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)
Eric D. Roiter, 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: | November 30 |
Date of reporting period: | May 31, 2005 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Aggressive Growth
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. 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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 (December 1, 2004 to May 31, 2005).
Actual Expenses
The first line of the table below for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,005.80 | $ 6.80** |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 6.84** |
Class T | |||
Actual | $ 1,000.00 | $ 1,004.70 | $ 8.05** |
HypotheticalA | $ 1,000.00 | $ 1,016.90 | $ 8.10** |
Class B | |||
Actual | $ 1,000.00 | $ 1,002.40 | $ 10.58** |
HypotheticalA | $ 1,000.00 | $ 1,014.36 | $ 10.65** |
Beginning | Ending | Expenses Paid | |
Class C | |||
Actual | $ 1,000.00 | $ 1,002.40 | $ 10.58** |
HypotheticalA | $ 1,000.00 | $ 1,014.36 | $ 10.65** |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,006.90 | $ 5.60** |
HypotheticalA | $ 1,000.00 | $ 1,019.35 | $ 5.64** |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Annualized | |
Class A | 1.36%** |
Class T | 1.61%** |
Class B | 2.12%** |
Class C | 2.12%** |
Institutional Class | 1.12%** |
** If changes to voluntary expense limitations effective February 1, 2005 had been in effect during the entire period, the annualized expense ratios and the expenses paid in the actual and hypothetical examples above would have been as follows:
Annualized | Expenses | |
Class A | 1.30% | |
Actual | $ 6.50 | |
HypotheticalA | $ 6.54 | |
Class T | 1.55% | |
Actual | $ 7.75 | |
HypotheticalA | $ 7.80 | |
Class B | 2.05% | |
Actual | $ 10.24 | |
HypotheticalA | $ 10.30 | |
Class C | 2.05% | |
Actual | $ 10.24 | |
HypotheticalA | $ 10.30 | |
Institutional Class | 1.05% | |
Actual | $ 5.25 | |
HypotheticalA | $ 5.29 |
A 5% return per year before expenses
Semiannual Report
Investment Changes
Top Ten Stocks as of May 31, 2005 | ||
% of fund's | % of fund's net assets | |
Genentech, Inc. | 5.5 | 3.4 |
Microchip Technology, Inc. | 2.0 | 1.7 |
Juniper Networks, Inc. | 1.9 | 2.3 |
Sepracor, Inc. | 1.7 | 1.1 |
Biogen Idec, Inc. | 1.7 | 3.3 |
Anthem, Inc. | 1.5 | 0.2 |
eBay, Inc. | 1.4 | 0.6 |
Baker Hughes, Inc. | 1.4 | 1.2 |
Yahoo!, Inc. | 1.3 | 0.9 |
Adobe Systems, Inc. | 1.1 | 0.9 |
19.5 | ||
Top Five Market Sectors as of May 31, 2005 | ||
% of fund's | % of fund's net assets | |
Health Care | 29.2 | 32.3 |
Information Technology | 26.9 | 26.4 |
Consumer Discretionary | 17.1 | 15.3 |
Energy | 7.3 | 5.3 |
Industrials | 6.8 | 8.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2005 * | As of November 30, 2004 ** | ||||||
![]() | Stocks 98.0% | ![]() | Stocks 97.3% | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign | 6.2% | ** Foreign | 6.4% |
Semiannual Report
Investments May 31, 2005 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 17.1% | |||
Auto Components - 0.1% | |||
Gentex Corp. | 1,600 | $ 28,608 | |
Diversified Consumer Services - 1.1% | |||
Career Education Corp. (a) | 2,300 | 79,741 | |
Education Management Corp. (a) | 1,838 | 59,643 | |
H&R Block, Inc. | 2,690 | 134,285 | |
Weight Watchers International, Inc. (a) | 3,110 | 151,302 | |
424,971 | |||
Hotels, Restaurants & Leisure - 5.0% | |||
Brinker International, Inc. (a) | 3,580 | 134,680 | |
Carnival Corp. unit | 3,100 | 163,990 | |
Harrah's Entertainment, Inc. | 1,260 | 90,481 | |
Hilton Hotels Corp. | 7,100 | 172,033 | |
Marriott International, Inc. Class A | 2,090 | 141,159 | |
Outback Steakhouse, Inc. | 1,900 | 84,075 | |
Penn National Gaming, Inc. (a) | 3,800 | 123,766 | |
Station Casinos, Inc. | 3,700 | 240,870 | |
Sunterra Corp. (a) | 1,500 | 23,400 | |
The Cheesecake Factory, Inc. (a) | 2,620 | 92,512 | |
Wendy's International, Inc. | 2,700 | 121,851 | |
Wynn Resorts Ltd. (a) | 2,900 | 135,865 | |
Yum! Brands, Inc. | 8,780 | 450,326 | |
1,975,008 | |||
Household Durables - 1.9% | |||
Black & Decker Corp. | 1,910 | 166,781 | |
Fortune Brands, Inc. | 4,200 | 363,300 | |
Harman International Industries, Inc. | 2,020 | 167,377 | |
Mohawk Industries, Inc. (a) | 880 | 73,410 | |
770,868 | |||
Internet & Catalog Retail - 1.4% | |||
eBay, Inc. (a) | 14,500 | 551,145 | |
Leisure Equipment & Products - 0.4% | |||
Brunswick Corp. | 2,000 | 86,080 | |
Polaris Industries, Inc. | 1,000 | 52,470 | |
138,550 | |||
Media - 2.3% | |||
Cablevision Systems Corp. - NY Group Class A (a) | 1,400 | 35,812 | |
E.W. Scripps Co. Class A | 4,700 | 240,170 | |
Getty Images, Inc. (a) | 1,780 | 133,215 | |
Lamar Advertising Co. Class A (a) | 1,110 | 46,420 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
NTL, Inc. (a) | 1,582 | $ 101,691 | |
Pixar (a) | 3,340 | 176,118 | |
Playboy Enterprises, Inc. Class B (non-vtg.) (a) | 200 | 2,534 | |
Radio One, Inc. Class D (non-vtg.) (a) | 1,000 | 12,600 | |
XM Satellite Radio Holdings, Inc. Class A (a) | 4,800 | 154,128 | |
902,688 | |||
Multiline Retail - 0.7% | |||
Federated Department Stores, Inc. | 600 | 40,470 | |
Nordstrom, Inc. | 4,000 | 244,160 | |
284,630 | |||
Specialty Retail - 3.3% | |||
Abercrombie & Fitch Co. Class A | 2,600 | 149,058 | |
Bed Bath & Beyond, Inc. (a) | 3,400 | 138,210 | |
Chico's FAS, Inc. (a) | 9,740 | 333,205 | |
Foot Locker, Inc. | 1,000 | 26,410 | |
Hot Topic, Inc. (a) | 655 | 14,063 | |
Kirkland's, Inc. (a) | 1,200 | 10,668 | |
PETsMART, Inc. | 6,760 | 214,765 | |
Pier 1 Imports, Inc. | 500 | 8,395 | |
Ross Stores, Inc. | 11,680 | 329,142 | |
Williams-Sonoma, Inc. (a) | 2,470 | 97,145 | |
1,321,061 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Coach, Inc. (a) | 12,560 | 364,742 | |
TOTAL CONSUMER DISCRETIONARY | 6,762,271 | ||
CONSUMER STAPLES - 1.7% | |||
Food & Staples Retailing - 0.8% | |||
CVS Corp. | 2,900 | 159,065 | |
Whole Foods Market, Inc. | 1,410 | 167,762 | |
326,827 | |||
Food Products - 0.9% | |||
Bunge Ltd. | 600 | 37,224 | |
Hershey Co. | 3,580 | 229,872 | |
McCormick & Co., Inc. (non-vtg.) | 2,100 | 71,064 | |
338,160 | |||
TOTAL CONSUMER STAPLES | 664,987 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
ENERGY - 7.3% | |||
Energy Equipment & Services - 4.9% | |||
Baker Hughes, Inc. | 11,900 | $ 549,661 | |
BJ Services Co. | 200 | 10,070 | |
Cooper Cameron Corp. (a) | 4,300 | 254,173 | |
ENSCO International, Inc. | 2,510 | 83,583 | |
Halliburton Co. | 900 | 38,466 | |
Nabors Industries Ltd. (a) | 1,260 | 69,439 | |
Noble Corp. | 2,170 | 122,865 | |
Patterson-UTI Energy, Inc. | 7,640 | 202,384 | |
Smith International, Inc. | 4,430 | 260,307 | |
Weatherford International Ltd. (a) | 6,530 | 343,282 | |
1,934,230 | |||
Oil, Gas & Consumable Fuels - 2.4% | |||
Ashland, Inc. | 2,500 | 170,750 | |
EOG Resources, Inc. | 3,200 | 159,648 | |
Massey Energy Co. | 3,200 | 129,376 | |
Pioneer Natural Resources Co. | 5,970 | 239,576 | |
Teekay Shipping Corp. | 2,540 | 107,899 | |
Valero Energy Corp. | 700 | 48,034 | |
XTO Energy, Inc. | 3,200 | 99,584 | |
954,867 | |||
TOTAL ENERGY | 2,889,097 | ||
FINANCIALS - 3.8% | |||
Capital Markets - 2.3% | |||
Ameritrade Holding Corp. (a) | 7,880 | 117,097 | |
E*TRADE Financial Corp. (a) | 9,400 | 116,090 | |
Eaton Vance Corp. (non-vtg.) | 6,420 | 156,391 | |
Federated Investors, Inc. Class B (non-vtg.) | 1,980 | 58,628 | |
Legg Mason, Inc. | 3,280 | 269,550 | |
SEI Investments Co. | 2,100 | 72,996 | |
T. Rowe Price Group, Inc. | 1,450 | 86,507 | |
Waddell & Reed Financial, Inc. Class A | 2,900 | 55,593 | |
932,852 | |||
Commercial Banks - 0.5% | |||
North Fork Bancorp, Inc., New York | 2,100 | 57,246 | |
Synovus Financial Corp. | 3,940 | 114,536 | |
UnionBanCal Corp. | 300 | 18,831 | |
190,613 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 1.0% | |||
Countrywide Financial Corp. | 400 | $ 14,868 | |
MGIC Investment Corp. | 1,800 | 110,412 | |
New York Community Bancorp, Inc. | 5,773 | 105,184 | |
Radian Group, Inc. | 3,300 | 151,404 | |
The PMI Group, Inc. | 300 | 11,340 | |
393,208 | |||
TOTAL FINANCIALS | 1,516,673 | ||
HEALTH CARE - 29.2% | |||
Biotechnology - 12.1% | |||
Amylin Pharmaceuticals, Inc. (a) | 2,290 | 36,594 | |
Biogen Idec, Inc. (a) | 17,080 | 667,828 | |
Celgene Corp. (a) | 8,340 | 353,116 | |
Cephalon, Inc. (a) | 1,240 | 52,601 | |
Charles River Laboratories International, Inc. (a) | 1,720 | 82,715 | |
DOV Pharmaceutical, Inc. (a) | 7,600 | 114,760 | |
Genentech, Inc. (a) | 27,540 | 2,182,542 | |
Genzyme Corp. (a) | 6,400 | 399,296 | |
ImClone Systems, Inc. (a) | 1,870 | 61,972 | |
Invitrogen Corp. (a) | 1,000 | 79,330 | |
Medarex, Inc. (a) | 17,400 | 131,892 | |
MedImmune, Inc. (a) | 6,210 | 163,944 | |
Millennium Pharmaceuticals, Inc. (a) | 1,980 | 16,573 | |
ONYX Pharmaceuticals, Inc. (a) | 700 | 17,493 | |
OSI Pharmaceuticals, Inc. (a) | 3,840 | 142,733 | |
Protein Design Labs, Inc. (a) | 15,570 | 297,387 | |
4,800,776 | |||
Health Care Equipment & Supplies - 5.7% | |||
Advanced Medical Optics, Inc. (a) | 2,000 | 77,220 | |
Alcon, Inc. | 2,300 | 235,221 | |
Bausch & Lomb, Inc. | 200 | 15,618 | |
Baxter International, Inc. | 5,630 | 207,747 | |
Beckman Coulter, Inc. | 3,600 | 252,216 | |
Biomet, Inc. | 9,530 | 359,186 | |
C.R. Bard, Inc. | 4,460 | 304,395 | |
Cooper Companies, Inc. | 800 | 52,840 | |
Cytyc Corp. (a) | 3,100 | 72,571 | |
DENTSPLY International, Inc. | 1,350 | 77,018 | |
Edwards Lifesciences Corp. (a) | 3,900 | 178,269 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Inverness Medical Innovations, Inc. (a) | 3,200 | $ 90,560 | |
ResMed, Inc. (a) | 2,800 | 174,916 | |
Stryker Corp. | 1,440 | 70,056 | |
Waters Corp. (a) | 2,050 | 79,643 | |
2,247,476 | |||
Health Care Providers & Services - 7.9% | |||
AmerisourceBergen Corp. | 820 | 52,947 | |
Andrx Corp. (a) | 1,900 | 37,962 | |
Cerner Corp. (a) | 1,100 | 71,885 | |
Community Health Systems, Inc. (a) | 600 | 21,822 | |
Covance, Inc. (a) | 3,500 | 152,810 | |
Coventry Health Care, Inc. (a) | 2,260 | 157,341 | |
DaVita, Inc. (a) | 450 | 20,727 | |
Health Management Associates, Inc. Class A | 12,840 | 323,825 | |
Henry Schein, Inc. (a) | 3,000 | 120,870 | |
Humana, Inc. (a) | 1,400 | 50,904 | |
Laboratory Corp. of America Holdings (a) | 1,400 | 67,830 | |
Lincare Holdings, Inc. (a) | 8,700 | 382,452 | |
McKesson Corp. | 1,300 | 52,351 | |
Medco Health Solutions, Inc. (a) | 3,284 | 164,200 | |
Omnicare, Inc. | 700 | 26,824 | |
PacifiCare Health Systems, Inc. (a) | 600 | 37,698 | |
Patterson Companies, Inc. (a) | 1,800 | 81,702 | |
Pharmaceutical Product Development, Inc. (a) | 2,300 | 111,274 | |
Quest Diagnostics, Inc. | 1,100 | 115,500 | |
Renal Care Group, Inc. (a) | 1,800 | 83,232 | |
Sunrise Senior Living, Inc. (a) | 1,800 | 93,870 | |
Triad Hospitals, Inc. (a) | 670 | 33,982 | |
UnitedHealth Group, Inc. | 4,080 | 198,206 | |
Universal Health Services, Inc. Class B | 400 | 23,372 | |
WellChoice, Inc. (a) | 900 | 51,390 | |
WellPoint, Inc. (a) | 4,500 | 598,500 | |
3,133,476 | |||
Pharmaceuticals - 3.5% | |||
Barr Pharmaceuticals, Inc. (a) | 2,227 | 113,176 | |
Elan Corp. PLC sponsored ADR (a)(d) | 26,720 | 211,088 | |
IVAX Corp. (a) | 2,750 | 54,038 | |
MGI Pharma, Inc. (a) | 9,200 | 213,440 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
NitroMed, Inc. (a) | 6,900 | $ 132,066 | |
Sepracor, Inc. (a) | 11,050 | 671,398 | |
1,395,206 | |||
TOTAL HEALTH CARE | 11,576,934 | ||
INDUSTRIALS - 6.8% | |||
Aerospace & Defense - 1.8% | |||
EADS NV | 2,280 | 67,420 | |
Lockheed Martin Corp. | 1,300 | 84,357 | |
Precision Castparts Corp. | 1,800 | 139,914 | |
Rockwell Collins, Inc. | 5,100 | 251,889 | |
The Boeing Co. | 2,600 | 166,140 | |
709,720 | |||
Air Freight & Logistics - 0.1% | |||
Expeditors International of Washington, Inc. | 1,000 | 50,980 | |
Airlines - 0.4% | |||
Southwest Airlines Co. | 9,000 | 130,950 | |
Building Products - 1.1% | |||
American Standard Companies, Inc. | 9,540 | 408,312 | |
Trex Co., Inc. (a) | 600 | 23,130 | |
431,442 | |||
Commercial Services & Supplies - 1.3% | |||
Cintas Corp. | 3,198 | 129,103 | |
Equifax, Inc. | 2,330 | 80,828 | |
Herman Miller, Inc. | 1,930 | 56,182 | |
Pitney Bowes, Inc. | 3,450 | 153,905 | |
Robert Half International, Inc. | 4,130 | 103,002 | |
523,020 | |||
Construction & Engineering - 0.3% | |||
Granite Construction, Inc. | 2,200 | 51,590 | |
Jacobs Engineering Group, Inc. (a) | 1,300 | 68,354 | |
119,944 | |||
Electrical Equipment - 0.2% | |||
AMETEK, Inc. | 600 | 22,938 | |
Rockwell Automation, Inc. | 1,300 | 66,781 | |
89,719 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - continued | |||
Machinery - 0.5% | |||
ITT Industries, Inc. | 1,960 | $ 186,200 | |
SPX Corp. | 500 | 22,205 | |
208,405 | |||
Marine - 0.1% | |||
Alexander & Baldwin, Inc. | 500 | 22,225 | |
Road & Rail - 0.7% | |||
Burlington Northern Santa Fe Corp. | 1,000 | 49,420 | |
CSX Corp. | 1,000 | 41,580 | |
Laidlaw International, Inc. (a) | 2,400 | 53,376 | |
Norfolk Southern Corp. | 2,900 | 92,568 | |
Union Pacific Corp. | 600 | 40,176 | |
277,120 | |||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. | 1,624 | 94,387 | |
MSC Industrial Direct Co., Inc. Class A | 600 | 18,678 | |
113,065 | |||
TOTAL INDUSTRIALS | 2,676,590 | ||
INFORMATION TECHNOLOGY - 26.9% | |||
Communications Equipment - 4.3% | |||
AudioCodes Ltd. (a) | 8,160 | 98,491 | |
Corning, Inc. (a) | 7,170 | 112,426 | |
Enterasys Networks, Inc. (a) | 328 | 305 | |
Finisar Corp. (a) | 31,300 | 37,247 | |
Harris Corp. | 4,800 | 137,952 | |
Juniper Networks, Inc. (a) | 29,200 | 748,688 | |
Nokia Corp. sponsored ADR | 13,500 | 227,610 | |
QUALCOMM, Inc. | 9,220 | 343,537 | |
1,706,256 | |||
Computers & Peripherals - 2.5% | |||
Apple Computer, Inc. (a) | 10,500 | 416,955 | |
Emulex Corp. (a) | 21,000 | 396,900 | |
Hutchinson Technology, Inc. (a) | 500 | 20,685 | |
Maxtor Corp. (a) | 3,500 | 19,215 | |
NCR Corp. (a) | 1,000 | 36,630 | |
QLogic Corp. (a) | 600 | 19,212 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Seagate Technology | 1,500 | $ 31,830 | |
Western Digital Corp. (a) | 4,100 | 61,541 | |
1,002,968 | |||
Electronic Equipment & Instruments - 0.3% | |||
KEMET Corp. (a) | 2,700 | 18,900 | |
Sanmina-SCI Corp. (a) | 3,900 | 20,007 | |
Symbol Technologies, Inc. | 6,970 | 80,225 | |
119,132 | |||
Internet Software & Services - 2.1% | |||
Google, Inc. Class A (sub. vtg.) | 1,000 | 278,400 | |
Lastminute.com PLC (a) | 500 | 1,506 | |
Marchex, Inc. Class B | 3,000 | 44,760 | |
Yahoo!, Inc. (a) | 13,380 | 497,736 | |
822,402 | |||
IT Services - 2.2% | |||
Cognizant Technology Solutions Corp. Class A (a) | 2,600 | 124,800 | |
Computer Sciences Corp. (a) | 600 | 27,786 | |
DST Systems, Inc. (a) | 1,600 | 77,376 | |
Fiserv, Inc. (a) | 3,270 | 140,610 | |
Infosys Technologies Ltd. sponsored ADR (d) | 5,820 | 421,019 | |
Iron Mountain, Inc. (a) | 1,605 | 46,064 | |
The BISYS Group, Inc. (a) | 2,580 | 39,345 | |
877,000 | |||
Office Electronics - 0.5% | |||
Zebra Technologies Corp. Class A (a) | 4,619 | 197,139 | |
Semiconductors & Semiconductor Equipment - 9.2% | |||
Advanced Micro Devices, Inc. (a) | 8,200 | 134,480 | |
Agere Systems, Inc. (a) | 2,163 | 29,417 | |
Altera Corp. (a) | 10,300 | 228,557 | |
Broadcom Corp. Class A (a) | 8,500 | 301,665 | |
Brooks Automation, Inc. (a) | 4,300 | 64,844 | |
Conexant Systems, Inc. (a) | 250 | 358 | |
Cree, Inc. (a) | 1,100 | 33,044 | |
Freescale Semiconductor, Inc. Class B (a) | 2,314 | 46,743 | |
Integrated Circuit Systems, Inc. (a) | 5,000 | 105,950 | |
Integrated Device Technology, Inc. (a) | 8,090 | 98,941 | |
Intel Corp. | 4,100 | 110,413 | |
Intersil Corp. Class A | 10,200 | 191,352 | |
KLA-Tencor Corp. | 40 | 1,816 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Lam Research Corp. (a) | 5,880 | $ 180,398 | |
Linear Technology Corp. | 3,100 | 116,157 | |
Marvell Technology Group Ltd. (a) | 1,100 | 45,056 | |
Maxim Integrated Products, Inc. | 4,800 | 189,120 | |
Microchip Technology, Inc. | 26,270 | 778,643 | |
National Semiconductor Corp. | 8,800 | 177,056 | |
Novellus Systems, Inc. (a) | 4,100 | 109,265 | |
NVIDIA Corp. (a) | 3,879 | 105,470 | |
Photronics, Inc. (a) | 5,416 | 124,730 | |
PMC-Sierra, Inc. (a) | 33,230 | 291,427 | |
Rambus, Inc. (a) | 800 | 12,264 | |
Silicon Laboratories, Inc. (a) | 380 | 10,537 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 1,200 | 48,696 | |
Xilinx, Inc. | 3,900 | 108,225 | |
3,644,624 | |||
Software - 5.8% | |||
Adobe Systems, Inc. | 13,640 | 450,938 | |
Autodesk, Inc. | 5,455 | 215,909 | |
BEA Systems, Inc. (a) | 11,350 | 95,681 | |
Citrix Systems, Inc. (a) | 5,170 | 130,077 | |
Cognos, Inc. (a) | 700 | 26,295 | |
FileNET Corp. (a) | 2,398 | 66,808 | |
Macromedia, Inc. (a) | 2,200 | 97,284 | |
Macrovision Corp. (a) | 700 | 14,707 | |
Siebel Systems, Inc. (a) | 39,408 | 363,342 | |
Symantec Corp. (a) | 18,900 | 427,329 | |
TIBCO Software, Inc. (a) | 1,800 | 11,412 | |
VERITAS Software Corp. (a) | 16,100 | 400,407 | |
2,300,189 | |||
TOTAL INFORMATION TECHNOLOGY | 10,669,710 | ||
MATERIALS - 3.2% | |||
Chemicals - 1.6% | |||
Ferro Corp. | 1,600 | 30,784 | |
International Flavors & Fragrances, Inc. | 1,200 | 44,508 | |
Monsanto Co. | 3,400 | 193,800 | |
Potash Corp. of Saskatchewan | 2,600 | 233,548 | |
Praxair, Inc. | 3,000 | 140,610 | |
643,250 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
MATERIALS - continued | |||
Construction Materials - 0.1% | |||
Florida Rock Industries, Inc. | 200 | $ 13,090 | |
Vulcan Materials Co. | 800 | 47,944 | |
61,034 | |||
Containers & Packaging - 0.9% | |||
Owens-Illinois, Inc. (a) | 4,010 | 103,097 | |
Pactiv Corp. (a) | 2,000 | 45,700 | |
Sealed Air Corp. (a) | 3,770 | 195,248 | |
344,045 | |||
Metals & Mining - 0.6% | |||
Freeport-McMoRan Copper & Gold, Inc. Class B | 3,350 | 118,255 | |
Metal Management, Inc. | 2,451 | 45,025 | |
Nucor Corp. | 1,200 | 63,552 | |
226,832 | |||
TOTAL MATERIALS | 1,275,161 | ||
TELECOMMUNICATION SERVICES - 1.6% | |||
Diversified Telecommunication Services - 0.1% | |||
Philippine Long Distance Telephone Co. sponsored ADR | 1,000 | 27,140 | |
Wireless Telecommunication Services - 1.5% | |||
Alamosa Holdings, Inc. (a) | 15,100 | 186,485 | |
America Movil SA de CV Series L sponsored ADR | 6,200 | 351,416 | |
InPhonic, Inc. | 3,500 | 51,695 | |
NII Holdings, Inc. (a) | 500 | 29,800 | |
619,396 | |||
TOTAL TELECOMMUNICATION SERVICES | 646,536 | ||
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
AES Corp. (a) | 10,600 | 157,834 | |
TOTAL COMMON STOCKS (Cost $33,792,121) | 38,835,793 | ||
Money Market Funds - 3.6% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 3.05% (b) | 896,997 | $ 896,997 | |
Fidelity Securities Lending Cash Central Fund, 3.06% (b)(c) | 529,875 | 529,875 | |
TOTAL MONEY MARKET FUNDS (Cost $1,426,872) | 1,426,872 | ||
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $35,218,993) | 40,262,665 | ||
NET OTHER ASSETS - (1.6)% | (646,137) | ||
NET ASSETS - 100% | $ 39,616,528 |
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 listing of the fund's holdings as of its most recent quarter end is available 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. |
Income Tax Information |
At November 30, 2004, the fund had a capital loss carryforward of approximately $11,252,773 of which $4,311,651 and $6,940,122 will expire on November 30, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
May 31, 2005 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $521,992) (cost $35,218,993) - See accompanying schedule | $ 40,262,665 | |
Cash | 24,107 | |
Receivable for investments sold | 169,938 | |
Receivable for fund shares sold | 29,182 | |
Dividends receivable | 21,829 | |
Interest receivable | 2,504 | |
Prepaid expenses | 97 | |
Receivable from investment adviser for expense reductions | 9,886 | |
Other receivables | 9,292 | |
Total assets | 40,529,500 | |
Liabilities | ||
Payable for investments purchased | $ 234,915 | |
Payable for fund shares redeemed | 74,085 | |
Accrued management fee | 19,994 | |
Distribution fees payable | 21,248 | |
Other affiliated payables | 12,186 | |
Other payables and accrued expenses | 20,669 | |
Collateral on securities loaned, at value | 529,875 | |
Total liabilities | 912,972 | |
Net Assets | $ 39,616,528 | |
Net Assets consist of: | ||
Paid in capital | $ 46,598,630 | |
Accumulated net investment loss | (224,728) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,801,015) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 5,043,641 | |
Net Assets | $ 39,616,528 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
May 31, 2005 (Unaudited) | ||
Calculation of Maximum Offering Price | $ 8.66 | |
Maximum offering price per share (100/94.25 of $8.66) | $ 9.19 | |
Class T: | $ 8.56 | |
Maximum offering price per share (100/96.50 of $8.56) | $ 8.87 | |
Class B: | $ 8.38 | |
Class C: | $ 8.39 | |
Institutional Class: | $ 8.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2005 (Unaudited) | ||
Investment Income | ||
Dividends | $ 98,591 | |
Interest | 14,278 | |
Security lending | 8,728 | |
Total income | 121,597 | |
Expenses | ||
Management fee | $ 123,386 | |
Transfer agent fees | 83,618 | |
Distribution fees | 133,471 | |
Accounting and security lending fees | 10,061 | |
Independent trustees' compensation | 96 | |
Custodian fees and expenses | 9,074 | |
Registration fees | 26,078 | |
Audit | 21,533 | |
Legal | 55 | |
Miscellaneous | 212 | |
Total expenses before reductions | 407,584 | |
Expense reductions | (61,259) | 346,325 |
Net investment income (loss) | (224,728) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | (388,294) | |
Foreign currency transactions | (139) | |
Total net realized gain (loss) | (388,433) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 737,817 | |
Assets and liabilities in foreign currencies | (89) | |
Total change in net unrealized appreciation (depreciation) | 737,728 | |
Net gain (loss) | 349,295 | |
Net increase (decrease) in net assets resulting from operations | $ 124,567 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ (224,728) | $ (559,618) |
Net realized gain (loss) | (388,433) | 3,516,046 |
Change in net unrealized appreciation (depreciation) | 737,728 | (473,553) |
Net increase (decrease) in net assets resulting | 124,567 | 2,482,875 |
Share transactions - net increase (decrease) | (1,214,218) | 4,161,402 |
Total increase (decrease) in net assets | (1,089,651) | 6,644,277 |
Net Assets | ||
Beginning of period | 40,706,179 | 34,061,902 |
End of period (including accumulated net investment loss of $224,728 and $0, respectively) | $ 39,616,528 | $ 40,706,179 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.61 | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.03) | (.09) | (.06) | (.08) | (.01) | - H |
Net realized and unrealized gain (loss) | .08 | .68 | 1.61 | (1.53) | (.95) | (.95) |
Total from investment operations | .05 | .59 | 1.55 | (1.61) | (.96) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.66 | $ 8.61 | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 |
Total Return B, C, D | .58% | 7.36% | 23.96% | (19.93)% | (10.62)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 1.61% A | 1.90% | 2.25% | 2.05% | 2.06% | 31.94% A |
Expenses net of voluntary waivers, if any | 1.36% A | 1.50% | 1.54% | 1.69% | 1.75% | 1.75% A |
Expenses net of all reductions | 1.32% A | 1.45% | 1.47% | 1.49% | 1.71% | 1.75% A |
Net investment income (loss) | (.71)% A | (1.03)% | (.89)% | (1.07)% | (.14)% | .99% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 6,748 | $ 6,227 | $ 4,177 | $ 2,620 | $ 3,320 | $ 1,789 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
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 For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class T
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.52 | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.04) | (.11) | (.08) | (.10) | (.03) | - H |
Net realized and unrealized gain (loss) | .08 | .68 | 1.60 | (1.53) | (.95) | (.95) |
Total from investment operations | .04 | .57 | 1.52 | (1.63) | (.98) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.56 | $ 8.52 | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 |
Total Return B, C, D | .47% | 7.17% | 23.64% | (20.22)% | (10.84)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 1.94% A | 2.25% | 2.47% | 2.16% | 2.30% | 32.36% A |
Expenses net of voluntary waivers, if any | 1.61% A | 1.75% | 1.79% | 1.92% | 2.00% | 2.00% A |
Expenses net of all reductions | 1.57% A | 1.71% | 1.72% | 1.72% | 1.96% | 2.00% A |
Net investment income (loss) | (.96)% A | (1.28)% | (1.14)% | (1.29)% | (.39)% | .74% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 15,732 | $ 15,101 | $ 12,458 | $ 10,511 | $ 14,165 | $ 2,767 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class B
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.36 | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.06) | (.14) | (.11) | (.13) | (.08) | - H |
Net realized and unrealized gain (loss) | .08 | .66 | 1.58 | (1.52) | (.94) | (.95) |
Total from investment operations | .02 | .52 | 1.47 | (1.65) | (1.02) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.38 | $ 8.36 | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 |
Total Return B, C, D | .24% | 6.63% | 23.08% | (20.57)% | (11.29)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 2.36% A | 2.67% | 2.92% | 2.73% | 2.86% | 32.87% A |
Expenses net of voluntary waivers, if any | 2.12% A | 2.25% | 2.25% | 2.43% | 2.50% | 2.50% A |
Expenses net of all reductions | 2.07% A | 2.21% | 2.18% | 2.23% | 2.46% | 2.50% A |
Net investment income (loss) | (1.46)% A | (1.78)% | (1.60)% | (1.81)% | (.89)% | .24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 8,993 | $ 9,593 | $ 8,422 | $ 6,262 | $ 8,038 | $ 1,659 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class C
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.37 | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.06) | (.14) | (.11) | (.13) | (.08) | - H |
Net realized and unrealized gain (loss) | .08 | .66 | 1.58 | (1.52) | (.93) | (.95) |
Total from investment operations | .02 | .52 | 1.47 | (1.65) | (1.01) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.39 | $ 8.37 | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 |
Total Return B, C, D | .24% | 6.62% | 23.04% | (20.55)% | (11.18)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 2.34% A | 2.52% | 2.77% | 2.58% | 2.79% | 32.69% A |
Expenses net of voluntary waivers, if any | 2.12% A | 2.25% | 2.25% | 2.36% | 2.50% | 2.50% A |
Expenses net of all reductions | 2.08% A | 2.21% | 2.18% | 2.16% | 2.46% | 2.50% A |
Net investment income (loss) | (1.46)% A | (1.78)% | (1.61)% | (1.74)% | (.89)% | .24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 7,672 | $ 9,136 | $ 8,427 | $ 6,636 | $ 8,532 | $ 1,224 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 E | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.73 | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) D | (.02) | (.07) | (.04) | (.05) | .01 | .01 |
Net realized and unrealized gain (loss) | .08 | .70 | 1.62 | (1.54) | (.95) | (.95) |
Total from investment operations | .06 | .63 | 1.58 | (1.59) | (.94) | (.94) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.79 | $ 8.73 | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 |
Total Return B, C | .69% | 7.78% | 24.23% | (19.61)% | (10.39)% | (9.40)% |
Ratios to Average Net Assets F | ||||||
Expenses before expense reductions | 1.28% A | 1.35% | 1.61% | 1.43% | 1.73% | 31.51% A |
Expenses net of voluntary waivers, if any | 1.12% A | 1.25% | 1.25% | 1.27% | 1.50% | 1.50% A |
Expenses net of all reductions | 1.08% A | 1.20% | 1.18% | 1.07% | 1.46% | 1.50% A |
Net investment income (loss) | (.47)% A | (.78)% | (.61)% | (.64)% | .11% | 1.24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 471 | $ 648 | $ 579 | $ 513 | $ 761 | $ 325 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% 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 For the period November 13, 2000 (commencement of operations) to November 30, 2000.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 May 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Aggressive Growth Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. 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. Security transactions are accounted for as of trade date. 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 is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each fund in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 7,256,187 | |
Unrealized depreciation | (2,394,967) | |
Net unrealized appreciation (depreciation) | $ 4,861,220 | |
Cost for federal income tax purposes | $ 35,401,445 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (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. 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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $16,509,025 and $17,628,768, respectively.
4. 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 .27% during the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 .62% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .25% | $ 7,876 | $ 58 |
Class T | .25% | .25% | 38,083 | 105 |
Class B | .75% | .25% | 45,976 | 34,481 |
Class C | .75% | .25% | 41,536 | 5,179 |
$ 133,471 | $ 39,823 |
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, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | ||
Class A | $ 5,410 | |
Class T | 6,413 | |
Class B* | 21,256 | |
Class C* | 690 | |
$ 33,769 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC, were as follows:
Amount | % of | |
Class A | $ 12,554 | .40 * |
Class T | 36,355 | .48 * |
Class B | 18,167 | .40 * |
Class C | 15,563 | .37 * |
Institutional Class | 979 | .32 * |
$ 83,618 |
* 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $14,708 for the period.
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 $950 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. 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. Cash collateral 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.
7. 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, are excluded from this reimbursement.
Expense | Reimbursement | |
Class A | 1.50% - 1.30% * | $ 7,738 |
Class T | 1.75% - 1.55%* | 24,639 |
Class B | 2.25% - 2.05%* | 11,099 |
Class C | 2.25% - 2.05% * | 9,138 |
Institutional Class | 1.25% - 1.05% * | 486 |
$ 53,100 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $8,159 for the period.
8. 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
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 169,148 | 377,272 | $ 1,429,802 | $ 3,139,679 |
Shares redeemed | (113,277) | (175,236) | (965,310) | (1,453,350) |
Net increase (decrease) | 55,871 | 202,036 | $ 464,492 | $ 1,686,329 |
Class T | ||||
Shares sold | 400,082 | 758,262 | $ 3,386,064 | $ 6,209,847 |
Shares redeemed | (334,390) | (552,792) | (2,827,111) | (4,525,646) |
Net increase (decrease) | 65,692 | 205,470 | $ 558,953 | $ 1,684,201 |
Class B | ||||
Shares sold | 108,476 | 359,634 | $ 896,068 | $ 2,916,093 |
Shares redeemed | (182,588) | (286,300) | (1,504,814) | (2,305,579) |
Net increase (decrease) | (74,112) | 73,334 | $ (608,746) | $ 610,514 |
Class C | ||||
Shares sold | 93,504 | 368,284 | $ 773,318 | $ 2,975,514 |
Shares redeemed | (270,284) | (350,351) | (2,227,299) | (2,819,767) |
Net increase (decrease) | (176,780) | 17,933 | $ (1,453,981) | $ 155,747 |
Institutional Class | ||||
Shares sold | 5,276 | 22,481 | $ 45,351 | $ 187,161 |
Shares redeemed | (25,992) | (19,658) | (220,287) | (162,550) |
Net increase (decrease) | (20,716) | 2,823 | $ (174,936) | $ 24,611 |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) 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
State Street Bank and Trust Company
Quincy, MA
AAG-USAN-0705
1.786773.102
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Aggressive Growth
Fund - Institutional Class
Semiannual Report
May 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. 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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 (December 1, 2004 to May 31, 2005).
Actual Expenses
The first line of the table below for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,005.80 | $ 6.80** |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 6.84** |
Class T | |||
Actual | $ 1,000.00 | $ 1,004.70 | $ 8.05** |
HypotheticalA | $ 1,000.00 | $ 1,016.90 | $ 8.10** |
Class B | |||
Actual | $ 1,000.00 | $ 1,002.40 | $ 10.58** |
HypotheticalA | $ 1,000.00 | $ 1,014.36 | $ 10.65** |
Beginning | Ending | Expenses Paid | |
Class C | |||
Actual | $ 1,000.00 | $ 1,002.40 | $ 10.58** |
HypotheticalA | $ 1,000.00 | $ 1,014.36 | $ 10.65** |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,006.90 | $ 5.60** |
HypotheticalA | $ 1,000.00 | $ 1,019.35 | $ 5.64** |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Annualized | |
Class A | 1.36%** |
Class T | 1.61%** |
Class B | 2.12%** |
Class C | 2.12%** |
Institutional Class | 1.12%** |
** If changes to voluntary expense limitations effective February 1, 2005 had been in effect during the entire period, the annualized expense ratios and the expenses paid in the actual and hypothetical examples above would have been as follows:
Annualized | Expenses | |
Class A | 1.30% | |
Actual | $ 6.50 | |
HypotheticalA | $ 6.54 | |
Class T | 1.55% | |
Actual | $ 7.75 | |
HypotheticalA | $ 7.80 | |
Class B | 2.05% | |
Actual | $ 10.24 | |
HypotheticalA | $ 10.30 | |
Class C | 2.05% | |
Actual | $ 10.24 | |
HypotheticalA | $ 10.30 | |
Institutional Class | 1.05% | |
Actual | $ 5.25 | |
HypotheticalA | $ 5.29 |
A 5% return per year before expenses
Semiannual Report
Investment Changes
Top Ten Stocks as of May 31, 2005 | ||
% of fund's | % of fund's net assets | |
Genentech, Inc. | 5.5 | 3.4 |
Microchip Technology, Inc. | 2.0 | 1.7 |
Juniper Networks, Inc. | 1.9 | 2.3 |
Sepracor, Inc. | 1.7 | 1.1 |
Biogen Idec, Inc. | 1.7 | 3.3 |
Anthem, Inc. | 1.5 | 0.2 |
eBay, Inc. | 1.4 | 0.6 |
Baker Hughes, Inc. | 1.4 | 1.2 |
Yahoo!, Inc. | 1.3 | 0.9 |
Adobe Systems, Inc. | 1.1 | 0.9 |
19.5 | ||
Top Five Market Sectors as of May 31, 2005 | ||
% of fund's | % of fund's net assets | |
Health Care | 29.2 | 32.3 |
Information Technology | 26.9 | 26.4 |
Consumer Discretionary | 17.1 | 15.3 |
Energy | 7.3 | 5.3 |
Industrials | 6.8 | 8.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of May 31, 2005 * | As of November 30, 2004 ** | ||||||
![]() | Stocks 98.0% | ![]() | Stocks 97.3% | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign | 6.2% | ** Foreign | 6.4% |
Semiannual Report
Investments May 31, 2005 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 17.1% | |||
Auto Components - 0.1% | |||
Gentex Corp. | 1,600 | $ 28,608 | |
Diversified Consumer Services - 1.1% | |||
Career Education Corp. (a) | 2,300 | 79,741 | |
Education Management Corp. (a) | 1,838 | 59,643 | |
H&R Block, Inc. | 2,690 | 134,285 | |
Weight Watchers International, Inc. (a) | 3,110 | 151,302 | |
424,971 | |||
Hotels, Restaurants & Leisure - 5.0% | |||
Brinker International, Inc. (a) | 3,580 | 134,680 | |
Carnival Corp. unit | 3,100 | 163,990 | |
Harrah's Entertainment, Inc. | 1,260 | 90,481 | |
Hilton Hotels Corp. | 7,100 | 172,033 | |
Marriott International, Inc. Class A | 2,090 | 141,159 | |
Outback Steakhouse, Inc. | 1,900 | 84,075 | |
Penn National Gaming, Inc. (a) | 3,800 | 123,766 | |
Station Casinos, Inc. | 3,700 | 240,870 | |
Sunterra Corp. (a) | 1,500 | 23,400 | |
The Cheesecake Factory, Inc. (a) | 2,620 | 92,512 | |
Wendy's International, Inc. | 2,700 | 121,851 | |
Wynn Resorts Ltd. (a) | 2,900 | 135,865 | |
Yum! Brands, Inc. | 8,780 | 450,326 | |
1,975,008 | |||
Household Durables - 1.9% | |||
Black & Decker Corp. | 1,910 | 166,781 | |
Fortune Brands, Inc. | 4,200 | 363,300 | |
Harman International Industries, Inc. | 2,020 | 167,377 | |
Mohawk Industries, Inc. (a) | 880 | 73,410 | |
770,868 | |||
Internet & Catalog Retail - 1.4% | |||
eBay, Inc. (a) | 14,500 | 551,145 | |
Leisure Equipment & Products - 0.4% | |||
Brunswick Corp. | 2,000 | 86,080 | |
Polaris Industries, Inc. | 1,000 | 52,470 | |
138,550 | |||
Media - 2.3% | |||
Cablevision Systems Corp. - NY Group Class A (a) | 1,400 | 35,812 | |
E.W. Scripps Co. Class A | 4,700 | 240,170 | |
Getty Images, Inc. (a) | 1,780 | 133,215 | |
Lamar Advertising Co. Class A (a) | 1,110 | 46,420 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
NTL, Inc. (a) | 1,582 | $ 101,691 | |
Pixar (a) | 3,340 | 176,118 | |
Playboy Enterprises, Inc. Class B (non-vtg.) (a) | 200 | 2,534 | |
Radio One, Inc. Class D (non-vtg.) (a) | 1,000 | 12,600 | |
XM Satellite Radio Holdings, Inc. Class A (a) | 4,800 | 154,128 | |
902,688 | |||
Multiline Retail - 0.7% | |||
Federated Department Stores, Inc. | 600 | 40,470 | |
Nordstrom, Inc. | 4,000 | 244,160 | |
284,630 | |||
Specialty Retail - 3.3% | |||
Abercrombie & Fitch Co. Class A | 2,600 | 149,058 | |
Bed Bath & Beyond, Inc. (a) | 3,400 | 138,210 | |
Chico's FAS, Inc. (a) | 9,740 | 333,205 | |
Foot Locker, Inc. | 1,000 | 26,410 | |
Hot Topic, Inc. (a) | 655 | 14,063 | |
Kirkland's, Inc. (a) | 1,200 | 10,668 | |
PETsMART, Inc. | 6,760 | 214,765 | |
Pier 1 Imports, Inc. | 500 | 8,395 | |
Ross Stores, Inc. | 11,680 | 329,142 | |
Williams-Sonoma, Inc. (a) | 2,470 | 97,145 | |
1,321,061 | |||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Coach, Inc. (a) | 12,560 | 364,742 | |
TOTAL CONSUMER DISCRETIONARY | 6,762,271 | ||
CONSUMER STAPLES - 1.7% | |||
Food & Staples Retailing - 0.8% | |||
CVS Corp. | 2,900 | 159,065 | |
Whole Foods Market, Inc. | 1,410 | 167,762 | |
326,827 | |||
Food Products - 0.9% | |||
Bunge Ltd. | 600 | 37,224 | |
Hershey Co. | 3,580 | 229,872 | |
McCormick & Co., Inc. (non-vtg.) | 2,100 | 71,064 | |
338,160 | |||
TOTAL CONSUMER STAPLES | 664,987 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
ENERGY - 7.3% | |||
Energy Equipment & Services - 4.9% | |||
Baker Hughes, Inc. | 11,900 | $ 549,661 | |
BJ Services Co. | 200 | 10,070 | |
Cooper Cameron Corp. (a) | 4,300 | 254,173 | |
ENSCO International, Inc. | 2,510 | 83,583 | |
Halliburton Co. | 900 | 38,466 | |
Nabors Industries Ltd. (a) | 1,260 | 69,439 | |
Noble Corp. | 2,170 | 122,865 | |
Patterson-UTI Energy, Inc. | 7,640 | 202,384 | |
Smith International, Inc. | 4,430 | 260,307 | |
Weatherford International Ltd. (a) | 6,530 | 343,282 | |
1,934,230 | |||
Oil, Gas & Consumable Fuels - 2.4% | |||
Ashland, Inc. | 2,500 | 170,750 | |
EOG Resources, Inc. | 3,200 | 159,648 | |
Massey Energy Co. | 3,200 | 129,376 | |
Pioneer Natural Resources Co. | 5,970 | 239,576 | |
Teekay Shipping Corp. | 2,540 | 107,899 | |
Valero Energy Corp. | 700 | 48,034 | |
XTO Energy, Inc. | 3,200 | 99,584 | |
954,867 | |||
TOTAL ENERGY | 2,889,097 | ||
FINANCIALS - 3.8% | |||
Capital Markets - 2.3% | |||
Ameritrade Holding Corp. (a) | 7,880 | 117,097 | |
E*TRADE Financial Corp. (a) | 9,400 | 116,090 | |
Eaton Vance Corp. (non-vtg.) | 6,420 | 156,391 | |
Federated Investors, Inc. Class B (non-vtg.) | 1,980 | 58,628 | |
Legg Mason, Inc. | 3,280 | 269,550 | |
SEI Investments Co. | 2,100 | 72,996 | |
T. Rowe Price Group, Inc. | 1,450 | 86,507 | |
Waddell & Reed Financial, Inc. Class A | 2,900 | 55,593 | |
932,852 | |||
Commercial Banks - 0.5% | |||
North Fork Bancorp, Inc., New York | 2,100 | 57,246 | |
Synovus Financial Corp. | 3,940 | 114,536 | |
UnionBanCal Corp. | 300 | 18,831 | |
190,613 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 1.0% | |||
Countrywide Financial Corp. | 400 | $ 14,868 | |
MGIC Investment Corp. | 1,800 | 110,412 | |
New York Community Bancorp, Inc. | 5,773 | 105,184 | |
Radian Group, Inc. | 3,300 | 151,404 | |
The PMI Group, Inc. | 300 | 11,340 | |
393,208 | |||
TOTAL FINANCIALS | 1,516,673 | ||
HEALTH CARE - 29.2% | |||
Biotechnology - 12.1% | |||
Amylin Pharmaceuticals, Inc. (a) | 2,290 | 36,594 | |
Biogen Idec, Inc. (a) | 17,080 | 667,828 | |
Celgene Corp. (a) | 8,340 | 353,116 | |
Cephalon, Inc. (a) | 1,240 | 52,601 | |
Charles River Laboratories International, Inc. (a) | 1,720 | 82,715 | |
DOV Pharmaceutical, Inc. (a) | 7,600 | 114,760 | |
Genentech, Inc. (a) | 27,540 | 2,182,542 | |
Genzyme Corp. (a) | 6,400 | 399,296 | |
ImClone Systems, Inc. (a) | 1,870 | 61,972 | |
Invitrogen Corp. (a) | 1,000 | 79,330 | |
Medarex, Inc. (a) | 17,400 | 131,892 | |
MedImmune, Inc. (a) | 6,210 | 163,944 | |
Millennium Pharmaceuticals, Inc. (a) | 1,980 | 16,573 | |
ONYX Pharmaceuticals, Inc. (a) | 700 | 17,493 | |
OSI Pharmaceuticals, Inc. (a) | 3,840 | 142,733 | |
Protein Design Labs, Inc. (a) | 15,570 | 297,387 | |
4,800,776 | |||
Health Care Equipment & Supplies - 5.7% | |||
Advanced Medical Optics, Inc. (a) | 2,000 | 77,220 | |
Alcon, Inc. | 2,300 | 235,221 | |
Bausch & Lomb, Inc. | 200 | 15,618 | |
Baxter International, Inc. | 5,630 | 207,747 | |
Beckman Coulter, Inc. | 3,600 | 252,216 | |
Biomet, Inc. | 9,530 | 359,186 | |
C.R. Bard, Inc. | 4,460 | 304,395 | |
Cooper Companies, Inc. | 800 | 52,840 | |
Cytyc Corp. (a) | 3,100 | 72,571 | |
DENTSPLY International, Inc. | 1,350 | 77,018 | |
Edwards Lifesciences Corp. (a) | 3,900 | 178,269 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Inverness Medical Innovations, Inc. (a) | 3,200 | $ 90,560 | |
ResMed, Inc. (a) | 2,800 | 174,916 | |
Stryker Corp. | 1,440 | 70,056 | |
Waters Corp. (a) | 2,050 | 79,643 | |
2,247,476 | |||
Health Care Providers & Services - 7.9% | |||
AmerisourceBergen Corp. | 820 | 52,947 | |
Andrx Corp. (a) | 1,900 | 37,962 | |
Cerner Corp. (a) | 1,100 | 71,885 | |
Community Health Systems, Inc. (a) | 600 | 21,822 | |
Covance, Inc. (a) | 3,500 | 152,810 | |
Coventry Health Care, Inc. (a) | 2,260 | 157,341 | |
DaVita, Inc. (a) | 450 | 20,727 | |
Health Management Associates, Inc. Class A | 12,840 | 323,825 | |
Henry Schein, Inc. (a) | 3,000 | 120,870 | |
Humana, Inc. (a) | 1,400 | 50,904 | |
Laboratory Corp. of America Holdings (a) | 1,400 | 67,830 | |
Lincare Holdings, Inc. (a) | 8,700 | 382,452 | |
McKesson Corp. | 1,300 | 52,351 | |
Medco Health Solutions, Inc. (a) | 3,284 | 164,200 | |
Omnicare, Inc. | 700 | 26,824 | |
PacifiCare Health Systems, Inc. (a) | 600 | 37,698 | |
Patterson Companies, Inc. (a) | 1,800 | 81,702 | |
Pharmaceutical Product Development, Inc. (a) | 2,300 | 111,274 | |
Quest Diagnostics, Inc. | 1,100 | 115,500 | |
Renal Care Group, Inc. (a) | 1,800 | 83,232 | |
Sunrise Senior Living, Inc. (a) | 1,800 | 93,870 | |
Triad Hospitals, Inc. (a) | 670 | 33,982 | |
UnitedHealth Group, Inc. | 4,080 | 198,206 | |
Universal Health Services, Inc. Class B | 400 | 23,372 | |
WellChoice, Inc. (a) | 900 | 51,390 | |
WellPoint, Inc. (a) | 4,500 | 598,500 | |
3,133,476 | |||
Pharmaceuticals - 3.5% | |||
Barr Pharmaceuticals, Inc. (a) | 2,227 | 113,176 | |
Elan Corp. PLC sponsored ADR (a)(d) | 26,720 | 211,088 | |
IVAX Corp. (a) | 2,750 | 54,038 | |
MGI Pharma, Inc. (a) | 9,200 | 213,440 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
NitroMed, Inc. (a) | 6,900 | $ 132,066 | |
Sepracor, Inc. (a) | 11,050 | 671,398 | |
1,395,206 | |||
TOTAL HEALTH CARE | 11,576,934 | ||
INDUSTRIALS - 6.8% | |||
Aerospace & Defense - 1.8% | |||
EADS NV | 2,280 | 67,420 | |
Lockheed Martin Corp. | 1,300 | 84,357 | |
Precision Castparts Corp. | 1,800 | 139,914 | |
Rockwell Collins, Inc. | 5,100 | 251,889 | |
The Boeing Co. | 2,600 | 166,140 | |
709,720 | |||
Air Freight & Logistics - 0.1% | |||
Expeditors International of Washington, Inc. | 1,000 | 50,980 | |
Airlines - 0.4% | |||
Southwest Airlines Co. | 9,000 | 130,950 | |
Building Products - 1.1% | |||
American Standard Companies, Inc. | 9,540 | 408,312 | |
Trex Co., Inc. (a) | 600 | 23,130 | |
431,442 | |||
Commercial Services & Supplies - 1.3% | |||
Cintas Corp. | 3,198 | 129,103 | |
Equifax, Inc. | 2,330 | 80,828 | |
Herman Miller, Inc. | 1,930 | 56,182 | |
Pitney Bowes, Inc. | 3,450 | 153,905 | |
Robert Half International, Inc. | 4,130 | 103,002 | |
523,020 | |||
Construction & Engineering - 0.3% | |||
Granite Construction, Inc. | 2,200 | 51,590 | |
Jacobs Engineering Group, Inc. (a) | 1,300 | 68,354 | |
119,944 | |||
Electrical Equipment - 0.2% | |||
AMETEK, Inc. | 600 | 22,938 | |
Rockwell Automation, Inc. | 1,300 | 66,781 | |
89,719 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - continued | |||
Machinery - 0.5% | |||
ITT Industries, Inc. | 1,960 | $ 186,200 | |
SPX Corp. | 500 | 22,205 | |
208,405 | |||
Marine - 0.1% | |||
Alexander & Baldwin, Inc. | 500 | 22,225 | |
Road & Rail - 0.7% | |||
Burlington Northern Santa Fe Corp. | 1,000 | 49,420 | |
CSX Corp. | 1,000 | 41,580 | |
Laidlaw International, Inc. (a) | 2,400 | 53,376 | |
Norfolk Southern Corp. | 2,900 | 92,568 | |
Union Pacific Corp. | 600 | 40,176 | |
277,120 | |||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. | 1,624 | 94,387 | |
MSC Industrial Direct Co., Inc. Class A | 600 | 18,678 | |
113,065 | |||
TOTAL INDUSTRIALS | 2,676,590 | ||
INFORMATION TECHNOLOGY - 26.9% | |||
Communications Equipment - 4.3% | |||
AudioCodes Ltd. (a) | 8,160 | 98,491 | |
Corning, Inc. (a) | 7,170 | 112,426 | |
Enterasys Networks, Inc. (a) | 328 | 305 | |
Finisar Corp. (a) | 31,300 | 37,247 | |
Harris Corp. | 4,800 | 137,952 | |
Juniper Networks, Inc. (a) | 29,200 | 748,688 | |
Nokia Corp. sponsored ADR | 13,500 | 227,610 | |
QUALCOMM, Inc. | 9,220 | 343,537 | |
1,706,256 | |||
Computers & Peripherals - 2.5% | |||
Apple Computer, Inc. (a) | 10,500 | 416,955 | |
Emulex Corp. (a) | 21,000 | 396,900 | |
Hutchinson Technology, Inc. (a) | 500 | 20,685 | |
Maxtor Corp. (a) | 3,500 | 19,215 | |
NCR Corp. (a) | 1,000 | 36,630 | |
QLogic Corp. (a) | 600 | 19,212 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Seagate Technology | 1,500 | $ 31,830 | |
Western Digital Corp. (a) | 4,100 | 61,541 | |
1,002,968 | |||
Electronic Equipment & Instruments - 0.3% | |||
KEMET Corp. (a) | 2,700 | 18,900 | |
Sanmina-SCI Corp. (a) | 3,900 | 20,007 | |
Symbol Technologies, Inc. | 6,970 | 80,225 | |
119,132 | |||
Internet Software & Services - 2.1% | |||
Google, Inc. Class A (sub. vtg.) | 1,000 | 278,400 | |
Lastminute.com PLC (a) | 500 | 1,506 | |
Marchex, Inc. Class B | 3,000 | 44,760 | |
Yahoo!, Inc. (a) | 13,380 | 497,736 | |
822,402 | |||
IT Services - 2.2% | |||
Cognizant Technology Solutions Corp. Class A (a) | 2,600 | 124,800 | |
Computer Sciences Corp. (a) | 600 | 27,786 | |
DST Systems, Inc. (a) | 1,600 | 77,376 | |
Fiserv, Inc. (a) | 3,270 | 140,610 | |
Infosys Technologies Ltd. sponsored ADR (d) | 5,820 | 421,019 | |
Iron Mountain, Inc. (a) | 1,605 | 46,064 | |
The BISYS Group, Inc. (a) | 2,580 | 39,345 | |
877,000 | |||
Office Electronics - 0.5% | |||
Zebra Technologies Corp. Class A (a) | 4,619 | 197,139 | |
Semiconductors & Semiconductor Equipment - 9.2% | |||
Advanced Micro Devices, Inc. (a) | 8,200 | 134,480 | |
Agere Systems, Inc. (a) | 2,163 | 29,417 | |
Altera Corp. (a) | 10,300 | 228,557 | |
Broadcom Corp. Class A (a) | 8,500 | 301,665 | |
Brooks Automation, Inc. (a) | 4,300 | 64,844 | |
Conexant Systems, Inc. (a) | 250 | 358 | |
Cree, Inc. (a) | 1,100 | 33,044 | |
Freescale Semiconductor, Inc. Class B (a) | 2,314 | 46,743 | |
Integrated Circuit Systems, Inc. (a) | 5,000 | 105,950 | |
Integrated Device Technology, Inc. (a) | 8,090 | 98,941 | |
Intel Corp. | 4,100 | 110,413 | |
Intersil Corp. Class A | 10,200 | 191,352 | |
KLA-Tencor Corp. | 40 | 1,816 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Lam Research Corp. (a) | 5,880 | $ 180,398 | |
Linear Technology Corp. | 3,100 | 116,157 | |
Marvell Technology Group Ltd. (a) | 1,100 | 45,056 | |
Maxim Integrated Products, Inc. | 4,800 | 189,120 | |
Microchip Technology, Inc. | 26,270 | 778,643 | |
National Semiconductor Corp. | 8,800 | 177,056 | |
Novellus Systems, Inc. (a) | 4,100 | 109,265 | |
NVIDIA Corp. (a) | 3,879 | 105,470 | |
Photronics, Inc. (a) | 5,416 | 124,730 | |
PMC-Sierra, Inc. (a) | 33,230 | 291,427 | |
Rambus, Inc. (a) | 800 | 12,264 | |
Silicon Laboratories, Inc. (a) | 380 | 10,537 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 1,200 | 48,696 | |
Xilinx, Inc. | 3,900 | 108,225 | |
3,644,624 | |||
Software - 5.8% | |||
Adobe Systems, Inc. | 13,640 | 450,938 | |
Autodesk, Inc. | 5,455 | 215,909 | |
BEA Systems, Inc. (a) | 11,350 | 95,681 | |
Citrix Systems, Inc. (a) | 5,170 | 130,077 | |
Cognos, Inc. (a) | 700 | 26,295 | |
FileNET Corp. (a) | 2,398 | 66,808 | |
Macromedia, Inc. (a) | 2,200 | 97,284 | |
Macrovision Corp. (a) | 700 | 14,707 | |
Siebel Systems, Inc. (a) | 39,408 | 363,342 | |
Symantec Corp. (a) | 18,900 | 427,329 | |
TIBCO Software, Inc. (a) | 1,800 | 11,412 | |
VERITAS Software Corp. (a) | 16,100 | 400,407 | |
2,300,189 | |||
TOTAL INFORMATION TECHNOLOGY | 10,669,710 | ||
MATERIALS - 3.2% | |||
Chemicals - 1.6% | |||
Ferro Corp. | 1,600 | 30,784 | |
International Flavors & Fragrances, Inc. | 1,200 | 44,508 | |
Monsanto Co. | 3,400 | 193,800 | |
Potash Corp. of Saskatchewan | 2,600 | 233,548 | |
Praxair, Inc. | 3,000 | 140,610 | |
643,250 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
MATERIALS - continued | |||
Construction Materials - 0.1% | |||
Florida Rock Industries, Inc. | 200 | $ 13,090 | |
Vulcan Materials Co. | 800 | 47,944 | |
61,034 | |||
Containers & Packaging - 0.9% | |||
Owens-Illinois, Inc. (a) | 4,010 | 103,097 | |
Pactiv Corp. (a) | 2,000 | 45,700 | |
Sealed Air Corp. (a) | 3,770 | 195,248 | |
344,045 | |||
Metals & Mining - 0.6% | |||
Freeport-McMoRan Copper & Gold, Inc. Class B | 3,350 | 118,255 | |
Metal Management, Inc. | 2,451 | 45,025 | |
Nucor Corp. | 1,200 | 63,552 | |
226,832 | |||
TOTAL MATERIALS | 1,275,161 | ||
TELECOMMUNICATION SERVICES - 1.6% | |||
Diversified Telecommunication Services - 0.1% | |||
Philippine Long Distance Telephone Co. sponsored ADR | 1,000 | 27,140 | |
Wireless Telecommunication Services - 1.5% | |||
Alamosa Holdings, Inc. (a) | 15,100 | 186,485 | |
America Movil SA de CV Series L sponsored ADR | 6,200 | 351,416 | |
InPhonic, Inc. | 3,500 | 51,695 | |
NII Holdings, Inc. (a) | 500 | 29,800 | |
619,396 | |||
TOTAL TELECOMMUNICATION SERVICES | 646,536 | ||
UTILITIES - 0.4% | |||
Independent Power Producers & Energy Traders - 0.4% | |||
AES Corp. (a) | 10,600 | 157,834 | |
TOTAL COMMON STOCKS (Cost $33,792,121) | 38,835,793 | ||
Money Market Funds - 3.6% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 3.05% (b) | 896,997 | $ 896,997 | |
Fidelity Securities Lending Cash Central Fund, 3.06% (b)(c) | 529,875 | 529,875 | |
TOTAL MONEY MARKET FUNDS (Cost $1,426,872) | 1,426,872 | ||
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $35,218,993) | 40,262,665 | ||
NET OTHER ASSETS - (1.6)% | (646,137) | ||
NET ASSETS - 100% | $ 39,616,528 |
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 listing of the fund's holdings as of its most recent quarter end is available 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. |
Income Tax Information |
At November 30, 2004, the fund had a capital loss carryforward of approximately $11,252,773 of which $4,311,651 and $6,940,122 will expire on November 30, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
May 31, 2005 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $521,992) (cost $35,218,993) - See accompanying schedule | $ 40,262,665 | |
Cash | 24,107 | |
Receivable for investments sold | 169,938 | |
Receivable for fund shares sold | 29,182 | |
Dividends receivable | 21,829 | |
Interest receivable | 2,504 | |
Prepaid expenses | 97 | |
Receivable from investment adviser for expense reductions | 9,886 | |
Other receivables | 9,292 | |
Total assets | 40,529,500 | |
Liabilities | ||
Payable for investments purchased | $ 234,915 | |
Payable for fund shares redeemed | 74,085 | |
Accrued management fee | 19,994 | |
Distribution fees payable | 21,248 | |
Other affiliated payables | 12,186 | |
Other payables and accrued expenses | 20,669 | |
Collateral on securities loaned, at value | 529,875 | |
Total liabilities | 912,972 | |
Net Assets | $ 39,616,528 | |
Net Assets consist of: | ||
Paid in capital | $ 46,598,630 | |
Accumulated net investment loss | (224,728) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,801,015) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 5,043,641 | |
Net Assets | $ 39,616,528 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
May 31, 2005 (Unaudited) | ||
Calculation of Maximum Offering Price | $ 8.66 | |
Maximum offering price per share (100/94.25 of $8.66) | $ 9.19 | |
Class T: | $ 8.56 | |
Maximum offering price per share (100/96.50 of $8.56) | $ 8.87 | |
Class B: | $ 8.38 | |
Class C: | $ 8.39 | |
Institutional Class: | $ 8.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2005 (Unaudited) | ||
Investment Income | ||
Dividends | $ 98,591 | |
Interest | 14,278 | |
Security lending | 8,728 | |
Total income | 121,597 | |
Expenses | ||
Management fee | $ 123,386 | |
Transfer agent fees | 83,618 | |
Distribution fees | 133,471 | |
Accounting and security lending fees | 10,061 | |
Independent trustees' compensation | 96 | |
Custodian fees and expenses | 9,074 | |
Registration fees | 26,078 | |
Audit | 21,533 | |
Legal | 55 | |
Miscellaneous | 212 | |
Total expenses before reductions | 407,584 | |
Expense reductions | (61,259) | 346,325 |
Net investment income (loss) | (224,728) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | (388,294) | |
Foreign currency transactions | (139) | |
Total net realized gain (loss) | (388,433) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 737,817 | |
Assets and liabilities in foreign currencies | (89) | |
Total change in net unrealized appreciation (depreciation) | 737,728 | |
Net gain (loss) | 349,295 | |
Net increase (decrease) in net assets resulting from operations | $ 124,567 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ (224,728) | $ (559,618) |
Net realized gain (loss) | (388,433) | 3,516,046 |
Change in net unrealized appreciation (depreciation) | 737,728 | (473,553) |
Net increase (decrease) in net assets resulting | 124,567 | 2,482,875 |
Share transactions - net increase (decrease) | (1,214,218) | 4,161,402 |
Total increase (decrease) in net assets | (1,089,651) | 6,644,277 |
Net Assets | ||
Beginning of period | 40,706,179 | 34,061,902 |
End of period (including accumulated net investment loss of $224,728 and $0, respectively) | $ 39,616,528 | $ 40,706,179 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.61 | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.03) | (.09) | (.06) | (.08) | (.01) | - H |
Net realized and unrealized gain (loss) | .08 | .68 | 1.61 | (1.53) | (.95) | (.95) |
Total from investment operations | .05 | .59 | 1.55 | (1.61) | (.96) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.66 | $ 8.61 | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 |
Total Return B, C, D | .58% | 7.36% | 23.96% | (19.93)% | (10.62)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 1.61% A | 1.90% | 2.25% | 2.05% | 2.06% | 31.94% A |
Expenses net of voluntary waivers, if any | 1.36% A | 1.50% | 1.54% | 1.69% | 1.75% | 1.75% A |
Expenses net of all reductions | 1.32% A | 1.45% | 1.47% | 1.49% | 1.71% | 1.75% A |
Net investment income (loss) | (.71)% A | (1.03)% | (.89)% | (1.07)% | (.14)% | .99% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 6,748 | $ 6,227 | $ 4,177 | $ 2,620 | $ 3,320 | $ 1,789 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
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 For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class T
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.52 | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.04) | (.11) | (.08) | (.10) | (.03) | - H |
Net realized and unrealized gain (loss) | .08 | .68 | 1.60 | (1.53) | (.95) | (.95) |
Total from investment operations | .04 | .57 | 1.52 | (1.63) | (.98) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.56 | $ 8.52 | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 |
Total Return B, C, D | .47% | 7.17% | 23.64% | (20.22)% | (10.84)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 1.94% A | 2.25% | 2.47% | 2.16% | 2.30% | 32.36% A |
Expenses net of voluntary waivers, if any | 1.61% A | 1.75% | 1.79% | 1.92% | 2.00% | 2.00% A |
Expenses net of all reductions | 1.57% A | 1.71% | 1.72% | 1.72% | 1.96% | 2.00% A |
Net investment income (loss) | (.96)% A | (1.28)% | (1.14)% | (1.29)% | (.39)% | .74% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 15,732 | $ 15,101 | $ 12,458 | $ 10,511 | $ 14,165 | $ 2,767 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class B
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.36 | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.06) | (.14) | (.11) | (.13) | (.08) | - H |
Net realized and unrealized gain (loss) | .08 | .66 | 1.58 | (1.52) | (.94) | (.95) |
Total from investment operations | .02 | .52 | 1.47 | (1.65) | (1.02) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.38 | $ 8.36 | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 |
Total Return B, C, D | .24% | 6.63% | 23.08% | (20.57)% | (11.29)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 2.36% A | 2.67% | 2.92% | 2.73% | 2.86% | 32.87% A |
Expenses net of voluntary waivers, if any | 2.12% A | 2.25% | 2.25% | 2.43% | 2.50% | 2.50% A |
Expenses net of all reductions | 2.07% A | 2.21% | 2.18% | 2.23% | 2.46% | 2.50% A |
Net investment income (loss) | (1.46)% A | (1.78)% | (1.60)% | (1.81)% | (.89)% | .24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 8,993 | $ 9,593 | $ 8,422 | $ 6,262 | $ 8,038 | $ 1,659 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 - Class C
Six months ended May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.37 | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.06) | (.14) | (.11) | (.13) | (.08) | - H |
Net realized and unrealized gain (loss) | .08 | .66 | 1.58 | (1.52) | (.93) | (.95) |
Total from investment operations | .02 | .52 | 1.47 | (1.65) | (1.01) | (.95) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.39 | $ 8.37 | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 |
Total Return B, C, D | .24% | 6.62% | 23.04% | (20.55)% | (11.18)% | (9.50)% |
Ratios to Average Net Assets G | ||||||
Expenses before expense reductions | 2.34% A | 2.52% | 2.77% | 2.58% | 2.79% | 32.69% A |
Expenses net of voluntary waivers, if any | 2.12% A | 2.25% | 2.25% | 2.36% | 2.50% | 2.50% A |
Expenses net of all reductions | 2.08% A | 2.21% | 2.18% | 2.16% | 2.46% | 2.50% A |
Net investment income (loss) | (1.46)% A | (1.78)% | (1.61)% | (1.74)% | (.89)% | .24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 7,672 | $ 9,136 | $ 8,427 | $ 6,636 | $ 8,532 | $ 1,224 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 May 31, 2005 | Years ended November 30, | |||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 E | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 8.73 | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 | $ 10.00 |
Income from Investment Operations | ||||||
Net investment income (loss) D | (.02) | (.07) | (.04) | (.05) | .01 | .01 |
Net realized and unrealized gain (loss) | .08 | .70 | 1.62 | (1.54) | (.95) | (.95) |
Total from investment operations | .06 | .63 | 1.58 | (1.59) | (.94) | (.94) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Net asset value, end of period | $ 8.79 | $ 8.73 | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 |
Total Return B, C | .69% | 7.78% | 24.23% | (19.61)% | (10.39)% | (9.40)% |
Ratios to Average Net Assets F | ||||||
Expenses before expense reductions | 1.28% A | 1.35% | 1.61% | 1.43% | 1.73% | 31.51% A |
Expenses net of voluntary waivers, if any | 1.12% A | 1.25% | 1.25% | 1.27% | 1.50% | 1.50% A |
Expenses net of all reductions | 1.08% A | 1.20% | 1.18% | 1.07% | 1.46% | 1.50% A |
Net investment income (loss) | (.47)% A | (.78)% | (.61)% | (.64)% | .11% | 1.24% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 471 | $ 648 | $ 579 | $ 513 | $ 761 | $ 325 |
Portfolio turnover rate | 85% A | 94% | 158% | 473% | 481% | 139% 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 For the period November 13, 2000 (commencement of operations) to November 30, 2000.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior 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 May 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Aggressive Growth Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. 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. Security transactions are accounted for as of trade date. 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 is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each fund in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 7,256,187 | |
Unrealized depreciation | (2,394,967) | |
Net unrealized appreciation (depreciation) | $ 4,861,220 | |
Cost for federal income tax purposes | $ 35,401,445 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (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. 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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $16,509,025 and $17,628,768, respectively.
4. 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 .27% during the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 .62% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .25% | $ 7,876 | $ 58 |
Class T | .25% | .25% | 38,083 | 105 |
Class B | .75% | .25% | 45,976 | 34,481 |
Class C | .75% | .25% | 41,536 | 5,179 |
$ 133,471 | $ 39,823 |
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, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | ||
Class A | $ 5,410 | |
Class T | 6,413 | |
Class B* | 21,256 | |
Class C* | 690 | |
$ 33,769 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC, were as follows:
Amount | % of | |
Class A | $ 12,554 | .40 * |
Class T | 36,355 | .48 * |
Class B | 18,167 | .40 * |
Class C | 15,563 | .37 * |
Institutional Class | 979 | .32 * |
$ 83,618 |
* 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Money Market Central Funds seek preservation of capital and current income. The Central Funds do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $14,708 for the period.
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 $950 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. 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. Cash collateral 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.
7. 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, are excluded from this reimbursement.
Expense | Reimbursement | |
Class A | 1.50% - 1.30% * | $ 7,738 |
Class T | 1.75% - 1.55%* | 24,639 |
Class B | 2.25% - 2.05%* | 11,099 |
Class C | 2.25% - 2.05% * | 9,138 |
Institutional Class | 1.25% - 1.05% * | 486 |
$ 53,100 |
* Expense limitation in effect at period end.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $8,159 for the period.
8. 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
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 169,148 | 377,272 | $ 1,429,802 | $ 3,139,679 |
Shares redeemed | (113,277) | (175,236) | (965,310) | (1,453,350) |
Net increase (decrease) | 55,871 | 202,036 | $ 464,492 | $ 1,686,329 |
Class T | ||||
Shares sold | 400,082 | 758,262 | $ 3,386,064 | $ 6,209,847 |
Shares redeemed | (334,390) | (552,792) | (2,827,111) | (4,525,646) |
Net increase (decrease) | 65,692 | 205,470 | $ 558,953 | $ 1,684,201 |
Class B | ||||
Shares sold | 108,476 | 359,634 | $ 896,068 | $ 2,916,093 |
Shares redeemed | (182,588) | (286,300) | (1,504,814) | (2,305,579) |
Net increase (decrease) | (74,112) | 73,334 | $ (608,746) | $ 610,514 |
Class C | ||||
Shares sold | 93,504 | 368,284 | $ 773,318 | $ 2,975,514 |
Shares redeemed | (270,284) | (350,351) | (2,227,299) | (2,819,767) |
Net increase (decrease) | (176,780) | 17,933 | $ (1,453,981) | $ 155,747 |
Institutional Class | ||||
Shares sold | 5,276 | 22,481 | $ 45,351 | $ 187,161 |
Shares redeemed | (25,992) | (19,658) | (220,287) | (162,550) |
Net increase (decrease) | (20,716) | 2,823 | $ (174,936) | $ 24,611 |
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) 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
State Street Bank and Trust Company
Quincy, MA
AAGI-USAN-0705
1.786774.102
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
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. Schedule of Investments
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/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | July 20, 2005 |
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/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | July 20, 2005 |
By: | /s/Timothy F. Hayes |
Timothy F. Hayes | |
Chief Financial Officer | |
Date: | July 20, 2005 |