277,260 |
Warnaco Group, Inc. (a) | 340,000 | | 17,367,200 |
| | 101,315,935 |
TOTAL CONSUMER DISCRETIONARY | | 286,784,300 |
CONSUMER STAPLES - 3.6% |
Food & Staples Retailing - 0.5% |
United Natural Foods, Inc. (a) | 265,000 | | 9,805,000 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Food Products - 1.5% |
Calavo Growers, Inc. (d)(e) | 736,783 | | $ 17,004,952 |
Darling International, Inc. (a) | 675,000 | | 9,146,250 |
| | 26,151,202 |
Personal Products - 1.6% |
Inter Parfums, Inc. | 1,007,000 | | 17,964,880 |
USANA Health Sciences, Inc. (a)(d) | 261,000 | | 9,897,120 |
| | 27,862,000 |
TOTAL CONSUMER STAPLES | | 63,818,202 |
ENERGY - 3.8% |
Energy Equipment & Services - 2.5% |
Complete Production Services, Inc. (a) | 400,000 | | 11,176,000 |
Newpark Resources, Inc. (a) | 2,479,000 | | 14,824,420 |
Rowan Companies, Inc. (a) | 556,000 | | 19,059,680 |
| | 45,060,100 |
Oil, Gas & Consumable Fuels - 1.3% |
Petroleum Development Corp. (a) | 491,200 | | 22,354,512 |
TOTAL ENERGY | | 67,414,612 |
FINANCIALS - 2.4% |
Capital Markets - 0.4% |
optionsXpress Holdings, Inc. | 510,146 | | 7,580,770 |
Commercial Banks - 1.3% |
Banco Pine SA | 216,300 | | 1,801,743 |
CapitalSource, Inc. | 1,545,000 | | 11,927,400 |
Huntington Bancshares, Inc. | 1,311,100 | | 9,492,364 |
| | 23,221,507 |
Real Estate Investment Trusts - 0.7% |
CBL & Associates Properties, Inc. | 715,200 | | 12,201,312 |
TOTAL FINANCIALS | | 43,003,589 |
HEALTH CARE - 17.8% |
Biotechnology - 1.5% |
Incyte Corp. (a)(d) | 355,000 | | 5,232,700 |
PDL BioPharma, Inc. | 1,835,000 | | 9,064,900 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a)(d) | 299,000 | | $ 6,290,960 |
ZIOPHARM Oncology, Inc. (a)(d) | 952,000 | | 5,554,920 |
| | 26,143,480 |
Health Care Equipment & Supplies - 4.2% |
American Medical Systems Holdings, Inc. (a) | 565,000 | | 11,028,800 |
Cooper Companies, Inc. | 303,000 | | 17,374,020 |
Integra LifeSciences Holdings Corp. (a) | 417,400 | | 19,359,012 |
STRATEC Biomedical Systems AG | 265,000 | | 11,507,540 |
Wright Medical Group, Inc. (a) | 1,020,000 | | 15,157,200 |
| | 74,426,572 |
Health Care Providers & Services - 5.2% |
Accretive Health, Inc. | 153,897 | | 2,791,692 |
Air Methods Corp. (a) | 345,000 | | 17,677,800 |
Catalyst Health Solutions, Inc. (a) | 215,000 | | 9,331,000 |
Corvel Corp. (a) | 259,100 | | 13,079,368 |
Hanger Orthopedic Group, Inc. (a) | 906,900 | | 18,636,795 |
MWI Veterinary Supply, Inc. (a) | 250,000 | | 15,540,000 |
Synergy Health PLC | 1,145,411 | | 16,226,573 |
| | 93,283,228 |
Health Care Technology - 0.5% |
Computer Programs & Systems, Inc. | 175,800 | | 9,124,020 |
Life Sciences Tools & Services - 3.3% |
Bruker BioSciences Corp. (a) | 790,000 | | 13,825,000 |
PAREXEL International Corp. (a) | 550,000 | | 12,765,500 |
PerkinElmer, Inc. | 825,000 | | 21,103,500 |
QIAGEN NV (a)(d) | 636,000 | | 11,734,200 |
| | 59,428,200 |
Pharmaceuticals - 3.1% |
Ardea Biosciences, Inc. (a) | 249,263 | | 6,610,455 |
Auxilium Pharmaceuticals, Inc. (a)(d) | 233,935 | | 5,307,985 |
Cadence Pharmaceuticals, Inc. (a)(d) | 812,693 | | 6,310,561 |
Cardiome Pharma Corp. (a) | 1,025,000 | | 6,450,405 |
Hikma Pharmaceuticals PLC | 994,983 | | 12,812,661 |
Jazz Pharmaceuticals, Inc. (a) | 341,000 | | 7,624,760 |
Questcor Pharmaceuticals, Inc. (a) | 730,000 | | 11,285,800 |
| | 56,402,627 |
TOTAL HEALTH CARE | | 318,808,127 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - 20.9% |
Aerospace & Defense - 4.2% |
DigitalGlobe, Inc. (a) | 286,000 | | $ 8,783,060 |
Esterline Technologies Corp. (a) | 329,000 | | 23,418,220 |
Teledyne Technologies, Inc. (a) | 442,000 | | 20,911,020 |
Triumph Group, Inc. | 229,000 | | 21,990,870 |
| | 75,103,170 |
Building Products - 0.9% |
A.O. Smith Corp. | 25,500 | | 1,091,655 |
Armstrong World Industries, Inc. | 364,000 | | 14,782,040 |
| | 15,873,695 |
Commercial Services & Supplies - 3.4% |
Prosegur Compania de Seguridad SA (Reg.) | 308,000 | | 17,920,210 |
Schawk, Inc. Class A | 590,589 | | 10,772,343 |
The Geo Group, Inc. (a) | 688,000 | | 16,353,760 |
Waste Connections, Inc. | 556,500 | | 16,121,805 |
| | 61,168,118 |
Construction & Engineering - 2.6% |
Foster Wheeler Ag (a) | 490,000 | | 18,036,900 |
KBR, Inc. | 610,100 | | 19,584,210 |
Orion Marine Group, Inc. (a) | 780,000 | | 9,141,600 |
| | 46,762,710 |
Electrical Equipment - 4.2% |
Acuity Brands, Inc. (d) | 323,500 | | 17,857,200 |
GrafTech International Ltd. (a) | 38,200 | | 802,200 |
Regal-Beloit Corp. | 324,000 | | 21,623,760 |
Satcon Technology Corp. (a)(d) | 1,430,000 | | 6,935,500 |
Zumtobel AG | 918,000 | | 26,812,589 |
| | 74,031,249 |
Machinery - 2.0% |
Blount International, Inc. (a) | 965,000 | | 14,484,650 |
Commercial Vehicle Group, Inc. (a) | 831,153 | | 13,414,809 |
SmartHeat, Inc. (a)(d) | 1,625,000 | | 7,735,000 |
| | 35,634,459 |
Road & Rail - 0.5% |
Contrans Group, Inc. Class A | 968,600 | | 9,772,111 |
Trading Companies & Distributors - 3.1% |
Interline Brands, Inc. (a) | 590,000 | | 12,525,700 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Trading Companies & Distributors - continued |
Rush Enterprises, Inc. Class A (a) | 980,786 | | $ 18,703,589 |
WESCO International, Inc. (a) | 416,000 | | 23,316,800 |
| | 54,546,089 |
TOTAL INDUSTRIALS | | 372,891,601 |
INFORMATION TECHNOLOGY - 30.3% |
Communications Equipment - 4.0% |
Adtran, Inc. | 520,200 | | 21,395,826 |
DG FastChannel, Inc. (a) | 527,329 | | 14,454,088 |
NETGEAR, Inc. (a) | 681,392 | | 23,613,640 |
Polycom, Inc. (a) | 250,000 | | 10,962,500 |
| | 70,426,054 |
Computers & Peripherals - 2.5% |
Super Micro Computer, Inc. (a) | 1,139,000 | | 16,031,425 |
Synaptics, Inc. (a)(d) | 686,000 | | 19,523,560 |
Wincor Nixdorf AG (d) | 122,400 | | 9,345,134 |
| | 44,900,119 |
Electronic Equipment & Components - 4.7% |
Avnet, Inc. (a) | 401,900 | | 14,315,678 |
Electro Scientific Industries, Inc. (a) | 550,660 | | 9,179,502 |
Insight Enterprises, Inc. (a) | 947,400 | | 13,187,808 |
Jabil Circuit, Inc. | 1,048,000 | | 21,180,080 |
OSI Systems, Inc. (a) | 310,000 | | 11,776,900 |
SYNNEX Corp. (a) | 432,800 | | 14,451,192 |
| | 84,091,160 |
Internet Software & Services - 6.2% |
Digital River, Inc. (a) | 461,000 | | 14,632,140 |
j2 Global Communications, Inc. (a) | 667,500 | | 18,423,000 |
LivePerson, Inc. (a) | 800,000 | | 8,776,000 |
Perficient, Inc. (a)(e) | 1,658,502 | | 19,387,888 |
Rackspace Hosting, Inc. (a)(d) | 715,000 | | 23,959,650 |
Sohu.com, Inc. (a)(d) | 210,000 | | 16,291,800 |
Travelzoo, Inc. (a)(d) | 205,000 | | 9,635,000 |
| | 111,105,478 |
IT Services - 2.9% |
Heartland Payment Systems, Inc. | 564,300 | | 8,915,940 |
Online Resources Corp. (a) | 1,000,000 | | 6,720,000 |
Virtusa Corp. (a) | 550,040 | | 8,855,644 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
WNS Holdings Ltd. sponsored ADR (a) | 613,457 | | $ 6,656,008 |
Wright Express Corp. (a) | 420,000 | | 19,874,400 |
| | 51,021,992 |
Semiconductors & Semiconductor Equipment - 4.7% |
Ceva, Inc. (a) | 366,600 | | 8,860,722 |
Entegris, Inc. (a) | 2,060,000 | | 15,759,000 |
Hittite Microwave Corp. (a) | 183,821 | | 10,988,819 |
International Rectifier Corp. (a) | 445,000 | | 14,253,350 |
Microsemi Corp. (a) | 922,000 | | 20,735,780 |
Standard Microsystems Corp. (a) | 582,000 | | 13,997,100 |
| | 84,594,771 |
Software - 5.3% |
ebix.com, Inc. (a)(d) | 857,910 | | 19,345,871 |
Informatica Corp. (a) | 256,000 | | 11,878,400 |
Radiant Systems, Inc. (a) | 520,000 | | 9,490,000 |
Solera Holdings, Inc. | 387,000 | | 20,251,710 |
Taleo Corp. Class A (a) | 411,039 | | 12,109,209 |
TIBCO Software, Inc. (a) | 980,000 | | 21,540,400 |
| | 94,615,590 |
TOTAL INFORMATION TECHNOLOGY | | 540,755,164 |
MATERIALS - 2.6% |
Chemicals - 1.0% |
Solutia, Inc. (a) | 737,000 | | 17,260,540 |
Metals & Mining - 1.6% |
Carpenter Technology Corp. | 382,000 | | 15,719,300 |
MacArthur Coal Ltd. | 1,125,000 | | 13,991,562 |
| | 29,710,862 |
TOTAL MATERIALS | | 46,971,402 |
TOTAL COMMON STOCKS (Cost $1,409,945,299) | 1,740,446,997 |
Money Market Funds - 9.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 57,670,775 | | $ 57,670,775 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 111,324,106 | | 111,324,106 |
TOTAL MONEY MARKET FUNDS (Cost $168,994,881) | 168,994,881 |
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $1,578,940,180) | 1,909,441,878 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | (124,704,357) |
NET ASSETS - 100% | $ 1,784,737,521 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 58,191 |
Fidelity Securities Lending Cash Central Fund | 712,773 |
Total | $ 770,964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Calavo Growers, Inc. | $ 12,651,852 | $ 3,152,679 | $ - | $ 351,475 | $ 17,004,952 |
Online Resources Corp. | 7,777,946 | 567,018 | 6,262,212 | - | - |
Perficient, Inc. | 13,394,542 | 1,019,485 | - | - | 19,387,888 |
Total | $ 33,824,340 | $ 4,739,182 | $ 6,262,212 | $ 351,475 | $ 36,392,840 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.2% |
Germany | 3.0% |
United Kingdom | 2.3% |
Canada | 1.6% |
Austria | 1.5% |
Switzerland | 1.0% |
Spain | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $193,259,144 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $109,155,196) - See accompanying schedule: Unaffiliated issuers (cost $1,378,896,886) | $ 1,704,054,157 | |
Fidelity Central Funds (cost $168,994,881) | 168,994,881 | |
Other affiliated issuers (cost $31,048,413) | 36,392,840 | |
Total Investments (cost $1,578,940,180) | | $ 1,909,441,878 |
Cash | | 947,440 |
Receivable for investments sold
Regular delivery | | 32,087,568 |
Delayed delivery | | 284,956 |
Receivable for fund shares sold | | 2,483,180 |
Dividends receivable | | 412,279 |
Distributions receivable from Fidelity Central Funds | | 112,513 |
Prepaid expenses | | 3,666 |
Other receivables | | 72,424 |
Total assets | | 1,945,845,904 |
| | |
Liabilities | | |
Payable for investments purchased | $ 46,858,374 | |
Payable for fund shares redeemed | 1,564,288 | |
Accrued management fee | 890,730 | |
Distribution and service plan fees payable | 49,425 | |
Other affiliated payables | 383,641 | |
Other payables and accrued expenses | 37,819 | |
Collateral on securities loaned, at value | 111,324,106 | |
Total liabilities | | 161,108,383 |
| | |
Net Assets | | $ 1,784,737,521 |
Net Assets consist of: | | |
Paid in capital | | $ 1,589,038,001 |
Distributions in excess of net investment income | | (2,725,911) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (132,058,641) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 330,484,072 |
Net Assets | | $ 1,784,737,521 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($64,543,540 ÷ 4,161,930 shares) | | $ 15.51 |
| | |
Maximum offering price per share (100/94.25 of $15.51) | | $ 16.46 |
Class T:
Net Asset Value and redemption price per share ($29,679,829 ÷ 1,929,148 shares) | | $ 15.38 |
| | |
Maximum offering price per share (100/96.50 of $15.38) | | $ 15.94 |
Class B:
Net Asset Value and offering price per share ($5,645,925 ÷ 375,688 shares)A | | $ 15.03 |
| | |
Class C:
Net Asset Value and offering price per share ($22,528,130 ÷ 1,501,755 shares)A | | $ 15.00 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($1,407,637,787 ÷ 89,678,415 shares) | | $ 15.70 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($219,323,472 ÷ 13,919,887 shares) | | $ 15.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per
share ($35,378,838 ÷ 2,249,626 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $351,475 earned from other affiliated issuers) | | $ 4,793,415 |
Special dividends | | 2,295,657 |
Interest | | 19 |
Income from Fidelity Central Funds (including $712,773 from security lending) | | 770,964 |
Total income | | 7,860,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,633,355 | |
Performance adjustment | (599,191) | |
Transfer agent fees | 1,954,108 | |
Distribution and service plan fees | 263,004 | |
Accounting and security lending fees | 254,287 | |
Custodian fees and expenses | 33,879 | |
Independent trustees' compensation | 4,330 | |
Registration fees | 81,635 | |
Audit | 30,578 | |
Legal | 4,566 | |
Miscellaneous | 7,526 | |
Total expenses before reductions | 7,668,077 | |
Expense reductions | (95,367) | 7,572,710 |
Net investment income (loss) | | 287,345 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 68,037,600 | |
Other affiliated issuers | 40,689 | |
Foreign currency transactions | 28,040 | |
Total net realized gain (loss) | | 68,106,329 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 255,465,390 | |
Assets and liabilities in foreign currencies | (16,040) | |
Total change in net unrealized appreciation (depreciation) | | 255,449,350 |
Net gain (loss) | | 323,555,679 |
Net increase (decrease) in net assets resulting from operations | | $ 323,843,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 287,345 | $ (4,269,128) |
Net realized gain (loss) | 68,106,329 | 242,038,859 |
Change in net unrealized appreciation (depreciation) | 255,449,350 | (34,116,702) |
Net increase (decrease) in net assets resulting
from operations | 323,843,024 | 203,653,029 |
Distributions to shareholders from net investment income | (3,013,256) | - |
Share transactions - net increase (decrease) | 28,651,309 | 46,578,163 |
Redemption fees | 63,757 | 232,258 |
Total increase (decrease) in net assets | 349,544,834 | 250,463,450 |
| | |
Net Assets | | |
Beginning of period | 1,435,192,687 | 1,184,729,237 |
End of period (including distributions in excess of net investment income of $2,725,911 and $0, respectively) | $ 1,784,737,521 | $ 1,435,192,687 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | (.06) | (.11) | (.12) J | (.10) K |
Net realized and unrealized gain (loss) | 2.88 | 1.94 | (2.35) | (1.73) | 3.39 | .18 |
Total from investment operations | 2.86 | 1.87 | (2.41) | (1.84) | 3.27 | .08 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.02) | (.09) | (.16) |
Total distributions | (.01) | - | - | (1.02) | (.09) | (.16) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.51 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Total Return B, C, D | 22.59% | 17.33% | (18.26)% | (12.26)% | 25.52% | .70% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.23% A | 1.35% | 1.33% | 1.40% | 1.44% | 1.53% |
Expenses net of fee waivers, if any | 1.23% A | 1.35% | 1.33% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.22% A | 1.34% | 1.33% | 1.39% | 1.39% | 1.35% |
Net investment income (loss) | (.23)% A, H | (.56)% I | (.64)% | (.74)% | (.80)% J | (.79)% K |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 64,544 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.52)%. 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 (.67)%. 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 (.84)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011
(Unaudited) | Years ended July 31, |
| | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) H | (.10) I | (.09) | (.15) | (.16) J | (.14) K |
Net realized and unrealized gain (loss) | 2.84 | 1.93 | (2.34) | (1.73) | 3.38 | .19 |
Total from investment operations | 2.81 | 1.83 | (2.43) | (1.88) | 3.22 | .05 |
Distributions from net realized gain | - | - | - | (.96) | (.07) | (.13) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.38 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Total Return B, C, D | 22.35% | 17.04% | (18.45)% | (12.50)% | 25.18% | .48% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.49% A | 1.61% | 1.60% | 1.65% | 1.67% | 1.73% |
Expenses net of fee waivers, if any | 1.49% A | 1.61% | 1.60% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.48% A | 1.60% | 1.59% | 1.65% | 1.65% | 1.60% |
Net investment income (loss) | (.49)% A, H | (.82)% I | (.91)% | (.99)% | (1.05)% J | (1.04)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,680 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.78)%. 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 (.93)%. 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 (1.09)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.80 | 1.89 | (2.33) | (1.71) | 3.36 | .19 |
Total from investment operations | 2.73 | 1.73 | (2.46) | (1.93) | 3.13 | (.01) |
Distributions from net realized gain | - | - | - | (.89) | (.06) | (.09) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.03 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Total Return B, C, D | 22.20% | 16.37% | (18.88)% | (12.92)% | 24.57% | (.03)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.28% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 2.08% | 2.15% | 2.15% | 2.10% |
Net investment income (loss) | (.99)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,646 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.79 | 1.89 | (2.32) | (1.71) | 3.36 | .18 |
Total from investment operations | 2.72 | 1.73 | (2.45) | (1.93) | 3.13 | (.02) |
Distributions from net realized gain | - | - | - | (.91) | (.06) | (.10) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.00 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Total Return B, C, D | 22.15% | 16.40% | (18.85)% | (12.94)% | 24.59% | (.08)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.97% A | 2.09% | 2.07% | 2.14% | 2.14% | 2.10% |
Net investment income (loss) | (.98)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,528 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) D | - G, L | (.04) H | (.04) | (.07) | (.08) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.96 | (2.36) | (1.74) | 3.40 | .19 |
Total from invest-
ment operations | 2.92 | 1.92 | (2.40) | (1.81) | 3.32 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.10) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.10) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.70 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Total Return B, C | 22.77% | 17.63% | (18.06)% | (11.98)% | 25.84% | 1.01% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of fee waivers, if any | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of all reductions | .95% A | 1.07% | 1.08% | 1.10% | 1.09% | 1.08% |
Net investment income (loss) | .04% A, G | (.29)% H | (.39)% | (.45)% | (.50)% I | (.52)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,407,638 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.25)%. 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 (.39)%. 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 (.54)%. 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 (.58)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations | | | |
Net investment income (loss) D | .02 G | - H, K | (.01) |
Net realized and unrealized gain (loss) | 2.93 | 1.95 | .88 |
Total from investment operations | 2.95 | 1.95 | .87 |
Distributions from net investment income | (.04) | - | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.76 | $ 12.85 | $ 10.90 |
Total Return B, C | 22.99% | 17.89% | 8.67% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .69% A | .78% | .74% A |
Expenses net of fee waivers, if any | .69% A | .78% | .74% A |
Expenses net of all reductions | .67% A | .77% | .73% A |
Net investment income (loss) | .32% A, G | -% H, L | (.54)% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 219,323 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 105% A | 105% | 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 .03%. 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 (.10)%. 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. L Amount represents less than .01%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 G | (.03) H | (.03) | (.06) | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.95 | (2.36) | (1.74) | 3.41 | .19 |
Total from investment operations | 2.93 | 1.92 | (2.39) | (1.80) | 3.34 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.11) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.11) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.73 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Total Return B, C | 22.82% | 17.60% | (17.97)% | (11.93)% | 25.99% | .97% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of all reductions | .92% A | 1.02% | 1.04% | 1.03% | 1.05% | 1.05% |
Net investment income (loss) | .07% A, G | (.24)% H | (.36)% | (.38)% | (.46)% I | (.49)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,379 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.22)%. 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 (.34)%. 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 (.50)%. 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 (.55)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 (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 C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, net operating losses, capital loss carryforwards, 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 | $ 366,716,541 |
Gross unrealized depreciation | (38,971,254) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 327,745,287 |
Tax cost | $ 1,581,696,591 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,801,748 and $797,738,950, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .63% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,917 | $ 1,098 |
Class T | .25% | .25% | 66,052 | - |
Class B | .75% | .25% | 26,790 | 20,092 |
Class C | .75% | .25% | 100,245 | 21,044 |
| | | $ 263,004 | $ 42,234 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 12,332 |
Class T | 3,171 |
Class B* | 6,147 |
Class C* | 1,087 |
| $ 22,737 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 83,160 | .30 |
Class T | 40,390 | .31 |
Class B | 8,029 | .30 |
Class C | 29,847 | .30 |
Small Cap Growth | 1,756,279 | .27 |
Institutional Class | 36,403 | .24 |
| $ 1,954,108 | |
* 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 $31,257 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,762 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $10,923 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $95,294 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 $73.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 40,130 | $ - |
Small Cap Growth | 2,420,021 | - |
Class F | 492,928 | - |
Institutional Class | 60,177 | - |
Total | $ 3,013,256 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 764,130 | 1,755,238 | $ 11,076,073 | $ 21,749,463 |
Reinvestment of distributions | 2,323 | - | 36,172 | - |
Shares redeemed | (603,687) | (1,481,231) | (8,353,556) | (17,861,442) |
Net increase (decrease) | 162,766 | 274,007 | $ 2,758,689 | $ 3,888,021 |
Class T | | | | |
Shares sold | 213,378 | 492,575 | $ 3,087,540 | $ 6,056,365 |
Shares redeemed | (188,690) | (592,408) | (2,617,750) | (7,232,100) |
Net increase (decrease) | 24,688 | (99,833) | $ 469,790 | $ (1,175,735) |
Class B | | | | |
Shares sold | 16,102 | 117,304 | $ 220,360 | $ 1,414,923 |
Shares redeemed | (58,289) | (93,928) | (782,302) | (1,126,513) |
Net increase (decrease) | (42,187) | 23,376 | $ (561,942) | $ 288,410 |
Class C | | | | |
Shares sold | 198,319 | 479,633 | $ 2,791,818 | $ 5,791,649 |
Shares redeemed | (169,540) | (358,550) | (2,317,915) | (4,319,904) |
Net increase (decrease) | 28,779 | 121,083 | $ 473,903 | $ 1,471,745 |
Small Cap Growth | | | | |
Shares sold | 10,469,007 | 22,893,960 | $ 154,440,881 | $ 285,679,819 |
Reinvestment of distributions | 153,921 | - | 2,384,002 | - |
Shares redeemed | (15,012,486) | (28,450,958) | (215,920,511) | (351,525,118) |
Net increase (decrease) | (4,389,558) | (5,556,998) | $ (59,095,628) | $ (65,845,299) |
Class F | | | | |
Shares sold | 6,401,675 | 8,663,528 | $ 92,775,683 | $ 109,176,128 |
Reinvestment of distributions | 31,816 | - | 492,928 | - |
Shares redeemed | (834,316) | (357,394) | (12,381,198) | (4,690,130) |
Net increase (decrease) | 5,599,175 | 8,306,134 | $ 80,887,413 | $ 104,485,998 |
Institutional Class | | | | |
Shares sold | 511,815 | 1,109,901 | $ 7,483,930 | $ 14,013,757 |
Reinvestment of distributions | 2,532 | - | 39,301 | - |
Shares redeemed | (263,779) | (871,545) | (3,804,147) | (10,548,734) |
Net increase (decrease) | 250,568 | 238,356 | $ 3,719,084 | $ 3,465,023 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 53% 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 distributions, 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.
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
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Brea, CA
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851 East Hamilton Avenue
Campbell, CA
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Larkspur, CA
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Los Angeles, CA
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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
Sunnyvale, CA
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Thousand Oaks, CA
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Torrance, CA
2001 North Main Street
Walnut Creek, CA
6326 Canoga Avenue
Woodland Hills, CA
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
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Palm Beach Gardens, FL
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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
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Indianapolis, IN
Kansas
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Overland Park, KS
Maine
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Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
200 Endicott Street
Danvers, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
405 Cochituate Road
Framingham, MA
551 Boston Turnpike
Shrewsbury, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 N. Old Woodward Ave.
Birmingham, MI
30200 Northwestern Hwy.
Farmington Hills, MI
43420 Grand River Avenue
Novi, MI
3480 28th Street
Grand Rapids, MI
2425 S. Linden Road STE E
Flint, MI
Minnesota
7740 France Avenue South
Edina, MN
8342 3rd Street North
Oakdale, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
501 Route 73 South
Marlton, NJ
150 Essex Street
Millburn, NJ
35 Morris Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New Mexico
2261 Q Street NE
Albuquerque, NM
New York
1130 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
3349 Monroe Avenue
Rochester, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
1800 Crocker Road
Westlake, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
10 Memorial Boulevard
Providence, RI
Tennessee
3018 Peoples Street
Johnson City, TN
7628 West Farmington Blvd.
Germantown, TN
2035 Mallory Lane
Franklin, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
1701 Lake Robbins Drive
The Woodlands, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
1576 East Southlake Blvd.
Southlake, TX
15600 Southwest Freeway
Sugar Land, TX
139 N. Loop 1604 East
San Antonio, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
11957 Democracy Drive
Reston, VA
Washington
10500 NE 8th Street
Bellevue, WA
1518 6th Avenue
Seattle, WA
304 Strander Blvd
Tukwila, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
16020 West Bluemound Road
Brookfield, WI
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
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-0311
1.803699.106
Fidelity®
Small Cap Growth
Fund
Class F
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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.
The general research services agreement with Fidelity Research & Analysis Company has been terminated and is no longer in effect for the fund.
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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
p20
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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,225.90 | $ 6.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 6.26 |
Class T | 1.49% | | | |
Actual | | $ 1,000.00 | $ 1,223.50 | $ 8.35 |
HypotheticalA | | $ 1,000.00 | $ 1,017.69 | $ 7.58 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,222.00 | $ 11.15 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,221.50 | $ 11.14 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Small Cap Growth | .96% | | | |
Actual | | $ 1,000.00 | $ 1,227.70 | $ 5.39 |
HypotheticalA | | $ 1,000.00 | $ 1,020.37 | $ 4.89 |
Class F | .69% | | | |
Actual | | $ 1,000.00 | $ 1,229.90 | $ 3.88 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 1,228.20 | $ 5.22 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Zumtobel AG | 1.5 | 1.1 |
Rackspace Hosting, Inc. | 1.4 | 0.8 |
NETGEAR, Inc. | 1.4 | 1.1 |
Esterline Technologies Corp. | 1.3 | 0.8 |
WESCO International, Inc. | 1.3 | 0.0 |
Petroleum Development Corp. | 1.3 | 0.0 |
Triumph Group, Inc. | 1.2 | 1.1 |
Regal-Beloit Corp. | 1.2 | 0.9 |
TIBCO Software, Inc. | 1.2 | 0.0 |
Adtran, Inc. | 1.2 | 1.1 |
| 13.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.3 | 27.1 |
Industrials | 20.9 | 18.5 |
Health Care | 17.8 | 20.6 |
Consumer Discretionary | 16.1 | 17.8 |
Energy | 3.8 | 2.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 97.5% | | | Stocks 95.2% | |
| Short-Term
Investments and
Net Other Assets 2.5% | | | Short-Term
Investments and
Net Other Assets 4.8% | |
* Foreign investments | 13.8% | | ** Foreign investments | 16.2% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 1.4% |
ElringKlinger AG | 400,000 | | $ 12,786,460 |
Modine Manufacturing Co. (a) | 730,095 | | 12,046,568 |
| | 24,833,028 |
Diversified Consumer Services - 0.6% |
Steiner Leisure Ltd. (a) | 231,300 | | 10,251,216 |
Hotels, Restaurants & Leisure - 1.2% |
Life Time Fitness, Inc. (a) | 223,000 | | 8,893,240 |
Wyndham Worldwide Corp. | 435,000 | | 12,236,550 |
| | 21,129,790 |
Household Durables - 0.8% |
Tempur-Pedic International, Inc. (a) | 334,000 | | 14,575,760 |
Multiline Retail - 0.7% |
Dollarama, Inc. (a) | 415,000 | | 11,835,231 |
Specialty Retail - 5.7% |
Citi Trends, Inc. (a) | 495,000 | | 11,335,500 |
Delticom AG | 111,910 | | 9,299,531 |
DSW, Inc. Class A (a)(d) | 547,000 | | 18,209,630 |
Jos. A. Bank Clothiers, Inc. (a)(d) | 226,500 | | 9,678,345 |
Sally Beauty Holdings, Inc. (a) | 922,000 | | 12,133,520 |
Signet Jewelers Ltd. (a) | 376,400 | | 15,989,472 |
Tom Tailor Holding AG | 585,000 | | 11,676,612 |
Tractor Supply Co. | 283,000 | | 14,520,730 |
| | 102,843,340 |
Textiles, Apparel & Luxury Goods - 5.7% |
Fossil, Inc. (a) | 227,000 | | 16,128,350 |
G-III Apparel Group Ltd. (a) | 370,300 | | 12,919,767 |
Maidenform Brands, Inc. (a) | 473,088 | | 12,177,285 |
Phillips-Van Heusen Corp. | 242,900 | | 14,178,073 |
Steven Madden Ltd. (a) | 400,000 | | 15,268,000 |
Ted Baker PLC | 1,265,609 | | 13,277,260 |
Warnaco Group, Inc. (a) | 340,000 | | 17,367,200 |
| | 101,315,935 |
TOTAL CONSUMER DISCRETIONARY | | 286,784,300 |
CONSUMER STAPLES - 3.6% |
Food & Staples Retailing - 0.5% |
United Natural Foods, Inc. (a) | 265,000 | | 9,805,000 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Food Products - 1.5% |
Calavo Growers, Inc. (d)(e) | 736,783 | | $ 17,004,952 |
Darling International, Inc. (a) | 675,000 | | 9,146,250 |
| | 26,151,202 |
Personal Products - 1.6% |
Inter Parfums, Inc. | 1,007,000 | | 17,964,880 |
USANA Health Sciences, Inc. (a)(d) | 261,000 | | 9,897,120 |
| | 27,862,000 |
TOTAL CONSUMER STAPLES | | 63,818,202 |
ENERGY - 3.8% |
Energy Equipment & Services - 2.5% |
Complete Production Services, Inc. (a) | 400,000 | | 11,176,000 |
Newpark Resources, Inc. (a) | 2,479,000 | | 14,824,420 |
Rowan Companies, Inc. (a) | 556,000 | | 19,059,680 |
| | 45,060,100 |
Oil, Gas & Consumable Fuels - 1.3% |
Petroleum Development Corp. (a) | 491,200 | | 22,354,512 |
TOTAL ENERGY | | 67,414,612 |
FINANCIALS - 2.4% |
Capital Markets - 0.4% |
optionsXpress Holdings, Inc. | 510,146 | | 7,580,770 |
Commercial Banks - 1.3% |
Banco Pine SA | 216,300 | | 1,801,743 |
CapitalSource, Inc. | 1,545,000 | | 11,927,400 |
Huntington Bancshares, Inc. | 1,311,100 | | 9,492,364 |
| | 23,221,507 |
Real Estate Investment Trusts - 0.7% |
CBL & Associates Properties, Inc. | 715,200 | | 12,201,312 |
TOTAL FINANCIALS | | 43,003,589 |
HEALTH CARE - 17.8% |
Biotechnology - 1.5% |
Incyte Corp. (a)(d) | 355,000 | | 5,232,700 |
PDL BioPharma, Inc. | 1,835,000 | | 9,064,900 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a)(d) | 299,000 | | $ 6,290,960 |
ZIOPHARM Oncology, Inc. (a)(d) | 952,000 | | 5,554,920 |
| | 26,143,480 |
Health Care Equipment & Supplies - 4.2% |
American Medical Systems Holdings, Inc. (a) | 565,000 | | 11,028,800 |
Cooper Companies, Inc. | 303,000 | | 17,374,020 |
Integra LifeSciences Holdings Corp. (a) | 417,400 | | 19,359,012 |
STRATEC Biomedical Systems AG | 265,000 | | 11,507,540 |
Wright Medical Group, Inc. (a) | 1,020,000 | | 15,157,200 |
| | 74,426,572 |
Health Care Providers & Services - 5.2% |
Accretive Health, Inc. | 153,897 | | 2,791,692 |
Air Methods Corp. (a) | 345,000 | | 17,677,800 |
Catalyst Health Solutions, Inc. (a) | 215,000 | | 9,331,000 |
Corvel Corp. (a) | 259,100 | | 13,079,368 |
Hanger Orthopedic Group, Inc. (a) | 906,900 | | 18,636,795 |
MWI Veterinary Supply, Inc. (a) | 250,000 | | 15,540,000 |
Synergy Health PLC | 1,145,411 | | 16,226,573 |
| | 93,283,228 |
Health Care Technology - 0.5% |
Computer Programs & Systems, Inc. | 175,800 | | 9,124,020 |
Life Sciences Tools & Services - 3.3% |
Bruker BioSciences Corp. (a) | 790,000 | | 13,825,000 |
PAREXEL International Corp. (a) | 550,000 | | 12,765,500 |
PerkinElmer, Inc. | 825,000 | | 21,103,500 |
QIAGEN NV (a)(d) | 636,000 | | 11,734,200 |
| | 59,428,200 |
Pharmaceuticals - 3.1% |
Ardea Biosciences, Inc. (a) | 249,263 | | 6,610,455 |
Auxilium Pharmaceuticals, Inc. (a)(d) | 233,935 | | 5,307,985 |
Cadence Pharmaceuticals, Inc. (a)(d) | 812,693 | | 6,310,561 |
Cardiome Pharma Corp. (a) | 1,025,000 | | 6,450,405 |
Hikma Pharmaceuticals PLC | 994,983 | | 12,812,661 |
Jazz Pharmaceuticals, Inc. (a) | 341,000 | | 7,624,760 |
Questcor Pharmaceuticals, Inc. (a) | 730,000 | | 11,285,800 |
| | 56,402,627 |
TOTAL HEALTH CARE | | 318,808,127 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - 20.9% |
Aerospace & Defense - 4.2% |
DigitalGlobe, Inc. (a) | 286,000 | | $ 8,783,060 |
Esterline Technologies Corp. (a) | 329,000 | | 23,418,220 |
Teledyne Technologies, Inc. (a) | 442,000 | | 20,911,020 |
Triumph Group, Inc. | 229,000 | | 21,990,870 |
| | 75,103,170 |
Building Products - 0.9% |
A.O. Smith Corp. | 25,500 | | 1,091,655 |
Armstrong World Industries, Inc. | 364,000 | | 14,782,040 |
| | 15,873,695 |
Commercial Services & Supplies - 3.4% |
Prosegur Compania de Seguridad SA (Reg.) | 308,000 | | 17,920,210 |
Schawk, Inc. Class A | 590,589 | | 10,772,343 |
The Geo Group, Inc. (a) | 688,000 | | 16,353,760 |
Waste Connections, Inc. | 556,500 | | 16,121,805 |
| | 61,168,118 |
Construction & Engineering - 2.6% |
Foster Wheeler Ag (a) | 490,000 | | 18,036,900 |
KBR, Inc. | 610,100 | | 19,584,210 |
Orion Marine Group, Inc. (a) | 780,000 | | 9,141,600 |
| | 46,762,710 |
Electrical Equipment - 4.2% |
Acuity Brands, Inc. (d) | 323,500 | | 17,857,200 |
GrafTech International Ltd. (a) | 38,200 | | 802,200 |
Regal-Beloit Corp. | 324,000 | | 21,623,760 |
Satcon Technology Corp. (a)(d) | 1,430,000 | | 6,935,500 |
Zumtobel AG | 918,000 | | 26,812,589 |
| | 74,031,249 |
Machinery - 2.0% |
Blount International, Inc. (a) | 965,000 | | 14,484,650 |
Commercial Vehicle Group, Inc. (a) | 831,153 | | 13,414,809 |
SmartHeat, Inc. (a)(d) | 1,625,000 | | 7,735,000 |
| | 35,634,459 |
Road & Rail - 0.5% |
Contrans Group, Inc. Class A | 968,600 | | 9,772,111 |
Trading Companies & Distributors - 3.1% |
Interline Brands, Inc. (a) | 590,000 | | 12,525,700 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Trading Companies & Distributors - continued |
Rush Enterprises, Inc. Class A (a) | 980,786 | | $ 18,703,589 |
WESCO International, Inc. (a) | 416,000 | | 23,316,800 |
| | 54,546,089 |
TOTAL INDUSTRIALS | | 372,891,601 |
INFORMATION TECHNOLOGY - 30.3% |
Communications Equipment - 4.0% |
Adtran, Inc. | 520,200 | | 21,395,826 |
DG FastChannel, Inc. (a) | 527,329 | | 14,454,088 |
NETGEAR, Inc. (a) | 681,392 | | 23,613,640 |
Polycom, Inc. (a) | 250,000 | | 10,962,500 |
| | 70,426,054 |
Computers & Peripherals - 2.5% |
Super Micro Computer, Inc. (a) | 1,139,000 | | 16,031,425 |
Synaptics, Inc. (a)(d) | 686,000 | | 19,523,560 |
Wincor Nixdorf AG (d) | 122,400 | | 9,345,134 |
| | 44,900,119 |
Electronic Equipment & Components - 4.7% |
Avnet, Inc. (a) | 401,900 | | 14,315,678 |
Electro Scientific Industries, Inc. (a) | 550,660 | | 9,179,502 |
Insight Enterprises, Inc. (a) | 947,400 | | 13,187,808 |
Jabil Circuit, Inc. | 1,048,000 | | 21,180,080 |
OSI Systems, Inc. (a) | 310,000 | | 11,776,900 |
SYNNEX Corp. (a) | 432,800 | | 14,451,192 |
| | 84,091,160 |
Internet Software & Services - 6.2% |
Digital River, Inc. (a) | 461,000 | | 14,632,140 |
j2 Global Communications, Inc. (a) | 667,500 | | 18,423,000 |
LivePerson, Inc. (a) | 800,000 | | 8,776,000 |
Perficient, Inc. (a)(e) | 1,658,502 | | 19,387,888 |
Rackspace Hosting, Inc. (a)(d) | 715,000 | | 23,959,650 |
Sohu.com, Inc. (a)(d) | 210,000 | | 16,291,800 |
Travelzoo, Inc. (a)(d) | 205,000 | | 9,635,000 |
| | 111,105,478 |
IT Services - 2.9% |
Heartland Payment Systems, Inc. | 564,300 | | 8,915,940 |
Online Resources Corp. (a) | 1,000,000 | | 6,720,000 |
Virtusa Corp. (a) | 550,040 | | 8,855,644 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
WNS Holdings Ltd. sponsored ADR (a) | 613,457 | | $ 6,656,008 |
Wright Express Corp. (a) | 420,000 | | 19,874,400 |
| | 51,021,992 |
Semiconductors & Semiconductor Equipment - 4.7% |
Ceva, Inc. (a) | 366,600 | | 8,860,722 |
Entegris, Inc. (a) | 2,060,000 | | 15,759,000 |
Hittite Microwave Corp. (a) | 183,821 | | 10,988,819 |
International Rectifier Corp. (a) | 445,000 | | 14,253,350 |
Microsemi Corp. (a) | 922,000 | | 20,735,780 |
Standard Microsystems Corp. (a) | 582,000 | | 13,997,100 |
| | 84,594,771 |
Software - 5.3% |
ebix.com, Inc. (a)(d) | 857,910 | | 19,345,871 |
Informatica Corp. (a) | 256,000 | | 11,878,400 |
Radiant Systems, Inc. (a) | 520,000 | | 9,490,000 |
Solera Holdings, Inc. | 387,000 | | 20,251,710 |
Taleo Corp. Class A (a) | 411,039 | | 12,109,209 |
TIBCO Software, Inc. (a) | 980,000 | | 21,540,400 |
| | 94,615,590 |
TOTAL INFORMATION TECHNOLOGY | | 540,755,164 |
MATERIALS - 2.6% |
Chemicals - 1.0% |
Solutia, Inc. (a) | 737,000 | | 17,260,540 |
Metals & Mining - 1.6% |
Carpenter Technology Corp. | 382,000 | | 15,719,300 |
MacArthur Coal Ltd. | 1,125,000 | | 13,991,562 |
| | 29,710,862 |
TOTAL MATERIALS | | 46,971,402 |
TOTAL COMMON STOCKS (Cost $1,409,945,299) | 1,740,446,997 |
Money Market Funds - 9.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 57,670,775 | | $ 57,670,775 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 111,324,106 | | 111,324,106 |
TOTAL MONEY MARKET FUNDS (Cost $168,994,881) | 168,994,881 |
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $1,578,940,180) | 1,909,441,878 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | (124,704,357) |
NET ASSETS - 100% | $ 1,784,737,521 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 58,191 |
Fidelity Securities Lending Cash Central Fund | 712,773 |
Total | $ 770,964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Calavo Growers, Inc. | $ 12,651,852 | $ 3,152,679 | $ - | $ 351,475 | $ 17,004,952 |
Online Resources Corp. | 7,777,946 | 567,018 | 6,262,212 | - | - |
Perficient, Inc. | 13,394,542 | 1,019,485 | - | - | 19,387,888 |
Total | $ 33,824,340 | $ 4,739,182 | $ 6,262,212 | $ 351,475 | $ 36,392,840 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.2% |
Germany | 3.0% |
United Kingdom | 2.3% |
Canada | 1.6% |
Austria | 1.5% |
Switzerland | 1.0% |
Spain | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $193,259,144 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $109,155,196) - See accompanying schedule: Unaffiliated issuers (cost $1,378,896,886) | $ 1,704,054,157 | |
Fidelity Central Funds (cost $168,994,881) | 168,994,881 | |
Other affiliated issuers (cost $31,048,413) | 36,392,840 | |
Total Investments (cost $1,578,940,180) | | $ 1,909,441,878 |
Cash | | 947,440 |
Receivable for investments sold
Regular delivery | | 32,087,568 |
Delayed delivery | | 284,956 |
Receivable for fund shares sold | | 2,483,180 |
Dividends receivable | | 412,279 |
Distributions receivable from Fidelity Central Funds | | 112,513 |
Prepaid expenses | | 3,666 |
Other receivables | | 72,424 |
Total assets | | 1,945,845,904 |
| | |
Liabilities | | |
Payable for investments purchased | $ 46,858,374 | |
Payable for fund shares redeemed | 1,564,288 | |
Accrued management fee | 890,730 | |
Distribution and service plan fees payable | 49,425 | |
Other affiliated payables | 383,641 | |
Other payables and accrued expenses | 37,819 | |
Collateral on securities loaned, at value | 111,324,106 | |
Total liabilities | | 161,108,383 |
| | |
Net Assets | | $ 1,784,737,521 |
Net Assets consist of: | | |
Paid in capital | | $ 1,589,038,001 |
Distributions in excess of net investment income | | (2,725,911) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (132,058,641) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 330,484,072 |
Net Assets | | $ 1,784,737,521 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($64,543,540 ÷ 4,161,930 shares) | | $ 15.51 |
| | |
Maximum offering price per share (100/94.25 of $15.51) | | $ 16.46 |
Class T:
Net Asset Value and redemption price per share ($29,679,829 ÷ 1,929,148 shares) | | $ 15.38 |
| | |
Maximum offering price per share (100/96.50 of $15.38) | | $ 15.94 |
Class B:
Net Asset Value and offering price per share ($5,645,925 ÷ 375,688 shares)A | | $ 15.03 |
| | |
Class C:
Net Asset Value and offering price per share ($22,528,130 ÷ 1,501,755 shares)A | | $ 15.00 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($1,407,637,787 ÷ 89,678,415 shares) | | $ 15.70 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($219,323,472 ÷ 13,919,887 shares) | | $ 15.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per
share ($35,378,838 ÷ 2,249,626 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $351,475 earned from other affiliated issuers) | | $ 4,793,415 |
Special dividends | | 2,295,657 |
Interest | | 19 |
Income from Fidelity Central Funds (including $712,773 from security lending) | | 770,964 |
Total income | | 7,860,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,633,355 | |
Performance adjustment | (599,191) | |
Transfer agent fees | 1,954,108 | |
Distribution and service plan fees | 263,004 | |
Accounting and security lending fees | 254,287 | |
Custodian fees and expenses | 33,879 | |
Independent trustees' compensation | 4,330 | |
Registration fees | 81,635 | |
Audit | 30,578 | |
Legal | 4,566 | |
Miscellaneous | 7,526 | |
Total expenses before reductions | 7,668,077 | |
Expense reductions | (95,367) | 7,572,710 |
Net investment income (loss) | | 287,345 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 68,037,600 | |
Other affiliated issuers | 40,689 | |
Foreign currency transactions | 28,040 | |
Total net realized gain (loss) | | 68,106,329 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 255,465,390 | |
Assets and liabilities in foreign currencies | (16,040) | |
Total change in net unrealized appreciation (depreciation) | | 255,449,350 |
Net gain (loss) | | 323,555,679 |
Net increase (decrease) in net assets resulting from operations | | $ 323,843,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 287,345 | $ (4,269,128) |
Net realized gain (loss) | 68,106,329 | 242,038,859 |
Change in net unrealized appreciation (depreciation) | 255,449,350 | (34,116,702) |
Net increase (decrease) in net assets resulting
from operations | 323,843,024 | 203,653,029 |
Distributions to shareholders from net investment income | (3,013,256) | - |
Share transactions - net increase (decrease) | 28,651,309 | 46,578,163 |
Redemption fees | 63,757 | 232,258 |
Total increase (decrease) in net assets | 349,544,834 | 250,463,450 |
| | |
Net Assets | | |
Beginning of period | 1,435,192,687 | 1,184,729,237 |
End of period (including distributions in excess of net investment income of $2,725,911 and $0, respectively) | $ 1,784,737,521 | $ 1,435,192,687 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | (.06) | (.11) | (.12) J | (.10) K |
Net realized and unrealized gain (loss) | 2.88 | 1.94 | (2.35) | (1.73) | 3.39 | .18 |
Total from investment operations | 2.86 | 1.87 | (2.41) | (1.84) | 3.27 | .08 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.02) | (.09) | (.16) |
Total distributions | (.01) | - | - | (1.02) | (.09) | (.16) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.51 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Total Return B, C, D | 22.59% | 17.33% | (18.26)% | (12.26)% | 25.52% | .70% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.23% A | 1.35% | 1.33% | 1.40% | 1.44% | 1.53% |
Expenses net of fee waivers, if any | 1.23% A | 1.35% | 1.33% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.22% A | 1.34% | 1.33% | 1.39% | 1.39% | 1.35% |
Net investment income (loss) | (.23)% A, H | (.56)% I | (.64)% | (.74)% | (.80)% J | (.79)% K |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 64,544 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.52)%. 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 (.67)%. 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 (.84)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011
(Unaudited) | Years ended July 31, |
| | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) H | (.10) I | (.09) | (.15) | (.16) J | (.14) K |
Net realized and unrealized gain (loss) | 2.84 | 1.93 | (2.34) | (1.73) | 3.38 | .19 |
Total from investment operations | 2.81 | 1.83 | (2.43) | (1.88) | 3.22 | .05 |
Distributions from net realized gain | - | - | - | (.96) | (.07) | (.13) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.38 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Total Return B, C, D | 22.35% | 17.04% | (18.45)% | (12.50)% | 25.18% | .48% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.49% A | 1.61% | 1.60% | 1.65% | 1.67% | 1.73% |
Expenses net of fee waivers, if any | 1.49% A | 1.61% | 1.60% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.48% A | 1.60% | 1.59% | 1.65% | 1.65% | 1.60% |
Net investment income (loss) | (.49)% A, H | (.82)% I | (.91)% | (.99)% | (1.05)% J | (1.04)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,680 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.78)%. 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 (.93)%. 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 (1.09)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.80 | 1.89 | (2.33) | (1.71) | 3.36 | .19 |
Total from investment operations | 2.73 | 1.73 | (2.46) | (1.93) | 3.13 | (.01) |
Distributions from net realized gain | - | - | - | (.89) | (.06) | (.09) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.03 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Total Return B, C, D | 22.20% | 16.37% | (18.88)% | (12.92)% | 24.57% | (.03)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.28% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 2.08% | 2.15% | 2.15% | 2.10% |
Net investment income (loss) | (.99)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,646 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.79 | 1.89 | (2.32) | (1.71) | 3.36 | .18 |
Total from investment operations | 2.72 | 1.73 | (2.45) | (1.93) | 3.13 | (.02) |
Distributions from net realized gain | - | - | - | (.91) | (.06) | (.10) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.00 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Total Return B, C, D | 22.15% | 16.40% | (18.85)% | (12.94)% | 24.59% | (.08)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.97% A | 2.09% | 2.07% | 2.14% | 2.14% | 2.10% |
Net investment income (loss) | (.98)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,528 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) D | - G, L | (.04) H | (.04) | (.07) | (.08) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.96 | (2.36) | (1.74) | 3.40 | .19 |
Total from invest-
ment operations | 2.92 | 1.92 | (2.40) | (1.81) | 3.32 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.10) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.10) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.70 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Total Return B, C | 22.77% | 17.63% | (18.06)% | (11.98)% | 25.84% | 1.01% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of fee waivers, if any | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of all reductions | .95% A | 1.07% | 1.08% | 1.10% | 1.09% | 1.08% |
Net investment income (loss) | .04% A, G | (.29)% H | (.39)% | (.45)% | (.50)% I | (.52)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,407,638 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.25)%. 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 (.39)%. 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 (.54)%. 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 (.58)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations | | | |
Net investment income (loss) D | .02 G | - H, K | (.01) |
Net realized and unrealized gain (loss) | 2.93 | 1.95 | .88 |
Total from investment operations | 2.95 | 1.95 | .87 |
Distributions from net investment income | (.04) | - | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.76 | $ 12.85 | $ 10.90 |
Total Return B, C | 22.99% | 17.89% | 8.67% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .69% A | .78% | .74% A |
Expenses net of fee waivers, if any | .69% A | .78% | .74% A |
Expenses net of all reductions | .67% A | .77% | .73% A |
Net investment income (loss) | .32% A, G | -% H, L | (.54)% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 219,323 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 105% A | 105% | 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 .03%. 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 (.10)%. 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. L Amount represents less than .01%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 G | (.03) H | (.03) | (.06) | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.95 | (2.36) | (1.74) | 3.41 | .19 |
Total from investment operations | 2.93 | 1.92 | (2.39) | (1.80) | 3.34 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.11) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.11) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.73 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Total Return B, C | 22.82% | 17.60% | (17.97)% | (11.93)% | 25.99% | .97% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of all reductions | .92% A | 1.02% | 1.04% | 1.03% | 1.05% | 1.05% |
Net investment income (loss) | .07% A, G | (.24)% H | (.36)% | (.38)% | (.46)% I | (.49)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,379 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.22)%. 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 (.34)%. 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 (.50)%. 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 (.55)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 (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 C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, net operating losses, capital loss carryforwards, 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 | $ 366,716,541 |
Gross unrealized depreciation | (38,971,254) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 327,745,287 |
Tax cost | $ 1,581,696,591 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,801,748 and $797,738,950, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .63% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,917 | $ 1,098 |
Class T | .25% | .25% | 66,052 | - |
Class B | .75% | .25% | 26,790 | 20,092 |
Class C | .75% | .25% | 100,245 | 21,044 |
| | | $ 263,004 | $ 42,234 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 12,332 |
Class T | 3,171 |
Class B* | 6,147 |
Class C* | 1,087 |
| $ 22,737 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 83,160 | .30 |
Class T | 40,390 | .31 |
Class B | 8,029 | .30 |
Class C | 29,847 | .30 |
Small Cap Growth | 1,756,279 | .27 |
Institutional Class | 36,403 | .24 |
| $ 1,954,108 | |
* 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 $31,257 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,762 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $10,923 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $95,294 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 $73.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 40,130 | $ - |
Small Cap Growth | 2,420,021 | - |
Class F | 492,928 | - |
Institutional Class | 60,177 | - |
Total | $ 3,013,256 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 764,130 | 1,755,238 | $ 11,076,073 | $ 21,749,463 |
Reinvestment of distributions | 2,323 | - | 36,172 | - |
Shares redeemed | (603,687) | (1,481,231) | (8,353,556) | (17,861,442) |
Net increase (decrease) | 162,766 | 274,007 | $ 2,758,689 | $ 3,888,021 |
Class T | | | | |
Shares sold | 213,378 | 492,575 | $ 3,087,540 | $ 6,056,365 |
Shares redeemed | (188,690) | (592,408) | (2,617,750) | (7,232,100) |
Net increase (decrease) | 24,688 | (99,833) | $ 469,790 | $ (1,175,735) |
Class B | | | | |
Shares sold | 16,102 | 117,304 | $ 220,360 | $ 1,414,923 |
Shares redeemed | (58,289) | (93,928) | (782,302) | (1,126,513) |
Net increase (decrease) | (42,187) | 23,376 | $ (561,942) | $ 288,410 |
Class C | | | | |
Shares sold | 198,319 | 479,633 | $ 2,791,818 | $ 5,791,649 |
Shares redeemed | (169,540) | (358,550) | (2,317,915) | (4,319,904) |
Net increase (decrease) | 28,779 | 121,083 | $ 473,903 | $ 1,471,745 |
Small Cap Growth | | | | |
Shares sold | 10,469,007 | 22,893,960 | $ 154,440,881 | $ 285,679,819 |
Reinvestment of distributions | 153,921 | - | 2,384,002 | - |
Shares redeemed | (15,012,486) | (28,450,958) | (215,920,511) | (351,525,118) |
Net increase (decrease) | (4,389,558) | (5,556,998) | $ (59,095,628) | $ (65,845,299) |
Class F | | | | |
Shares sold | 6,401,675 | 8,663,528 | $ 92,775,683 | $ 109,176,128 |
Reinvestment of distributions | 31,816 | - | 492,928 | - |
Shares redeemed | (834,316) | (357,394) | (12,381,198) | (4,690,130) |
Net increase (decrease) | 5,599,175 | 8,306,134 | $ 80,887,413 | $ 104,485,998 |
Institutional Class | | | | |
Shares sold | 511,815 | 1,109,901 | $ 7,483,930 | $ 14,013,757 |
Reinvestment of distributions | 2,532 | - | 39,301 | - |
Shares redeemed | (263,779) | (871,545) | (3,804,147) | (10,548,734) |
Net increase (decrease) | 250,568 | 238,356 | $ 3,719,084 | $ 3,465,023 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 53% 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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operating Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SCP-F-SANN-0311
1.891909.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2011
(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 | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,225.90 | $ 6.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 6.26 |
Class T | 1.49% | | | |
Actual | | $ 1,000.00 | $ 1,223.50 | $ 8.35 |
HypotheticalA | | $ 1,000.00 | $ 1,017.69 | $ 7.58 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,222.00 | $ 11.15 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,221.50 | $ 11.14 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Small Cap Growth | .96% | | | |
Actual | | $ 1,000.00 | $ 1,227.70 | $ 5.39 |
HypotheticalA | | $ 1,000.00 | $ 1,020.37 | $ 4.89 |
Class F | .69% | | | |
Actual | | $ 1,000.00 | $ 1,229.90 | $ 3.88 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 1,228.20 | $ 5.22 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Zumtobel AG | 1.5 | 1.1 |
Rackspace Hosting, Inc. | 1.4 | 0.8 |
NETGEAR, Inc. | 1.4 | 1.1 |
Esterline Technologies Corp. | 1.3 | 0.8 |
WESCO International, Inc. | 1.3 | 0.0 |
Petroleum Development Corp. | 1.3 | 0.0 |
Triumph Group, Inc. | 1.2 | 1.1 |
Regal-Beloit Corp. | 1.2 | 0.9 |
TIBCO Software, Inc. | 1.2 | 0.0 |
Adtran, Inc. | 1.2 | 1.1 |
| 13.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.3 | 27.1 |
Industrials | 20.9 | 18.5 |
Health Care | 17.8 | 20.6 |
Consumer Discretionary | 16.1 | 17.8 |
Energy | 3.8 | 2.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 97.5% | | | Stocks 95.2% | |
| Short-Term
Investments and
Net Other Assets 2.5% | | | Short-Term
Investments and
Net Other Assets 4.8% | |
* Foreign investments | 13.8% | | ** Foreign investments | 16.2% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 1.4% |
ElringKlinger AG | 400,000 | | $ 12,786,460 |
Modine Manufacturing Co. (a) | 730,095 | | 12,046,568 |
| | 24,833,028 |
Diversified Consumer Services - 0.6% |
Steiner Leisure Ltd. (a) | 231,300 | | 10,251,216 |
Hotels, Restaurants & Leisure - 1.2% |
Life Time Fitness, Inc. (a) | 223,000 | | 8,893,240 |
Wyndham Worldwide Corp. | 435,000 | | 12,236,550 |
| | 21,129,790 |
Household Durables - 0.8% |
Tempur-Pedic International, Inc. (a) | 334,000 | | 14,575,760 |
Multiline Retail - 0.7% |
Dollarama, Inc. (a) | 415,000 | | 11,835,231 |
Specialty Retail - 5.7% |
Citi Trends, Inc. (a) | 495,000 | | 11,335,500 |
Delticom AG | 111,910 | | 9,299,531 |
DSW, Inc. Class A (a)(d) | 547,000 | | 18,209,630 |
Jos. A. Bank Clothiers, Inc. (a)(d) | 226,500 | | 9,678,345 |
Sally Beauty Holdings, Inc. (a) | 922,000 | | 12,133,520 |
Signet Jewelers Ltd. (a) | 376,400 | | 15,989,472 |
Tom Tailor Holding AG | 585,000 | | 11,676,612 |
Tractor Supply Co. | 283,000 | | 14,520,730 |
| | 102,843,340 |
Textiles, Apparel & Luxury Goods - 5.7% |
Fossil, Inc. (a) | 227,000 | | 16,128,350 |
G-III Apparel Group Ltd. (a) | 370,300 | | 12,919,767 |
Maidenform Brands, Inc. (a) | 473,088 | | 12,177,285 |
Phillips-Van Heusen Corp. | 242,900 | | 14,178,073 |
Steven Madden Ltd. (a) | 400,000 | | 15,268,000 |
Ted Baker PLC | 1,265,609 | | 13,277,260 |
Warnaco Group, Inc. (a) | 340,000 | | 17,367,200 |
| | 101,315,935 |
TOTAL CONSUMER DISCRETIONARY | | 286,784,300 |
CONSUMER STAPLES - 3.6% |
Food & Staples Retailing - 0.5% |
United Natural Foods, Inc. (a) | 265,000 | | 9,805,000 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Food Products - 1.5% |
Calavo Growers, Inc. (d)(e) | 736,783 | | $ 17,004,952 |
Darling International, Inc. (a) | 675,000 | | 9,146,250 |
| | 26,151,202 |
Personal Products - 1.6% |
Inter Parfums, Inc. | 1,007,000 | | 17,964,880 |
USANA Health Sciences, Inc. (a)(d) | 261,000 | | 9,897,120 |
| | 27,862,000 |
TOTAL CONSUMER STAPLES | | 63,818,202 |
ENERGY - 3.8% |
Energy Equipment & Services - 2.5% |
Complete Production Services, Inc. (a) | 400,000 | | 11,176,000 |
Newpark Resources, Inc. (a) | 2,479,000 | | 14,824,420 |
Rowan Companies, Inc. (a) | 556,000 | | 19,059,680 |
| | 45,060,100 |
Oil, Gas & Consumable Fuels - 1.3% |
Petroleum Development Corp. (a) | 491,200 | | 22,354,512 |
TOTAL ENERGY | | 67,414,612 |
FINANCIALS - 2.4% |
Capital Markets - 0.4% |
optionsXpress Holdings, Inc. | 510,146 | | 7,580,770 |
Commercial Banks - 1.3% |
Banco Pine SA | 216,300 | | 1,801,743 |
CapitalSource, Inc. | 1,545,000 | | 11,927,400 |
Huntington Bancshares, Inc. | 1,311,100 | | 9,492,364 |
| | 23,221,507 |
Real Estate Investment Trusts - 0.7% |
CBL & Associates Properties, Inc. | 715,200 | | 12,201,312 |
TOTAL FINANCIALS | | 43,003,589 |
HEALTH CARE - 17.8% |
Biotechnology - 1.5% |
Incyte Corp. (a)(d) | 355,000 | | 5,232,700 |
PDL BioPharma, Inc. | 1,835,000 | | 9,064,900 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a)(d) | 299,000 | | $ 6,290,960 |
ZIOPHARM Oncology, Inc. (a)(d) | 952,000 | | 5,554,920 |
| | 26,143,480 |
Health Care Equipment & Supplies - 4.2% |
American Medical Systems Holdings, Inc. (a) | 565,000 | | 11,028,800 |
Cooper Companies, Inc. | 303,000 | | 17,374,020 |
Integra LifeSciences Holdings Corp. (a) | 417,400 | | 19,359,012 |
STRATEC Biomedical Systems AG | 265,000 | | 11,507,540 |
Wright Medical Group, Inc. (a) | 1,020,000 | | 15,157,200 |
| | 74,426,572 |
Health Care Providers & Services - 5.2% |
Accretive Health, Inc. | 153,897 | | 2,791,692 |
Air Methods Corp. (a) | 345,000 | | 17,677,800 |
Catalyst Health Solutions, Inc. (a) | 215,000 | | 9,331,000 |
Corvel Corp. (a) | 259,100 | | 13,079,368 |
Hanger Orthopedic Group, Inc. (a) | 906,900 | | 18,636,795 |
MWI Veterinary Supply, Inc. (a) | 250,000 | | 15,540,000 |
Synergy Health PLC | 1,145,411 | | 16,226,573 |
| | 93,283,228 |
Health Care Technology - 0.5% |
Computer Programs & Systems, Inc. | 175,800 | | 9,124,020 |
Life Sciences Tools & Services - 3.3% |
Bruker BioSciences Corp. (a) | 790,000 | | 13,825,000 |
PAREXEL International Corp. (a) | 550,000 | | 12,765,500 |
PerkinElmer, Inc. | 825,000 | | 21,103,500 |
QIAGEN NV (a)(d) | 636,000 | | 11,734,200 |
| | 59,428,200 |
Pharmaceuticals - 3.1% |
Ardea Biosciences, Inc. (a) | 249,263 | | 6,610,455 |
Auxilium Pharmaceuticals, Inc. (a)(d) | 233,935 | | 5,307,985 |
Cadence Pharmaceuticals, Inc. (a)(d) | 812,693 | | 6,310,561 |
Cardiome Pharma Corp. (a) | 1,025,000 | | 6,450,405 |
Hikma Pharmaceuticals PLC | 994,983 | | 12,812,661 |
Jazz Pharmaceuticals, Inc. (a) | 341,000 | | 7,624,760 |
Questcor Pharmaceuticals, Inc. (a) | 730,000 | | 11,285,800 |
| | 56,402,627 |
TOTAL HEALTH CARE | | 318,808,127 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - 20.9% |
Aerospace & Defense - 4.2% |
DigitalGlobe, Inc. (a) | 286,000 | | $ 8,783,060 |
Esterline Technologies Corp. (a) | 329,000 | | 23,418,220 |
Teledyne Technologies, Inc. (a) | 442,000 | | 20,911,020 |
Triumph Group, Inc. | 229,000 | | 21,990,870 |
| | 75,103,170 |
Building Products - 0.9% |
A.O. Smith Corp. | 25,500 | | 1,091,655 |
Armstrong World Industries, Inc. | 364,000 | | 14,782,040 |
| | 15,873,695 |
Commercial Services & Supplies - 3.4% |
Prosegur Compania de Seguridad SA (Reg.) | 308,000 | | 17,920,210 |
Schawk, Inc. Class A | 590,589 | | 10,772,343 |
The Geo Group, Inc. (a) | 688,000 | | 16,353,760 |
Waste Connections, Inc. | 556,500 | | 16,121,805 |
| | 61,168,118 |
Construction & Engineering - 2.6% |
Foster Wheeler Ag (a) | 490,000 | | 18,036,900 |
KBR, Inc. | 610,100 | | 19,584,210 |
Orion Marine Group, Inc. (a) | 780,000 | | 9,141,600 |
| | 46,762,710 |
Electrical Equipment - 4.2% |
Acuity Brands, Inc. (d) | 323,500 | | 17,857,200 |
GrafTech International Ltd. (a) | 38,200 | | 802,200 |
Regal-Beloit Corp. | 324,000 | | 21,623,760 |
Satcon Technology Corp. (a)(d) | 1,430,000 | | 6,935,500 |
Zumtobel AG | 918,000 | | 26,812,589 |
| | 74,031,249 |
Machinery - 2.0% |
Blount International, Inc. (a) | 965,000 | | 14,484,650 |
Commercial Vehicle Group, Inc. (a) | 831,153 | | 13,414,809 |
SmartHeat, Inc. (a)(d) | 1,625,000 | | 7,735,000 |
| | 35,634,459 |
Road & Rail - 0.5% |
Contrans Group, Inc. Class A | 968,600 | | 9,772,111 |
Trading Companies & Distributors - 3.1% |
Interline Brands, Inc. (a) | 590,000 | | 12,525,700 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Trading Companies & Distributors - continued |
Rush Enterprises, Inc. Class A (a) | 980,786 | | $ 18,703,589 |
WESCO International, Inc. (a) | 416,000 | | 23,316,800 |
| | 54,546,089 |
TOTAL INDUSTRIALS | | 372,891,601 |
INFORMATION TECHNOLOGY - 30.3% |
Communications Equipment - 4.0% |
Adtran, Inc. | 520,200 | | 21,395,826 |
DG FastChannel, Inc. (a) | 527,329 | | 14,454,088 |
NETGEAR, Inc. (a) | 681,392 | | 23,613,640 |
Polycom, Inc. (a) | 250,000 | | 10,962,500 |
| | 70,426,054 |
Computers & Peripherals - 2.5% |
Super Micro Computer, Inc. (a) | 1,139,000 | | 16,031,425 |
Synaptics, Inc. (a)(d) | 686,000 | | 19,523,560 |
Wincor Nixdorf AG (d) | 122,400 | | 9,345,134 |
| | 44,900,119 |
Electronic Equipment & Components - 4.7% |
Avnet, Inc. (a) | 401,900 | | 14,315,678 |
Electro Scientific Industries, Inc. (a) | 550,660 | | 9,179,502 |
Insight Enterprises, Inc. (a) | 947,400 | | 13,187,808 |
Jabil Circuit, Inc. | 1,048,000 | | 21,180,080 |
OSI Systems, Inc. (a) | 310,000 | | 11,776,900 |
SYNNEX Corp. (a) | 432,800 | | 14,451,192 |
| | 84,091,160 |
Internet Software & Services - 6.2% |
Digital River, Inc. (a) | 461,000 | | 14,632,140 |
j2 Global Communications, Inc. (a) | 667,500 | | 18,423,000 |
LivePerson, Inc. (a) | 800,000 | | 8,776,000 |
Perficient, Inc. (a)(e) | 1,658,502 | | 19,387,888 |
Rackspace Hosting, Inc. (a)(d) | 715,000 | | 23,959,650 |
Sohu.com, Inc. (a)(d) | 210,000 | | 16,291,800 |
Travelzoo, Inc. (a)(d) | 205,000 | | 9,635,000 |
| | 111,105,478 |
IT Services - 2.9% |
Heartland Payment Systems, Inc. | 564,300 | | 8,915,940 |
Online Resources Corp. (a) | 1,000,000 | | 6,720,000 |
Virtusa Corp. (a) | 550,040 | | 8,855,644 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
WNS Holdings Ltd. sponsored ADR (a) | 613,457 | | $ 6,656,008 |
Wright Express Corp. (a) | 420,000 | | 19,874,400 |
| | 51,021,992 |
Semiconductors & Semiconductor Equipment - 4.7% |
Ceva, Inc. (a) | 366,600 | | 8,860,722 |
Entegris, Inc. (a) | 2,060,000 | | 15,759,000 |
Hittite Microwave Corp. (a) | 183,821 | | 10,988,819 |
International Rectifier Corp. (a) | 445,000 | | 14,253,350 |
Microsemi Corp. (a) | 922,000 | | 20,735,780 |
Standard Microsystems Corp. (a) | 582,000 | | 13,997,100 |
| | 84,594,771 |
Software - 5.3% |
ebix.com, Inc. (a)(d) | 857,910 | | 19,345,871 |
Informatica Corp. (a) | 256,000 | | 11,878,400 |
Radiant Systems, Inc. (a) | 520,000 | | 9,490,000 |
Solera Holdings, Inc. | 387,000 | | 20,251,710 |
Taleo Corp. Class A (a) | 411,039 | | 12,109,209 |
TIBCO Software, Inc. (a) | 980,000 | | 21,540,400 |
| | 94,615,590 |
TOTAL INFORMATION TECHNOLOGY | | 540,755,164 |
MATERIALS - 2.6% |
Chemicals - 1.0% |
Solutia, Inc. (a) | 737,000 | | 17,260,540 |
Metals & Mining - 1.6% |
Carpenter Technology Corp. | 382,000 | | 15,719,300 |
MacArthur Coal Ltd. | 1,125,000 | | 13,991,562 |
| | 29,710,862 |
TOTAL MATERIALS | | 46,971,402 |
TOTAL COMMON STOCKS (Cost $1,409,945,299) | 1,740,446,997 |
Money Market Funds - 9.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 57,670,775 | | $ 57,670,775 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 111,324,106 | | 111,324,106 |
TOTAL MONEY MARKET FUNDS (Cost $168,994,881) | 168,994,881 |
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $1,578,940,180) | 1,909,441,878 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | (124,704,357) |
NET ASSETS - 100% | $ 1,784,737,521 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 58,191 |
Fidelity Securities Lending Cash Central Fund | 712,773 |
Total | $ 770,964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Calavo Growers, Inc. | $ 12,651,852 | $ 3,152,679 | $ - | $ 351,475 | $ 17,004,952 |
Online Resources Corp. | 7,777,946 | 567,018 | 6,262,212 | - | - |
Perficient, Inc. | 13,394,542 | 1,019,485 | - | - | 19,387,888 |
Total | $ 33,824,340 | $ 4,739,182 | $ 6,262,212 | $ 351,475 | $ 36,392,840 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.2% |
Germany | 3.0% |
United Kingdom | 2.3% |
Canada | 1.6% |
Austria | 1.5% |
Switzerland | 1.0% |
Spain | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $193,259,144 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $109,155,196) - See accompanying schedule: Unaffiliated issuers (cost $1,378,896,886) | $ 1,704,054,157 | |
Fidelity Central Funds (cost $168,994,881) | 168,994,881 | |
Other affiliated issuers (cost $31,048,413) | 36,392,840 | |
Total Investments (cost $1,578,940,180) | | $ 1,909,441,878 |
Cash | | 947,440 |
Receivable for investments sold
Regular delivery | | 32,087,568 |
Delayed delivery | | 284,956 |
Receivable for fund shares sold | | 2,483,180 |
Dividends receivable | | 412,279 |
Distributions receivable from Fidelity Central Funds | | 112,513 |
Prepaid expenses | | 3,666 |
Other receivables | | 72,424 |
Total assets | | 1,945,845,904 |
| | |
Liabilities | | |
Payable for investments purchased | $ 46,858,374 | |
Payable for fund shares redeemed | 1,564,288 | |
Accrued management fee | 890,730 | |
Distribution and service plan fees payable | 49,425 | |
Other affiliated payables | 383,641 | |
Other payables and accrued expenses | 37,819 | |
Collateral on securities loaned, at value | 111,324,106 | |
Total liabilities | | 161,108,383 |
| | |
Net Assets | | $ 1,784,737,521 |
Net Assets consist of: | | |
Paid in capital | | $ 1,589,038,001 |
Distributions in excess of net investment income | | (2,725,911) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (132,058,641) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 330,484,072 |
Net Assets | | $ 1,784,737,521 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($64,543,540 ÷ 4,161,930 shares) | | $ 15.51 |
| | |
Maximum offering price per share (100/94.25 of $15.51) | | $ 16.46 |
Class T:
Net Asset Value and redemption price per share ($29,679,829 ÷ 1,929,148 shares) | | $ 15.38 |
| | |
Maximum offering price per share (100/96.50 of $15.38) | | $ 15.94 |
Class B:
Net Asset Value and offering price per share ($5,645,925 ÷ 375,688 shares)A | | $ 15.03 |
| | |
Class C:
Net Asset Value and offering price per share ($22,528,130 ÷ 1,501,755 shares)A | | $ 15.00 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($1,407,637,787 ÷ 89,678,415 shares) | | $ 15.70 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($219,323,472 ÷ 13,919,887 shares) | | $ 15.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per
share ($35,378,838 ÷ 2,249,626 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $351,475 earned from other affiliated issuers) | | $ 4,793,415 |
Special dividends | | 2,295,657 |
Interest | | 19 |
Income from Fidelity Central Funds (including $712,773 from security lending) | | 770,964 |
Total income | | 7,860,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,633,355 | |
Performance adjustment | (599,191) | |
Transfer agent fees | 1,954,108 | |
Distribution and service plan fees | 263,004 | |
Accounting and security lending fees | 254,287 | |
Custodian fees and expenses | 33,879 | |
Independent trustees' compensation | 4,330 | |
Registration fees | 81,635 | |
Audit | 30,578 | |
Legal | 4,566 | |
Miscellaneous | 7,526 | |
Total expenses before reductions | 7,668,077 | |
Expense reductions | (95,367) | 7,572,710 |
Net investment income (loss) | | 287,345 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 68,037,600 | |
Other affiliated issuers | 40,689 | |
Foreign currency transactions | 28,040 | |
Total net realized gain (loss) | | 68,106,329 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 255,465,390 | |
Assets and liabilities in foreign currencies | (16,040) | |
Total change in net unrealized appreciation (depreciation) | | 255,449,350 |
Net gain (loss) | | 323,555,679 |
Net increase (decrease) in net assets resulting from operations | | $ 323,843,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 287,345 | $ (4,269,128) |
Net realized gain (loss) | 68,106,329 | 242,038,859 |
Change in net unrealized appreciation (depreciation) | 255,449,350 | (34,116,702) |
Net increase (decrease) in net assets resulting
from operations | 323,843,024 | 203,653,029 |
Distributions to shareholders from net investment income | (3,013,256) | - |
Share transactions - net increase (decrease) | 28,651,309 | 46,578,163 |
Redemption fees | 63,757 | 232,258 |
Total increase (decrease) in net assets | 349,544,834 | 250,463,450 |
| | |
Net Assets | | |
Beginning of period | 1,435,192,687 | 1,184,729,237 |
End of period (including distributions in excess of net investment income of $2,725,911 and $0, respectively) | $ 1,784,737,521 | $ 1,435,192,687 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | (.06) | (.11) | (.12) J | (.10) K |
Net realized and unrealized gain (loss) | 2.88 | 1.94 | (2.35) | (1.73) | 3.39 | .18 |
Total from investment operations | 2.86 | 1.87 | (2.41) | (1.84) | 3.27 | .08 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.02) | (.09) | (.16) |
Total distributions | (.01) | - | - | (1.02) | (.09) | (.16) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.51 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Total Return B, C, D | 22.59% | 17.33% | (18.26)% | (12.26)% | 25.52% | .70% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.23% A | 1.35% | 1.33% | 1.40% | 1.44% | 1.53% |
Expenses net of fee waivers, if any | 1.23% A | 1.35% | 1.33% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.22% A | 1.34% | 1.33% | 1.39% | 1.39% | 1.35% |
Net investment income (loss) | (.23)% A, H | (.56)% I | (.64)% | (.74)% | (.80)% J | (.79)% K |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 64,544 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.52)%. 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 (.67)%. 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 (.84)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011
(Unaudited) | Years ended July 31, |
| | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) H | (.10) I | (.09) | (.15) | (.16) J | (.14) K |
Net realized and unrealized gain (loss) | 2.84 | 1.93 | (2.34) | (1.73) | 3.38 | .19 |
Total from investment operations | 2.81 | 1.83 | (2.43) | (1.88) | 3.22 | .05 |
Distributions from net realized gain | - | - | - | (.96) | (.07) | (.13) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.38 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Total Return B, C, D | 22.35% | 17.04% | (18.45)% | (12.50)% | 25.18% | .48% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.49% A | 1.61% | 1.60% | 1.65% | 1.67% | 1.73% |
Expenses net of fee waivers, if any | 1.49% A | 1.61% | 1.60% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.48% A | 1.60% | 1.59% | 1.65% | 1.65% | 1.60% |
Net investment income (loss) | (.49)% A, H | (.82)% I | (.91)% | (.99)% | (1.05)% J | (1.04)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,680 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.78)%. 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 (.93)%. 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 (1.09)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.80 | 1.89 | (2.33) | (1.71) | 3.36 | .19 |
Total from investment operations | 2.73 | 1.73 | (2.46) | (1.93) | 3.13 | (.01) |
Distributions from net realized gain | - | - | - | (.89) | (.06) | (.09) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.03 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Total Return B, C, D | 22.20% | 16.37% | (18.88)% | (12.92)% | 24.57% | (.03)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.28% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 2.08% | 2.15% | 2.15% | 2.10% |
Net investment income (loss) | (.99)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,646 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.79 | 1.89 | (2.32) | (1.71) | 3.36 | .18 |
Total from investment operations | 2.72 | 1.73 | (2.45) | (1.93) | 3.13 | (.02) |
Distributions from net realized gain | - | - | - | (.91) | (.06) | (.10) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.00 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Total Return B, C, D | 22.15% | 16.40% | (18.85)% | (12.94)% | 24.59% | (.08)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.97% A | 2.09% | 2.07% | 2.14% | 2.14% | 2.10% |
Net investment income (loss) | (.98)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,528 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) D | - G, L | (.04) H | (.04) | (.07) | (.08) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.96 | (2.36) | (1.74) | 3.40 | .19 |
Total from invest-
ment operations | 2.92 | 1.92 | (2.40) | (1.81) | 3.32 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.10) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.10) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.70 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Total Return B, C | 22.77% | 17.63% | (18.06)% | (11.98)% | 25.84% | 1.01% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of fee waivers, if any | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of all reductions | .95% A | 1.07% | 1.08% | 1.10% | 1.09% | 1.08% |
Net investment income (loss) | .04% A, G | (.29)% H | (.39)% | (.45)% | (.50)% I | (.52)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,407,638 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.25)%. 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 (.39)%. 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 (.54)%. 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 (.58)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations | | | |
Net investment income (loss) D | .02 G | - H, K | (.01) |
Net realized and unrealized gain (loss) | 2.93 | 1.95 | .88 |
Total from investment operations | 2.95 | 1.95 | .87 |
Distributions from net investment income | (.04) | - | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.76 | $ 12.85 | $ 10.90 |
Total Return B, C | 22.99% | 17.89% | 8.67% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .69% A | .78% | .74% A |
Expenses net of fee waivers, if any | .69% A | .78% | .74% A |
Expenses net of all reductions | .67% A | .77% | .73% A |
Net investment income (loss) | .32% A, G | -% H, L | (.54)% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 219,323 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 105% A | 105% | 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 .03%. 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 (.10)%. 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. L Amount represents less than .01%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 G | (.03) H | (.03) | (.06) | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.95 | (2.36) | (1.74) | 3.41 | .19 |
Total from investment operations | 2.93 | 1.92 | (2.39) | (1.80) | 3.34 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.11) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.11) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.73 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Total Return B, C | 22.82% | 17.60% | (17.97)% | (11.93)% | 25.99% | .97% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of all reductions | .92% A | 1.02% | 1.04% | 1.03% | 1.05% | 1.05% |
Net investment income (loss) | .07% A, G | (.24)% H | (.36)% | (.38)% | (.46)% I | (.49)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,379 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.22)%. 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 (.34)%. 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 (.50)%. 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 (.55)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 (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 C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, net operating losses, capital loss carryforwards, 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 | $ 366,716,541 |
Gross unrealized depreciation | (38,971,254) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 327,745,287 |
Tax cost | $ 1,581,696,591 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,801,748 and $797,738,950, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .63% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,917 | $ 1,098 |
Class T | .25% | .25% | 66,052 | - |
Class B | .75% | .25% | 26,790 | 20,092 |
Class C | .75% | .25% | 100,245 | 21,044 |
| | | $ 263,004 | $ 42,234 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 12,332 |
Class T | 3,171 |
Class B* | 6,147 |
Class C* | 1,087 |
| $ 22,737 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 83,160 | .30 |
Class T | 40,390 | .31 |
Class B | 8,029 | .30 |
Class C | 29,847 | .30 |
Small Cap Growth | 1,756,279 | .27 |
Institutional Class | 36,403 | .24 |
| $ 1,954,108 | |
* 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 $31,257 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,762 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $10,923 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $95,294 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 $73.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 40,130 | $ - |
Small Cap Growth | 2,420,021 | - |
Class F | 492,928 | - |
Institutional Class | 60,177 | - |
Total | $ 3,013,256 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 764,130 | 1,755,238 | $ 11,076,073 | $ 21,749,463 |
Reinvestment of distributions | 2,323 | - | 36,172 | - |
Shares redeemed | (603,687) | (1,481,231) | (8,353,556) | (17,861,442) |
Net increase (decrease) | 162,766 | 274,007 | $ 2,758,689 | $ 3,888,021 |
Class T | | | | |
Shares sold | 213,378 | 492,575 | $ 3,087,540 | $ 6,056,365 |
Shares redeemed | (188,690) | (592,408) | (2,617,750) | (7,232,100) |
Net increase (decrease) | 24,688 | (99,833) | $ 469,790 | $ (1,175,735) |
Class B | | | | |
Shares sold | 16,102 | 117,304 | $ 220,360 | $ 1,414,923 |
Shares redeemed | (58,289) | (93,928) | (782,302) | (1,126,513) |
Net increase (decrease) | (42,187) | 23,376 | $ (561,942) | $ 288,410 |
Class C | | | | |
Shares sold | 198,319 | 479,633 | $ 2,791,818 | $ 5,791,649 |
Shares redeemed | (169,540) | (358,550) | (2,317,915) | (4,319,904) |
Net increase (decrease) | 28,779 | 121,083 | $ 473,903 | $ 1,471,745 |
Small Cap Growth | | | | |
Shares sold | 10,469,007 | 22,893,960 | $ 154,440,881 | $ 285,679,819 |
Reinvestment of distributions | 153,921 | - | 2,384,002 | - |
Shares redeemed | (15,012,486) | (28,450,958) | (215,920,511) | (351,525,118) |
Net increase (decrease) | (4,389,558) | (5,556,998) | $ (59,095,628) | $ (65,845,299) |
Class F | | | | |
Shares sold | 6,401,675 | 8,663,528 | $ 92,775,683 | $ 109,176,128 |
Reinvestment of distributions | 31,816 | - | 492,928 | - |
Shares redeemed | (834,316) | (357,394) | (12,381,198) | (4,690,130) |
Net increase (decrease) | 5,599,175 | 8,306,134 | $ 80,887,413 | $ 104,485,998 |
Institutional Class | | | | |
Shares sold | 511,815 | 1,109,901 | $ 7,483,930 | $ 14,013,757 |
Reinvestment of distributions | 2,532 | - | 39,301 | - |
Shares redeemed | (263,779) | (871,545) | (3,804,147) | (10,548,734) |
Net increase (decrease) | 250,568 | 238,356 | $ 3,719,084 | $ 3,465,023 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 53% 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.
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-0311
1.803716.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to
January 31, 2011 |
Class A | 1.23% | | | |
Actual | | $ 1,000.00 | $ 1,225.90 | $ 6.90 |
HypotheticalA | | $ 1,000.00 | $ 1,019.00 | $ 6.26 |
Class T | 1.49% | | | |
Actual | | $ 1,000.00 | $ 1,223.50 | $ 8.35 |
HypotheticalA | | $ 1,000.00 | $ 1,017.69 | $ 7.58 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,222.00 | $ 11.15 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 1,221.50 | $ 11.14 |
HypotheticalA | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Small Cap Growth | .96% | | | |
Actual | | $ 1,000.00 | $ 1,227.70 | $ 5.39 |
HypotheticalA | | $ 1,000.00 | $ 1,020.37 | $ 4.89 |
Class F | .69% | | | |
Actual | | $ 1,000.00 | $ 1,229.90 | $ 3.88 |
HypotheticalA | | $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 1,228.20 | $ 5.22 |
HypotheticalA | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Zumtobel AG | 1.5 | 1.1 |
Rackspace Hosting, Inc. | 1.4 | 0.8 |
NETGEAR, Inc. | 1.4 | 1.1 |
Esterline Technologies Corp. | 1.3 | 0.8 |
WESCO International, Inc. | 1.3 | 0.0 |
Petroleum Development Corp. | 1.3 | 0.0 |
Triumph Group, Inc. | 1.2 | 1.1 |
Regal-Beloit Corp. | 1.2 | 0.9 |
TIBCO Software, Inc. | 1.2 | 0.0 |
Adtran, Inc. | 1.2 | 1.1 |
| 13.0 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.3 | 27.1 |
Industrials | 20.9 | 18.5 |
Health Care | 17.8 | 20.6 |
Consumer Discretionary | 16.1 | 17.8 |
Energy | 3.8 | 2.4 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011 * | As of July 31, 2010 ** |
| Stocks 97.5% | | | Stocks 95.2% | |
| Short-Term
Investments and
Net Other Assets 2.5% | | | Short-Term
Investments and
Net Other Assets 4.8% | |
* Foreign investments | 13.8% | | ** Foreign investments | 16.2% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 16.1% |
Auto Components - 1.4% |
ElringKlinger AG | 400,000 | | $ 12,786,460 |
Modine Manufacturing Co. (a) | 730,095 | | 12,046,568 |
| | 24,833,028 |
Diversified Consumer Services - 0.6% |
Steiner Leisure Ltd. (a) | 231,300 | | 10,251,216 |
Hotels, Restaurants & Leisure - 1.2% |
Life Time Fitness, Inc. (a) | 223,000 | | 8,893,240 |
Wyndham Worldwide Corp. | 435,000 | | 12,236,550 |
| | 21,129,790 |
Household Durables - 0.8% |
Tempur-Pedic International, Inc. (a) | 334,000 | | 14,575,760 |
Multiline Retail - 0.7% |
Dollarama, Inc. (a) | 415,000 | | 11,835,231 |
Specialty Retail - 5.7% |
Citi Trends, Inc. (a) | 495,000 | | 11,335,500 |
Delticom AG | 111,910 | | 9,299,531 |
DSW, Inc. Class A (a)(d) | 547,000 | | 18,209,630 |
Jos. A. Bank Clothiers, Inc. (a)(d) | 226,500 | | 9,678,345 |
Sally Beauty Holdings, Inc. (a) | 922,000 | | 12,133,520 |
Signet Jewelers Ltd. (a) | 376,400 | | 15,989,472 |
Tom Tailor Holding AG | 585,000 | | 11,676,612 |
Tractor Supply Co. | 283,000 | | 14,520,730 |
| | 102,843,340 |
Textiles, Apparel & Luxury Goods - 5.7% |
Fossil, Inc. (a) | 227,000 | | 16,128,350 |
G-III Apparel Group Ltd. (a) | 370,300 | | 12,919,767 |
Maidenform Brands, Inc. (a) | 473,088 | | 12,177,285 |
Phillips-Van Heusen Corp. | 242,900 | | 14,178,073 |
Steven Madden Ltd. (a) | 400,000 | | 15,268,000 |
Ted Baker PLC | 1,265,609 | | 13,277,260 |
Warnaco Group, Inc. (a) | 340,000 | | 17,367,200 |
| | 101,315,935 |
TOTAL CONSUMER DISCRETIONARY | | 286,784,300 |
CONSUMER STAPLES - 3.6% |
Food & Staples Retailing - 0.5% |
United Natural Foods, Inc. (a) | 265,000 | | 9,805,000 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Food Products - 1.5% |
Calavo Growers, Inc. (d)(e) | 736,783 | | $ 17,004,952 |
Darling International, Inc. (a) | 675,000 | | 9,146,250 |
| | 26,151,202 |
Personal Products - 1.6% |
Inter Parfums, Inc. | 1,007,000 | | 17,964,880 |
USANA Health Sciences, Inc. (a)(d) | 261,000 | | 9,897,120 |
| | 27,862,000 |
TOTAL CONSUMER STAPLES | | 63,818,202 |
ENERGY - 3.8% |
Energy Equipment & Services - 2.5% |
Complete Production Services, Inc. (a) | 400,000 | | 11,176,000 |
Newpark Resources, Inc. (a) | 2,479,000 | | 14,824,420 |
Rowan Companies, Inc. (a) | 556,000 | | 19,059,680 |
| | 45,060,100 |
Oil, Gas & Consumable Fuels - 1.3% |
Petroleum Development Corp. (a) | 491,200 | | 22,354,512 |
TOTAL ENERGY | | 67,414,612 |
FINANCIALS - 2.4% |
Capital Markets - 0.4% |
optionsXpress Holdings, Inc. | 510,146 | | 7,580,770 |
Commercial Banks - 1.3% |
Banco Pine SA | 216,300 | | 1,801,743 |
CapitalSource, Inc. | 1,545,000 | | 11,927,400 |
Huntington Bancshares, Inc. | 1,311,100 | | 9,492,364 |
| | 23,221,507 |
Real Estate Investment Trusts - 0.7% |
CBL & Associates Properties, Inc. | 715,200 | | 12,201,312 |
TOTAL FINANCIALS | | 43,003,589 |
HEALTH CARE - 17.8% |
Biotechnology - 1.5% |
Incyte Corp. (a)(d) | 355,000 | | 5,232,700 |
PDL BioPharma, Inc. | 1,835,000 | | 9,064,900 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Biotechnology - continued |
Theravance, Inc. (a)(d) | 299,000 | | $ 6,290,960 |
ZIOPHARM Oncology, Inc. (a)(d) | 952,000 | | 5,554,920 |
| | 26,143,480 |
Health Care Equipment & Supplies - 4.2% |
American Medical Systems Holdings, Inc. (a) | 565,000 | | 11,028,800 |
Cooper Companies, Inc. | 303,000 | | 17,374,020 |
Integra LifeSciences Holdings Corp. (a) | 417,400 | | 19,359,012 |
STRATEC Biomedical Systems AG | 265,000 | | 11,507,540 |
Wright Medical Group, Inc. (a) | 1,020,000 | | 15,157,200 |
| | 74,426,572 |
Health Care Providers & Services - 5.2% |
Accretive Health, Inc. | 153,897 | | 2,791,692 |
Air Methods Corp. (a) | 345,000 | | 17,677,800 |
Catalyst Health Solutions, Inc. (a) | 215,000 | | 9,331,000 |
Corvel Corp. (a) | 259,100 | | 13,079,368 |
Hanger Orthopedic Group, Inc. (a) | 906,900 | | 18,636,795 |
MWI Veterinary Supply, Inc. (a) | 250,000 | | 15,540,000 |
Synergy Health PLC | 1,145,411 | | 16,226,573 |
| | 93,283,228 |
Health Care Technology - 0.5% |
Computer Programs & Systems, Inc. | 175,800 | | 9,124,020 |
Life Sciences Tools & Services - 3.3% |
Bruker BioSciences Corp. (a) | 790,000 | | 13,825,000 |
PAREXEL International Corp. (a) | 550,000 | | 12,765,500 |
PerkinElmer, Inc. | 825,000 | | 21,103,500 |
QIAGEN NV (a)(d) | 636,000 | | 11,734,200 |
| | 59,428,200 |
Pharmaceuticals - 3.1% |
Ardea Biosciences, Inc. (a) | 249,263 | | 6,610,455 |
Auxilium Pharmaceuticals, Inc. (a)(d) | 233,935 | | 5,307,985 |
Cadence Pharmaceuticals, Inc. (a)(d) | 812,693 | | 6,310,561 |
Cardiome Pharma Corp. (a) | 1,025,000 | | 6,450,405 |
Hikma Pharmaceuticals PLC | 994,983 | | 12,812,661 |
Jazz Pharmaceuticals, Inc. (a) | 341,000 | | 7,624,760 |
Questcor Pharmaceuticals, Inc. (a) | 730,000 | | 11,285,800 |
| | 56,402,627 |
TOTAL HEALTH CARE | | 318,808,127 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - 20.9% |
Aerospace & Defense - 4.2% |
DigitalGlobe, Inc. (a) | 286,000 | | $ 8,783,060 |
Esterline Technologies Corp. (a) | 329,000 | | 23,418,220 |
Teledyne Technologies, Inc. (a) | 442,000 | | 20,911,020 |
Triumph Group, Inc. | 229,000 | | 21,990,870 |
| | 75,103,170 |
Building Products - 0.9% |
A.O. Smith Corp. | 25,500 | | 1,091,655 |
Armstrong World Industries, Inc. | 364,000 | | 14,782,040 |
| | 15,873,695 |
Commercial Services & Supplies - 3.4% |
Prosegur Compania de Seguridad SA (Reg.) | 308,000 | | 17,920,210 |
Schawk, Inc. Class A | 590,589 | | 10,772,343 |
The Geo Group, Inc. (a) | 688,000 | | 16,353,760 |
Waste Connections, Inc. | 556,500 | | 16,121,805 |
| | 61,168,118 |
Construction & Engineering - 2.6% |
Foster Wheeler Ag (a) | 490,000 | | 18,036,900 |
KBR, Inc. | 610,100 | | 19,584,210 |
Orion Marine Group, Inc. (a) | 780,000 | | 9,141,600 |
| | 46,762,710 |
Electrical Equipment - 4.2% |
Acuity Brands, Inc. (d) | 323,500 | | 17,857,200 |
GrafTech International Ltd. (a) | 38,200 | | 802,200 |
Regal-Beloit Corp. | 324,000 | | 21,623,760 |
Satcon Technology Corp. (a)(d) | 1,430,000 | | 6,935,500 |
Zumtobel AG | 918,000 | | 26,812,589 |
| | 74,031,249 |
Machinery - 2.0% |
Blount International, Inc. (a) | 965,000 | | 14,484,650 |
Commercial Vehicle Group, Inc. (a) | 831,153 | | 13,414,809 |
SmartHeat, Inc. (a)(d) | 1,625,000 | | 7,735,000 |
| | 35,634,459 |
Road & Rail - 0.5% |
Contrans Group, Inc. Class A | 968,600 | | 9,772,111 |
Trading Companies & Distributors - 3.1% |
Interline Brands, Inc. (a) | 590,000 | | 12,525,700 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Trading Companies & Distributors - continued |
Rush Enterprises, Inc. Class A (a) | 980,786 | | $ 18,703,589 |
WESCO International, Inc. (a) | 416,000 | | 23,316,800 |
| | 54,546,089 |
TOTAL INDUSTRIALS | | 372,891,601 |
INFORMATION TECHNOLOGY - 30.3% |
Communications Equipment - 4.0% |
Adtran, Inc. | 520,200 | | 21,395,826 |
DG FastChannel, Inc. (a) | 527,329 | | 14,454,088 |
NETGEAR, Inc. (a) | 681,392 | | 23,613,640 |
Polycom, Inc. (a) | 250,000 | | 10,962,500 |
| | 70,426,054 |
Computers & Peripherals - 2.5% |
Super Micro Computer, Inc. (a) | 1,139,000 | | 16,031,425 |
Synaptics, Inc. (a)(d) | 686,000 | | 19,523,560 |
Wincor Nixdorf AG (d) | 122,400 | | 9,345,134 |
| | 44,900,119 |
Electronic Equipment & Components - 4.7% |
Avnet, Inc. (a) | 401,900 | | 14,315,678 |
Electro Scientific Industries, Inc. (a) | 550,660 | | 9,179,502 |
Insight Enterprises, Inc. (a) | 947,400 | | 13,187,808 |
Jabil Circuit, Inc. | 1,048,000 | | 21,180,080 |
OSI Systems, Inc. (a) | 310,000 | | 11,776,900 |
SYNNEX Corp. (a) | 432,800 | | 14,451,192 |
| | 84,091,160 |
Internet Software & Services - 6.2% |
Digital River, Inc. (a) | 461,000 | | 14,632,140 |
j2 Global Communications, Inc. (a) | 667,500 | | 18,423,000 |
LivePerson, Inc. (a) | 800,000 | | 8,776,000 |
Perficient, Inc. (a)(e) | 1,658,502 | | 19,387,888 |
Rackspace Hosting, Inc. (a)(d) | 715,000 | | 23,959,650 |
Sohu.com, Inc. (a)(d) | 210,000 | | 16,291,800 |
Travelzoo, Inc. (a)(d) | 205,000 | | 9,635,000 |
| | 111,105,478 |
IT Services - 2.9% |
Heartland Payment Systems, Inc. | 564,300 | | 8,915,940 |
Online Resources Corp. (a) | 1,000,000 | | 6,720,000 |
Virtusa Corp. (a) | 550,040 | | 8,855,644 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
WNS Holdings Ltd. sponsored ADR (a) | 613,457 | | $ 6,656,008 |
Wright Express Corp. (a) | 420,000 | | 19,874,400 |
| | 51,021,992 |
Semiconductors & Semiconductor Equipment - 4.7% |
Ceva, Inc. (a) | 366,600 | | 8,860,722 |
Entegris, Inc. (a) | 2,060,000 | | 15,759,000 |
Hittite Microwave Corp. (a) | 183,821 | | 10,988,819 |
International Rectifier Corp. (a) | 445,000 | | 14,253,350 |
Microsemi Corp. (a) | 922,000 | | 20,735,780 |
Standard Microsystems Corp. (a) | 582,000 | | 13,997,100 |
| | 84,594,771 |
Software - 5.3% |
ebix.com, Inc. (a)(d) | 857,910 | | 19,345,871 |
Informatica Corp. (a) | 256,000 | | 11,878,400 |
Radiant Systems, Inc. (a) | 520,000 | | 9,490,000 |
Solera Holdings, Inc. | 387,000 | | 20,251,710 |
Taleo Corp. Class A (a) | 411,039 | | 12,109,209 |
TIBCO Software, Inc. (a) | 980,000 | | 21,540,400 |
| | 94,615,590 |
TOTAL INFORMATION TECHNOLOGY | | 540,755,164 |
MATERIALS - 2.6% |
Chemicals - 1.0% |
Solutia, Inc. (a) | 737,000 | | 17,260,540 |
Metals & Mining - 1.6% |
Carpenter Technology Corp. | 382,000 | | 15,719,300 |
MacArthur Coal Ltd. | 1,125,000 | | 13,991,562 |
| | 29,710,862 |
TOTAL MATERIALS | | 46,971,402 |
TOTAL COMMON STOCKS (Cost $1,409,945,299) | 1,740,446,997 |
Money Market Funds - 9.5% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.19% (b) | 57,670,775 | | $ 57,670,775 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 111,324,106 | | 111,324,106 |
TOTAL MONEY MARKET FUNDS (Cost $168,994,881) | 168,994,881 |
TOTAL INVESTMENT PORTFOLIO - 107.0% (Cost $1,578,940,180) | 1,909,441,878 |
NET OTHER ASSETS (LIABILITIES) - (7.0)% | (124,704,357) |
NET ASSETS - 100% | $ 1,784,737,521 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 58,191 |
Fidelity Securities Lending Cash Central Fund | 712,773 |
Total | $ 770,964 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Calavo Growers, Inc. | $ 12,651,852 | $ 3,152,679 | $ - | $ 351,475 | $ 17,004,952 |
Online Resources Corp. | 7,777,946 | 567,018 | 6,262,212 | - | - |
Perficient, Inc. | 13,394,542 | 1,019,485 | - | - | 19,387,888 |
Total | $ 33,824,340 | $ 4,739,182 | $ 6,262,212 | $ 351,475 | $ 36,392,840 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.2% |
Germany | 3.0% |
United Kingdom | 2.3% |
Canada | 1.6% |
Austria | 1.5% |
Switzerland | 1.0% |
Spain | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $193,259,144 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $109,155,196) - See accompanying schedule: Unaffiliated issuers (cost $1,378,896,886) | $ 1,704,054,157 | |
Fidelity Central Funds (cost $168,994,881) | 168,994,881 | |
Other affiliated issuers (cost $31,048,413) | 36,392,840 | |
Total Investments (cost $1,578,940,180) | | $ 1,909,441,878 |
Cash | | 947,440 |
Receivable for investments sold
Regular delivery | | 32,087,568 |
Delayed delivery | | 284,956 |
Receivable for fund shares sold | | 2,483,180 |
Dividends receivable | | 412,279 |
Distributions receivable from Fidelity Central Funds | | 112,513 |
Prepaid expenses | | 3,666 |
Other receivables | | 72,424 |
Total assets | | 1,945,845,904 |
| | |
Liabilities | | |
Payable for investments purchased | $ 46,858,374 | |
Payable for fund shares redeemed | 1,564,288 | |
Accrued management fee | 890,730 | |
Distribution and service plan fees payable | 49,425 | |
Other affiliated payables | 383,641 | |
Other payables and accrued expenses | 37,819 | |
Collateral on securities loaned, at value | 111,324,106 | |
Total liabilities | | 161,108,383 |
| | |
Net Assets | | $ 1,784,737,521 |
Net Assets consist of: | | |
Paid in capital | | $ 1,589,038,001 |
Distributions in excess of net investment income | | (2,725,911) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (132,058,641) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 330,484,072 |
Net Assets | | $ 1,784,737,521 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($64,543,540 ÷ 4,161,930 shares) | | $ 15.51 |
| | |
Maximum offering price per share (100/94.25 of $15.51) | | $ 16.46 |
Class T:
Net Asset Value and redemption price per share ($29,679,829 ÷ 1,929,148 shares) | | $ 15.38 |
| | |
Maximum offering price per share (100/96.50 of $15.38) | | $ 15.94 |
Class B:
Net Asset Value and offering price per share ($5,645,925 ÷ 375,688 shares)A | | $ 15.03 |
| | |
Class C:
Net Asset Value and offering price per share ($22,528,130 ÷ 1,501,755 shares)A | | $ 15.00 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($1,407,637,787 ÷ 89,678,415 shares) | | $ 15.70 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($219,323,472 ÷ 13,919,887 shares) | | $ 15.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per
share ($35,378,838 ÷ 2,249,626 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $351,475 earned from other affiliated issuers) | | $ 4,793,415 |
Special dividends | | 2,295,657 |
Interest | | 19 |
Income from Fidelity Central Funds (including $712,773 from security lending) | | 770,964 |
Total income | | 7,860,055 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,633,355 | |
Performance adjustment | (599,191) | |
Transfer agent fees | 1,954,108 | |
Distribution and service plan fees | 263,004 | |
Accounting and security lending fees | 254,287 | |
Custodian fees and expenses | 33,879 | |
Independent trustees' compensation | 4,330 | |
Registration fees | 81,635 | |
Audit | 30,578 | |
Legal | 4,566 | |
Miscellaneous | 7,526 | |
Total expenses before reductions | 7,668,077 | |
Expense reductions | (95,367) | 7,572,710 |
Net investment income (loss) | | 287,345 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 68,037,600 | |
Other affiliated issuers | 40,689 | |
Foreign currency transactions | 28,040 | |
Total net realized gain (loss) | | 68,106,329 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 255,465,390 | |
Assets and liabilities in foreign currencies | (16,040) | |
Total change in net unrealized appreciation (depreciation) | | 255,449,350 |
Net gain (loss) | | 323,555,679 |
Net increase (decrease) in net assets resulting from operations | | $ 323,843,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 287,345 | $ (4,269,128) |
Net realized gain (loss) | 68,106,329 | 242,038,859 |
Change in net unrealized appreciation (depreciation) | 255,449,350 | (34,116,702) |
Net increase (decrease) in net assets resulting
from operations | 323,843,024 | 203,653,029 |
Distributions to shareholders from net investment income | (3,013,256) | - |
Share transactions - net increase (decrease) | 28,651,309 | 46,578,163 |
Redemption fees | 63,757 | 232,258 |
Total increase (decrease) in net assets | 349,544,834 | 250,463,450 |
| | |
Net Assets | | |
Beginning of period | 1,435,192,687 | 1,184,729,237 |
End of period (including distributions in excess of net investment income of $2,725,911 and $0, respectively) | $ 1,784,737,521 | $ 1,435,192,687 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | (.06) | (.11) | (.12) J | (.10) K |
Net realized and unrealized gain (loss) | 2.88 | 1.94 | (2.35) | (1.73) | 3.39 | .18 |
Total from investment operations | 2.86 | 1.87 | (2.41) | (1.84) | 3.27 | .08 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.02) | (.09) | (.16) |
Total distributions | (.01) | - | - | (1.02) | (.09) | (.16) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.51 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Total Return B, C, D | 22.59% | 17.33% | (18.26)% | (12.26)% | 25.52% | .70% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.23% A | 1.35% | 1.33% | 1.40% | 1.44% | 1.53% |
Expenses net of fee waivers, if any | 1.23% A | 1.35% | 1.33% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.22% A | 1.34% | 1.33% | 1.39% | 1.39% | 1.35% |
Net investment income (loss) | (.23)% A, H | (.56)% I | (.64)% | (.74)% | (.80)% J | (.79)% K |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 64,544 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 | $ 18,104 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.52)%. 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 (.67)%. 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 (.84)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011
(Unaudited) | Years ended July 31, |
| | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) H | (.10) I | (.09) | (.15) | (.16) J | (.14) K |
Net realized and unrealized gain (loss) | 2.84 | 1.93 | (2.34) | (1.73) | 3.38 | .19 |
Total from investment operations | 2.81 | 1.83 | (2.43) | (1.88) | 3.22 | .05 |
Distributions from net realized gain | - | - | - | (.96) | (.07) | (.13) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.38 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Total Return B, C, D | 22.35% | 17.04% | (18.45)% | (12.50)% | 25.18% | .48% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.49% A | 1.61% | 1.60% | 1.65% | 1.67% | 1.73% |
Expenses net of fee waivers, if any | 1.49% A | 1.61% | 1.60% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.48% A | 1.60% | 1.59% | 1.65% | 1.65% | 1.60% |
Net investment income (loss) | (.49)% A, H | (.82)% I | (.91)% | (.99)% | (1.05)% J | (1.04)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,680 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 | $ 19,205 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.78)%. 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 (.93)%. 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 (1.09)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.80 | 1.89 | (2.33) | (1.71) | 3.36 | .19 |
Total from investment operations | 2.73 | 1.73 | (2.46) | (1.93) | 3.13 | (.01) |
Distributions from net realized gain | - | - | - | (.89) | (.06) | (.09) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.03 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Total Return B, C, D | 22.20% | 16.37% | (18.88)% | (12.92)% | 24.57% | (.03)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.28% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 2.08% | 2.15% | 2.15% | 2.10% |
Net investment income (loss) | (.99)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,646 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 | $ 5,191 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.07) H | (.16) I | (.13) | (.22) | (.23) J | (.20) K |
Net realized and unrealized gain (loss) | 2.79 | 1.89 | (2.32) | (1.71) | 3.36 | .18 |
Total from investment operations | 2.72 | 1.73 | (2.45) | (1.93) | 3.13 | (.02) |
Distributions from net realized gain | - | - | - | (.91) | (.06) | (.10) |
Redemption fees added to paid in capital E | - M | - M | - M | - M | - M | .01 |
Net asset value, end of period | $ 15.00 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Total Return B, C, D | 22.15% | 16.40% | (18.85)% | (12.94)% | 24.59% | (.08)% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.99% A | 2.11% | 2.08% | 2.15% | 2.20% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 2.11% | 2.08% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 1.97% A | 2.09% | 2.07% | 2.14% | 2.14% | 2.10% |
Net investment income (loss) | (.98)% A, H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J | (1.54)% K |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,528 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 | $ 14,682 |
Portfolio turnover rate G | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (1.27)%. 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 (1.42)%. 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 (1.59)%. K 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)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) D | - G, L | (.04) H | (.04) | (.07) | (.08) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.96 | (2.36) | (1.74) | 3.40 | .19 |
Total from invest-
ment operations | 2.92 | 1.92 | (2.40) | (1.81) | 3.32 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.10) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.10) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.70 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Total Return B, C | 22.77% | 17.63% | (18.06)% | (11.98)% | 25.84% | 1.01% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of fee waivers, if any | .96% A | 1.08% | 1.08% | 1.11% | 1.10% | 1.13% |
Expenses net of all reductions | .95% A | 1.07% | 1.08% | 1.10% | 1.09% | 1.08% |
Net investment income (loss) | .04% A, G | (.29)% H | (.39)% | (.45)% | (.50)% I | (.52)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,407,638 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 | $ 402,353 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.25)%. 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 (.39)%. 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 (.54)%. 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 (.58)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations | | | |
Net investment income (loss) D | .02 G | - H, K | (.01) |
Net realized and unrealized gain (loss) | 2.93 | 1.95 | .88 |
Total from investment operations | 2.95 | 1.95 | .87 |
Distributions from net investment income | (.04) | - | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.76 | $ 12.85 | $ 10.90 |
Total Return B, C | 22.99% | 17.89% | 8.67% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .69% A | .78% | .74% A |
Expenses net of fee waivers, if any | .69% A | .78% | .74% A |
Expenses net of all reductions | .67% A | .77% | .73% A |
Net investment income (loss) | .32% A, G | -% H, L | (.54)% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 219,323 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 105% A | 105% | 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 .03%. 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 (.10)%. 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. L Amount represents less than .01%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 G | (.03) H | (.03) | (.06) | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 2.92 | 1.95 | (2.36) | (1.74) | 3.41 | .19 |
Total from investment operations | 2.93 | 1.92 | (2.39) | (1.80) | 3.34 | .12 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Distributions from net realized gain | - | - | - | (1.05) | (.11) | (.18) |
Total distributions | (.03) | - | - | (1.05) | (.11) | (.18) |
Redemption fees added to paid in capital D | - L | - L | - L | - L | - L | .01 |
Net asset value, end of period | $ 15.73 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Total Return B, C | 22.82% | 17.60% | (17.97)% | (11.93)% | 25.99% | .97% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | .93% A | 1.03% | 1.05% | 1.04% | 1.05% | 1.10% |
Expenses net of all reductions | .92% A | 1.02% | 1.04% | 1.03% | 1.05% | 1.05% |
Net investment income (loss) | .07% A, G | (.24)% H | (.36)% | (.38)% | (.46)% I | (.49)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,379 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 | $ 14,233 |
Portfolio turnover rate F | 105% A | 105% | 150% | 113% | 91% | 129% |
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 (.22)%. 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 (.34)%. 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 (.50)%. 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 (.55)%. 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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior 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, 2011 (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 C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, net operating losses, capital loss carryforwards, 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 | $ 366,716,541 |
Gross unrealized depreciation | (38,971,254) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 327,745,287 |
Tax cost | $ 1,581,696,591 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,801,748 and $797,738,950, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .63% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 69,917 | $ 1,098 |
Class T | .25% | .25% | 66,052 | - |
Class B | .75% | .25% | 26,790 | 20,092 |
Class C | .75% | .25% | 100,245 | 21,044 |
| | | $ 263,004 | $ 42,234 |
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 12,332 |
Class T | 3,171 |
Class B* | 6,147 |
Class C* | 1,087 |
| $ 22,737 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 83,160 | .30 |
Class T | 40,390 | .31 |
Class B | 8,029 | .30 |
Class C | 29,847 | .30 |
Small Cap Growth | 1,756,279 | .27 |
Institutional Class | 36,403 | .24 |
| $ 1,954,108 | |
* 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 $31,257 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $2,762 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $10,923 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $95,294 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 $73.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended January 31, 2011 | Year ended
July 31, 2010 |
From net investment income | | |
Class A | $ 40,130 | $ - |
Small Cap Growth | 2,420,021 | - |
Class F | 492,928 | - |
Institutional Class | 60,177 | - |
Total | $ 3,013,256 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 764,130 | 1,755,238 | $ 11,076,073 | $ 21,749,463 |
Reinvestment of distributions | 2,323 | - | 36,172 | - |
Shares redeemed | (603,687) | (1,481,231) | (8,353,556) | (17,861,442) |
Net increase (decrease) | 162,766 | 274,007 | $ 2,758,689 | $ 3,888,021 |
Class T | | | | |
Shares sold | 213,378 | 492,575 | $ 3,087,540 | $ 6,056,365 |
Shares redeemed | (188,690) | (592,408) | (2,617,750) | (7,232,100) |
Net increase (decrease) | 24,688 | (99,833) | $ 469,790 | $ (1,175,735) |
Class B | | | | |
Shares sold | 16,102 | 117,304 | $ 220,360 | $ 1,414,923 |
Shares redeemed | (58,289) | (93,928) | (782,302) | (1,126,513) |
Net increase (decrease) | (42,187) | 23,376 | $ (561,942) | $ 288,410 |
Class C | | | | |
Shares sold | 198,319 | 479,633 | $ 2,791,818 | $ 5,791,649 |
Shares redeemed | (169,540) | (358,550) | (2,317,915) | (4,319,904) |
Net increase (decrease) | 28,779 | 121,083 | $ 473,903 | $ 1,471,745 |
Small Cap Growth | | | | |
Shares sold | 10,469,007 | 22,893,960 | $ 154,440,881 | $ 285,679,819 |
Reinvestment of distributions | 153,921 | - | 2,384,002 | - |
Shares redeemed | (15,012,486) | (28,450,958) | (215,920,511) | (351,525,118) |
Net increase (decrease) | (4,389,558) | (5,556,998) | $ (59,095,628) | $ (65,845,299) |
Class F | | | | |
Shares sold | 6,401,675 | 8,663,528 | $ 92,775,683 | $ 109,176,128 |
Reinvestment of distributions | 31,816 | - | 492,928 | - |
Shares redeemed | (834,316) | (357,394) | (12,381,198) | (4,690,130) |
Net increase (decrease) | 5,599,175 | 8,306,134 | $ 80,887,413 | $ 104,485,998 |
Institutional Class | | | | |
Shares sold | 511,815 | 1,109,901 | $ 7,483,930 | $ 14,013,757 |
Reinvestment of distributions | 2,532 | - | 39,301 | - |
Shares redeemed | (263,779) | (871,545) | (3,804,147) | (10,548,734) |
Net increase (decrease) | 250,568 | 238,356 | $ 3,719,084 | $ 3,465,023 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 53% 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.
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-0311
1.803724.107
Fidelity®
Small Cap Value
Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.20 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,174.20 | $ 9.21 |
Hypothetical A | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.90 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Small Cap Value | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class F | .89% | | | |
Actual | | $ 1,000.00 | $ 1,179.90 | $ 4.89 |
Hypothetical A | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,177.70 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.61 | $ 5.65 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Berry Petroleum Co. Class A | 3.4 | 2.7 |
Superior Energy Services, Inc. | 3.3 | 3.0 |
WESCO International, Inc. | 3.3 | 3.1 |
DCT Industrial Trust, Inc. | 2.7 | 2.2 |
TCF Financial Corp. | 2.8 | 2.5 |
HNI Corp. | 2.7 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.7 | 3.1 |
Astoria Financial Corp. | 2.6 | 2.7 |
UGI Corp. | 2.6 | 2.5 |
Aspen Insurance Holdings Ltd. | 2.4 | 2.3 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 37.0 | 37.8 |
Industrials | 13.0 | 12.8 |
Consumer Discretionary | 10.7 | 11.5 |
Information Technology | 9.2 | 8.3 |
Health Care | 7.1 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.1% | | | Stocks 99.2% | |
| Short-Term
Investments and
Net Other Assets 0.9% | | | Short-Term
Investments and
Net Other Assets 0.8% | |
* Foreign investments | 9.9% | | ** Foreign investments | 10.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 10.2% |
Diversified Consumer Services - 2.5% |
Matthews International Corp. Class A | 740,187 | | $ 26,232,227 |
Regis Corp. | 2,345,882 | | 39,316,982 |
| | 65,549,209 |
Household Durables - 4.9% |
M.D.C. Holdings, Inc. | 1,224,300 | | 37,843,113 |
Meritage Homes Corp. (a) | 1,536,160 | | 35,270,234 |
Ryland Group, Inc. | 2,153,837 | | 38,338,299 |
Tempur-Pedic International, Inc. (a) | 400,000 | | 17,456,000 |
| | 128,907,646 |
Specialty Retail - 1.8% |
Asbury Automotive Group, Inc. (a) | 1,465,159 | | 26,973,577 |
Tsutsumi Jewelry Co. Ltd. | 791,400 | | 21,501,243 |
| | 48,474,820 |
Textiles, Apparel & Luxury Goods - 1.0% |
Iconix Brand Group, Inc. (a) | 1,330,087 | | 26,402,227 |
TOTAL CONSUMER DISCRETIONARY | | 269,333,902 |
CONSUMER STAPLES - 4.0% |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a) | 1,390,000 | | 61,076,600 |
Ingles Markets, Inc. Class A | 717,153 | | 13,891,254 |
| | 74,967,854 |
Food Products - 1.2% |
Chiquita Brands International, Inc. (a) | 2,000,000 | | 30,840,000 |
TOTAL CONSUMER STAPLES | | 105,807,854 |
ENERGY - 6.7% |
Energy Equipment & Services - 3.3% |
Superior Energy Services, Inc. (a) | 2,441,700 | | 85,752,504 |
Oil, Gas & Consumable Fuels - 3.4% |
Berry Petroleum Co. Class A | 1,950,000 | | 91,006,502 |
TOTAL ENERGY | | 176,759,006 |
FINANCIALS - 36.3% |
Capital Markets - 3.5% |
optionsXpress Holdings, Inc. | 2,080,000 | | 30,908,800 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Capital Markets - continued |
TradeStation Group, Inc. (a)(e) | 2,062,291 | | $ 14,374,168 |
Waddell & Reed Financial, Inc. Class A | 1,310,000 | | 47,317,200 |
| | 92,600,168 |
Commercial Banks - 11.2% |
Associated Banc-Corp. | 3,832,650 | | 53,580,447 |
CapitalSource, Inc. | 6,515,270 | | 50,297,884 |
City National Corp. | 784,900 | | 45,359,371 |
National Penn Bancshares, Inc. | 3,266,604 | | 26,655,489 |
PacWest Bancorp (e) | 1,857,600 | | 36,650,448 |
TCF Financial Corp. (d) | 4,855,800 | | 72,545,652 |
Western Liberty Bancorp (a)(e) | 2,400,000 | | 11,040,000 |
| | 296,129,291 |
Insurance - 6.8% |
Alterra Capital Holdings Ltd. | 2,057,411 | | 44,337,207 |
Aspen Insurance Holdings Ltd. | 2,120,200 | | 63,712,010 |
Platinum Underwriters Holdings Ltd. | 1,576,975 | | 69,702,295 |
| | 177,751,512 |
Real Estate Investment Trusts - 9.9% |
Alexandria Real Estate Equities, Inc. | 628,300 | | 48,404,232 |
American Assets Trust, Inc. (a) | 225,200 | | 4,794,508 |
DCT Industrial Trust, Inc. (e) | 13,150,000 | | 72,851,000 |
Franklin Street Properties Corp. | 2,760,000 | | 41,372,400 |
Highwoods Properties, Inc. (SBI) | 1,940,330 | | 63,584,614 |
National Retail Properties, Inc. (d) | 1,240,000 | | 30,814,000 |
| | 261,820,754 |
Thrifts & Mortgage Finance - 4.9% |
Astoria Financial Corp. | 4,818,152 | | 68,610,484 |
Washington Federal, Inc. | 3,486,175 | | 60,275,966 |
| | 128,886,450 |
TOTAL FINANCIALS | | 957,188,175 |
HEALTH CARE - 7.1% |
Health Care Providers & Services - 7.1% |
Centene Corp. (a) | 1,324,832 | | 36,724,343 |
Chemed Corp. | 510,200 | | 31,749,746 |
MEDNAX, Inc. (a) | 721,500 | | 47,727,225 |
Providence Service Corp. (a)(e) | 1,016,495 | | 14,464,724 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Team Health Holdings, Inc. (a) | 2,565,700 | | $ 39,665,722 |
VCA Antech, Inc. (a) | 718,000 | | 16,456,560 |
| | 186,788,320 |
INDUSTRIALS - 13.0% |
Commercial Services & Supplies - 6.7% |
ACCO Brands Corp. (a) | 2,420,000 | | 19,868,200 |
HNI Corp. (d)(e) | 2,349,671 | | 71,289,018 |
Knoll, Inc. | 1,412,898 | | 23,651,913 |
United Stationers, Inc. (a) | 990,400 | | 61,682,112 |
| | 176,491,243 |
Machinery - 1.5% |
Blount International, Inc. (a)(e) | 2,604,723 | | 39,096,892 |
Trading Companies & Distributors - 4.8% |
H&E Equipment Services, Inc. (a)(e) | 3,489,408 | | 40,546,921 |
WESCO International, Inc. (a) | 1,525,000 | | 85,476,250 |
| | 126,023,171 |
TOTAL INDUSTRIALS | | 341,611,306 |
INFORMATION TECHNOLOGY - 9.2% |
Communications Equipment - 1.3% |
ViaSat, Inc. (a) | 809,472 | | 35,127,037 |
Electronic Equipment & Components - 4.2% |
Ingram Micro, Inc. Class A (a) | 2,453,100 | | 48,424,194 |
Macnica, Inc. | 677,400 | | 17,372,405 |
Ryoyo Electro Corp. (e) | 1,972,700 | | 22,471,668 |
SYNNEX Corp. (a) | 631,598 | | 21,089,057 |
| | 109,357,324 |
Internet Software & Services - 1.7% |
DealerTrack Holdings, Inc. (a) | 1,383,804 | | 27,350,886 |
j2 Global Communications, Inc. (a) | 630,149 | | 17,392,112 |
| | 44,742,998 |
IT Services - 0.2% |
FleetCor Technologies, Inc. | 168,100 | | 5,043,000 |
Semiconductors & Semiconductor Equipment - 0.7% |
Miraial Co. Ltd. (e) | 720,200 | | 18,645,529 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - 1.1% |
Monotype Imaging Holdings, Inc. (a)(e) | 2,583,700 | | $ 29,027,870 |
TOTAL INFORMATION TECHNOLOGY | | 241,943,758 |
MATERIALS - 4.4% |
Chemicals - 0.4% |
Spartech Corp. (a) | 1,387,857 | | 11,588,606 |
Metals & Mining - 4.0% |
Carpenter Technology Corp. | 1,284,380 | | 52,852,237 |
Haynes International, Inc. | 126,514 | | 6,163,762 |
RTI International Metals, Inc. (a)(e) | 1,617,597 | | 46,732,377 |
| | 105,748,376 |
TOTAL MATERIALS | | 117,336,982 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.9% |
Cogent Communications Group, Inc. (a) | 1,665,000 | | 22,710,600 |
UTILITIES - 6.1% |
Electric Utilities - 1.9% |
Westar Energy, Inc. (d) | 2,010,000 | | 51,255,000 |
Gas Utilities - 4.2% |
Southwest Gas Corp. | 1,130,989 | | 42,118,030 |
UGI Corp. | 2,150,000 | | 67,402,500 |
| | 109,520,530 |
TOTAL UTILITIES | | 160,775,530 |
TOTAL COMMON STOCKS (Cost $2,053,363,726) | 2,580,255,433 |
Nonconvertible Preferred Stocks - 1.2% |
| | | |
CONSUMER DISCRETIONARY - 0.5% |
Household Durables - 0.5% |
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | | 13,424,656 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - 0.7% |
Real Estate Investment Trusts - 0.7% |
Developers Diversified Realty Corp. (depositary shares) Series H, 7.375% | 818,790 | | $ 19,045,055 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) | 32,469,711 |
Money Market Funds - 5.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 23,273,294 | | 23,273,294 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 120,164,525 | | 120,164,525 |
TOTAL MONEY MARKET FUNDS (Cost $143,437,819) | 143,437,819 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $2,217,156,315) | | 2,756,162,963 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (120,829,881) |
NET ASSETS - 100% | $ 2,635,333,082 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,858 |
Fidelity Securities Lending Cash Central Fund | 50,627 |
Total | $ 61,485 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 22,027,864 | $ 1,922,616 | $ 12,330,836 | $ - | $ - |
Blount International, Inc. | 27,740,300 | - | - | - | 39,096,892 |
DCT Industrial Trust, Inc. | 46,900,000 | 16,084,308 | - | 743,063 | 72,851,000 |
H&E Equipment Services, Inc. | 30,357,850 | - | - | - | 40,546,921 |
HNI Corp. | 55,547,499 | 5,138,794 | - | 967,359 | 71,289,018 |
Miraial Co. Ltd. | 15,372,473 | 3,618,630 | - | 244,180 | 18,645,529 |
Monotype Imaging Holdings, Inc. | 11,299,816 | 12,600,234 | - | - | 29,027,870 |
PacWest Bancorp | 37,552,606 | 1,164,578 | - | 36,068 | 36,650,448 |
Providence Service Corp. | 14,637,528 | - | - | - | 14,464,724 |
RTI International Metals, Inc. | 48,035,903 | - | 2,258,203 | - | 46,732,377 |
Ryoyo Electro Corp. | 18,932,046 | 2,120,893 | - | 334,417 | 22,471,668 |
TradeStation Group, Inc. | 13,178,039 | - | - | - | 14,374,168 |
Western Liberty Bancorp | 14,976,000 | - | - | - | 11,040,000 |
Total | $ 356,557,924 | $ 42,650,053 | $ 14,589,039 | $ 2,325,087 | $ 417,190,615 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,310,461) - See accompanying schedule: Unaffiliated issuers (cost $1,725,528,905) | $ 2,195,534,529 | |
Fidelity Central Funds (cost $143,437,819) | 143,437,819 | |
Other affiliated issuers (cost $348,189,591) | 417,190,615 | |
Total Investments (cost $2,217,156,315) | | $ 2,756,162,963 |
Receivable for fund shares sold | | 4,922,951 |
Dividends receivable | | 2,512,491 |
Distributions receivable from Fidelity Central Funds | | 14,272 |
Prepaid expenses | | 5,499 |
Other receivables | | 15,631 |
Total assets | | 2,763,633,807 |
| | |
Liabilities | | |
Payable for fund shares redeemed | 5,637,901 | |
Accrued management fee | 1,818,953 | |
Distribution and service plan fees payable | 101,925 | |
Other affiliated payables | 544,316 | |
Other payables and accrued expenses | 33,105 | |
Collateral on securities loaned, at value | 120,164,525 | |
Total liabilities | | 128,300,725 |
| | |
Net Assets | | $ 2,635,333,082 |
Net Assets consist of: | | |
Paid in capital | | $ 2,086,043,345 |
Distributions in excess of net investment income | | (3,413,684) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 13,695,293 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 539,008,128 |
Net Assets | | $ 2,635,333,082 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($132,675,987 ÷ 8,505,837 shares) | | $ 15.60 |
| | |
Maximum offering price per share (100/94.25 of $15.60) | | $ 16.55 |
Class T:
Net Asset Value and redemption price per share ($60,043,294 ÷ 3,878,195 shares) | | $ 15.48 |
| | |
Maximum offering price per share (100/96.50 of $15.48) | | $ 16.04 |
Class B:
Net Asset Value and offering price per share ($10,255,503 ÷ 675,565 shares)A | | $ 15.18 |
| | |
Class C:
Net Asset Value and offering price per share ($48,460,429 ÷ 3,191,987 shares)A | | $ 15.18 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,052,876,005 ÷ 130,573,584 shares) | | $ 15.72 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($221,651,973 ÷ 14,095,241 shares) | | $ 15.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($109,369,891 ÷ 6,952,398 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $2,325,087 earned from other affiliated issuers) | | $ 11,760,398 |
Special dividends | | 9,360,000 |
Interest | | 81 |
Income from Fidelity Central Funds | | 61,485 |
Total income | | 21,181,964 |
| | |
Expenses | | |
Management fee
Basic fee | $ 8,237,977 | |
Performance adjustment | 1,547,636 | |
Transfer agent fees | 2,817,959 | |
Distribution and service plan fees | 525,551 | |
Accounting and security lending fees | 352,699 | |
Custodian fees and expenses | 19,504 | |
Independent trustees' compensation | 6,346 | |
Registration fees | 109,048 | |
Audit | 31,593 | |
Legal | 6,616 | |
Interest | 579 | |
Miscellaneous | 17,732 | |
Total expenses before reductions | 13,673,240 | |
Expense reductions | (18,889) | 13,654,351 |
Net investment income (loss) | | 7,527,613 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 35,014,608 | |
Other affiliated issuers | (9,307,013) | |
Foreign currency transactions | 27,557 | |
Total net realized gain (loss) | | 25,735,152 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 349,698,906 | |
Assets and liabilities in foreign currencies | (6,647) | |
Total change in net unrealized appreciation (depreciation) | | 349,692,259 |
Net gain (loss) | | 375,427,411 |
Net increase (decrease) in net assets resulting from operations | | $ 382,955,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,527,613 | $ 6,962,574 |
Net realized gain (loss) | 25,735,152 | 188,495,963 |
Change in net unrealized appreciation (depreciation) | 349,692,259 | 137,333,657 |
Net increase (decrease) in net assets resulting
from operations | 382,955,024 | 332,792,194 |
Distributions to shareholders from net investment income | (16,151,063) | (6,560,137) |
Distributions to shareholders from net realized gain | (20,051,059) | - |
Total distributions | (36,202,122) | (6,560,137) |
Share transactions - net increase (decrease) | 141,269,454 | 209,101,603 |
Redemption fees | 151,260 | 534,282 |
Total increase (decrease) in net assets | 488,173,616 | 535,867,942 |
| | |
Net Assets | | |
Beginning of period | 2,147,159,466 | 1,611,291,524 |
End of period (including distributions in excess of net investment income of $3,413,684 and undistributed net investment income of $5,209,766, respectively) | $ 2,635,333,082 | $ 2,147,159,466 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 H | .02 I | .08 | (.01) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 2.32 | 2.33 | (.60) | (1.98) | 1.90 | .74 |
Total from investment operations | 2.35 | 2.35 | (.52) | (1.99) | 1.84 | .71 |
Distributions from net investment income | (.08) | (.03) | (.06) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.67) | (.35) |
Total distributions | (.20) | (.03) | (.17) | (.53) | (.67) | (.35) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.60 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Total Return B,C,D | 17.62% | 21.16% | (4.37)% | (14.35)% | 14.59% | 5.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.44% A | 1.47% | 1.45% | 1.43% | 1.45% | 1.51% |
Expenses net of fee waivers, if any | 1.42% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.42% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.36% |
Net investment income (loss) | .40% A,H | .17% I | .81% | (.05)% | (.44)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 132,676 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.40)%. I 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 (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 H | (.01) I | .05 | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 2.30 | 2.31 | (.59) | (1.97) | 1.90 | .74 |
Total from investment operations | 2.31 | 2.30 | (.54) | (2.01) | 1.80 | .67 |
Distributions from net investment income | (.05) | (.01) | (.04) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.65) | (.33) |
Total distributions | (.17) | (.01) | (.15) | (.53) | (.65) | (.33) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.48 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Total Return B,C,D | 17.42% | 20.87% | (4.57)% | (14.58)% | 14.34% | 5.47% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.72% | 1.70% | 1.68% | 1.66% | 1.67% |
Expenses net of fee waivers, if any | 1.68% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.68% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.61% |
Net investment income (loss) | .15% A,H | (.08)% I | .56% | (.30)% | (.69)% | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,043 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. I 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 (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.25 | 2.27 | (.59) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.23 | 2.20 | (.58) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.01) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.28) |
Total distributions | (.13) | - | (.14) | (.53) | (.61) | (.28) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.19% | 20.22% | (5.05)% | (15.04)% | 13.78% | 4.97% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.26% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,256 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.26 | 2.26 | (.58) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.24 | 2.19 | (.57) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.29) |
Total distributions | (.14) | - | (.14) | (.53) | (.61) | (.29) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.22% | 20.11% | (4.98)% | (15.04)% | 13.77% | 4.92% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.19% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,460 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .05 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.60) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.39 | (.50) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.10) | (.05) | (.08) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.23) | (.05) | (.19) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.72 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.78% | 21.32% | (4.15)% | (14.10)% | 14.96% | 6.07% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of fee waivers, if any | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.20% | 1.13% | 1.11% | 1.06% |
Net investment income (loss) | .68% A,G | .39% H | 1.01% | .22% | (.15)% | .06% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,052,876 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.13)%. H 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 .12%. 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 F
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations | | | |
Net investment income (loss) D | .07 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | .94 |
Total from investment operations | 2.41 | 2.43 | .95 |
Distributions from net investment income | (.14) | (.07) | - |
Distributions from net realized gain | (.13) | - | - |
Total distributions | (.26) L | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.22 |
Total Return B,C | 17.99% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .89% A | .90% | .86% A |
Expenses net of fee waivers, if any | .89% A | .90% | .86% A |
Expenses net of all reductions | .89% A | .89% | .86% A |
Net investment income (loss) | .93% A,G | .67% H | .64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 221,652 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 11% A | 49% | 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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .13%. H 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 ..40%. 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. L Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .06 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.59) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.40 | (.49) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.11) | (.06) | (.07) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.24) | (.06) | (.18) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.77% | 21.42% | (4.04)% | (14.10)% | 14.99% | 6.08% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.11% A | 1.12% | 1.20% | 1.13% | 1.10% | 1.08% |
Expenses net of fee waivers, if any | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.08% |
Expenses net of all reductions | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.05% |
Net investment income (loss) | .72% A,G | .45% H | 1.06% | .22% | (.13)% | .08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 109,370 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%. H 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 ..18%. 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
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 621,319,236 |
Gross unrealized depreciation | (85,519,178) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 535,800,058 |
Tax cost | $ 2,220,362,905 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $235,160,726 and $122,739,964, 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 Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 138,937 | $ 5,288 |
Class T | .25% | .25% | 125,934 | - |
Class B | .75% | .25% | 48,959 | 36,720 |
Class C | .75% | .25% | 211,721 | 64,722 |
| | | $ 525,551 | $ 106,730 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 30,105 |
Class T | 5,175 |
Class B* | 12,248 |
Class C* | 2,408 |
| $ 49,936 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 166,197 | .30 |
Class T | 76,408 | .30 |
Class B | 15,028 | .31 |
Class C | 63,019 | .30 |
Small Cap Value | 2,399,671 | .26 |
Institutional Class | 97,636 | .22 |
| $ 2,817,959 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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 $6,488 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,392,000 | .47% | $ 579 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $4,045 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
7. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $50,627. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations* | Reimbursement
from adviser |
Class A | 1.40% | $ 9,560 |
Class T | 1.65% | 4,801 |
Class B | 2.15% | 1,186 |
Class C | 2.15% | 3,342 |
| | $ 18,889 |
* Effective October 1, 2010 the expense limitations were eliminated.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Class A | $ 602,963 | $ 159,193 |
Class T | 175,083 | 36,920 |
Class B | 8,350 | - |
Class C | 50,685 | - |
Small Cap Value | 13,136,444 | 6,230,380 |
Class F | 1,502,640 | 28,266 |
Institutional Class | 674,898 | 105,378 |
Total | $ 16,151,063 | $ 6,560,137 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net realized gain | | |
Class A | $ 938,086 | $ - |
Class T | 417,804 | - |
Class B | 85,354 | - |
Class C | 362,483 | - |
Small Cap Value | 16,213,209 | - |
Class F | 1,278,822 | - |
Institutional Class | 755,301 | - |
Total | $ 20,051,059 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 2,277,372 | 4,231,111 | $ 32,971,346 | $ 54,936,600 |
Reinvestment of distributions | 98,821 | 12,276 | 1,412,739 | 146,358 |
Shares redeemed | (1,083,398) | (1,973,236) | (15,341,797) | (25,421,999) |
Net increase (decrease) | 1,292,795 | 2,270,151 | $ 19,042,288 | $ 29,660,959 |
Class T | | | | |
Shares sold | 1,015,881 | 1,449,265 | $ 14,653,186 | $ 18,793,141 |
Reinvestment of distributions | 40,370 | 3,030 | 573,649 | 35,906 |
Shares redeemed | (484,459) | (727,616) | (6,810,905) | (9,211,959) |
Net increase (decrease) | 571,792 | 724,679 | $ 8,415,930 | $ 9,617,088 |
Class B | | | | |
Shares sold | 63,944 | 262,419 | $ 911,455 | $ 3,340,905 |
Reinvestment of distributions | 5,817 | - | 79,168 | - |
Shares redeemed | (139,360) | (174,554) | (1,923,341) | (2,189,700) |
Net increase (decrease) | (69,599) | 87,865 | $ (932,718) | $ 1,151,205 |
Class C | | | | |
Shares sold | 618,922 | 1,327,692 | $ 8,682,040 | $ 17,060,657 |
Reinvestment of distributions | 25,779 | - | 354,104 | - |
Shares redeemed | (306,900) | (434,251) | (4,348,962) | (5,448,332) |
Net increase (decrease) | 337,801 | 893,441 | $ 4,687,182 | $ 11,612,325 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Small Cap Value | | | | |
Shares sold | 21,649,397 | 45,122,251 | $ 315,487,458 | $ 585,925,779 |
Reinvestment of distributions | 1,987,755 | 507,903 | 28,460,666 | 6,101,827 |
Shares redeemed | (23,638,320) | (47,781,912) | (338,912,730) | (605,149,428) |
Net increase (decrease) | (1,168) | (2,151,758) | $ 5,035,394 | $ (13,121,822) |
Class F | | | | |
Shares sold | 6,523,897 | 8,411,513 | $ 95,189,060 | $ 109,778,609 |
Reinvestment of distributions | 192,943 | 2,350 | 2,781,462 | 28,266 |
Shares redeemed | (711,650) | (337,999) | (10,468,543) | (4,618,215) |
Net increase (decrease) | 6,005,190 | 8,075,864 | $ 87,501,979 | $ 105,188,660 |
Institutional Class | | | | |
Shares sold | 2,846,408 | 5,522,070 | $ 42,040,609 | $ 73,692,691 |
Reinvestment of distributions | 90,435 | 7,512 | 1,288,856 | 90,344 |
Shares redeemed | (1,762,365) | (671,565) | (25,810,066) | (8,789,847) |
Net increase (decrease) | 1,174,478 | 4,858,017 | $ 17,519,399 | $ 64,993,188 |
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 and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 36% 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 distributions, and the effects of any sales charges.
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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SCV-USAN-0311
1.803708.106
Fidelity®
Small Cap Value
Fund
Class F
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.20 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,174.20 | $ 9.21 |
Hypothetical A | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.90 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Small Cap Value | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class F | .89% | | | |
Actual | | $ 1,000.00 | $ 1,179.90 | $ 4.89 |
Hypothetical A | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,177.70 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.61 | $ 5.65 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Berry Petroleum Co. Class A | 3.4 | 2.7 |
Superior Energy Services, Inc. | 3.3 | 3.0 |
WESCO International, Inc. | 3.3 | 3.1 |
DCT Industrial Trust, Inc. | 2.7 | 2.2 |
TCF Financial Corp. | 2.8 | 2.5 |
HNI Corp. | 2.7 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.7 | 3.1 |
Astoria Financial Corp. | 2.6 | 2.7 |
UGI Corp. | 2.6 | 2.5 |
Aspen Insurance Holdings Ltd. | 2.4 | 2.3 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 37.0 | 37.8 |
Industrials | 13.0 | 12.8 |
Consumer Discretionary | 10.7 | 11.5 |
Information Technology | 9.2 | 8.3 |
Health Care | 7.1 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.1% | | | Stocks 99.2% | |
| Short-Term
Investments and
Net Other Assets 0.9% | | | Short-Term
Investments and
Net Other Assets 0.8% | |
* Foreign investments | 9.9% | | ** Foreign investments | 10.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 10.2% |
Diversified Consumer Services - 2.5% |
Matthews International Corp. Class A | 740,187 | | $ 26,232,227 |
Regis Corp. | 2,345,882 | | 39,316,982 |
| | 65,549,209 |
Household Durables - 4.9% |
M.D.C. Holdings, Inc. | 1,224,300 | | 37,843,113 |
Meritage Homes Corp. (a) | 1,536,160 | | 35,270,234 |
Ryland Group, Inc. | 2,153,837 | | 38,338,299 |
Tempur-Pedic International, Inc. (a) | 400,000 | | 17,456,000 |
| | 128,907,646 |
Specialty Retail - 1.8% |
Asbury Automotive Group, Inc. (a) | 1,465,159 | | 26,973,577 |
Tsutsumi Jewelry Co. Ltd. | 791,400 | | 21,501,243 |
| | 48,474,820 |
Textiles, Apparel & Luxury Goods - 1.0% |
Iconix Brand Group, Inc. (a) | 1,330,087 | | 26,402,227 |
TOTAL CONSUMER DISCRETIONARY | | 269,333,902 |
CONSUMER STAPLES - 4.0% |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a) | 1,390,000 | | 61,076,600 |
Ingles Markets, Inc. Class A | 717,153 | | 13,891,254 |
| | 74,967,854 |
Food Products - 1.2% |
Chiquita Brands International, Inc. (a) | 2,000,000 | | 30,840,000 |
TOTAL CONSUMER STAPLES | | 105,807,854 |
ENERGY - 6.7% |
Energy Equipment & Services - 3.3% |
Superior Energy Services, Inc. (a) | 2,441,700 | | 85,752,504 |
Oil, Gas & Consumable Fuels - 3.4% |
Berry Petroleum Co. Class A | 1,950,000 | | 91,006,502 |
TOTAL ENERGY | | 176,759,006 |
FINANCIALS - 36.3% |
Capital Markets - 3.5% |
optionsXpress Holdings, Inc. | 2,080,000 | | 30,908,800 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Capital Markets - continued |
TradeStation Group, Inc. (a)(e) | 2,062,291 | | $ 14,374,168 |
Waddell & Reed Financial, Inc. Class A | 1,310,000 | | 47,317,200 |
| | 92,600,168 |
Commercial Banks - 11.2% |
Associated Banc-Corp. | 3,832,650 | | 53,580,447 |
CapitalSource, Inc. | 6,515,270 | | 50,297,884 |
City National Corp. | 784,900 | | 45,359,371 |
National Penn Bancshares, Inc. | 3,266,604 | | 26,655,489 |
PacWest Bancorp (e) | 1,857,600 | | 36,650,448 |
TCF Financial Corp. (d) | 4,855,800 | | 72,545,652 |
Western Liberty Bancorp (a)(e) | 2,400,000 | | 11,040,000 |
| | 296,129,291 |
Insurance - 6.8% |
Alterra Capital Holdings Ltd. | 2,057,411 | | 44,337,207 |
Aspen Insurance Holdings Ltd. | 2,120,200 | | 63,712,010 |
Platinum Underwriters Holdings Ltd. | 1,576,975 | | 69,702,295 |
| | 177,751,512 |
Real Estate Investment Trusts - 9.9% |
Alexandria Real Estate Equities, Inc. | 628,300 | | 48,404,232 |
American Assets Trust, Inc. (a) | 225,200 | | 4,794,508 |
DCT Industrial Trust, Inc. (e) | 13,150,000 | | 72,851,000 |
Franklin Street Properties Corp. | 2,760,000 | | 41,372,400 |
Highwoods Properties, Inc. (SBI) | 1,940,330 | | 63,584,614 |
National Retail Properties, Inc. (d) | 1,240,000 | | 30,814,000 |
| | 261,820,754 |
Thrifts & Mortgage Finance - 4.9% |
Astoria Financial Corp. | 4,818,152 | | 68,610,484 |
Washington Federal, Inc. | 3,486,175 | | 60,275,966 |
| | 128,886,450 |
TOTAL FINANCIALS | | 957,188,175 |
HEALTH CARE - 7.1% |
Health Care Providers & Services - 7.1% |
Centene Corp. (a) | 1,324,832 | | 36,724,343 |
Chemed Corp. | 510,200 | | 31,749,746 |
MEDNAX, Inc. (a) | 721,500 | | 47,727,225 |
Providence Service Corp. (a)(e) | 1,016,495 | | 14,464,724 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Team Health Holdings, Inc. (a) | 2,565,700 | | $ 39,665,722 |
VCA Antech, Inc. (a) | 718,000 | | 16,456,560 |
| | 186,788,320 |
INDUSTRIALS - 13.0% |
Commercial Services & Supplies - 6.7% |
ACCO Brands Corp. (a) | 2,420,000 | | 19,868,200 |
HNI Corp. (d)(e) | 2,349,671 | | 71,289,018 |
Knoll, Inc. | 1,412,898 | | 23,651,913 |
United Stationers, Inc. (a) | 990,400 | | 61,682,112 |
| | 176,491,243 |
Machinery - 1.5% |
Blount International, Inc. (a)(e) | 2,604,723 | | 39,096,892 |
Trading Companies & Distributors - 4.8% |
H&E Equipment Services, Inc. (a)(e) | 3,489,408 | | 40,546,921 |
WESCO International, Inc. (a) | 1,525,000 | | 85,476,250 |
| | 126,023,171 |
TOTAL INDUSTRIALS | | 341,611,306 |
INFORMATION TECHNOLOGY - 9.2% |
Communications Equipment - 1.3% |
ViaSat, Inc. (a) | 809,472 | | 35,127,037 |
Electronic Equipment & Components - 4.2% |
Ingram Micro, Inc. Class A (a) | 2,453,100 | | 48,424,194 |
Macnica, Inc. | 677,400 | | 17,372,405 |
Ryoyo Electro Corp. (e) | 1,972,700 | | 22,471,668 |
SYNNEX Corp. (a) | 631,598 | | 21,089,057 |
| | 109,357,324 |
Internet Software & Services - 1.7% |
DealerTrack Holdings, Inc. (a) | 1,383,804 | | 27,350,886 |
j2 Global Communications, Inc. (a) | 630,149 | | 17,392,112 |
| | 44,742,998 |
IT Services - 0.2% |
FleetCor Technologies, Inc. | 168,100 | | 5,043,000 |
Semiconductors & Semiconductor Equipment - 0.7% |
Miraial Co. Ltd. (e) | 720,200 | | 18,645,529 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - 1.1% |
Monotype Imaging Holdings, Inc. (a)(e) | 2,583,700 | | $ 29,027,870 |
TOTAL INFORMATION TECHNOLOGY | | 241,943,758 |
MATERIALS - 4.4% |
Chemicals - 0.4% |
Spartech Corp. (a) | 1,387,857 | | 11,588,606 |
Metals & Mining - 4.0% |
Carpenter Technology Corp. | 1,284,380 | | 52,852,237 |
Haynes International, Inc. | 126,514 | | 6,163,762 |
RTI International Metals, Inc. (a)(e) | 1,617,597 | | 46,732,377 |
| | 105,748,376 |
TOTAL MATERIALS | | 117,336,982 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.9% |
Cogent Communications Group, Inc. (a) | 1,665,000 | | 22,710,600 |
UTILITIES - 6.1% |
Electric Utilities - 1.9% |
Westar Energy, Inc. (d) | 2,010,000 | | 51,255,000 |
Gas Utilities - 4.2% |
Southwest Gas Corp. | 1,130,989 | | 42,118,030 |
UGI Corp. | 2,150,000 | | 67,402,500 |
| | 109,520,530 |
TOTAL UTILITIES | | 160,775,530 |
TOTAL COMMON STOCKS (Cost $2,053,363,726) | 2,580,255,433 |
Nonconvertible Preferred Stocks - 1.2% |
| | | |
CONSUMER DISCRETIONARY - 0.5% |
Household Durables - 0.5% |
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | | 13,424,656 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - 0.7% |
Real Estate Investment Trusts - 0.7% |
Developers Diversified Realty Corp. (depositary shares) Series H, 7.375% | 818,790 | | $ 19,045,055 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) | 32,469,711 |
Money Market Funds - 5.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 23,273,294 | | 23,273,294 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 120,164,525 | | 120,164,525 |
TOTAL MONEY MARKET FUNDS (Cost $143,437,819) | 143,437,819 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $2,217,156,315) | | 2,756,162,963 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (120,829,881) |
NET ASSETS - 100% | $ 2,635,333,082 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,858 |
Fidelity Securities Lending Cash Central Fund | 50,627 |
Total | $ 61,485 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 22,027,864 | $ 1,922,616 | $ 12,330,836 | $ - | $ - |
Blount International, Inc. | 27,740,300 | - | - | - | 39,096,892 |
DCT Industrial Trust, Inc. | 46,900,000 | 16,084,308 | - | 743,063 | 72,851,000 |
H&E Equipment Services, Inc. | 30,357,850 | - | - | - | 40,546,921 |
HNI Corp. | 55,547,499 | 5,138,794 | - | 967,359 | 71,289,018 |
Miraial Co. Ltd. | 15,372,473 | 3,618,630 | - | 244,180 | 18,645,529 |
Monotype Imaging Holdings, Inc. | 11,299,816 | 12,600,234 | - | - | 29,027,870 |
PacWest Bancorp | 37,552,606 | 1,164,578 | - | 36,068 | 36,650,448 |
Providence Service Corp. | 14,637,528 | - | - | - | 14,464,724 |
RTI International Metals, Inc. | 48,035,903 | - | 2,258,203 | - | 46,732,377 |
Ryoyo Electro Corp. | 18,932,046 | 2,120,893 | - | 334,417 | 22,471,668 |
TradeStation Group, Inc. | 13,178,039 | - | - | - | 14,374,168 |
Western Liberty Bancorp | 14,976,000 | - | - | - | 11,040,000 |
Total | $ 356,557,924 | $ 42,650,053 | $ 14,589,039 | $ 2,325,087 | $ 417,190,615 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,310,461) - See accompanying schedule: Unaffiliated issuers (cost $1,725,528,905) | $ 2,195,534,529 | |
Fidelity Central Funds (cost $143,437,819) | 143,437,819 | |
Other affiliated issuers (cost $348,189,591) | 417,190,615 | |
Total Investments (cost $2,217,156,315) | | $ 2,756,162,963 |
Receivable for fund shares sold | | 4,922,951 |
Dividends receivable | | 2,512,491 |
Distributions receivable from Fidelity Central Funds | | 14,272 |
Prepaid expenses | | 5,499 |
Other receivables | | 15,631 |
Total assets | | 2,763,633,807 |
| | |
Liabilities | | |
Payable for fund shares redeemed | 5,637,901 | |
Accrued management fee | 1,818,953 | |
Distribution and service plan fees payable | 101,925 | |
Other affiliated payables | 544,316 | |
Other payables and accrued expenses | 33,105 | |
Collateral on securities loaned, at value | 120,164,525 | |
Total liabilities | | 128,300,725 |
| | |
Net Assets | | $ 2,635,333,082 |
Net Assets consist of: | | |
Paid in capital | | $ 2,086,043,345 |
Distributions in excess of net investment income | | (3,413,684) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 13,695,293 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 539,008,128 |
Net Assets | | $ 2,635,333,082 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($132,675,987 ÷ 8,505,837 shares) | | $ 15.60 |
| | |
Maximum offering price per share (100/94.25 of $15.60) | | $ 16.55 |
Class T:
Net Asset Value and redemption price per share ($60,043,294 ÷ 3,878,195 shares) | | $ 15.48 |
| | |
Maximum offering price per share (100/96.50 of $15.48) | | $ 16.04 |
Class B:
Net Asset Value and offering price per share ($10,255,503 ÷ 675,565 shares)A | | $ 15.18 |
| | |
Class C:
Net Asset Value and offering price per share ($48,460,429 ÷ 3,191,987 shares)A | | $ 15.18 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,052,876,005 ÷ 130,573,584 shares) | | $ 15.72 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($221,651,973 ÷ 14,095,241 shares) | | $ 15.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($109,369,891 ÷ 6,952,398 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $2,325,087 earned from other affiliated issuers) | | $ 11,760,398 |
Special dividends | | 9,360,000 |
Interest | | 81 |
Income from Fidelity Central Funds | | 61,485 |
Total income | | 21,181,964 |
| | |
Expenses | | |
Management fee
Basic fee | $ 8,237,977 | |
Performance adjustment | 1,547,636 | |
Transfer agent fees | 2,817,959 | |
Distribution and service plan fees | 525,551 | |
Accounting and security lending fees | 352,699 | |
Custodian fees and expenses | 19,504 | |
Independent trustees' compensation | 6,346 | |
Registration fees | 109,048 | |
Audit | 31,593 | |
Legal | 6,616 | |
Interest | 579 | |
Miscellaneous | 17,732 | |
Total expenses before reductions | 13,673,240 | |
Expense reductions | (18,889) | 13,654,351 |
Net investment income (loss) | | 7,527,613 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 35,014,608 | |
Other affiliated issuers | (9,307,013) | |
Foreign currency transactions | 27,557 | |
Total net realized gain (loss) | | 25,735,152 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 349,698,906 | |
Assets and liabilities in foreign currencies | (6,647) | |
Total change in net unrealized appreciation (depreciation) | | 349,692,259 |
Net gain (loss) | | 375,427,411 |
Net increase (decrease) in net assets resulting from operations | | $ 382,955,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,527,613 | $ 6,962,574 |
Net realized gain (loss) | 25,735,152 | 188,495,963 |
Change in net unrealized appreciation (depreciation) | 349,692,259 | 137,333,657 |
Net increase (decrease) in net assets resulting
from operations | 382,955,024 | 332,792,194 |
Distributions to shareholders from net investment income | (16,151,063) | (6,560,137) |
Distributions to shareholders from net realized gain | (20,051,059) | - |
Total distributions | (36,202,122) | (6,560,137) |
Share transactions - net increase (decrease) | 141,269,454 | 209,101,603 |
Redemption fees | 151,260 | 534,282 |
Total increase (decrease) in net assets | 488,173,616 | 535,867,942 |
| | |
Net Assets | | |
Beginning of period | 2,147,159,466 | 1,611,291,524 |
End of period (including distributions in excess of net investment income of $3,413,684 and undistributed net investment income of $5,209,766, respectively) | $ 2,635,333,082 | $ 2,147,159,466 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 H | .02 I | .08 | (.01) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 2.32 | 2.33 | (.60) | (1.98) | 1.90 | .74 |
Total from investment operations | 2.35 | 2.35 | (.52) | (1.99) | 1.84 | .71 |
Distributions from net investment income | (.08) | (.03) | (.06) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.67) | (.35) |
Total distributions | (.20) | (.03) | (.17) | (.53) | (.67) | (.35) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.60 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Total Return B,C,D | 17.62% | 21.16% | (4.37)% | (14.35)% | 14.59% | 5.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.44% A | 1.47% | 1.45% | 1.43% | 1.45% | 1.51% |
Expenses net of fee waivers, if any | 1.42% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.42% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.36% |
Net investment income (loss) | .40% A,H | .17% I | .81% | (.05)% | (.44)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 132,676 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.40)%. I 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 (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 H | (.01) I | .05 | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 2.30 | 2.31 | (.59) | (1.97) | 1.90 | .74 |
Total from investment operations | 2.31 | 2.30 | (.54) | (2.01) | 1.80 | .67 |
Distributions from net investment income | (.05) | (.01) | (.04) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.65) | (.33) |
Total distributions | (.17) | (.01) | (.15) | (.53) | (.65) | (.33) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.48 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Total Return B,C,D | 17.42% | 20.87% | (4.57)% | (14.58)% | 14.34% | 5.47% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.72% | 1.70% | 1.68% | 1.66% | 1.67% |
Expenses net of fee waivers, if any | 1.68% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.68% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.61% |
Net investment income (loss) | .15% A,H | (.08)% I | .56% | (.30)% | (.69)% | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,043 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. I 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 (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.25 | 2.27 | (.59) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.23 | 2.20 | (.58) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.01) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.28) |
Total distributions | (.13) | - | (.14) | (.53) | (.61) | (.28) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.19% | 20.22% | (5.05)% | (15.04)% | 13.78% | 4.97% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.26% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,256 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.26 | 2.26 | (.58) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.24 | 2.19 | (.57) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.29) |
Total distributions | (.14) | - | (.14) | (.53) | (.61) | (.29) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.22% | 20.11% | (4.98)% | (15.04)% | 13.77% | 4.92% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.19% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,460 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .05 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.60) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.39 | (.50) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.10) | (.05) | (.08) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.23) | (.05) | (.19) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.72 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.78% | 21.32% | (4.15)% | (14.10)% | 14.96% | 6.07% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of fee waivers, if any | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.20% | 1.13% | 1.11% | 1.06% |
Net investment income (loss) | .68% A,G | .39% H | 1.01% | .22% | (.15)% | .06% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,052,876 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.13)%. H 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 .12%. 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 F
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations | | | |
Net investment income (loss) D | .07 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | .94 |
Total from investment operations | 2.41 | 2.43 | .95 |
Distributions from net investment income | (.14) | (.07) | - |
Distributions from net realized gain | (.13) | - | - |
Total distributions | (.26) L | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.22 |
Total Return B,C | 17.99% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .89% A | .90% | .86% A |
Expenses net of fee waivers, if any | .89% A | .90% | .86% A |
Expenses net of all reductions | .89% A | .89% | .86% A |
Net investment income (loss) | .93% A,G | .67% H | .64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 221,652 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 11% A | 49% | 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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .13%. H 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 ..40%. 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. L Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .06 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.59) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.40 | (.49) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.11) | (.06) | (.07) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.24) | (.06) | (.18) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.77% | 21.42% | (4.04)% | (14.10)% | 14.99% | 6.08% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.11% A | 1.12% | 1.20% | 1.13% | 1.10% | 1.08% |
Expenses net of fee waivers, if any | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.08% |
Expenses net of all reductions | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.05% |
Net investment income (loss) | .72% A,G | .45% H | 1.06% | .22% | (.13)% | .08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 109,370 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%. H 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 ..18%. 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
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 621,319,236 |
Gross unrealized depreciation | (85,519,178) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 535,800,058 |
Tax cost | $ 2,220,362,905 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $235,160,726 and $122,739,964, 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 Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 138,937 | $ 5,288 |
Class T | .25% | .25% | 125,934 | - |
Class B | .75% | .25% | 48,959 | 36,720 |
Class C | .75% | .25% | 211,721 | 64,722 |
| | | $ 525,551 | $ 106,730 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 30,105 |
Class T | 5,175 |
Class B* | 12,248 |
Class C* | 2,408 |
| $ 49,936 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 166,197 | .30 |
Class T | 76,408 | .30 |
Class B | 15,028 | .31 |
Class C | 63,019 | .30 |
Small Cap Value | 2,399,671 | .26 |
Institutional Class | 97,636 | .22 |
| $ 2,817,959 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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 $6,488 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,392,000 | .47% | $ 579 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $4,045 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
7. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $50,627. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations* | Reimbursement
from adviser |
Class A | 1.40% | $ 9,560 |
Class T | 1.65% | 4,801 |
Class B | 2.15% | 1,186 |
Class C | 2.15% | 3,342 |
| | $ 18,889 |
* Effective October 1, 2010 the expense limitations were eliminated.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Class A | $ 602,963 | $ 159,193 |
Class T | 175,083 | 36,920 |
Class B | 8,350 | - |
Class C | 50,685 | - |
Small Cap Value | 13,136,444 | 6,230,380 |
Class F | 1,502,640 | 28,266 |
Institutional Class | 674,898 | 105,378 |
Total | $ 16,151,063 | $ 6,560,137 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net realized gain | | |
Class A | $ 938,086 | $ - |
Class T | 417,804 | - |
Class B | 85,354 | - |
Class C | 362,483 | - |
Small Cap Value | 16,213,209 | - |
Class F | 1,278,822 | - |
Institutional Class | 755,301 | - |
Total | $ 20,051,059 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 2,277,372 | 4,231,111 | $ 32,971,346 | $ 54,936,600 |
Reinvestment of distributions | 98,821 | 12,276 | 1,412,739 | 146,358 |
Shares redeemed | (1,083,398) | (1,973,236) | (15,341,797) | (25,421,999) |
Net increase (decrease) | 1,292,795 | 2,270,151 | $ 19,042,288 | $ 29,660,959 |
Class T | | | | |
Shares sold | 1,015,881 | 1,449,265 | $ 14,653,186 | $ 18,793,141 |
Reinvestment of distributions | 40,370 | 3,030 | 573,649 | 35,906 |
Shares redeemed | (484,459) | (727,616) | (6,810,905) | (9,211,959) |
Net increase (decrease) | 571,792 | 724,679 | $ 8,415,930 | $ 9,617,088 |
Class B | | | | |
Shares sold | 63,944 | 262,419 | $ 911,455 | $ 3,340,905 |
Reinvestment of distributions | 5,817 | - | 79,168 | - |
Shares redeemed | (139,360) | (174,554) | (1,923,341) | (2,189,700) |
Net increase (decrease) | (69,599) | 87,865 | $ (932,718) | $ 1,151,205 |
Class C | | | | |
Shares sold | 618,922 | 1,327,692 | $ 8,682,040 | $ 17,060,657 |
Reinvestment of distributions | 25,779 | - | 354,104 | - |
Shares redeemed | (306,900) | (434,251) | (4,348,962) | (5,448,332) |
Net increase (decrease) | 337,801 | 893,441 | $ 4,687,182 | $ 11,612,325 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Small Cap Value | | | | |
Shares sold | 21,649,397 | 45,122,251 | $ 315,487,458 | $ 585,925,779 |
Reinvestment of distributions | 1,987,755 | 507,903 | 28,460,666 | 6,101,827 |
Shares redeemed | (23,638,320) | (47,781,912) | (338,912,730) | (605,149,428) |
Net increase (decrease) | (1,168) | (2,151,758) | $ 5,035,394 | $ (13,121,822) |
Class F | | | | |
Shares sold | 6,523,897 | 8,411,513 | $ 95,189,060 | $ 109,778,609 |
Reinvestment of distributions | 192,943 | 2,350 | 2,781,462 | 28,266 |
Shares redeemed | (711,650) | (337,999) | (10,468,543) | (4,618,215) |
Net increase (decrease) | 6,005,190 | 8,075,864 | $ 87,501,979 | $ 105,188,660 |
Institutional Class | | | | |
Shares sold | 2,846,408 | 5,522,070 | $ 42,040,609 | $ 73,692,691 |
Reinvestment of distributions | 90,435 | 7,512 | 1,288,856 | 90,344 |
Shares redeemed | (1,762,365) | (671,565) | (25,810,066) | (8,789,847) |
Net increase (decrease) | 1,174,478 | 4,858,017 | $ 17,519,399 | $ 64,993,188 |
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 and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 36% 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.
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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 distributions, 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 Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SCV-F-SANN-0311
1.891899.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2011
(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 | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.20 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,174.20 | $ 9.21 |
Hypothetical A | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.90 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Small Cap Value | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class F | .89% | | | |
Actual | | $ 1,000.00 | $ 1,179.90 | $ 4.89 |
Hypothetical A | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,177.70 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.61 | $ 5.65 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Berry Petroleum Co. Class A | 3.4 | 2.7 |
Superior Energy Services, Inc. | 3.3 | 3.0 |
WESCO International, Inc. | 3.3 | 3.1 |
DCT Industrial Trust, Inc. | 2.7 | 2.2 |
TCF Financial Corp. | 2.8 | 2.5 |
HNI Corp. | 2.7 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.7 | 3.1 |
Astoria Financial Corp. | 2.6 | 2.7 |
UGI Corp. | 2.6 | 2.5 |
Aspen Insurance Holdings Ltd. | 2.4 | 2.3 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 37.0 | 37.8 |
Industrials | 13.0 | 12.8 |
Consumer Discretionary | 10.7 | 11.5 |
Information Technology | 9.2 | 8.3 |
Health Care | 7.1 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.1% | | | Stocks 99.2% | |
| Short-Term
Investments and
Net Other Assets 0.9% | | | Short-Term
Investments and
Net Other Assets 0.8% | |
* Foreign investments | 9.9% | | ** Foreign investments | 10.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 10.2% |
Diversified Consumer Services - 2.5% |
Matthews International Corp. Class A | 740,187 | | $ 26,232,227 |
Regis Corp. | 2,345,882 | | 39,316,982 |
| | 65,549,209 |
Household Durables - 4.9% |
M.D.C. Holdings, Inc. | 1,224,300 | | 37,843,113 |
Meritage Homes Corp. (a) | 1,536,160 | | 35,270,234 |
Ryland Group, Inc. | 2,153,837 | | 38,338,299 |
Tempur-Pedic International, Inc. (a) | 400,000 | | 17,456,000 |
| | 128,907,646 |
Specialty Retail - 1.8% |
Asbury Automotive Group, Inc. (a) | 1,465,159 | | 26,973,577 |
Tsutsumi Jewelry Co. Ltd. | 791,400 | | 21,501,243 |
| | 48,474,820 |
Textiles, Apparel & Luxury Goods - 1.0% |
Iconix Brand Group, Inc. (a) | 1,330,087 | | 26,402,227 |
TOTAL CONSUMER DISCRETIONARY | | 269,333,902 |
CONSUMER STAPLES - 4.0% |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a) | 1,390,000 | | 61,076,600 |
Ingles Markets, Inc. Class A | 717,153 | | 13,891,254 |
| | 74,967,854 |
Food Products - 1.2% |
Chiquita Brands International, Inc. (a) | 2,000,000 | | 30,840,000 |
TOTAL CONSUMER STAPLES | | 105,807,854 |
ENERGY - 6.7% |
Energy Equipment & Services - 3.3% |
Superior Energy Services, Inc. (a) | 2,441,700 | | 85,752,504 |
Oil, Gas & Consumable Fuels - 3.4% |
Berry Petroleum Co. Class A | 1,950,000 | | 91,006,502 |
TOTAL ENERGY | | 176,759,006 |
FINANCIALS - 36.3% |
Capital Markets - 3.5% |
optionsXpress Holdings, Inc. | 2,080,000 | | 30,908,800 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Capital Markets - continued |
TradeStation Group, Inc. (a)(e) | 2,062,291 | | $ 14,374,168 |
Waddell & Reed Financial, Inc. Class A | 1,310,000 | | 47,317,200 |
| | 92,600,168 |
Commercial Banks - 11.2% |
Associated Banc-Corp. | 3,832,650 | | 53,580,447 |
CapitalSource, Inc. | 6,515,270 | | 50,297,884 |
City National Corp. | 784,900 | | 45,359,371 |
National Penn Bancshares, Inc. | 3,266,604 | | 26,655,489 |
PacWest Bancorp (e) | 1,857,600 | | 36,650,448 |
TCF Financial Corp. (d) | 4,855,800 | | 72,545,652 |
Western Liberty Bancorp (a)(e) | 2,400,000 | | 11,040,000 |
| | 296,129,291 |
Insurance - 6.8% |
Alterra Capital Holdings Ltd. | 2,057,411 | | 44,337,207 |
Aspen Insurance Holdings Ltd. | 2,120,200 | | 63,712,010 |
Platinum Underwriters Holdings Ltd. | 1,576,975 | | 69,702,295 |
| | 177,751,512 |
Real Estate Investment Trusts - 9.9% |
Alexandria Real Estate Equities, Inc. | 628,300 | | 48,404,232 |
American Assets Trust, Inc. (a) | 225,200 | | 4,794,508 |
DCT Industrial Trust, Inc. (e) | 13,150,000 | | 72,851,000 |
Franklin Street Properties Corp. | 2,760,000 | | 41,372,400 |
Highwoods Properties, Inc. (SBI) | 1,940,330 | | 63,584,614 |
National Retail Properties, Inc. (d) | 1,240,000 | | 30,814,000 |
| | 261,820,754 |
Thrifts & Mortgage Finance - 4.9% |
Astoria Financial Corp. | 4,818,152 | | 68,610,484 |
Washington Federal, Inc. | 3,486,175 | | 60,275,966 |
| | 128,886,450 |
TOTAL FINANCIALS | | 957,188,175 |
HEALTH CARE - 7.1% |
Health Care Providers & Services - 7.1% |
Centene Corp. (a) | 1,324,832 | | 36,724,343 |
Chemed Corp. | 510,200 | | 31,749,746 |
MEDNAX, Inc. (a) | 721,500 | | 47,727,225 |
Providence Service Corp. (a)(e) | 1,016,495 | | 14,464,724 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Team Health Holdings, Inc. (a) | 2,565,700 | | $ 39,665,722 |
VCA Antech, Inc. (a) | 718,000 | | 16,456,560 |
| | 186,788,320 |
INDUSTRIALS - 13.0% |
Commercial Services & Supplies - 6.7% |
ACCO Brands Corp. (a) | 2,420,000 | | 19,868,200 |
HNI Corp. (d)(e) | 2,349,671 | | 71,289,018 |
Knoll, Inc. | 1,412,898 | | 23,651,913 |
United Stationers, Inc. (a) | 990,400 | | 61,682,112 |
| | 176,491,243 |
Machinery - 1.5% |
Blount International, Inc. (a)(e) | 2,604,723 | | 39,096,892 |
Trading Companies & Distributors - 4.8% |
H&E Equipment Services, Inc. (a)(e) | 3,489,408 | | 40,546,921 |
WESCO International, Inc. (a) | 1,525,000 | | 85,476,250 |
| | 126,023,171 |
TOTAL INDUSTRIALS | | 341,611,306 |
INFORMATION TECHNOLOGY - 9.2% |
Communications Equipment - 1.3% |
ViaSat, Inc. (a) | 809,472 | | 35,127,037 |
Electronic Equipment & Components - 4.2% |
Ingram Micro, Inc. Class A (a) | 2,453,100 | | 48,424,194 |
Macnica, Inc. | 677,400 | | 17,372,405 |
Ryoyo Electro Corp. (e) | 1,972,700 | | 22,471,668 |
SYNNEX Corp. (a) | 631,598 | | 21,089,057 |
| | 109,357,324 |
Internet Software & Services - 1.7% |
DealerTrack Holdings, Inc. (a) | 1,383,804 | | 27,350,886 |
j2 Global Communications, Inc. (a) | 630,149 | | 17,392,112 |
| | 44,742,998 |
IT Services - 0.2% |
FleetCor Technologies, Inc. | 168,100 | | 5,043,000 |
Semiconductors & Semiconductor Equipment - 0.7% |
Miraial Co. Ltd. (e) | 720,200 | | 18,645,529 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - 1.1% |
Monotype Imaging Holdings, Inc. (a)(e) | 2,583,700 | | $ 29,027,870 |
TOTAL INFORMATION TECHNOLOGY | | 241,943,758 |
MATERIALS - 4.4% |
Chemicals - 0.4% |
Spartech Corp. (a) | 1,387,857 | | 11,588,606 |
Metals & Mining - 4.0% |
Carpenter Technology Corp. | 1,284,380 | | 52,852,237 |
Haynes International, Inc. | 126,514 | | 6,163,762 |
RTI International Metals, Inc. (a)(e) | 1,617,597 | | 46,732,377 |
| | 105,748,376 |
TOTAL MATERIALS | | 117,336,982 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.9% |
Cogent Communications Group, Inc. (a) | 1,665,000 | | 22,710,600 |
UTILITIES - 6.1% |
Electric Utilities - 1.9% |
Westar Energy, Inc. (d) | 2,010,000 | | 51,255,000 |
Gas Utilities - 4.2% |
Southwest Gas Corp. | 1,130,989 | | 42,118,030 |
UGI Corp. | 2,150,000 | | 67,402,500 |
| | 109,520,530 |
TOTAL UTILITIES | | 160,775,530 |
TOTAL COMMON STOCKS (Cost $2,053,363,726) | 2,580,255,433 |
Nonconvertible Preferred Stocks - 1.2% |
| | | |
CONSUMER DISCRETIONARY - 0.5% |
Household Durables - 0.5% |
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | | 13,424,656 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - 0.7% |
Real Estate Investment Trusts - 0.7% |
Developers Diversified Realty Corp. (depositary shares) Series H, 7.375% | 818,790 | | $ 19,045,055 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) | 32,469,711 |
Money Market Funds - 5.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 23,273,294 | | 23,273,294 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 120,164,525 | | 120,164,525 |
TOTAL MONEY MARKET FUNDS (Cost $143,437,819) | 143,437,819 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $2,217,156,315) | | 2,756,162,963 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (120,829,881) |
NET ASSETS - 100% | $ 2,635,333,082 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,858 |
Fidelity Securities Lending Cash Central Fund | 50,627 |
Total | $ 61,485 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 22,027,864 | $ 1,922,616 | $ 12,330,836 | $ - | $ - |
Blount International, Inc. | 27,740,300 | - | - | - | 39,096,892 |
DCT Industrial Trust, Inc. | 46,900,000 | 16,084,308 | - | 743,063 | 72,851,000 |
H&E Equipment Services, Inc. | 30,357,850 | - | - | - | 40,546,921 |
HNI Corp. | 55,547,499 | 5,138,794 | - | 967,359 | 71,289,018 |
Miraial Co. Ltd. | 15,372,473 | 3,618,630 | - | 244,180 | 18,645,529 |
Monotype Imaging Holdings, Inc. | 11,299,816 | 12,600,234 | - | - | 29,027,870 |
PacWest Bancorp | 37,552,606 | 1,164,578 | - | 36,068 | 36,650,448 |
Providence Service Corp. | 14,637,528 | - | - | - | 14,464,724 |
RTI International Metals, Inc. | 48,035,903 | - | 2,258,203 | - | 46,732,377 |
Ryoyo Electro Corp. | 18,932,046 | 2,120,893 | - | 334,417 | 22,471,668 |
TradeStation Group, Inc. | 13,178,039 | - | - | - | 14,374,168 |
Western Liberty Bancorp | 14,976,000 | - | - | - | 11,040,000 |
Total | $ 356,557,924 | $ 42,650,053 | $ 14,589,039 | $ 2,325,087 | $ 417,190,615 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,310,461) - See accompanying schedule: Unaffiliated issuers (cost $1,725,528,905) | $ 2,195,534,529 | |
Fidelity Central Funds (cost $143,437,819) | 143,437,819 | |
Other affiliated issuers (cost $348,189,591) | 417,190,615 | |
Total Investments (cost $2,217,156,315) | | $ 2,756,162,963 |
Receivable for fund shares sold | | 4,922,951 |
Dividends receivable | | 2,512,491 |
Distributions receivable from Fidelity Central Funds | | 14,272 |
Prepaid expenses | | 5,499 |
Other receivables | | 15,631 |
Total assets | | 2,763,633,807 |
| | |
Liabilities | | |
Payable for fund shares redeemed | 5,637,901 | |
Accrued management fee | 1,818,953 | |
Distribution and service plan fees payable | 101,925 | |
Other affiliated payables | 544,316 | |
Other payables and accrued expenses | 33,105 | |
Collateral on securities loaned, at value | 120,164,525 | |
Total liabilities | | 128,300,725 |
| | |
Net Assets | | $ 2,635,333,082 |
Net Assets consist of: | | |
Paid in capital | | $ 2,086,043,345 |
Distributions in excess of net investment income | | (3,413,684) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 13,695,293 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 539,008,128 |
Net Assets | | $ 2,635,333,082 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($132,675,987 ÷ 8,505,837 shares) | | $ 15.60 |
| | |
Maximum offering price per share (100/94.25 of $15.60) | | $ 16.55 |
Class T:
Net Asset Value and redemption price per share ($60,043,294 ÷ 3,878,195 shares) | | $ 15.48 |
| | |
Maximum offering price per share (100/96.50 of $15.48) | | $ 16.04 |
Class B:
Net Asset Value and offering price per share ($10,255,503 ÷ 675,565 shares)A | | $ 15.18 |
| | |
Class C:
Net Asset Value and offering price per share ($48,460,429 ÷ 3,191,987 shares)A | | $ 15.18 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,052,876,005 ÷ 130,573,584 shares) | | $ 15.72 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($221,651,973 ÷ 14,095,241 shares) | | $ 15.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($109,369,891 ÷ 6,952,398 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $2,325,087 earned from other affiliated issuers) | | $ 11,760,398 |
Special dividends | | 9,360,000 |
Interest | | 81 |
Income from Fidelity Central Funds | | 61,485 |
Total income | | 21,181,964 |
| | |
Expenses | | |
Management fee
Basic fee | $ 8,237,977 | |
Performance adjustment | 1,547,636 | |
Transfer agent fees | 2,817,959 | |
Distribution and service plan fees | 525,551 | |
Accounting and security lending fees | 352,699 | |
Custodian fees and expenses | 19,504 | |
Independent trustees' compensation | 6,346 | |
Registration fees | 109,048 | |
Audit | 31,593 | |
Legal | 6,616 | |
Interest | 579 | |
Miscellaneous | 17,732 | |
Total expenses before reductions | 13,673,240 | |
Expense reductions | (18,889) | 13,654,351 |
Net investment income (loss) | | 7,527,613 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 35,014,608 | |
Other affiliated issuers | (9,307,013) | |
Foreign currency transactions | 27,557 | |
Total net realized gain (loss) | | 25,735,152 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 349,698,906 | |
Assets and liabilities in foreign currencies | (6,647) | |
Total change in net unrealized appreciation (depreciation) | | 349,692,259 |
Net gain (loss) | | 375,427,411 |
Net increase (decrease) in net assets resulting from operations | | $ 382,955,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,527,613 | $ 6,962,574 |
Net realized gain (loss) | 25,735,152 | 188,495,963 |
Change in net unrealized appreciation (depreciation) | 349,692,259 | 137,333,657 |
Net increase (decrease) in net assets resulting
from operations | 382,955,024 | 332,792,194 |
Distributions to shareholders from net investment income | (16,151,063) | (6,560,137) |
Distributions to shareholders from net realized gain | (20,051,059) | - |
Total distributions | (36,202,122) | (6,560,137) |
Share transactions - net increase (decrease) | 141,269,454 | 209,101,603 |
Redemption fees | 151,260 | 534,282 |
Total increase (decrease) in net assets | 488,173,616 | 535,867,942 |
| | |
Net Assets | | |
Beginning of period | 2,147,159,466 | 1,611,291,524 |
End of period (including distributions in excess of net investment income of $3,413,684 and undistributed net investment income of $5,209,766, respectively) | $ 2,635,333,082 | $ 2,147,159,466 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 H | .02 I | .08 | (.01) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 2.32 | 2.33 | (.60) | (1.98) | 1.90 | .74 |
Total from investment operations | 2.35 | 2.35 | (.52) | (1.99) | 1.84 | .71 |
Distributions from net investment income | (.08) | (.03) | (.06) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.67) | (.35) |
Total distributions | (.20) | (.03) | (.17) | (.53) | (.67) | (.35) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.60 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Total Return B,C,D | 17.62% | 21.16% | (4.37)% | (14.35)% | 14.59% | 5.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.44% A | 1.47% | 1.45% | 1.43% | 1.45% | 1.51% |
Expenses net of fee waivers, if any | 1.42% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.42% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.36% |
Net investment income (loss) | .40% A,H | .17% I | .81% | (.05)% | (.44)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 132,676 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.40)%. I 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 (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 H | (.01) I | .05 | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 2.30 | 2.31 | (.59) | (1.97) | 1.90 | .74 |
Total from investment operations | 2.31 | 2.30 | (.54) | (2.01) | 1.80 | .67 |
Distributions from net investment income | (.05) | (.01) | (.04) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.65) | (.33) |
Total distributions | (.17) | (.01) | (.15) | (.53) | (.65) | (.33) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.48 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Total Return B,C,D | 17.42% | 20.87% | (4.57)% | (14.58)% | 14.34% | 5.47% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.72% | 1.70% | 1.68% | 1.66% | 1.67% |
Expenses net of fee waivers, if any | 1.68% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.68% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.61% |
Net investment income (loss) | .15% A,H | (.08)% I | .56% | (.30)% | (.69)% | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,043 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. I 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 (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.25 | 2.27 | (.59) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.23 | 2.20 | (.58) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.01) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.28) |
Total distributions | (.13) | - | (.14) | (.53) | (.61) | (.28) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.19% | 20.22% | (5.05)% | (15.04)% | 13.78% | 4.97% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.26% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,256 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.26 | 2.26 | (.58) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.24 | 2.19 | (.57) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.29) |
Total distributions | (.14) | - | (.14) | (.53) | (.61) | (.29) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.22% | 20.11% | (4.98)% | (15.04)% | 13.77% | 4.92% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.19% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,460 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .05 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.60) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.39 | (.50) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.10) | (.05) | (.08) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.23) | (.05) | (.19) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.72 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.78% | 21.32% | (4.15)% | (14.10)% | 14.96% | 6.07% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of fee waivers, if any | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.20% | 1.13% | 1.11% | 1.06% |
Net investment income (loss) | .68% A,G | .39% H | 1.01% | .22% | (.15)% | .06% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,052,876 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.13)%. H 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 .12%. 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 F
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations | | | |
Net investment income (loss) D | .07 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | .94 |
Total from investment operations | 2.41 | 2.43 | .95 |
Distributions from net investment income | (.14) | (.07) | - |
Distributions from net realized gain | (.13) | - | - |
Total distributions | (.26) L | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.22 |
Total Return B,C | 17.99% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .89% A | .90% | .86% A |
Expenses net of fee waivers, if any | .89% A | .90% | .86% A |
Expenses net of all reductions | .89% A | .89% | .86% A |
Net investment income (loss) | .93% A,G | .67% H | .64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 221,652 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 11% A | 49% | 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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .13%. H 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 ..40%. 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. L Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .06 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.59) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.40 | (.49) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.11) | (.06) | (.07) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.24) | (.06) | (.18) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.77% | 21.42% | (4.04)% | (14.10)% | 14.99% | 6.08% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.11% A | 1.12% | 1.20% | 1.13% | 1.10% | 1.08% |
Expenses net of fee waivers, if any | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.08% |
Expenses net of all reductions | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.05% |
Net investment income (loss) | .72% A,G | .45% H | 1.06% | .22% | (.13)% | .08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 109,370 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%. H 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 ..18%. 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
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 621,319,236 |
Gross unrealized depreciation | (85,519,178) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 535,800,058 |
Tax cost | $ 2,220,362,905 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $235,160,726 and $122,739,964, 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 Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 138,937 | $ 5,288 |
Class T | .25% | .25% | 125,934 | - |
Class B | .75% | .25% | 48,959 | 36,720 |
Class C | .75% | .25% | 211,721 | 64,722 |
| | | $ 525,551 | $ 106,730 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 30,105 |
Class T | 5,175 |
Class B* | 12,248 |
Class C* | 2,408 |
| $ 49,936 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 166,197 | .30 |
Class T | 76,408 | .30 |
Class B | 15,028 | .31 |
Class C | 63,019 | .30 |
Small Cap Value | 2,399,671 | .26 |
Institutional Class | 97,636 | .22 |
| $ 2,817,959 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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 $6,488 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,392,000 | .47% | $ 579 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $4,045 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
7. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $50,627. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations* | Reimbursement
from adviser |
Class A | 1.40% | $ 9,560 |
Class T | 1.65% | 4,801 |
Class B | 2.15% | 1,186 |
Class C | 2.15% | 3,342 |
| | $ 18,889 |
* Effective October 1, 2010 the expense limitations were eliminated.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Class A | $ 602,963 | $ 159,193 |
Class T | 175,083 | 36,920 |
Class B | 8,350 | - |
Class C | 50,685 | - |
Small Cap Value | 13,136,444 | 6,230,380 |
Class F | 1,502,640 | 28,266 |
Institutional Class | 674,898 | 105,378 |
Total | $ 16,151,063 | $ 6,560,137 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net realized gain | | |
Class A | $ 938,086 | $ - |
Class T | 417,804 | - |
Class B | 85,354 | - |
Class C | 362,483 | - |
Small Cap Value | 16,213,209 | - |
Class F | 1,278,822 | - |
Institutional Class | 755,301 | - |
Total | $ 20,051,059 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 2,277,372 | 4,231,111 | $ 32,971,346 | $ 54,936,600 |
Reinvestment of distributions | 98,821 | 12,276 | 1,412,739 | 146,358 |
Shares redeemed | (1,083,398) | (1,973,236) | (15,341,797) | (25,421,999) |
Net increase (decrease) | 1,292,795 | 2,270,151 | $ 19,042,288 | $ 29,660,959 |
Class T | | | | |
Shares sold | 1,015,881 | 1,449,265 | $ 14,653,186 | $ 18,793,141 |
Reinvestment of distributions | 40,370 | 3,030 | 573,649 | 35,906 |
Shares redeemed | (484,459) | (727,616) | (6,810,905) | (9,211,959) |
Net increase (decrease) | 571,792 | 724,679 | $ 8,415,930 | $ 9,617,088 |
Class B | | | | |
Shares sold | 63,944 | 262,419 | $ 911,455 | $ 3,340,905 |
Reinvestment of distributions | 5,817 | - | 79,168 | - |
Shares redeemed | (139,360) | (174,554) | (1,923,341) | (2,189,700) |
Net increase (decrease) | (69,599) | 87,865 | $ (932,718) | $ 1,151,205 |
Class C | | | | |
Shares sold | 618,922 | 1,327,692 | $ 8,682,040 | $ 17,060,657 |
Reinvestment of distributions | 25,779 | - | 354,104 | - |
Shares redeemed | (306,900) | (434,251) | (4,348,962) | (5,448,332) |
Net increase (decrease) | 337,801 | 893,441 | $ 4,687,182 | $ 11,612,325 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Small Cap Value | | | | |
Shares sold | 21,649,397 | 45,122,251 | $ 315,487,458 | $ 585,925,779 |
Reinvestment of distributions | 1,987,755 | 507,903 | 28,460,666 | 6,101,827 |
Shares redeemed | (23,638,320) | (47,781,912) | (338,912,730) | (605,149,428) |
Net increase (decrease) | (1,168) | (2,151,758) | $ 5,035,394 | $ (13,121,822) |
Class F | | | | |
Shares sold | 6,523,897 | 8,411,513 | $ 95,189,060 | $ 109,778,609 |
Reinvestment of distributions | 192,943 | 2,350 | 2,781,462 | 28,266 |
Shares redeemed | (711,650) | (337,999) | (10,468,543) | (4,618,215) |
Net increase (decrease) | 6,005,190 | 8,075,864 | $ 87,501,979 | $ 105,188,660 |
Institutional Class | | | | |
Shares sold | 2,846,408 | 5,522,070 | $ 42,040,609 | $ 73,692,691 |
Reinvestment of distributions | 90,435 | 7,512 | 1,288,856 | 90,344 |
Shares redeemed | (1,762,365) | (671,565) | (25,810,066) | (8,789,847) |
Net increase (decrease) | 1,174,478 | 4,858,017 | $ 17,519,399 | $ 64,993,188 |
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 and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 36% 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.
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-0311
1.803737.107
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Institutional Class
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
Contents
Chairman's Message | <Click Here> | The Chairman's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting ChairmanSemiannual 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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
Expense Ratio | Beginning
Account Value
August 1, 2010 | Ending
Account Value
January 31, 2011 | Expenses Paid
During Period*
August 1, 2010 to January 31, 2011 |
Class A | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,176.20 | $ 7.79 |
Hypothetical A | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,174.20 | $ 9.21 |
Hypothetical A | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,171.90 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Class C | 2.17% | | | |
Actual | | $ 1,000.00 | $ 1,172.20 | $ 11.88 |
Hypothetical A | | $ 1,000.00 | $ 1,014.27 | $ 11.02 |
Small Cap Value | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,177.80 | $ 6.31 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class F | .89% | | | |
Actual | | $ 1,000.00 | $ 1,179.90 | $ 4.89 |
Hypothetical A | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Institutional Class | 1.11% | | | |
Actual | | $ 1,000.00 | $ 1,177.70 | $ 6.09 |
Hypothetical A | | $ 1,000.00 | $ 1,019.61 | $ 5.65 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Berry Petroleum Co. Class A | 3.4 | 2.7 |
Superior Energy Services, Inc. | 3.3 | 3.0 |
WESCO International, Inc. | 3.3 | 3.1 |
DCT Industrial Trust, Inc. | 2.7 | 2.2 |
TCF Financial Corp. | 2.8 | 2.5 |
HNI Corp. | 2.7 | 2.6 |
Platinum Underwriters Holdings Ltd. | 2.7 | 3.1 |
Astoria Financial Corp. | 2.6 | 2.7 |
UGI Corp. | 2.6 | 2.5 |
Aspen Insurance Holdings Ltd. | 2.4 | 2.3 |
| 28.5 | |
Top Five Market Sectors as of January 31, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 37.0 | 37.8 |
Industrials | 13.0 | 12.8 |
Consumer Discretionary | 10.7 | 11.5 |
Information Technology | 9.2 | 8.3 |
Health Care | 7.1 | 6.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2011* | As of July 31, 2010** |
| Stocks 99.1% | | | Stocks 99.2% | |
| Short-Term
Investments and
Net Other Assets 0.9% | | | Short-Term
Investments and
Net Other Assets 0.8% | |
* Foreign investments | 9.9% | | ** Foreign investments | 10.5% | |
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 10.2% |
Diversified Consumer Services - 2.5% |
Matthews International Corp. Class A | 740,187 | | $ 26,232,227 |
Regis Corp. | 2,345,882 | | 39,316,982 |
| | 65,549,209 |
Household Durables - 4.9% |
M.D.C. Holdings, Inc. | 1,224,300 | | 37,843,113 |
Meritage Homes Corp. (a) | 1,536,160 | | 35,270,234 |
Ryland Group, Inc. | 2,153,837 | | 38,338,299 |
Tempur-Pedic International, Inc. (a) | 400,000 | | 17,456,000 |
| | 128,907,646 |
Specialty Retail - 1.8% |
Asbury Automotive Group, Inc. (a) | 1,465,159 | | 26,973,577 |
Tsutsumi Jewelry Co. Ltd. | 791,400 | | 21,501,243 |
| | 48,474,820 |
Textiles, Apparel & Luxury Goods - 1.0% |
Iconix Brand Group, Inc. (a) | 1,330,087 | | 26,402,227 |
TOTAL CONSUMER DISCRETIONARY | | 269,333,902 |
CONSUMER STAPLES - 4.0% |
Food & Staples Retailing - 2.8% |
BJ's Wholesale Club, Inc. (a) | 1,390,000 | | 61,076,600 |
Ingles Markets, Inc. Class A | 717,153 | | 13,891,254 |
| | 74,967,854 |
Food Products - 1.2% |
Chiquita Brands International, Inc. (a) | 2,000,000 | | 30,840,000 |
TOTAL CONSUMER STAPLES | | 105,807,854 |
ENERGY - 6.7% |
Energy Equipment & Services - 3.3% |
Superior Energy Services, Inc. (a) | 2,441,700 | | 85,752,504 |
Oil, Gas & Consumable Fuels - 3.4% |
Berry Petroleum Co. Class A | 1,950,000 | | 91,006,502 |
TOTAL ENERGY | | 176,759,006 |
FINANCIALS - 36.3% |
Capital Markets - 3.5% |
optionsXpress Holdings, Inc. | 2,080,000 | | 30,908,800 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Capital Markets - continued |
TradeStation Group, Inc. (a)(e) | 2,062,291 | | $ 14,374,168 |
Waddell & Reed Financial, Inc. Class A | 1,310,000 | | 47,317,200 |
| | 92,600,168 |
Commercial Banks - 11.2% |
Associated Banc-Corp. | 3,832,650 | | 53,580,447 |
CapitalSource, Inc. | 6,515,270 | | 50,297,884 |
City National Corp. | 784,900 | | 45,359,371 |
National Penn Bancshares, Inc. | 3,266,604 | | 26,655,489 |
PacWest Bancorp (e) | 1,857,600 | | 36,650,448 |
TCF Financial Corp. (d) | 4,855,800 | | 72,545,652 |
Western Liberty Bancorp (a)(e) | 2,400,000 | | 11,040,000 |
| | 296,129,291 |
Insurance - 6.8% |
Alterra Capital Holdings Ltd. | 2,057,411 | | 44,337,207 |
Aspen Insurance Holdings Ltd. | 2,120,200 | | 63,712,010 |
Platinum Underwriters Holdings Ltd. | 1,576,975 | | 69,702,295 |
| | 177,751,512 |
Real Estate Investment Trusts - 9.9% |
Alexandria Real Estate Equities, Inc. | 628,300 | | 48,404,232 |
American Assets Trust, Inc. (a) | 225,200 | | 4,794,508 |
DCT Industrial Trust, Inc. (e) | 13,150,000 | | 72,851,000 |
Franklin Street Properties Corp. | 2,760,000 | | 41,372,400 |
Highwoods Properties, Inc. (SBI) | 1,940,330 | | 63,584,614 |
National Retail Properties, Inc. (d) | 1,240,000 | | 30,814,000 |
| | 261,820,754 |
Thrifts & Mortgage Finance - 4.9% |
Astoria Financial Corp. | 4,818,152 | | 68,610,484 |
Washington Federal, Inc. | 3,486,175 | | 60,275,966 |
| | 128,886,450 |
TOTAL FINANCIALS | | 957,188,175 |
HEALTH CARE - 7.1% |
Health Care Providers & Services - 7.1% |
Centene Corp. (a) | 1,324,832 | | 36,724,343 |
Chemed Corp. | 510,200 | | 31,749,746 |
MEDNAX, Inc. (a) | 721,500 | | 47,727,225 |
Providence Service Corp. (a)(e) | 1,016,495 | | 14,464,724 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Team Health Holdings, Inc. (a) | 2,565,700 | | $ 39,665,722 |
VCA Antech, Inc. (a) | 718,000 | | 16,456,560 |
| | 186,788,320 |
INDUSTRIALS - 13.0% |
Commercial Services & Supplies - 6.7% |
ACCO Brands Corp. (a) | 2,420,000 | | 19,868,200 |
HNI Corp. (d)(e) | 2,349,671 | | 71,289,018 |
Knoll, Inc. | 1,412,898 | | 23,651,913 |
United Stationers, Inc. (a) | 990,400 | | 61,682,112 |
| | 176,491,243 |
Machinery - 1.5% |
Blount International, Inc. (a)(e) | 2,604,723 | | 39,096,892 |
Trading Companies & Distributors - 4.8% |
H&E Equipment Services, Inc. (a)(e) | 3,489,408 | | 40,546,921 |
WESCO International, Inc. (a) | 1,525,000 | | 85,476,250 |
| | 126,023,171 |
TOTAL INDUSTRIALS | | 341,611,306 |
INFORMATION TECHNOLOGY - 9.2% |
Communications Equipment - 1.3% |
ViaSat, Inc. (a) | 809,472 | | 35,127,037 |
Electronic Equipment & Components - 4.2% |
Ingram Micro, Inc. Class A (a) | 2,453,100 | | 48,424,194 |
Macnica, Inc. | 677,400 | | 17,372,405 |
Ryoyo Electro Corp. (e) | 1,972,700 | | 22,471,668 |
SYNNEX Corp. (a) | 631,598 | | 21,089,057 |
| | 109,357,324 |
Internet Software & Services - 1.7% |
DealerTrack Holdings, Inc. (a) | 1,383,804 | | 27,350,886 |
j2 Global Communications, Inc. (a) | 630,149 | | 17,392,112 |
| | 44,742,998 |
IT Services - 0.2% |
FleetCor Technologies, Inc. | 168,100 | | 5,043,000 |
Semiconductors & Semiconductor Equipment - 0.7% |
Miraial Co. Ltd. (e) | 720,200 | | 18,645,529 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - 1.1% |
Monotype Imaging Holdings, Inc. (a)(e) | 2,583,700 | | $ 29,027,870 |
TOTAL INFORMATION TECHNOLOGY | | 241,943,758 |
MATERIALS - 4.4% |
Chemicals - 0.4% |
Spartech Corp. (a) | 1,387,857 | | 11,588,606 |
Metals & Mining - 4.0% |
Carpenter Technology Corp. | 1,284,380 | | 52,852,237 |
Haynes International, Inc. | 126,514 | | 6,163,762 |
RTI International Metals, Inc. (a)(e) | 1,617,597 | | 46,732,377 |
| | 105,748,376 |
TOTAL MATERIALS | | 117,336,982 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.9% |
Cogent Communications Group, Inc. (a) | 1,665,000 | | 22,710,600 |
UTILITIES - 6.1% |
Electric Utilities - 1.9% |
Westar Energy, Inc. (d) | 2,010,000 | | 51,255,000 |
Gas Utilities - 4.2% |
Southwest Gas Corp. | 1,130,989 | | 42,118,030 |
UGI Corp. | 2,150,000 | | 67,402,500 |
| | 109,520,530 |
TOTAL UTILITIES | | 160,775,530 |
TOTAL COMMON STOCKS (Cost $2,053,363,726) | 2,580,255,433 |
Nonconvertible Preferred Stocks - 1.2% |
| | | |
CONSUMER DISCRETIONARY - 0.5% |
Household Durables - 0.5% |
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | | 13,424,656 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - 0.7% |
Real Estate Investment Trusts - 0.7% |
Developers Diversified Realty Corp. (depositary shares) Series H, 7.375% | 818,790 | | $ 19,045,055 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) | 32,469,711 |
Money Market Funds - 5.5% |
| | | |
Fidelity Cash Central Fund, 0.19% (b) | 23,273,294 | | 23,273,294 |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 120,164,525 | | 120,164,525 |
TOTAL MONEY MARKET FUNDS (Cost $143,437,819) | 143,437,819 |
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $2,217,156,315) | | 2,756,162,963 |
NET OTHER ASSETS (LIABILITIES) - (4.6)% | | (120,829,881) |
NET ASSETS - 100% | $ 2,635,333,082 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,858 |
Fidelity Securities Lending Cash Central Fund | 50,627 |
Total | $ 61,485 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 22,027,864 | $ 1,922,616 | $ 12,330,836 | $ - | $ - |
Blount International, Inc. | 27,740,300 | - | - | - | 39,096,892 |
DCT Industrial Trust, Inc. | 46,900,000 | 16,084,308 | - | 743,063 | 72,851,000 |
H&E Equipment Services, Inc. | 30,357,850 | - | - | - | 40,546,921 |
HNI Corp. | 55,547,499 | 5,138,794 | - | 967,359 | 71,289,018 |
Miraial Co. Ltd. | 15,372,473 | 3,618,630 | - | 244,180 | 18,645,529 |
Monotype Imaging Holdings, Inc. | 11,299,816 | 12,600,234 | - | - | 29,027,870 |
PacWest Bancorp | 37,552,606 | 1,164,578 | - | 36,068 | 36,650,448 |
Providence Service Corp. | 14,637,528 | - | - | - | 14,464,724 |
RTI International Metals, Inc. | 48,035,903 | - | 2,258,203 | - | 46,732,377 |
Ryoyo Electro Corp. | 18,932,046 | 2,120,893 | - | 334,417 | 22,471,668 |
TradeStation Group, Inc. | 13,178,039 | - | - | - | 14,374,168 |
Western Liberty Bancorp | 14,976,000 | - | - | - | 11,040,000 |
Total | $ 356,557,924 | $ 42,650,053 | $ 14,589,039 | $ 2,325,087 | $ 417,190,615 |
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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $116,310,461) - See accompanying schedule: Unaffiliated issuers (cost $1,725,528,905) | $ 2,195,534,529 | |
Fidelity Central Funds (cost $143,437,819) | 143,437,819 | |
Other affiliated issuers (cost $348,189,591) | 417,190,615 | |
Total Investments (cost $2,217,156,315) | | $ 2,756,162,963 |
Receivable for fund shares sold | | 4,922,951 |
Dividends receivable | | 2,512,491 |
Distributions receivable from Fidelity Central Funds | | 14,272 |
Prepaid expenses | | 5,499 |
Other receivables | | 15,631 |
Total assets | | 2,763,633,807 |
| | |
Liabilities | | |
Payable for fund shares redeemed | 5,637,901 | |
Accrued management fee | 1,818,953 | |
Distribution and service plan fees payable | 101,925 | |
Other affiliated payables | 544,316 | |
Other payables and accrued expenses | 33,105 | |
Collateral on securities loaned, at value | 120,164,525 | |
Total liabilities | | 128,300,725 |
| | |
Net Assets | | $ 2,635,333,082 |
Net Assets consist of: | | |
Paid in capital | | $ 2,086,043,345 |
Distributions in excess of net investment income | | (3,413,684) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 13,695,293 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 539,008,128 |
Net Assets | | $ 2,635,333,082 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($132,675,987 ÷ 8,505,837 shares) | | $ 15.60 |
| | |
Maximum offering price per share (100/94.25 of $15.60) | | $ 16.55 |
Class T:
Net Asset Value and redemption price per share ($60,043,294 ÷ 3,878,195 shares) | | $ 15.48 |
| | |
Maximum offering price per share (100/96.50 of $15.48) | | $ 16.04 |
Class B:
Net Asset Value and offering price per share ($10,255,503 ÷ 675,565 shares)A | | $ 15.18 |
| | |
Class C:
Net Asset Value and offering price per share ($48,460,429 ÷ 3,191,987 shares)A | | $ 15.18 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,052,876,005 ÷ 130,573,584 shares) | | $ 15.72 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($221,651,973 ÷ 14,095,241 shares) | | $ 15.73 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($109,369,891 ÷ 6,952,398 shares) | | $ 15.73 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $2,325,087 earned from other affiliated issuers) | | $ 11,760,398 |
Special dividends | | 9,360,000 |
Interest | | 81 |
Income from Fidelity Central Funds | | 61,485 |
Total income | | 21,181,964 |
| | |
Expenses | | |
Management fee
Basic fee | $ 8,237,977 | |
Performance adjustment | 1,547,636 | |
Transfer agent fees | 2,817,959 | |
Distribution and service plan fees | 525,551 | |
Accounting and security lending fees | 352,699 | |
Custodian fees and expenses | 19,504 | |
Independent trustees' compensation | 6,346 | |
Registration fees | 109,048 | |
Audit | 31,593 | |
Legal | 6,616 | |
Interest | 579 | |
Miscellaneous | 17,732 | |
Total expenses before reductions | 13,673,240 | |
Expense reductions | (18,889) | 13,654,351 |
Net investment income (loss) | | 7,527,613 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 35,014,608 | |
Other affiliated issuers | (9,307,013) | |
Foreign currency transactions | 27,557 | |
Total net realized gain (loss) | | 25,735,152 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 349,698,906 | |
Assets and liabilities in foreign currencies | (6,647) | |
Total change in net unrealized appreciation (depreciation) | | 349,692,259 |
Net gain (loss) | | 375,427,411 |
Net increase (decrease) in net assets resulting from operations | | $ 382,955,024 |
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, 2011 (Unaudited) | Year ended
July 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,527,613 | $ 6,962,574 |
Net realized gain (loss) | 25,735,152 | 188,495,963 |
Change in net unrealized appreciation (depreciation) | 349,692,259 | 137,333,657 |
Net increase (decrease) in net assets resulting
from operations | 382,955,024 | 332,792,194 |
Distributions to shareholders from net investment income | (16,151,063) | (6,560,137) |
Distributions to shareholders from net realized gain | (20,051,059) | - |
Total distributions | (36,202,122) | (6,560,137) |
Share transactions - net increase (decrease) | 141,269,454 | 209,101,603 |
Redemption fees | 151,260 | 534,282 |
Total increase (decrease) in net assets | 488,173,616 | 535,867,942 |
| | |
Net Assets | | |
Beginning of period | 2,147,159,466 | 1,611,291,524 |
End of period (including distributions in excess of net investment income of $3,413,684 and undistributed net investment income of $5,209,766, respectively) | $ 2,635,333,082 | $ 2,147,159,466 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 H | .02 I | .08 | (.01) | (.06) | (.03) |
Net realized and unrealized gain (loss) | 2.32 | 2.33 | (.60) | (1.98) | 1.90 | .74 |
Total from investment operations | 2.35 | 2.35 | (.52) | (1.99) | 1.84 | .71 |
Distributions from net investment income | (.08) | (.03) | (.06) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.67) | (.35) |
Total distributions | (.20) | (.03) | (.17) | (.53) | (.67) | (.35) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.60 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Total Return B,C,D | 17.62% | 21.16% | (4.37)% | (14.35)% | 14.59% | 5.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.44% A | 1.47% | 1.45% | 1.43% | 1.45% | 1.51% |
Expenses net of fee waivers, if any | 1.42% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.42% A | 1.39% | 1.40% | 1.40% | 1.40% | 1.36% |
Net investment income (loss) | .40% A,H | .17% I | .81% | (.05)% | (.44)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 132,676 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 | $ 39,931 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.40)%. I 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 (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 | $ 12.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 H | (.01) I | .05 | (.04) | (.10) | (.07) |
Net realized and unrealized gain (loss) | 2.30 | 2.31 | (.59) | (1.97) | 1.90 | .74 |
Total from investment operations | 2.31 | 2.30 | (.54) | (2.01) | 1.80 | .67 |
Distributions from net investment income | (.05) | (.01) | (.04) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.65) | (.33) |
Total distributions | (.17) | (.01) | (.15) | (.53) | (.65) | (.33) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.48 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Total Return B,C,D | 17.42% | 20.87% | (4.57)% | (14.58)% | 14.34% | 5.47% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.69% A | 1.72% | 1.70% | 1.68% | 1.66% | 1.67% |
Expenses net of fee waivers, if any | 1.68% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.68% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.61% |
Net investment income (loss) | .15% A,H | (.08)% I | .56% | (.30)% | (.69)% | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,043 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 | $ 45,460 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. I 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 (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.25 | 2.27 | (.59) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.23 | 2.20 | (.58) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.01) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.28) |
Total distributions | (.13) | - | (.14) | (.53) | (.61) | (.28) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.19% | 20.22% | (5.05)% | (15.04)% | 13.78% | 4.97% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.26% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,256 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 | $ 10,214 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 | $ 12.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) H | (.07) I | .01 | (.10) | (.17) | (.13) |
Net realized and unrealized gain (loss) | 2.26 | 2.26 | (.58) | (1.96) | 1.90 | .74 |
Total from investment operations | 2.24 | 2.19 | (.57) | (2.06) | 1.73 | .61 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | (.12) | - | (.11) | (.53) | (.61) | (.29) |
Total distributions | (.14) | - | (.14) | (.53) | (.61) | (.29) |
Redemption fees added to paid in capital E | - K | - K | - K | - K | - K | .01 |
Net asset value, end of period | $ 15.18 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Total Return B,C,D | 17.22% | 20.11% | (4.98)% | (15.04)% | 13.77% | 4.92% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.19% A | 2.22% | 2.20% | 2.18% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.17% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.17% A | 2.14% | 2.15% | 2.15% | 2.15% | 2.11% |
Net investment income (loss) | (.35)% A,H | (.58)% I | .06% | (.80)% | (1.19)% | (.99)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,460 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 | $ 26,791 |
Portfolio turnover rate G | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.16)%. I 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 (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .05 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.60) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.39 | (.50) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.10) | (.05) | (.08) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.23) | (.05) | (.19) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.72 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.78% | 21.32% | (4.15)% | (14.10)% | 14.96% | 6.07% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of fee waivers, if any | 1.15% A | 1.18% | 1.20% | 1.14% | 1.11% | 1.09% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.20% | 1.13% | 1.11% | 1.06% |
Net investment income (loss) | .68% A,G | .39% H | 1.01% | .22% | (.15)% | .06% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,052,876 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 | $ 957,720 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.13)%. H 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 .12%. 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 F
| Six months ended January 31, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations | | | |
Net investment income (loss) D | .07 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | .94 |
Total from investment operations | 2.41 | 2.43 | .95 |
Distributions from net investment income | (.14) | (.07) | - |
Distributions from net realized gain | (.13) | - | - |
Total distributions | (.26) L | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.22 |
Total Return B,C | 17.99% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J | | | |
Expenses before reductions | .89% A | .90% | .86% A |
Expenses net of fee waivers, if any | .89% A | .90% | .86% A |
Expenses net of all reductions | .89% A | .89% | .86% A |
Net investment income (loss) | .93% A,G | .67% H | .64% A |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 221,652 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 11% A | 49% | 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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .13%. H 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 ..40%. 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. L Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 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, 2011 | Years ended July 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 | $ 12.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 G | .06 H | .10 | .03 | (.02) | .01 |
Net realized and unrealized gain (loss) | 2.34 | 2.34 | (.59) | (1.99) | 1.91 | .74 |
Total from investment operations | 2.39 | 2.40 | (.49) | (1.96) | 1.89 | .75 |
Distributions from net investment income | (.11) | (.06) | (.07) | - | - | (.01) |
Distributions from net realized gain | (.13) | - | (.11) | (.56) | (.68) | (.36) |
Total distributions | (.24) | (.06) | (.18) | (.56) | (.68) | (.37) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 15.73 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Total Return B,C | 17.77% | 21.42% | (4.04)% | (14.10)% | 14.99% | 6.08% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.11% A | 1.12% | 1.20% | 1.13% | 1.10% | 1.08% |
Expenses net of fee waivers, if any | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.08% |
Expenses net of all reductions | 1.11% A | 1.12% | 1.15% | 1.13% | 1.10% | 1.05% |
Net investment income (loss) | .72% A,G | .45% H | 1.06% | .22% | (.13)% | .08% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 109,370 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 | $ 9,422 |
Portfolio turnover rate F | 11% A | 49% | 51% | 149% | 67% | 93% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%. H 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 ..18%. 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
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 621,319,236 |
Gross unrealized depreciation | (85,519,178) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 535,800,058 |
Tax cost | $ 2,220,362,905 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $235,160,726 and $122,739,964, 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 Small Cap Value as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 138,937 | $ 5,288 |
Class T | .25% | .25% | 125,934 | - |
Class B | .75% | .25% | 48,959 | 36,720 |
Class C | .75% | .25% | 211,721 | 64,722 |
| | | $ 525,551 | $ 106,730 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 30,105 |
Class T | 5,175 |
Class B* | 12,248 |
Class C* | 2,408 |
| $ 49,936 |
* 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 respective classes of the Fund, 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 166,197 | .30 |
Class T | 76,408 | .30 |
Class B | 15,028 | .31 |
Class C | 63,019 | .30 |
Small Cap Value | 2,399,671 | .26 |
Institutional Class | 97,636 | .22 |
| $ 2,817,959 | |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. 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 $6,488 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,392,000 | .47% | $ 579 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $4,045 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
7. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $50,627. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations* | Reimbursement
from adviser |
Class A | 1.40% | $ 9,560 |
Class T | 1.65% | 4,801 |
Class B | 2.15% | 1,186 |
Class C | 2.15% | 3,342 |
| | $ 18,889 |
* Effective October 1, 2010 the expense limitations were eliminated.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net investment income | | |
Class A | $ 602,963 | $ 159,193 |
Class T | 175,083 | 36,920 |
Class B | 8,350 | - |
Class C | 50,685 | - |
Small Cap Value | 13,136,444 | 6,230,380 |
Class F | 1,502,640 | 28,266 |
Institutional Class | 674,898 | 105,378 |
Total | $ 16,151,063 | $ 6,560,137 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended
January 31,
2011 | Year ended
July 31,
2010 |
From net realized gain | | |
Class A | $ 938,086 | $ - |
Class T | 417,804 | - |
Class B | 85,354 | - |
Class C | 362,483 | - |
Small Cap Value | 16,213,209 | - |
Class F | 1,278,822 | - |
Institutional Class | 755,301 | - |
Total | $ 20,051,059 | $ - |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Class A | | | | |
Shares sold | 2,277,372 | 4,231,111 | $ 32,971,346 | $ 54,936,600 |
Reinvestment of distributions | 98,821 | 12,276 | 1,412,739 | 146,358 |
Shares redeemed | (1,083,398) | (1,973,236) | (15,341,797) | (25,421,999) |
Net increase (decrease) | 1,292,795 | 2,270,151 | $ 19,042,288 | $ 29,660,959 |
Class T | | | | |
Shares sold | 1,015,881 | 1,449,265 | $ 14,653,186 | $ 18,793,141 |
Reinvestment of distributions | 40,370 | 3,030 | 573,649 | 35,906 |
Shares redeemed | (484,459) | (727,616) | (6,810,905) | (9,211,959) |
Net increase (decrease) | 571,792 | 724,679 | $ 8,415,930 | $ 9,617,088 |
Class B | | | | |
Shares sold | 63,944 | 262,419 | $ 911,455 | $ 3,340,905 |
Reinvestment of distributions | 5,817 | - | 79,168 | - |
Shares redeemed | (139,360) | (174,554) | (1,923,341) | (2,189,700) |
Net increase (decrease) | (69,599) | 87,865 | $ (932,718) | $ 1,151,205 |
Class C | | | | |
Shares sold | 618,922 | 1,327,692 | $ 8,682,040 | $ 17,060,657 |
Reinvestment of distributions | 25,779 | - | 354,104 | - |
Shares redeemed | (306,900) | (434,251) | (4,348,962) | (5,448,332) |
Net increase (decrease) | 337,801 | 893,441 | $ 4,687,182 | $ 11,612,325 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2011 | Year ended
July 31,
2010 | Six months ended January 31,
2011 | Year ended
July 31,
2010 |
Small Cap Value | | | | |
Shares sold | 21,649,397 | 45,122,251 | $ 315,487,458 | $ 585,925,779 |
Reinvestment of distributions | 1,987,755 | 507,903 | 28,460,666 | 6,101,827 |
Shares redeemed | (23,638,320) | (47,781,912) | (338,912,730) | (605,149,428) |
Net increase (decrease) | (1,168) | (2,151,758) | $ 5,035,394 | $ (13,121,822) |
Class F | | | | |
Shares sold | 6,523,897 | 8,411,513 | $ 95,189,060 | $ 109,778,609 |
Reinvestment of distributions | 192,943 | 2,350 | 2,781,462 | 28,266 |
Shares redeemed | (711,650) | (337,999) | (10,468,543) | (4,618,215) |
Net increase (decrease) | 6,005,190 | 8,075,864 | $ 87,501,979 | $ 105,188,660 |
Institutional Class | | | | |
Shares sold | 2,846,408 | 5,522,070 | $ 42,040,609 | $ 73,692,691 |
Reinvestment of distributions | 90,435 | 7,512 | 1,288,856 | 90,344 |
Shares redeemed | (1,762,365) | (671,565) | (25,810,066) | (8,789,847) |
Net increase (decrease) | 1,174,478 | 4,858,017 | $ 17,519,399 | $ 64,993,188 |
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 and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 36% 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.
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-0311
1.803748.107
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity 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 28, 2011 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | March 28, 2011 |
By: | /s/ Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | March 28, 2011 |
