UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | July 31 |
|
|
Date of reporting period: | January 31, 2009 |
This report on Form N-CSR relates solely to the Registrant's Fidelity Blue Chip Growth Fund, Fidelity Blue Chip Value Fund, Fidelity Dividend Growth Fund, Fidelity Growth & Income Portfolio, Fidelity Leveraged Company Stock Fund, Fidelity OTC Portfolio, Fidelity Small Cap Growth Fund and Fidelity Small Cap Opportunities Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 642.50 | $ 2.90 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Class K | .47% |
|
|
|
Actual |
| $ 1,000.00 | $ 643.50 | $ 1.95 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.84 | $ 2.40 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
International Business Machines Corp. | 3.7 | 3.3 |
Exxon Mobil Corp. | 2.8 | 2.5 |
The Coca-Cola Co. | 2.8 | 2.5 |
Wal-Mart Stores, Inc. | 2.7 | 2.4 |
Cisco Systems, Inc. | 2.6 | 3.4 |
Oracle Corp. | 2.5 | 1.9 |
QUALCOMM, Inc. | 2.4 | 2.0 |
Genentech, Inc. | 2.4 | 1.7 |
Procter & Gamble Co. | 1.7 | 1.7 |
Schlumberger Ltd. (NY Shares) | 1.7 | 2.6 |
| 25.3 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 25.6 | 27.4 |
Consumer Discretionary | 19.6 | 14.5 |
Health Care | 13.0 | 13.3 |
Consumer Staples | 12.6 | 13.5 |
Energy | 11.2 | 12.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 96.4% |
| ![]() | Stocks 97.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.8% |
| ** Foreign investments | 15.2% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 19.6% | |||
Auto Components - 1.2% | |||
ArvinMeritor, Inc. (d) | 2,624,512 | $ 4,593 | |
BorgWarner, Inc. | 1,336,700 | 22,563 | |
Gentex Corp. | 2,374,300 | 19,920 | |
Johnson Controls, Inc. | 1,568,500 | 19,622 | |
Magna International, Inc. Class A | 908,200 | 25,434 | |
Superior Industries International, Inc. (d) | 714,000 | 7,333 | |
| 99,465 | ||
Automobiles - 0.5% | |||
Toyota Motor Corp. sponsored ADR (d) | 672,900 | 42,736 | |
Diversified Consumer Services - 0.3% | |||
DeVry, Inc. | 89,431 | 4,792 | |
Strayer Education, Inc. | 89,200 | 19,306 | |
| 24,098 | ||
Hotels, Restaurants & Leisure - 4.0% | |||
Chipotle Mexican Grill, Inc. Class B (a) | 128,140 | 5,833 | |
DineEquity, Inc. (d)(e) | 928,011 | 8,204 | |
Marriott International, Inc. Class A | 3,277,600 | 53,458 | |
McDonald's Corp. | 2,030,500 | 117,810 | |
Royal Caribbean Cruises Ltd. | 2,104,600 | 13,659 | |
Starbucks Corp. (a) | 1,358,700 | 12,826 | |
Starwood Hotels & Resorts Worldwide, Inc. | 1,550,900 | 23,450 | |
Wendy's/Arby's Group, Inc. | 4,906,100 | 24,727 | |
Yum! Brands, Inc. | 2,215,800 | 63,416 | |
| 323,383 | ||
Household Durables - 1.7% | |||
Centex Corp. | 1,507,900 | 12,832 | |
D.R. Horton, Inc. | 2,784,900 | 16,598 | |
Furniture Brands International, Inc. (d)(e) | 4,879,579 | 10,003 | |
Harman International Industries, Inc. | 1,109,500 | 17,852 | |
KB Home | 474,200 | 5,060 | |
La-Z-Boy, Inc. (e) | 3,706,700 | 3,595 | |
Lennar Corp. Class A | 285,600 | 2,196 | |
Mohawk Industries, Inc. (a) | 606,100 | 19,462 | |
Pulte Homes, Inc. | 1,313,100 | 13,328 | |
Ryland Group, Inc. | 698,900 | 10,903 | |
Toll Brothers, Inc. (a) | 1,347,800 | 22,940 | |
| 134,769 | ||
Internet & Catalog Retail - 1.4% | |||
Amazon.com, Inc. | 1,950,900 | 114,752 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Leisure Equipment & Products - 0.6% | |||
Brunswick Corp. | 1,730,400 | $ 4,811 | |
Hasbro, Inc. | 1,657,700 | 40,000 | |
| 44,811 | ||
Media - 2.8% | |||
Comcast Corp. Class A (special) (non-vtg.) | 2,821,600 | 39,164 | |
Interpublic Group of Companies, Inc. (a) | 11,431,600 | 38,067 | |
Lamar Advertising Co. Class A (a)(d) | 1,083,100 | 9,759 | |
Scripps Networks Interactive, Inc. Class A | 1,624,201 | 34,872 | |
The DIRECTV Group, Inc. (a) | 2,352,800 | 51,526 | |
The Walt Disney Co. | 2,443,800 | 50,538 | |
| 223,926 | ||
Multiline Retail - 1.6% | |||
Kohl's Corp. (a) | 866,900 | 31,824 | |
Nordstrom, Inc. | 904,800 | 11,482 | |
Target Corp. | 2,772,700 | 86,508 | |
| 129,814 | ||
Specialty Retail - 3.3% | |||
Bed Bath & Beyond, Inc. (a) | 1,592,700 | 36,998 | |
Best Buy Co., Inc. | 1,372,500 | 38,457 | |
CarMax, Inc. (a)(d) | 1,086,800 | 8,988 | |
Dick's Sporting Goods, Inc. (a) | 2,000,800 | 22,029 | |
Gamestop Corp. Class A (a) | 471,900 | 11,694 | |
Home Depot, Inc. | 1,195,400 | 25,737 | |
Lowe's Companies, Inc. | 2,132,800 | 38,966 | |
Sherwin-Williams Co. | 654,000 | 31,229 | |
Tiffany & Co., Inc. | 2,007,800 | 41,662 | |
Urban Outfitters, Inc. (a) | 586,600 | 9,139 | |
| 264,899 | ||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Deckers Outdoor Corp. (a) | 351,400 | 18,357 | |
NIKE, Inc. Class B | 1,565,400 | 70,834 | |
Polo Ralph Lauren Corp. Class A | 957,600 | 39,290 | |
VF Corp. | 836,400 | 46,855 | |
| 175,336 | ||
TOTAL CONSUMER DISCRETIONARY | 1,577,989 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 12.6% | |||
Beverages - 2.8% | |||
The Coca-Cola Co. | 5,256,000 | $ 224,536 | |
Food & Staples Retailing - 4.2% | |||
Costco Wholesale Corp. | 1,393,900 | 62,767 | |
Safeway, Inc. | 2,614,500 | 56,029 | |
Wal-Mart Stores, Inc. | 4,745,755 | 223,620 | |
| 342,416 | ||
Food Products - 1.0% | |||
General Mills, Inc. | 914,100 | 54,069 | |
Nestle SA sponsored ADR | 690,350 | 23,783 | |
| 77,852 | ||
Household Products - 3.3% | |||
Church & Dwight Co., Inc. | 302,900 | 16,123 | |
Energizer Holdings, Inc. (a) | 592,100 | 28,202 | |
Kimberly-Clark Corp. | 829,200 | 42,679 | |
Procter & Gamble Co. | 2,569,330 | 140,028 | |
Reckitt Benckiser Group PLC | 1,051,500 | 40,775 | |
| 267,807 | ||
Personal Products - 0.5% | |||
Estee Lauder Companies, Inc. Class A | 1,653,800 | 43,412 | |
Tobacco - 0.8% | |||
Philip Morris International, Inc. | 1,670,700 | 62,067 | |
TOTAL CONSUMER STAPLES | 1,018,090 | ||
ENERGY - 11.2% | |||
Energy Equipment & Services - 5.2% | |||
BJ Services Co. | 2,330,000 | 25,630 | |
Halliburton Co. | 2,159,500 | 37,251 | |
Nabors Industries Ltd. (a) | 2,034,000 | 22,272 | |
National Oilwell Varco, Inc. (a) | 2,576,900 | 68,133 | |
Noble Corp. | 304,379 | 8,264 | |
Oceaneering International, Inc. (a) | 1,038,385 | 35,783 | |
Patterson-UTI Energy, Inc. | 1,900,800 | 18,172 | |
Schlumberger Ltd. (NY Shares) | 3,416,700 | 139,436 | |
Transocean Ltd. (a) | 453,300 | 24,759 | |
Weatherford International Ltd. (a) | 3,448,500 | 38,037 | |
| 417,737 | ||
Oil, Gas & Consumable Fuels - 6.0% | |||
ConocoPhillips | 1,232,700 | 58,590 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Enterprise Products Partners LP | 862,900 | $ 18,949 | |
Exxon Mobil Corp. | 2,978,300 | 227,780 | |
Hess Corp. | 1,323,500 | 73,600 | |
Plains Exploration & Production Co. (a) | 374,600 | 7,912 | |
Reliance Industries Ltd. | 290,000 | 7,740 | |
Southwestern Energy Co. (a) | 2,030,600 | 64,268 | |
Whiting Petroleum Corp. (a) | 816,100 | 23,667 | |
| 482,506 | ||
TOTAL ENERGY | 900,243 | ||
FINANCIALS - 5.5% | |||
Capital Markets - 2.9% | |||
Charles Schwab Corp. | 4,576,000 | 62,188 | |
Goldman Sachs Group, Inc. | 544,600 | 43,966 | |
Janus Capital Group, Inc. | 2,804,300 | 14,723 | |
Morgan Stanley | 2,455,600 | 49,677 | |
Northern Trust Corp. | 490,300 | 28,202 | |
UBS AG (NY Shares) | 3,112,300 | 38,748 | |
| 237,504 | ||
Commercial Banks - 0.7% | |||
Associated Banc-Corp. | 899,100 | 14,071 | |
Old National Bancorp, Indiana (d) | 381,300 | 4,854 | |
Wells Fargo & Co. | 1,889,800 | 35,717 | |
| 54,642 | ||
Consumer Finance - 0.6% | |||
American Express Co. | 1,509,300 | 25,251 | |
Capital One Financial Corp. | 1,351,300 | 21,405 | |
| 46,656 | ||
Diversified Financial Services - 1.0% | |||
CME Group, Inc. | 227,600 | 39,582 | |
JPMorgan Chase & Co. | 1,449,300 | 36,972 | |
| 76,554 | ||
Insurance - 0.2% | |||
Fidelity National Financial, Inc. Class A | 544,700 | 7,964 | |
The First American Corp. | 492,950 | 10,766 | |
| 18,730 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.1% | |||
NewAlliance Bancshares, Inc. | 1,086,900 | $ 11,945 | |
TOTAL FINANCIALS | 446,031 | ||
HEALTH CARE - 13.0% | |||
Biotechnology - 2.8% | |||
Genentech, Inc. (a) | 2,336,500 | 189,817 | |
Gilead Sciences, Inc. (a) | 631,800 | 32,076 | |
| 221,893 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 1,706,100 | 100,063 | |
Covidien Ltd. | 1,068,400 | 40,962 | |
| 141,025 | ||
Health Care Providers & Services - 1.6% | |||
Express Scripts, Inc. (a) | 347,900 | 18,703 | |
Fresenius Medical Care AG | 385,200 | 17,266 | |
Medco Health Solutions, Inc. (a) | 2,028,100 | 91,123 | |
| 127,092 | ||
Pharmaceuticals - 6.9% | |||
Abbott Laboratories | 974,600 | 54,032 | |
Johnson & Johnson | 2,281,000 | 131,591 | |
Merck & Co., Inc. | 4,316,600 | 123,239 | |
Novo Nordisk AS Series B | 1,022,200 | 54,847 | |
Pfizer, Inc. | 2,412,600 | 35,176 | |
Pronova BioPharma ASA (a) | 10,270,853 | 30,390 | |
Schering-Plough Corp. | 5,403,100 | 94,878 | |
Wyeth | 797,300 | 34,260 | |
�� | 558,413 | ||
TOTAL HEALTH CARE | 1,048,423 | ||
INDUSTRIALS - 6.4% | |||
Aerospace & Defense - 2.8% | |||
Honeywell International, Inc. | 2,221,100 | 72,874 | |
Raytheon Co. | 1,181,500 | 59,808 | |
United Technologies Corp. | 1,920,300 | 92,155 | |
| 224,837 | ||
Air Freight & Logistics - 0.4% | |||
FedEx Corp. | 618,200 | 31,491 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Building Products - 0.7% | |||
Masco Corp. | 3,825,900 | $ 29,919 | |
Owens Corning (a) | 2,210,000 | 29,481 | |
| 59,400 | ||
Machinery - 1.6% | |||
Cummins, Inc. | 2,004,600 | 48,070 | |
Danaher Corp. | 1,033,500 | 57,804 | |
Ingersoll-Rand Co. Ltd. Class A | 1,442,700 | 23,386 | |
| 129,260 | ||
Professional Services - 0.9% | |||
Manpower, Inc. | 873,700 | 24,866 | |
Monster Worldwide, Inc. (a) | 351,800 | 3,240 | |
Robert Half International, Inc. (d) | 2,481,100 | 42,055 | |
| 70,161 | ||
TOTAL INDUSTRIALS | 515,149 | ||
INFORMATION TECHNOLOGY - 25.6% | |||
Communications Equipment - 7.1% | |||
Adtran, Inc. | 1,352,043 | 20,483 | |
Cisco Systems, Inc. (a) | 13,923,200 | 208,430 | |
Corning, Inc. | 7,039,700 | 71,171 | |
Juniper Networks, Inc. (a) | 3,530,600 | 49,993 | |
QUALCOMM, Inc. | 5,633,700 | 194,644 | |
Research In Motion Ltd. (a) | 524,600 | 29,063 | |
| 573,784 | ||
Computers & Peripherals - 4.2% | |||
Apple, Inc. (a) | 480,300 | 43,289 | |
International Business Machines Corp. | 3,209,400 | 294,140 | |
| 337,429 | ||
Electronic Equipment & Components - 0.5% | |||
Arrow Electronics, Inc. (a) | 384,500 | 7,332 | |
Avnet, Inc. (a) | 429,400 | 8,511 | |
Itron, Inc. (a) | 131,600 | 8,593 | |
Tyco Electronics Ltd. | 1,281,425 | 18,145 | |
| 42,581 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 1.3% | |||
Google, Inc. Class A (sub. vtg.) (a) | 208,900 | $ 70,719 | |
Yahoo!, Inc. (a) | 3,138,100 | 36,810 | |
| 107,529 | ||
IT Services - 2.1% | |||
Accenture Ltd. Class A | 2,537,750 | 80,091 | |
The Western Union Co. | 6,353,000 | 86,782 | |
| 166,873 | ||
Semiconductors & Semiconductor Equipment - 5.7% | |||
Analog Devices, Inc. | 2,019,100 | 40,342 | |
Applied Materials, Inc. | 8,773,700 | 82,210 | |
Atmel Corp. (a) | 7,906,300 | 26,407 | |
Intel Corp. | 6,479,900 | 83,591 | |
Lam Research Corp. (a) | 1,680,300 | 33,959 | |
Micron Technology, Inc. (a) | 2,922,700 | 10,872 | |
Samsung Electronics Co. Ltd. | 24,935 | 8,658 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 13,192,759 | 99,473 | |
Teradyne, Inc. (a) | 1,298,125 | 6,244 | |
Texas Instruments, Inc. | 4,316,100 | 64,526 | |
| 456,282 | ||
Software - 4.7% | |||
CA, Inc. | 2,778,900 | 49,992 | |
Microsoft Corp. | 7,596,600 | 129,902 | |
Oracle Corp. (a) | 11,876,300 | 199,878 | |
| 379,772 | ||
TOTAL INFORMATION TECHNOLOGY | 2,064,250 | ||
MATERIALS - 2.1% | |||
Chemicals - 1.1% | |||
Airgas, Inc. | 760,700 | 26,860 | |
Praxair, Inc. | 1,031,100 | 64,196 | |
| 91,056 | ||
Construction Materials - 0.7% | |||
Martin Marietta Materials, Inc. (d) | 564,200 | 45,429 | |
Vulcan Materials Co. (d) | 154,500 | 7,642 | |
| 53,071 | ||
Containers & Packaging - 0.2% | |||
Temple-Inland, Inc. | 3,497,300 | 19,830 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.1% | |||
Louisiana-Pacific Corp. | 4,184,000 | $ 8,703 | |
TOTAL MATERIALS | 172,660 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Wireless Telecommunication Services - 0.4% | |||
Sprint Nextel Corp. (a) | 3,191,500 | 7,755 | |
Vodafone Group PLC sponsored ADR | 1,329,800 | 24,721 | |
| 32,476 | ||
TOTAL COMMON STOCKS (Cost $9,742,352) | 7,775,311 | ||
Money Market Funds - 2.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.78% (b) | 167,317,561 | 167,318 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 51,782,004 | 51,782 | |
TOTAL MONEY MARKET FUNDS (Cost $219,100) | 219,100 | ||
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $9,961,452) | 7,994,411 | ||
NET OTHER ASSETS - 0.9% | 72,274 | ||
NET ASSETS - 100% | $ 8,066,685 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,747 |
Fidelity Securities Lending Cash Central Fund | 1,151 |
Total | $ 3,898 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
DineEquity, Inc. | $ 21,437 | $ - | $ - | $ 232 | $ 8,204 |
Furniture Brands International, Inc. | 55,001 | 686 | - | 185 | 10,003 |
La-Z-Boy, Inc. | 35,971 | - | 11,711 | 269 | 3,595 |
Total | $ 112,409 | $ 686 | $ 11,711 | $ 686 | $ 21,802 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 7,994,411 | $ 7,978,013 | $ 16,398 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $48,711) - See accompanying schedule: Unaffiliated issuers (cost $9,581,307) | $ 7,753,509 |
|
Fidelity Central Funds (cost $219,100) | 219,100 |
|
Other affiliated issuers (cost $161,045) | 21,802 |
|
Total Investments (cost $9,961,452) |
| $ 7,994,411 |
Receivable for investments sold | 278,684 | |
Receivable for fund shares sold | 9,513 | |
Dividends receivable | 8,678 | |
Distributions receivable from Fidelity Central Funds | 259 | |
Prepaid expenses | 108 | |
Other receivables | 348 | |
Total assets | 8,292,001 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 158,380 | |
Payable for fund shares redeemed | 10,245 | |
Accrued management fee | 2,268 | |
Other affiliated payables | 2,262 | |
Other payables and accrued expenses | 379 | |
Collateral on securities loaned, at value | 51,782 | |
Total liabilities | 225,316 | |
|
|
|
Net Assets | $ 8,066,685 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,624,873 | |
Undistributed net investment income | 3,352 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,594,473) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,967,067) | |
Net Assets | $ 8,066,685 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Blue Chip Growth: | $ 24.41 | |
|
|
|
Class K: | $ 24.41 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $686 earned from other affiliated issuers) |
| $ 79,710 |
Interest |
| 9 |
Income from Fidelity Central Funds |
| 3,898 |
Total income |
| 83,617 |
|
|
|
Expenses | ||
Management fee | $ 29,308 | |
Performance adjustment | (8,956) | |
Transfer agent fees | 14,190 | |
Accounting and security lending fees | 671 | |
Custodian fees and expenses | 109 | |
Independent trustees' compensation | 30 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 63 | |
Audit | 51 | |
Legal | 49 | |
Miscellaneous | 628 | |
Total expenses before reductions | 36,142 | |
Expense reductions | (213) | 35,929 |
Net investment income (loss) | 47,688 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,554,583) | |
Other affiliated issuers | (3,174) |
|
Foreign currency transactions | (604) | |
Total net realized gain (loss) |
| (1,558,361) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $155) | (3,180,060) | |
Assets and liabilities in foreign currencies | (43) | |
Total change in net unrealized appreciation (depreciation) |
| (3,180,103) |
Net gain (loss) | (4,738,464) | |
Net increase (decrease) in net assets resulting from operations | $ (4,690,776) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 47,688 | $ 128,004 |
Net realized gain (loss) | (1,558,361) | 736,209 |
Change in net unrealized appreciation (depreciation) | (3,180,103) | (1,621,640) |
Net increase (decrease) in net assets resulting from operations | (4,690,776) | (757,427) |
Distributions to shareholders from net investment income | (99,426) | (124,380) |
Distributions to shareholders from net realized gain | (242,439) | (1,882,106) |
Total distributions | (341,865) | (2,006,486) |
Share transactions - net increase (decrease) | (249,327) | (2,503,707) |
Total increase (decrease) in net assets | (5,281,968) | (5,267,620) |
|
|
|
Net Assets | ||
Beginning of period | 13,348,653 | 18,616,273 |
End of period (including undistributed net investment income of $3,352 and undistributed net investment income of $71,533, respectively) | $ 8,066,685 | $ 13,348,653 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 | $ 36.13 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .14 | .35 | .32 | .23 | .42 G | .19 |
Net realized and unrealized gain (loss) | (13.79) | (2.89) | 6.19 | (1.06) | 3.85 | 2.62 |
Total from investment operations | (13.65) | (2.54) | 6.51 | (.83) | 4.27 | 2.81 |
Distributions from net investment income | (.29) | (.33) | (.24) | (.23) | (.39) | (.22) |
Distributions from net realized gain | (.71) | (4.95) | (.93) | - | - | - |
Total distributions | (1.00) | (5.28) | (1.17) | (.23) | (.39) | (.22) |
Net asset value, end of period | $ 24.41 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 |
Total Return B,C | (35.75)% | (6.30)% | 16.02% | (1.97)% | 11.08% | 7.79% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | .70% A | .58% | .60% | .63% | .66% | .68% |
Expenses net of fee waivers, if any | .70% A | .58% | .60% | .63% | .66% | .68% |
Expenses net of all reductions | .69% A | .57% | .59% | .61% | .64% | .67% |
Net investment income (loss) | .91% A | .81% | .72% | .54% | 1.05% G | .48% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 7,807 | $ 13,349 | $ 18,616 | $ 19,571 | $ 22,881 | $ 22,102 |
Portfolio turnover rate F | 107% A | 82% | 87% | 48% | 29% | 23% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .15 | .10 |
Net realized and unrealized gain (loss) | (13.76) | (2.84) |
Total from investment operations | (13.61) | (2.74) |
Distributions from net investment income | (.34) | - |
Distributions from net realized gain | (.71) | - |
Total distributions | (1.05) | - |
Net asset value, end of period | $ 24.41 | $ 39.07 |
Total Return B,C | (35.65)% | (6.55)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .47% A | .41% A |
Expenses net of fee waivers, if any | .47% A | .41% A |
Expenses net of all reductions | .47% A | .41% A |
Net investment income (loss) | 1.14% A | 1.09% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 259,265 | $ 93 |
Portfolio turnover rate F | 107% A | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Blue Chip Growth and Class K to eligible shareholders of Blue Chip Growth. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 414,653 |
Unrealized depreciation | (2,432,808) |
Net unrealized appreciation (depreciation) | $ (2,018,155) |
Cost for federal income tax purposes | $ 10,012,566 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $5,549,839 and $6,009,546, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund, Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .39% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Blue Chip Growth | $ 14,154 | .28 |
Class K | 36 | .05 |
| $ 14,190 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $128 for the period.
7. 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, which amounted to $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,151.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Blue Chip Growth's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $144 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Blue Chip Growth | $ 64 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Blue Chip Growth | $ 97,803 | $ 124,380 |
Class K | 1,623 | - |
Total | $ 99,426 | $ 124,380 |
From net realized gain |
|
|
Blue Chip Growth | $ 242,437 | $ 1,882,106 |
Class K | 2 | - |
Total | $ 242,439 | $ 1,882,106 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Blue Chip Growth |
|
|
|
|
Shares sold | 29,826 | 41,834 | $ 896,994 | $ 1,768,681 |
Conversion to Class K | (10,459) | - | (308,516) | - |
Reinvestment of distributions | 9,381 | 45,780 | 335,422 | 1,982,162 |
Shares redeemed | (50,675) | (142,989) | (1,485,724) | (6,254,650) |
Net increase (decrease) | (21,927) | (55,375) | $ (561,824) | $ (2,503,807) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended January 31, | Year ended | Six months ended | Year ended |
Class K |
|
|
|
|
Shares sold | 673 | 2 | $ 17,642 | $ 100 |
Conversion from Blue Chip Growth | 10,453 | - | 308,516 | - |
Reinvestment of distributions | 63 | - | 1,625 | - |
Shares redeemed | (568) | - | (15,286) | - |
Net increase (decrease) | 10,621 | 2 | $ 312,497 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
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1-800-544-5555
Press
For mutual fund and brokerage trading.
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For account balances and holdings.
To review orders and mutual
fund activity.
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(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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BCF-USAN-0309 1.789282.106
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 642.50 | $ 2.90 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Class K | .47% |
|
|
|
Actual |
| $ 1,000.00 | $ 643.50 | $ 1.95 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.84 | $ 2.40 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
International Business Machines Corp. | 3.7 | 3.3 |
Exxon Mobil Corp. | 2.8 | 2.5 |
The Coca-Cola Co. | 2.8 | 2.5 |
Wal-Mart Stores, Inc. | 2.7 | 2.4 |
Cisco Systems, Inc. | 2.6 | 3.4 |
Oracle Corp. | 2.5 | 1.9 |
QUALCOMM, Inc. | 2.4 | 2.0 |
Genentech, Inc. | 2.4 | 1.7 |
Procter & Gamble Co. | 1.7 | 1.7 |
Schlumberger Ltd. (NY Shares) | 1.7 | 2.6 |
| 25.3 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 25.6 | 27.4 |
Consumer Discretionary | 19.6 | 14.5 |
Health Care | 13.0 | 13.3 |
Consumer Staples | 12.6 | 13.5 |
Energy | 11.2 | 12.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 96.4% |
| ![]() | Stocks 97.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.8% |
| ** Foreign investments | 15.2% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 19.6% | |||
Auto Components - 1.2% | |||
ArvinMeritor, Inc. (d) | 2,624,512 | $ 4,593 | |
BorgWarner, Inc. | 1,336,700 | 22,563 | |
Gentex Corp. | 2,374,300 | 19,920 | |
Johnson Controls, Inc. | 1,568,500 | 19,622 | |
Magna International, Inc. Class A | 908,200 | 25,434 | |
Superior Industries International, Inc. (d) | 714,000 | 7,333 | |
| 99,465 | ||
Automobiles - 0.5% | |||
Toyota Motor Corp. sponsored ADR (d) | 672,900 | 42,736 | |
Diversified Consumer Services - 0.3% | |||
DeVry, Inc. | 89,431 | 4,792 | |
Strayer Education, Inc. | 89,200 | 19,306 | |
| 24,098 | ||
Hotels, Restaurants & Leisure - 4.0% | |||
Chipotle Mexican Grill, Inc. Class B (a) | 128,140 | 5,833 | |
DineEquity, Inc. (d)(e) | 928,011 | 8,204 | |
Marriott International, Inc. Class A | 3,277,600 | 53,458 | |
McDonald's Corp. | 2,030,500 | 117,810 | |
Royal Caribbean Cruises Ltd. | 2,104,600 | 13,659 | |
Starbucks Corp. (a) | 1,358,700 | 12,826 | |
Starwood Hotels & Resorts Worldwide, Inc. | 1,550,900 | 23,450 | |
Wendy's/Arby's Group, Inc. | 4,906,100 | 24,727 | |
Yum! Brands, Inc. | 2,215,800 | 63,416 | |
| 323,383 | ||
Household Durables - 1.7% | |||
Centex Corp. | 1,507,900 | 12,832 | |
D.R. Horton, Inc. | 2,784,900 | 16,598 | |
Furniture Brands International, Inc. (d)(e) | 4,879,579 | 10,003 | |
Harman International Industries, Inc. | 1,109,500 | 17,852 | |
KB Home | 474,200 | 5,060 | |
La-Z-Boy, Inc. (e) | 3,706,700 | 3,595 | |
Lennar Corp. Class A | 285,600 | 2,196 | |
Mohawk Industries, Inc. (a) | 606,100 | 19,462 | |
Pulte Homes, Inc. | 1,313,100 | 13,328 | |
Ryland Group, Inc. | 698,900 | 10,903 | |
Toll Brothers, Inc. (a) | 1,347,800 | 22,940 | |
| 134,769 | ||
Internet & Catalog Retail - 1.4% | |||
Amazon.com, Inc. | 1,950,900 | 114,752 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Leisure Equipment & Products - 0.6% | |||
Brunswick Corp. | 1,730,400 | $ 4,811 | |
Hasbro, Inc. | 1,657,700 | 40,000 | |
| 44,811 | ||
Media - 2.8% | |||
Comcast Corp. Class A (special) (non-vtg.) | 2,821,600 | 39,164 | |
Interpublic Group of Companies, Inc. (a) | 11,431,600 | 38,067 | |
Lamar Advertising Co. Class A (a)(d) | 1,083,100 | 9,759 | |
Scripps Networks Interactive, Inc. Class A | 1,624,201 | 34,872 | |
The DIRECTV Group, Inc. (a) | 2,352,800 | 51,526 | |
The Walt Disney Co. | 2,443,800 | 50,538 | |
| 223,926 | ||
Multiline Retail - 1.6% | |||
Kohl's Corp. (a) | 866,900 | 31,824 | |
Nordstrom, Inc. | 904,800 | 11,482 | |
Target Corp. | 2,772,700 | 86,508 | |
| 129,814 | ||
Specialty Retail - 3.3% | |||
Bed Bath & Beyond, Inc. (a) | 1,592,700 | 36,998 | |
Best Buy Co., Inc. | 1,372,500 | 38,457 | |
CarMax, Inc. (a)(d) | 1,086,800 | 8,988 | |
Dick's Sporting Goods, Inc. (a) | 2,000,800 | 22,029 | |
Gamestop Corp. Class A (a) | 471,900 | 11,694 | |
Home Depot, Inc. | 1,195,400 | 25,737 | |
Lowe's Companies, Inc. | 2,132,800 | 38,966 | |
Sherwin-Williams Co. | 654,000 | 31,229 | |
Tiffany & Co., Inc. | 2,007,800 | 41,662 | |
Urban Outfitters, Inc. (a) | 586,600 | 9,139 | |
| 264,899 | ||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Deckers Outdoor Corp. (a) | 351,400 | 18,357 | |
NIKE, Inc. Class B | 1,565,400 | 70,834 | |
Polo Ralph Lauren Corp. Class A | 957,600 | 39,290 | |
VF Corp. | 836,400 | 46,855 | |
| 175,336 | ||
TOTAL CONSUMER DISCRETIONARY | 1,577,989 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 12.6% | |||
Beverages - 2.8% | |||
The Coca-Cola Co. | 5,256,000 | $ 224,536 | |
Food & Staples Retailing - 4.2% | |||
Costco Wholesale Corp. | 1,393,900 | 62,767 | |
Safeway, Inc. | 2,614,500 | 56,029 | |
Wal-Mart Stores, Inc. | 4,745,755 | 223,620 | |
| 342,416 | ||
Food Products - 1.0% | |||
General Mills, Inc. | 914,100 | 54,069 | |
Nestle SA sponsored ADR | 690,350 | 23,783 | |
| 77,852 | ||
Household Products - 3.3% | |||
Church & Dwight Co., Inc. | 302,900 | 16,123 | |
Energizer Holdings, Inc. (a) | 592,100 | 28,202 | |
Kimberly-Clark Corp. | 829,200 | 42,679 | |
Procter & Gamble Co. | 2,569,330 | 140,028 | |
Reckitt Benckiser Group PLC | 1,051,500 | 40,775 | |
| 267,807 | ||
Personal Products - 0.5% | |||
Estee Lauder Companies, Inc. Class A | 1,653,800 | 43,412 | |
Tobacco - 0.8% | |||
Philip Morris International, Inc. | 1,670,700 | 62,067 | |
TOTAL CONSUMER STAPLES | 1,018,090 | ||
ENERGY - 11.2% | |||
Energy Equipment & Services - 5.2% | |||
BJ Services Co. | 2,330,000 | 25,630 | |
Halliburton Co. | 2,159,500 | 37,251 | |
Nabors Industries Ltd. (a) | 2,034,000 | 22,272 | |
National Oilwell Varco, Inc. (a) | 2,576,900 | 68,133 | |
Noble Corp. | 304,379 | 8,264 | |
Oceaneering International, Inc. (a) | 1,038,385 | 35,783 | |
Patterson-UTI Energy, Inc. | 1,900,800 | 18,172 | |
Schlumberger Ltd. (NY Shares) | 3,416,700 | 139,436 | |
Transocean Ltd. (a) | 453,300 | 24,759 | |
Weatherford International Ltd. (a) | 3,448,500 | 38,037 | |
| 417,737 | ||
Oil, Gas & Consumable Fuels - 6.0% | |||
ConocoPhillips | 1,232,700 | 58,590 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Enterprise Products Partners LP | 862,900 | $ 18,949 | |
Exxon Mobil Corp. | 2,978,300 | 227,780 | |
Hess Corp. | 1,323,500 | 73,600 | |
Plains Exploration & Production Co. (a) | 374,600 | 7,912 | |
Reliance Industries Ltd. | 290,000 | 7,740 | |
Southwestern Energy Co. (a) | 2,030,600 | 64,268 | |
Whiting Petroleum Corp. (a) | 816,100 | 23,667 | |
| 482,506 | ||
TOTAL ENERGY | 900,243 | ||
FINANCIALS - 5.5% | |||
Capital Markets - 2.9% | |||
Charles Schwab Corp. | 4,576,000 | 62,188 | |
Goldman Sachs Group, Inc. | 544,600 | 43,966 | |
Janus Capital Group, Inc. | 2,804,300 | 14,723 | |
Morgan Stanley | 2,455,600 | 49,677 | |
Northern Trust Corp. | 490,300 | 28,202 | |
UBS AG (NY Shares) | 3,112,300 | 38,748 | |
| 237,504 | ||
Commercial Banks - 0.7% | |||
Associated Banc-Corp. | 899,100 | 14,071 | |
Old National Bancorp, Indiana (d) | 381,300 | 4,854 | |
Wells Fargo & Co. | 1,889,800 | 35,717 | |
| 54,642 | ||
Consumer Finance - 0.6% | |||
American Express Co. | 1,509,300 | 25,251 | |
Capital One Financial Corp. | 1,351,300 | 21,405 | |
| 46,656 | ||
Diversified Financial Services - 1.0% | |||
CME Group, Inc. | 227,600 | 39,582 | |
JPMorgan Chase & Co. | 1,449,300 | 36,972 | |
| 76,554 | ||
Insurance - 0.2% | |||
Fidelity National Financial, Inc. Class A | 544,700 | 7,964 | |
The First American Corp. | 492,950 | 10,766 | |
| 18,730 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.1% | |||
NewAlliance Bancshares, Inc. | 1,086,900 | $ 11,945 | |
TOTAL FINANCIALS | 446,031 | ||
HEALTH CARE - 13.0% | |||
Biotechnology - 2.8% | |||
Genentech, Inc. (a) | 2,336,500 | 189,817 | |
Gilead Sciences, Inc. (a) | 631,800 | 32,076 | |
| 221,893 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 1,706,100 | 100,063 | |
Covidien Ltd. | 1,068,400 | 40,962 | |
| 141,025 | ||
Health Care Providers & Services - 1.6% | |||
Express Scripts, Inc. (a) | 347,900 | 18,703 | |
Fresenius Medical Care AG | 385,200 | 17,266 | |
Medco Health Solutions, Inc. (a) | 2,028,100 | 91,123 | |
| 127,092 | ||
Pharmaceuticals - 6.9% | |||
Abbott Laboratories | 974,600 | 54,032 | |
Johnson & Johnson | 2,281,000 | 131,591 | |
Merck & Co., Inc. | 4,316,600 | 123,239 | |
Novo Nordisk AS Series B | 1,022,200 | 54,847 | |
Pfizer, Inc. | 2,412,600 | 35,176 | |
Pronova BioPharma ASA (a) | 10,270,853 | 30,390 | |
Schering-Plough Corp. | 5,403,100 | 94,878 | |
Wyeth | 797,300 | 34,260 | |
| 558,413 | ||
TOTAL HEALTH CARE | 1,048,423 | ||
INDUSTRIALS - 6.4% | |||
Aerospace & Defense - 2.8% | |||
Honeywell International, Inc. | 2,221,100 | 72,874 | |
Raytheon Co. | 1,181,500 | 59,808 | |
United Technologies Corp. | 1,920,300 | 92,155 | |
| 224,837 | ||
Air Freight & Logistics - 0.4% | |||
FedEx Corp. | 618,200 | 31,491 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Building Products - 0.7% | |||
Masco Corp. | 3,825,900 | $ 29,919 | |
Owens Corning (a) | 2,210,000 | 29,481 | |
| 59,400 | ||
Machinery - 1.6% | |||
Cummins, Inc. | 2,004,600 | 48,070 | |
Danaher Corp. | 1,033,500 | 57,804 | |
Ingersoll-Rand Co. Ltd. Class A | 1,442,700 | 23,386 | |
| 129,260 | ||
Professional Services - 0.9% | |||
Manpower, Inc. | 873,700 | 24,866 | |
Monster Worldwide, Inc. (a) | 351,800 | 3,240 | |
Robert Half International, Inc. (d) | 2,481,100 | 42,055 | |
| 70,161 | ||
TOTAL INDUSTRIALS | 515,149 | ||
INFORMATION TECHNOLOGY - 25.6% | |||
Communications Equipment - 7.1% | |||
Adtran, Inc. | 1,352,043 | 20,483 | |
Cisco Systems, Inc. (a) | 13,923,200 | 208,430 | |
Corning, Inc. | 7,039,700 | 71,171 | |
Juniper Networks, Inc. (a) | 3,530,600 | 49,993 | |
QUALCOMM, Inc. | 5,633,700 | 194,644 | |
Research In Motion Ltd. (a) | 524,600 | 29,063 | |
| 573,784 | ||
Computers & Peripherals - 4.2% | |||
Apple, Inc. (a) | 480,300 | 43,289 | |
International Business Machines Corp. | 3,209,400 | 294,140 | |
| 337,429 | ||
Electronic Equipment & Components - 0.5% | |||
Arrow Electronics, Inc. (a) | 384,500 | 7,332 | |
Avnet, Inc. (a) | 429,400 | 8,511 | |
Itron, Inc. (a) | 131,600 | 8,593 | |
Tyco Electronics Ltd. | 1,281,425 | 18,145 | |
| 42,581 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 1.3% | |||
Google, Inc. Class A (sub. vtg.) (a) | 208,900 | $ 70,719 | |
Yahoo!, Inc. (a) | 3,138,100 | 36,810 | |
| 107,529 | ||
IT Services - 2.1% | |||
Accenture Ltd. Class A | 2,537,750 | 80,091 | |
The Western Union Co. | 6,353,000 | 86,782 | |
| 166,873 | ||
Semiconductors & Semiconductor Equipment - 5.7% | |||
Analog Devices, Inc. | 2,019,100 | 40,342 | |
Applied Materials, Inc. | 8,773,700 | 82,210 | |
Atmel Corp. (a) | 7,906,300 | 26,407 | |
Intel Corp. | 6,479,900 | 83,591 | |
Lam Research Corp. (a) | 1,680,300 | 33,959 | |
Micron Technology, Inc. (a) | 2,922,700 | 10,872 | |
Samsung Electronics Co. Ltd. | 24,935 | 8,658 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 13,192,759 | 99,473 | |
Teradyne, Inc. (a) | 1,298,125 | 6,244 | |
Texas Instruments, Inc. | 4,316,100 | 64,526 | |
| 456,282 | ||
Software - 4.7% | |||
CA, Inc. | 2,778,900 | 49,992 | |
Microsoft Corp. | 7,596,600 | 129,902 | |
Oracle Corp. (a) | 11,876,300 | 199,878 | |
| 379,772 | ||
TOTAL INFORMATION TECHNOLOGY | 2,064,250 | ||
MATERIALS - 2.1% | |||
Chemicals - 1.1% | |||
Airgas, Inc. | 760,700 | 26,860 | |
Praxair, Inc. | 1,031,100 | 64,196 | |
| 91,056 | ||
Construction Materials - 0.7% | |||
Martin Marietta Materials, Inc. (d) | 564,200 | 45,429 | |
Vulcan Materials Co. (d) | 154,500 | 7,642 | |
| 53,071 | ||
Containers & Packaging - 0.2% | |||
Temple-Inland, Inc. | 3,497,300 | 19,830 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.1% | |||
Louisiana-Pacific Corp. | 4,184,000 | $ 8,703 | |
TOTAL MATERIALS | 172,660 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Wireless Telecommunication Services - 0.4% | |||
Sprint Nextel Corp. (a) | 3,191,500 | 7,755 | |
Vodafone Group PLC sponsored ADR | 1,329,800 | 24,721 | |
| 32,476 | ||
TOTAL COMMON STOCKS (Cost $9,742,352) | 7,775,311 | ||
Money Market Funds - 2.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.78% (b) | 167,317,561 | 167,318 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 51,782,004 | 51,782 | |
TOTAL MONEY MARKET FUNDS (Cost $219,100) | 219,100 | ||
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $9,961,452) | 7,994,411 | ||
NET OTHER ASSETS - 0.9% | 72,274 | ||
NET ASSETS - 100% | $ 8,066,685 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,747 |
Fidelity Securities Lending Cash Central Fund | 1,151 |
Total | $ 3,898 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales | Dividend | Value, |
DineEquity, Inc. | $ 21,437 | $ - | $ - | $ 232 | $ 8,204 |
Furniture Brands International, Inc. | 55,001 | 686 | - | 185 | 10,003 |
La-Z-Boy, Inc. | 35,971 | - | 11,711 | 269 | 3,595 |
Total | $ 112,409 | $ 686 | $ 11,711 | $ 686 | $ 21,802 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 7,994,411 | $ 7,978,013 | $ 16,398 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $48,711) - See accompanying schedule: Unaffiliated issuers (cost $9,581,307) | $ 7,753,509 |
|
Fidelity Central Funds (cost $219,100) | 219,100 |
|
Other affiliated issuers (cost $161,045) | 21,802 |
|
Total Investments (cost $9,961,452) |
| $ 7,994,411 |
Receivable for investments sold | 278,684 | |
Receivable for fund shares sold | 9,513 | |
Dividends receivable | 8,678 | |
Distributions receivable from Fidelity Central Funds | 259 | |
Prepaid expenses | 108 | |
Other receivables | 348 | |
Total assets | 8,292,001 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 158,380 | |
Payable for fund shares redeemed | 10,245 | |
Accrued management fee | 2,268 | |
Other affiliated payables | 2,262 | |
Other payables and accrued expenses | 379 | |
Collateral on securities loaned, at value | 51,782 | |
Total liabilities | 225,316 | |
|
|
|
Net Assets | $ 8,066,685 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,624,873 | |
Undistributed net investment income | 3,352 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,594,473) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,967,067) | |
Net Assets | $ 8,066,685 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Blue Chip Growth: | $ 24.41 | |
|
|
|
Class K: | $ 24.41 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $686 earned from other affiliated issuers) |
| $ 79,710 |
Interest |
| 9 |
Income from Fidelity Central Funds |
| 3,898 |
Total income |
| 83,617 |
|
|
|
Expenses | ||
Management fee | $ 29,308 | |
Performance adjustment | (8,956) | |
Transfer agent fees | 14,190 | |
Accounting and security lending fees | 671 | |
Custodian fees and expenses | 109 | |
Independent trustees' compensation | 30 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 63 | |
Audit | 51 | |
Legal | 49 | |
Miscellaneous | 628 | |
Total expenses before reductions | 36,142 | |
Expense reductions | (213) | 35,929 |
Net investment income (loss) | 47,688 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,554,583) | |
Other affiliated issuers | (3,174) |
|
Foreign currency transactions | (604) | |
Total net realized gain (loss) |
| (1,558,361) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $155) | (3,180,060) | |
Assets and liabilities in foreign currencies | (43) | |
Total change in net unrealized appreciation (depreciation) |
| (3,180,103) |
Net gain (loss) | (4,738,464) | |
Net increase (decrease) in net assets resulting from operations | $ (4,690,776) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 47,688 | $ 128,004 |
Net realized gain (loss) | (1,558,361) | 736,209 |
Change in net unrealized appreciation (depreciation) | (3,180,103) | (1,621,640) |
Net increase (decrease) in net assets resulting from operations | (4,690,776) | (757,427) |
Distributions to shareholders from net investment income | (99,426) | (124,380) |
Distributions to shareholders from net realized gain | (242,439) | (1,882,106) |
Total distributions | (341,865) | (2,006,486) |
Share transactions - net increase (decrease) | (249,327) | (2,503,707) |
Total increase (decrease) in net assets | (5,281,968) | (5,267,620) |
|
|
|
Net Assets | ||
Beginning of period | 13,348,653 | 18,616,273 |
End of period (including undistributed net investment income of $3,352 and undistributed net investment income of $71,533, respectively) | $ 8,066,685 | $ 13,348,653 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 | $ 36.13 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .14 | .35 | .32 | .23 | .42 G | .19 |
Net realized and unrealized gain (loss) | (13.79) | (2.89) | 6.19 | (1.06) | 3.85 | 2.62 |
Total from investment operations | (13.65) | (2.54) | 6.51 | (.83) | 4.27 | 2.81 |
Distributions from net investment income | (.29) | (.33) | (.24) | (.23) | (.39) | (.22) |
Distributions from net realized gain | (.71) | (4.95) | (.93) | - | - | - |
Total distributions | (1.00) | (5.28) | (1.17) | (.23) | (.39) | (.22) |
Net asset value, end of period | $ 24.41 | $ 39.06 | $ 46.88 | $ 41.54 | $ 42.60 | $ 38.72 |
Total Return B,C | (35.75)% | (6.30)% | 16.02% | (1.97)% | 11.08% | 7.79% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | .70% A | .58% | .60% | .63% | .66% | .68% |
Expenses net of fee waivers, if any | .70% A | .58% | .60% | .63% | .66% | .68% |
Expenses net of all reductions | .69% A | .57% | .59% | .61% | .64% | .67% |
Net investment income (loss) | .91% A | .81% | .72% | .54% | 1.05% G | .48% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 7,807 | $ 13,349 | $ 18,616 | $ 19,571 | $ 22,881 | $ 22,102 |
Portfolio turnover rate F | 107% A | 82% | 87% | 48% | 29% | 23% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .15 | .10 |
Net realized and unrealized gain (loss) | (13.76) | (2.84) |
Total from investment operations | (13.61) | (2.74) |
Distributions from net investment income | (.34) | - |
Distributions from net realized gain | (.71) | - |
Total distributions | (1.05) | - |
Net asset value, end of period | $ 24.41 | $ 39.07 |
Total Return B,C | (35.65)% | (6.55)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .47% A | .41% A |
Expenses net of fee waivers, if any | .47% A | .41% A |
Expenses net of all reductions | .47% A | .41% A |
Net investment income (loss) | 1.14% A | 1.09% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 259,265 | $ 93 |
Portfolio turnover rate F | 107% A | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Blue Chip Growth and Class K to eligible shareholders of Blue Chip Growth. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 414,653 |
Unrealized depreciation | (2,432,808) |
Net unrealized appreciation (depreciation) | $ (2,018,155) |
Cost for federal income tax purposes | $ 10,012,566 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $5,549,839 and $6,009,546, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund, Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .39% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Blue Chip Growth | $ 14,154 | .28 |
Class K | 36 | .05 |
| $ 14,190 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $128 for the period.
7. 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, which amounted to $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,151.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Blue Chip Growth's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $144 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Blue Chip Growth | $ 64 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Blue Chip Growth | $ 97,803 | $ 124,380 |
Class K | 1,623 | - |
Total | $ 99,426 | $ 124,380 |
From net realized gain |
|
|
Blue Chip Growth | $ 242,437 | $ 1,882,106 |
Class K | 2 | - |
Total | $ 242,439 | $ 1,882,106 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Blue Chip Growth |
|
|
|
|
Shares sold | 29,826 | 41,834 | $ 896,994 | $ 1,768,681 |
Conversion to Class K | (10,459) | - | (308,516) | - |
Reinvestment of distributions | 9,381 | 45,780 | 335,422 | 1,982,162 |
Shares redeemed | (50,675) | (142,989) | (1,485,724) | (6,254,650) |
Net increase (decrease) | (21,927) | (55,375) | $ (561,824) | $ (2,503,807) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended January 31, | Year ended | Six months ended | Year ended |
Class K |
|
|
|
|
Shares sold | 673 | 2 | $ 17,642 | $ 100 |
Conversion from Blue Chip Growth | 10,453 | - | 308,516 | - |
Reinvestment of distributions | 63 | - | 1,625 | - |
Shares redeemed | (568) | - | (15,286) | - |
Net increase (decrease) | 10,621 | 2 | $ 312,497 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-K-USAN-0309 1.863115.100
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2009
(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 6 months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .73% | $ 1,000.00 | $ 589.10 | $ 2.92 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,021.53 | $ 3.72 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 4.3 | 3.3 |
Chevron Corp. | 3.7 | 0.0 |
AT&T, Inc. | 3.6 | 3.5 |
Exxon Mobil Corp. | 3.4 | 3.0 |
Wells Fargo & Co. | 3.0 | 1.7 |
Verizon Communications, Inc. | 2.5 | 2.2 |
ConocoPhillips | 2.5 | 4.8 |
Pfizer, Inc. | 2.5 | 0.7 |
Wyeth | 2.0 | 0.8 |
Merck & Co., Inc. | 1.9 | 1.2 |
| 29.4 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Financials | 20.6 | 27.3 |
Energy | 18.1 | 16.4 |
Health Care | 14.0 | 9.1 |
Consumer Discretionary | 9.2 | 7.8 |
Consumer Staples | 8.2 | 7.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.2% |
| ** Foreign investments | 12.4% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 9.2% | |||
Auto Components - 0.5% | |||
Johnson Controls, Inc. | 82,600 | $ 1,033,326 | |
The Goodyear Tire & Rubber Co. (a) | 44,000 | 271,480 | |
| 1,304,806 | ||
Automobiles - 0.1% | |||
Renault SA | 18,300 | 355,191 | |
Diversified Consumer Services - 0.7% | |||
H&R Block, Inc. | 91,700 | 1,900,941 | |
Household Durables - 2.3% | |||
Black & Decker Corp. | 33,700 | 974,267 | |
Centex Corp. | 207,000 | 1,761,570 | |
KB Home (d) | 207,100 | 2,209,757 | |
Pulte Homes, Inc. | 73,500 | 746,025 | |
Whirlpool Corp. | 15,200 | 508,136 | |
| 6,199,755 | ||
Media - 2.0% | |||
Comcast Corp. Class A (special) (non-vtg.) | 145,100 | 2,013,988 | |
News Corp. Class A | 147,700 | 943,803 | |
Time Warner, Inc. | 275,700 | 2,572,281 | |
| 5,530,072 | ||
Multiline Retail - 0.1% | |||
JCPenney Co., Inc. | 21,800 | 365,150 | |
Specialty Retail - 3.4% | |||
Advance Auto Parts, Inc. | 31,800 | 1,040,814 | |
Home Depot, Inc. | 59,600 | 1,283,188 | |
Lowe's Companies, Inc. | 100,800 | 1,841,616 | |
PetSmart, Inc. | 39,200 | 735,784 | |
Ross Stores, Inc. | 49,900 | 1,468,058 | |
Staples, Inc. | 146,600 | 2,336,804 | |
Williams-Sonoma, Inc. | 78,300 | 620,136 | |
| 9,326,400 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Liz Claiborne, Inc. | 56,100 | 123,420 | |
TOTAL CONSUMER DISCRETIONARY | 25,105,735 | ||
CONSUMER STAPLES - 8.2% | |||
Beverages - 1.2% | |||
Anheuser-Busch InBev NV | 69,860 | 1,780,785 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
Molson Coors Brewing Co. Class B | 22,700 | $ 914,129 | |
The Coca-Cola Co. | 11,200 | 478,464 | |
| 3,173,378 | ||
Food & Staples Retailing - 1.9% | |||
CVS Caremark Corp. | 74,900 | 2,013,312 | |
Kroger Co. | 60,300 | 1,356,750 | |
Sysco Corp. | 32,600 | 726,654 | |
Winn-Dixie Stores, Inc. (a) | 71,862 | 987,384 | |
| 5,084,100 | ||
Food Products - 1.8% | |||
Cermaq ASA | 65,800 | 250,728 | |
Marine Harvest ASA (a)(d) | 1,558,000 | 337,312 | |
Nestle SA (Reg.) | 113,592 | 3,934,931 | |
Tyson Foods, Inc. Class A | 55,000 | 486,750 | |
| 5,009,721 | ||
Household Products - 1.8% | |||
Energizer Holdings, Inc. (a) | 24,100 | 1,147,883 | |
Procter & Gamble Co. | 69,400 | 3,782,300 | |
| 4,930,183 | ||
Tobacco - 1.5% | |||
Altria Group, Inc. | 80,600 | 1,333,124 | |
British American Tobacco PLC sponsored ADR | 49,600 | 2,732,960 | |
| 4,066,084 | ||
TOTAL CONSUMER STAPLES | 22,263,466 | ||
ENERGY - 18.1% | |||
Energy Equipment & Services - 2.6% | |||
ENSCO International, Inc. | 23,350 | 638,856 | |
Nabors Industries Ltd. (a) | 186,832 | 2,045,810 | |
National Oilwell Varco, Inc. (a) | 63,614 | 1,681,954 | |
Noble Corp. | 29,300 | 795,495 | |
Patterson-UTI Energy, Inc. | 68,100 | 651,036 | |
Transocean Ltd. (a) | 13,600 | 742,832 | |
Weatherford International Ltd. (a) | 51,900 | 572,457 | |
| 7,128,440 | ||
Oil, Gas & Consumable Fuels - 15.5% | |||
Chesapeake Energy Corp. | 153,000 | 2,418,930 | |
Chevron Corp. | 141,700 | 9,992,684 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
ConocoPhillips | 141,000 | $ 6,701,730 | |
EOG Resources, Inc. | 21,600 | 1,463,832 | |
Exxon Mobil Corp. | 122,000 | 9,330,560 | |
Hess Corp. | 25,400 | 1,412,494 | |
Occidental Petroleum Corp. | 87,600 | 4,778,580 | |
Petrohawk Energy Corp. (a) | 74,200 | 1,462,482 | |
Plains Exploration & Production Co. (a) | 53,600 | 1,132,032 | |
Quicksilver Resources, Inc. (a) | 80,000 | 554,400 | |
Range Resources Corp. | 20,000 | 716,800 | |
Ultra Petroleum Corp. (a) | 62,600 | 2,242,958 | |
Uranium One, Inc. (a) | 85,700 | 129,335 | |
| 42,336,817 | ||
TOTAL ENERGY | 49,465,257 | ||
FINANCIALS - 20.5% | |||
Capital Markets - 5.7% | |||
Bank of New York Mellon Corp. | 193,400 | 4,978,116 | |
Charles Schwab Corp. | 56,832 | 772,347 | |
Franklin Resources, Inc. | 33,000 | 1,597,860 | |
Goldman Sachs Group, Inc. | 37,300 | 3,011,229 | |
KKR Private Equity Investors, LP (a) | 134,079 | 313,745 | |
KKR Private Equity Investors, LP Restricted Depositary Units (a)(e) | 7,700 | 18,018 | |
Morgan Stanley | 119,200 | 2,411,416 | |
State Street Corp. | 51,970 | 1,209,342 | |
T. Rowe Price Group, Inc. | 41,800 | 1,152,844 | |
| 15,464,917 | ||
Commercial Banks - 3.4% | |||
PNC Financial Services Group, Inc. | 33,272 | 1,082,005 | |
Wells Fargo & Co. | 431,637 | 8,157,939 | |
| 9,239,944 | ||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 32,700 | 517,968 | |
Discover Financial Services | 70,700 | 505,505 | |
| 1,023,473 | ||
Diversified Financial Services - 6.3% | |||
Bank of America Corp. | 608,682 | 4,005,128 | |
CIT Group, Inc. (d) | 159,800 | 445,842 | |
Citigroup, Inc. | 214,400 | 761,120 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
JPMorgan Chase & Co. | 463,952 | $ 11,835,415 | |
KKR Financial Holdings LLC | 18,800 | 26,696 | |
| 17,074,201 | ||
Insurance - 3.7% | |||
ACE Ltd. | 76,880 | 3,356,581 | |
Allied World Assurance Co. Holdings Ltd. | 16,400 | 618,280 | |
Argo Group International Holdings, Ltd. (a) | 14,488 | 450,722 | |
Everest Re Group Ltd. | 39,700 | 2,501,100 | |
Hartford Financial Services Group, Inc. | 21,300 | 280,308 | |
Loews Corp. | 33,900 | 827,160 | |
MetLife, Inc. | 39,700 | 1,140,581 | |
PartnerRe Ltd. | 16,300 | 1,068,139 | |
| 10,242,871 | ||
Real Estate Investment Trusts - 0.8% | |||
Alexandria Real Estate Equities, Inc. | 23,000 | 1,364,820 | |
CapitalSource, Inc. | 120,400 | 438,256 | |
General Growth Properties, Inc. | 111,600 | 72,540 | |
Simon Property Group, Inc. | 9,100 | 391,118 | |
| 2,266,734 | ||
Real Estate Management & Development - 0.2% | |||
CB Richard Ellis Group, Inc. Class A (a) | 174,400 | 627,840 | |
TOTAL FINANCIALS | 55,939,980 | ||
HEALTH CARE - 14.0% | |||
Biotechnology - 2.4% | |||
Amgen, Inc. (a) | 85,500 | 4,689,675 | |
Biogen Idec, Inc. (a) | 25,400 | 1,235,710 | |
Cephalon, Inc. (a) | 8,700 | 671,466 | |
| 6,596,851 | ||
Health Care Equipment & Supplies - 2.5% | |||
Baxter International, Inc. | 31,000 | 1,818,150 | |
Boston Scientific Corp. (a) | 175,100 | 1,553,137 | |
Covidien Ltd. | 93,385 | 3,580,381 | |
| 6,951,668 | ||
Health Care Providers & Services - 1.2% | |||
Brookdale Senior Living, Inc. | 69,500 | 472,600 | |
UnitedHealth Group, Inc. | 97,500 | 2,762,175 | |
| 3,234,775 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - 0.3% | |||
Thermo Fisher Scientific, Inc. (a) | 23,500 | $ 844,355 | |
Pharmaceuticals - 7.6% | |||
Allergan, Inc. | 16,500 | 628,980 | |
Johnson & Johnson | 31,500 | 1,817,235 | |
Merck & Co., Inc. | 183,500 | 5,238,925 | |
Pfizer, Inc. | 457,000 | 6,663,060 | |
Sepracor, Inc. (a) | 52,180 | 793,136 | |
Wyeth | 127,000 | 5,457,190 | |
| 20,598,526 | ||
TOTAL HEALTH CARE | 38,226,175 | ||
INDUSTRIALS - 8.0% | |||
Aerospace & Defense - 2.7% | |||
Honeywell International, Inc. | 127,360 | 4,178,682 | |
Raytheon Co. | 32,900 | 1,665,398 | |
The Boeing Co. | 20,100 | 850,431 | |
United Technologies Corp. | 16,900 | 811,031 | |
| 7,505,542 | ||
Air Freight & Logistics - 0.4% | |||
United Parcel Service, Inc. Class B | 27,100 | 1,151,479 | |
Airlines - 0.1% | |||
Delta Air Lines, Inc. (a) | 51,500 | 355,350 | |
Building Products - 0.8% | |||
Masco Corp. | 190,800 | 1,492,056 | |
Owens Corning (a) | 47,000 | 626,980 | |
| 2,119,036 | ||
Commercial Services & Supplies - 0.6% | |||
Republic Services, Inc. | 60,930 | 1,575,650 | |
Electrical Equipment - 0.1% | |||
Acuity Brands, Inc. | 15,300 | 411,111 | |
Industrial Conglomerates - 2.0% | |||
General Electric Co. | 259,350 | 3,145,916 | |
McDermott International, Inc. (a) | 49,900 | 517,463 | |
Siemens AG sponsored ADR | 33,100 | 1,855,586 | |
| 5,518,965 | ||
Machinery - 1.0% | |||
Cummins, Inc. | 40,700 | 975,986 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Illinois Tool Works, Inc. | 24,400 | $ 796,904 | |
Ingersoll-Rand Co. Ltd. Class A | 51,500 | 834,815 | |
| 2,607,705 | ||
Road & Rail - 0.3% | |||
Con-way, Inc. | 32,400 | 713,772 | |
TOTAL INDUSTRIALS | 21,958,610 | ||
INFORMATION TECHNOLOGY - 7.2% | |||
Communications Equipment - 1.0% | |||
Cisco Systems, Inc. (a) | 139,100 | 2,082,327 | |
Motorola, Inc. | 135,600 | 600,708 | |
| 2,683,035 | ||
Computers & Peripherals - 2.1% | |||
Hewlett-Packard Co. | 84,500 | 2,936,375 | |
International Business Machines Corp. | 20,500 | 1,878,825 | |
NCR Corp. (a) | 78,100 | 980,155 | |
| 5,795,355 | ||
Electronic Equipment & Components - 1.6% | |||
Amphenol Corp. Class A | 9,400 | 245,810 | |
Arrow Electronics, Inc. (a) | 51,800 | 987,826 | |
Avnet, Inc. (a) | 92,200 | 1,827,404 | |
Flextronics International Ltd. (a) | 144,100 | 376,101 | |
Tyco Electronics Ltd. | 60,085 | 850,804 | |
| 4,287,945 | ||
Internet Software & Services - 0.4% | |||
VeriSign, Inc. (a) | 48,500 | 936,535 | |
IT Services - 0.4% | |||
Lender Processing Services, Inc. | 23,400 | 606,528 | |
The Western Union Co. | 35,400 | 483,564 | |
| 1,090,092 | ||
Semiconductors & Semiconductor Equipment - 1.7% | |||
Applied Materials, Inc. | 105,600 | 989,472 | |
ASML Holding NV (NY Shares) | 31,000 | 512,740 | |
Atmel Corp. (a) | 156,200 | 521,708 | |
Lam Research Corp. (a) | 46,200 | 933,702 | |
Maxim Integrated Products, Inc. | 46,000 | 608,580 | |
MEMC Electronic Materials, Inc. (a) | 22,100 | 300,560 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Novellus Systems, Inc. (a) | 55,400 | $ 763,966 | |
ON Semiconductor Corp. (a) | 23,100 | 96,327 | |
| 4,727,055 | ||
TOTAL INFORMATION TECHNOLOGY | 19,520,017 | ||
MATERIALS - 2.5% | |||
Chemicals - 0.4% | |||
Albemarle Corp. | 45,290 | 1,007,703 | |
Containers & Packaging - 0.3% | |||
Owens-Illinois, Inc. (a) | 33,200 | 630,800 | |
Temple-Inland, Inc. | 42,600 | 241,542 | |
| 872,342 | ||
Metals & Mining - 1.8% | |||
Agnico-Eagle Mines Ltd. | 6,400 | 341,967 | |
ArcelorMittal SA (NY Shares) Class A | 32,000 | 722,240 | |
Commercial Metals Co. | 40,000 | 460,000 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 30,600 | 769,284 | |
Lihir Gold Ltd. (a) | 182,267 | 361,699 | |
Newcrest Mining Ltd. | 55,804 | 1,081,825 | |
Randgold Resources Ltd. sponsored ADR | 27,200 | 1,209,312 | |
| 4,946,327 | ||
TOTAL MATERIALS | 6,826,372 | ||
TELECOMMUNICATION SERVICES - 6.6% | |||
Diversified Telecommunication Services - 6.6% | |||
AT&T, Inc. | 397,310 | 9,781,772 | |
Cincinnati Bell, Inc. (a) | 308,800 | 429,232 | |
Qwest Communications International, Inc. | 327,700 | 1,055,194 | |
Verizon Communications, Inc. | 226,573 | 6,767,736 | |
| 18,033,934 | ||
UTILITIES - 4.9% | |||
Electric Utilities - 2.5% | |||
Entergy Corp. | 25,800 | 1,970,088 | |
Exelon Corp. | 50,600 | 2,743,532 | |
FirstEnergy Corp. | 44,600 | 2,229,554 | |
| 6,943,174 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Independent Power Producers & Energy Traders - 0.9% | |||
AES Corp. (a) | 86,900 | $ 687,379 | |
NRG Energy, Inc. (a) | 58,500 | 1,366,560 | |
Reliant Energy, Inc. (a) | 64,500 | 328,305 | |
| 2,382,244 | ||
Multi-Utilities - 1.5% | |||
CMS Energy Corp. | 106,300 | 1,249,025 | |
Sempra Energy | 36,600 | 1,604,544 | |
Wisconsin Energy Corp. | 28,500 | 1,270,530 | |
| 4,124,099 | ||
TOTAL UTILITIES | 13,449,517 | ||
TOTAL COMMON STOCKS (Cost $410,901,233) | 270,789,063 | ||
Convertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Commercial Banks - 0.1% | |||
Huntington Bancshares, Inc. 8.50% | 700 | 306,908 | |
Diversified Financial Services - 0.0% | |||
CIT Group, Inc. Series C, 8.75% | 5,100 | 97,410 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $778,558) | 404,318 | ||
Investment Companies - 0.2% | |||
|
|
|
|
Ares Capital Corp. | 94,219 | 443,771 | |
Money Market Funds - 1.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.78% (b) | 613,878 | $ 613,878 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 2,587,250 | 2,587,250 | |
TOTAL MONEY MARKET FUNDS (Cost $3,201,128) | 3,201,128 | ||
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $416,475,489) | 274,838,280 | ||
NET OTHER ASSETS - (0.7)% | (1,945,432) | ||
NET ASSETS - 100% | $ 272,892,848 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $18,018 or 0.0% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 20,554 |
Fidelity Securities Lending Cash Central Fund | 60,327 |
Total | $ 80,881 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 274,838,280 | $ 273,297,346 | $ 1,540,934 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.8% |
Bermuda | 3.6% |
Switzerland | 2.9% |
United Kingdom | 1.5% |
Others (individually less than 1%) | 4.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,401,847) - See accompanying schedule: Unaffiliated issuers (cost $413,274,361) | $ 271,637,152 |
|
Fidelity Central Funds (cost $3,201,128) | 3,201,128 |
|
Total Investments (cost $416,475,489) |
| $ 274,838,280 |
Receivable for investments sold | 1,342,609 | |
Receivable for fund shares sold | 462,263 | |
Dividends receivable | 781,103 | |
Distributions receivable from Fidelity Central Funds | 3,132 | |
Prepaid expenses | 3,726 | |
Other receivables | 1,160 | |
Total assets | 277,432,273 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 846,200 | |
Payable for fund shares redeemed | 934,663 | |
Accrued management fee | 60,623 | |
Other affiliated payables | 84,092 | |
Other payables and accrued expenses | 26,597 | |
Collateral on securities loaned, at value | 2,587,250 | |
Total liabilities | 4,539,425 | |
|
|
|
Net Assets | $ 272,892,848 | |
Net Assets consist of: |
| |
Paid in capital | $ 570,583,140 | |
Undistributed net investment income | 917,420 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (156,965,395) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (141,642,317) | |
Net Assets, for 38,850,387 shares outstanding | $ 272,892,848 | |
Net Asset Value, offering price and redemption price per share ($272,892,848 ÷ 38,850,387 shares) | $ 7.02 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2009 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,046,977 |
Interest |
| 15 |
Income from Fidelity Central Funds |
| 80,881 |
Total income |
| 5,127,873 |
|
|
|
Expenses | ||
Management fee | $ 1,036,275 | |
Performance adjustment | (414,423) | |
Transfer agent fees | 541,126 | |
Accounting and security lending fees | 72,764 | |
Custodian fees and expenses | 14,803 | |
Independent trustees' compensation | 1,111 | |
Registration fees | 9,465 | |
Audit | 29,508 | |
Legal | 2,026 | |
Interest | 1,375 | |
Miscellaneous | 45,374 | |
Total expenses before reductions | 1,339,404 | |
Expense reductions | (1,476) | 1,337,928 |
Net investment income (loss) | 3,789,945 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (107,908,785) | |
Investment not meeting investment restrictions | (2,115) | |
Foreign currency transactions | 17,204 | |
Payment from investment advisor for loss on investment not meeting investment restrictions | 2,115 | |
Total net realized gain (loss) |
| (107,891,581) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (95,199,883) | |
Assets and liabilities in foreign currencies | (8,986) | |
Total change in net unrealized appreciation (depreciation) |
| (95,208,869) |
Net gain (loss) | (203,100,450) | |
Net increase (decrease) in net assets resulting from operations | $ (199,310,505) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 3,789,945 | $ 9,441,294 |
Net realized gain (loss) | (107,891,581) | (41,156,524) |
Change in net unrealized appreciation (depreciation) | (95,208,869) | (78,658,033) |
Net increase (decrease) in net assets resulting from operations | (199,310,505) | (110,373,263) |
Distributions to shareholders from net investment income | (7,269,944) | (7,478,440) |
Distributions to shareholders from net realized gain | (412,628) | (31,750,791) |
Total distributions | (7,682,572) | (39,229,231) |
Share transactions | 47,725,379 | 228,027,796 |
Reinvestment of distributions | 7,439,489 | 37,874,831 |
Cost of shares redeemed | (93,008,769) | (329,921,789) |
Net increase (decrease) in net assets resulting from share transactions | (37,843,901) | (64,019,162) |
Total increase (decrease) in net assets | (244,836,978) | (213,621,656) |
|
|
|
Net Assets | ||
Beginning of period | 517,729,826 | 731,351,482 |
End of period (including undistributed net investment income of $917,420 and undistributed net investment income of $5,379,168, respectively) | $ 272,892,848 | $ 517,729,826 |
Other Information Shares | ||
Sold | 5,402,584 | 15,903,414 |
Issued in reinvestment of distributions | 760,861 | 2,583,422 |
Redeemed | (9,927,433) | (23,187,845) |
Net increase (decrease) | (3,763,988) | (4,701,009) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended January 31, 2009 | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 12.15 | $ 15.46 | $ 13.95 | $ 13.21 | $ 11.24 | $ 9.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .09 | .21 | .19 | .10 | .11 | .05 |
Net realized and unrealized gain (loss) | (5.03) | (2.68) | 2.05 | .95 | 2.03 | 1.52 |
Total from investment operations | (4.94) | (2.47) | 2.24 | 1.05 | 2.14 | 1.57 |
Distributions from net investment income | (.18) | (.16) | (.13) | (.08) | (.09) | (.02) |
Distributions from net realized gain | (.01) | (.68) | (.60) | (.23) | (.08) | (.04) |
Total distributions | (.19) | (.84) | (.73) | (.31) | (.17) | (.06) |
Net asset value, end of period | $ 7.02 | $ 12.15 | $ 15.46 | $ 13.95 | $ 13.21 | $ 11.24 |
Total Return B, C | (41.09)% | (16.86)% | 16.60% | 8.05% | 19.20% | 16.16% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .73% A | .92% | .87% | .94% | .97% | 1.17% |
Expenses net of fee waivers, if any | .73% A | .92% | .87% | .94% | .97% | 1.17% |
Expenses net of all reductions | .73% A | .91% | .87% | .93% | .93% | 1.13% |
Net investment income (loss) | 2.06% A | 1.46% | 1.25% | .76% | .85% | .50% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 272,893 | $ 517,730 | $ 731,351 | $ 272,702 | $ 182,071 | $ 68,541 |
Portfolio turnover rate F | 78% A | 61% | 92% | 74% | 81% | 111% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Blue Chip Value Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 10,476,027 |
Unrealized depreciation | (162,115,196) |
Net unrealized appreciation (depreciation) | $ (151,639,169) |
Cost for federal income tax purposes | $ 426,477,449 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
(including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $147,668,302 and $186,884,037, respectively.
The Fund realized a loss on the sale of an investment not meeting the investment restrictions of the Fund. The loss was fully reimbursed by the Fund's investment advisor.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .34% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .29% of average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $6,906 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan Balance | Weighted Average Interest Rate | Interest |
Borrower | $ 5,667,000 | 2.18% | $ 1,375 |
7. 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, which amounted to $481 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
8. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $60,327.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $847 for the period. In addition, through arrangements with the Fund's transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $629.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 608.40 | $ 2.11 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
Class K | .30% |
|
|
|
Actual |
| $ 1,000.00 | $ 609.30 | $ 1.22 |
Hypothetical A |
| $ 1,000.00 | $ 1,023.69 | $ 1.53 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
National Oilwell Varco, Inc. | 1.8 | 0.0 |
Wyeth | 1.7 | 2.8 |
JPMorgan Chase & Co. | 1.6 | 0.0 |
Wells Fargo & Co. | 1.6 | 0.0 |
Cisco Systems, Inc. | 1.6 | 3.4 |
Petrohawk Energy Corp. | 1.4 | 0.0 |
Bank of New York Mellon Corp. | 1.0 | 0.5 |
Pfizer, Inc. | 1.0 | 1.4 |
Amgen, Inc. | 1.0 | 0.9 |
Atmel Corp. | 1.0 | 0.0 |
| 13.7 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 17.9 | 20.0 |
Financials | 15.3 | 16.0 |
Health Care | 13.5 | 19.8 |
Energy | 12.4 | 9.7 |
Consumer Discretionary | 11.3 | 11.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks 95.2% |
| ||
![]() | Bonds 0.2% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.2% |
| ** Foreign investments | 6.8% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 233,800 | $ 3,947 | |
Federal-Mogul Corp. Class A (a) | 538,688 | 3,103 | |
Johnson Controls, Inc. | 733,800 | 9,180 | |
The Goodyear Tire & Rubber Co. (a) | 1,050,900 | 6,484 | |
| 22,714 | ||
Automobiles - 0.1% | |||
Renault SA | 116,100 | 2,253 | |
Thor Industries, Inc. | 52,300 | 553 | |
Winnebago Industries, Inc. | 210,439 | 1,164 | |
| 3,970 | ||
Distributors - 0.1% | |||
LKQ Corp. (a) | 548,400 | 6,334 | |
Diversified Consumer Services - 1.3% | |||
H&R Block, Inc. | 958,210 | 19,864 | |
Hillenbrand, Inc. | 1,103,200 | 20,398 | |
Navitas Ltd. | 1,210,428 | 1,683 | |
Princeton Review, Inc. (a) | 604,132 | 2,966 | |
Service Corp. International | 1,072,000 | 4,878 | |
Stewart Enterprises, Inc. Class A (d) | 3,705,332 | 12,672 | |
| 62,461 | ||
Hotels, Restaurants & Leisure - 1.5% | |||
Brinker International, Inc. | 843,500 | 9,253 | |
Darden Restaurants, Inc. | 314,900 | 8,257 | |
DineEquity, Inc. | 491,600 | 4,346 | |
Las Vegas Sands Corp. unit (a) | 282,100 | 24,120 | |
McCormick & Schmick's Seafood Restaurants (a) | 355,862 | 1,256 | |
McDonald's Corp. | 166,500 | 9,660 | |
Sonic Corp. (a) | 614,900 | 5,989 | |
Starwood Hotels & Resorts Worldwide, Inc. | 689,300 | 10,422 | |
Vail Resorts, Inc. (a)(d) | 89,263 | 2,082 | |
WMS Industries, Inc. (a) | 44,200 | 982 | |
| 76,367 | ||
Household Durables - 1.0% | |||
Black & Decker Corp. | 203,100 | 5,872 | |
Centex Corp. | 281,600 | 2,396 | |
Jarden Corp. (a) | 95,100 | 992 | |
La-Z-Boy, Inc. | 413,000 | 401 | |
Meritage Homes Corp. (a) | 241,400 | 2,660 | |
Mohawk Industries, Inc. (a) | 148,600 | 4,772 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Newell Rubbermaid, Inc. | 639,800 | $ 5,170 | |
Pulte Homes, Inc. | 860,500 | 8,734 | |
Snap-On, Inc. | 157,700 | 4,759 | |
Stanley Furniture Co., Inc. | 221,660 | 1,740 | |
The Stanley Works | 177,300 | 5,542 | |
Whirlpool Corp. | 242,300 | 8,100 | |
| 51,138 | ||
Leisure Equipment & Products - 0.2% | |||
Eastman Kodak Co. | 333,400 | 1,510 | |
Hasbro, Inc. | 361,500 | 8,723 | |
| 10,233 | ||
Media - 3.2% | |||
Ascent Media Corp. (a) | 454,700 | 11,859 | |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | 2,160 | |
Comcast Corp. Class A (special) (non-vtg.) (d) | 3,067,300 | 42,574 | |
Discovery Communications, Inc. (a) | 112,500 | 1,631 | |
DISH Network Corp. Class A (a) | 1,100,800 | 14,134 | |
Informa PLC | 1,046,500 | 3,637 | |
Lamar Advertising Co. Class A (a)(d) | 280,600 | 2,528 | |
Liberty Media Corp. - Entertainment Class A (a) | 1,006,968 | 18,478 | |
Live Nation, Inc. (a) | 1,442,400 | 7,544 | |
Scripps Networks Interactive, Inc. Class A | 186,195 | 3,998 | |
The DIRECTV Group, Inc. (a) | 445,700 | 9,761 | |
The Walt Disney Co. | 579,767 | 11,990 | |
Time Warner, Inc. | 3,446,000 | 32,151 | |
| 162,445 | ||
Multiline Retail - 0.3% | |||
Target Corp. | 509,264 | 15,889 | |
Tuesday Morning Corp. (a) | 798,200 | 942 | |
| 16,831 | ||
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 585,000 | 19,147 | |
Asbury Automotive Group, Inc. | 249,400 | 893 | |
AutoNation, Inc. (a) | 60,300 | 560 | |
Collective Brands, Inc. (a) | 582,529 | 6,216 | |
Dick's Sporting Goods, Inc. (a) | 96,395 | 1,061 | |
Group 1 Automotive, Inc. | 94,000 | 937 | |
Home Depot, Inc. | 647,668 | 13,944 | |
Lowe's Companies, Inc. | 1,857,500 | 33,937 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Lumber Liquidators, Inc. (a)(d) | 522,797 | $ 4,637 | |
MarineMax, Inc. (a) | 43,000 | 76 | |
OfficeMax, Inc. | 610,400 | 3,363 | |
Pacific Sunwear of California, Inc. (a) | 161,000 | 201 | |
Ross Stores, Inc. | 112,000 | 3,295 | |
Sally Beauty Holdings, Inc. (a) | 1,380,600 | 6,530 | |
Sherwin-Williams Co. | 162,530 | 7,761 | |
Sonic Automotive, Inc. Class A (sub. vtg.) | 631,500 | 1,282 | |
Staples, Inc. | 1,090,682 | 17,385 | |
The Men's Wearhouse, Inc. | 959,000 | 11,172 | |
Tween Brands, Inc. (a)(e) | 2,113,500 | 5,685 | |
Urban Outfitters, Inc. (a) | 100,300 | 1,563 | |
| 139,645 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
adidas AG | 41,700 | 1,448 | |
American Apparel, Inc. (a) | 1,789,500 | 3,633 | |
| 5,081 | ||
TOTAL CONSUMER DISCRETIONARY | 557,219 | ||
CONSUMER STAPLES - 7.2% | |||
Beverages - 0.9% | |||
Anheuser-Busch InBev NV | 981,860 | 25,028 | |
Carlsberg AS Series B | 158,100 | 5,266 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 108,600 | 3,057 | |
PepsiCo, Inc. | 98,400 | 4,943 | |
The Coca-Cola Co. | 228,800 | 9,774 | |
| 48,068 | ||
Food & Staples Retailing - 1.5% | |||
CVS Caremark Corp. | 1,373,300 | 36,914 | |
Kroger Co. | 582,400 | 13,104 | |
Rite Aid Corp. (a) | 1,263,044 | 354 | |
Safeway, Inc. | 73,100 | 1,567 | |
Winn-Dixie Stores, Inc. (a) | 1,812,300 | 24,901 | |
| 76,840 | ||
Food Products - 2.3% | |||
Cermaq ASA | 1,122,100 | 4,276 | |
Corn Products International, Inc. | 543,600 | 12,584 | |
Global Bio-Chem Technology Group Co. Ltd. | 49,932,000 | 7,196 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Leroy Seafood Group ASA | 1,000,900 | $ 6,559 | |
Marine Harvest ASA (a)(d) | 67,032,000 | 14,513 | |
Nestle SA (Reg.) | 300,804 | 10,420 | |
Ralcorp Holdings, Inc. (a) | 292,700 | 17,334 | |
Smithfield Foods, Inc. (a)(d) | 924,500 | 10,974 | |
The J.M. Smucker Co. | 111,424 | 5,031 | |
Tyson Foods, Inc. Class A | 2,843,900 | 25,169 | |
| 114,056 | ||
Household Products - 1.6% | |||
Central Garden & Pet Co. (a) | 951,500 | 5,747 | |
Clorox Co. | 202,400 | 10,150 | |
Energizer Holdings, Inc. (a) | 209,587 | 9,983 | |
Kimberly-Clark Corp. | 338,400 | 17,417 | |
Procter & Gamble Co. | 673,306 | 36,695 | |
| 79,992 | ||
Personal Products - 0.2% | |||
Avon Products, Inc. | 284,200 | 5,812 | |
Estee Lauder Companies, Inc. Class A | 92,200 | 2,420 | |
| 8,232 | ||
Tobacco - 0.7% | |||
Imperial Tobacco Group PLC | 301,800 | 8,282 | |
Philip Morris International, Inc. | 779,800 | 28,970 | |
| 37,252 | ||
TOTAL CONSUMER STAPLES | 364,440 | ||
ENERGY - 12.2% | |||
Energy Equipment & Services - 4.7% | |||
BJ Services Co. | 151,700 | 1,669 | |
Exterran Holdings, Inc. (a)(d) | 465,300 | 10,311 | |
Global Industries Ltd. (a) | 3,266,302 | 11,269 | |
Halliburton Co. | 816,600 | 14,086 | |
Helix Energy Solutions Group, Inc. (a) | 524,800 | 2,703 | |
Hercules Offshore, Inc. (a) | 696,200 | 2,590 | |
Nabors Industries Ltd. (a) | 585,582 | 6,412 | |
National Oilwell Varco, Inc. (a) | 3,496,900 | 92,463 | |
Parker Drilling Co. (a) | 628,400 | 1,332 | |
Pride International, Inc. (a) | 475,927 | 7,672 | |
Rowan Companies, Inc. | 436,275 | 5,523 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Smith International, Inc. | 907,400 | $ 20,598 | |
Superior Energy Services, Inc. (a) | 364,400 | 5,677 | |
Tidewater, Inc. | 455,300 | 18,945 | |
Transocean Ltd. (a) | 80,300 | 4,386 | |
Weatherford International Ltd. (a) | 2,627,700 | 28,984 | |
| 234,620 | ||
Oil, Gas & Consumable Fuels - 7.5% | |||
Arch Coal, Inc. | 262,100 | 3,981 | |
Boardwalk Pipeline Partners, LP | 602,875 | 12,841 | |
Cabot Oil & Gas Corp. | 78,500 | 2,158 | |
Chesapeake Energy Corp. | 2,215,400 | 35,025 | |
Comstock Resources, Inc. (a) | 166,900 | 6,364 | |
Concho Resources, Inc. (a) | 190,165 | 4,796 | |
Denbury Resources, Inc. (a) | 844,190 | 10,333 | |
El Paso Corp. | 666,300 | 5,450 | |
Energy Transfer Equity LP | 565,800 | 10,456 | |
EXCO Resources, Inc. (a) | 2,149,000 | 21,791 | |
Foundation Coal Holdings, Inc. | 378,500 | 6,139 | |
Frontier Oil Corp. | 580,400 | 8,288 | |
GMX Resources, Inc. (a)(d) | 98,203 | 2,226 | |
Goodrich Petroleum Corp. (a)(d) | 428,722 | 12,390 | |
Hess Corp. | 504,800 | 28,072 | |
James River Coal Co. (a) | 60,200 | 816 | |
McMoRan Exploration Co. (a) | 233,697 | 1,563 | |
Nexen, Inc. | 714,900 | 10,416 | |
OPTI Canada, Inc. (a) | 4,825,100 | 6,298 | |
Peabody Energy Corp. | 184,000 | 4,600 | |
Penn Virginia Corp. | 363,700 | 7,492 | |
Petrohawk Energy Corp. (a) | 3,452,438 | 68,048 | |
Plains Exploration & Production Co. (a) | 870,968 | 18,395 | |
Quicksilver Resources, Inc. (a) | 2,031,900 | 14,081 | |
Range Resources Corp. | 301,600 | 10,809 | |
Southwestern Energy Co. (a) | 778,037 | 24,625 | |
Suncor Energy, Inc. | 262,300 | 5,031 | |
Sunoco, Inc. | 377,398 | 17,481 | |
Talisman Energy, Inc. | 578,900 | 5,483 | |
Uranium One, Inc. (a) | 522,800 | 789 | |
Valero Energy Corp. | 263,705 | 6,361 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Walter Industries, Inc. | 32,300 | $ 596 | |
Williams Companies, Inc. | 373,500 | 5,285 | |
| 378,479 | ||
TOTAL ENERGY | 613,099 | ||
FINANCIALS - 14.5% | |||
Capital Markets - 3.4% | |||
Affiliated Managers Group, Inc. (a)(d) | 94,528 | 3,799 | |
Ameriprise Financial, Inc. | 180,700 | 3,641 | |
Bank of New York Mellon Corp. | 2,049,407 | 52,752 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 214,500 | 5,169 | |
Cohen & Steers, Inc. | 261,100 | 2,820 | |
EFG International | 222,610 | 2,706 | |
Fortress Investment Group LLC (d) | 1,528,500 | 2,293 | |
Franklin Resources, Inc. | 285,500 | 13,824 | |
Goldman Sachs Group, Inc. | 483,398 | 39,025 | |
Janus Capital Group, Inc. | 40,200 | 211 | |
Morgan Stanley | 1,406,544 | 28,454 | |
Partners Group Holding | 12,066 | 804 | |
State Street Corp. | 386,968 | 9,005 | |
T. Rowe Price Group, Inc. | 126,700 | 3,494 | |
The Blackstone Group LP | 444,000 | 2,002 | |
| 169,999 | ||
Commercial Banks - 2.8% | |||
Associated Banc-Corp. | 78,400 | 1,227 | |
Mitsubishi UFJ Financial Group, Inc. | 3,455,300 | 19,169 | |
PNC Financial Services Group, Inc. | 632,067 | 20,555 | |
Regions Financial Corp. (d) | 503,300 | 1,741 | |
Sumitomo Mitsui Financial Group, Inc. | 268,200 | 10,630 | |
TCF Financial Corp. | 140,500 | 1,741 | |
UCBH Holdings, Inc. | 552,700 | 1,288 | |
UniCredit SpA | 401,600 | 711 | |
Wells Fargo & Co. | 4,220,841 | 79,774 | |
Wintrust Financial Corp. | 352,250 | 4,710 | |
| 141,546 | ||
Consumer Finance - 0.7% | |||
Capital One Financial Corp. | 360,400 | 5,709 | |
Discover Financial Services | 760,113 | 5,435 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Consumer Finance - continued | |||
Promise Co. Ltd. (d) | 884,900 | $ 16,242 | |
SLM Corp. (a) | 566,400 | 6,485 | |
| 33,871 | ||
Diversified Financial Services - 3.8% | |||
Bank of America Corp. | 5,151,842 | 33,899 | |
CIT Group, Inc. (d) | 1,477,900 | 4,123 | |
Citigroup, Inc. | 4,809,605 | 17,074 | |
CME Group, Inc. | 71,800 | 12,487 | |
IntercontinentalExchange, Inc. (a)(d) | 143,900 | 8,192 | |
JPMorgan Chase & Co. | 3,192,600 | 81,443 | |
PICO Holdings, Inc. (a) | 1,495,700 | 38,021 | |
| 195,239 | ||
Insurance - 2.4% | |||
ACE Ltd. | 238,700 | 10,422 | |
AFLAC, Inc. | 20,100 | 467 | |
Assurant, Inc. | 304,971 | 8,051 | |
Everest Re Group Ltd. | 153,800 | 9,689 | |
Genworth Financial, Inc. Class A (non-vtg.) | 873,844 | 2,027 | |
Hartford Financial Services Group, Inc. | 323,120 | 4,252 | |
Loews Corp. | 280,100 | 6,834 | |
Maiden Holdings Ltd. (f) | 866,542 | 3,943 | |
MBIA, Inc. (d) | 1,443,200 | 5,571 | |
MetLife, Inc. | 597,776 | 17,174 | |
Montpelier Re Holdings Ltd. | 577,400 | 8,164 | |
PartnerRe Ltd. | 234,200 | 15,347 | |
Platinum Underwriters Holdings Ltd. | 184,700 | 5,137 | |
Principal Financial Group, Inc. | 120,500 | 1,999 | |
Prudential Financial, Inc. | 123,500 | 3,180 | |
Reinsurance Group of America, Inc. | 193,761 | 6,904 | |
The Travelers Companies, Inc. | 259,500 | 10,027 | |
W.R. Berkley Corp. | 13,400 | 355 | |
XL Capital Ltd. Class A | 315,400 | 915 | |
| 120,458 | ||
Real Estate Investment Trusts - 0.9% | |||
CapitalSource, Inc. | 4,449,245 | 16,195 | |
CBL & Associates Properties, Inc. | 120,400 | 490 | |
Developers Diversified Realty Corp. | 247,500 | 1,188 | |
General Growth Properties, Inc. (d) | 1,665,406 | 1,083 | |
Highwoods Properties, Inc. (SBI) | 119,998 | 2,707 | |
Home Properties, Inc. | 26,300 | 944 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Pennsylvania Real Estate Investment Trust (SBI) (d) | 183,300 | $ 812 | |
ProLogis Trust | 733,500 | 7,342 | |
Senior Housing Properties Trust (SBI) | 152,000 | 2,459 | |
SL Green Realty Corp. | 163,000 | 2,561 | |
UDR, Inc. | 146,000 | 1,713 | |
Vornado Realty Trust | 133,600 | 6,788 | |
| 44,282 | ||
Real Estate Management & Development - 0.4% | |||
CB Richard Ellis Group, Inc. Class A (a) | 4,464,600 | 16,073 | |
Forestar Group, Inc. (a) | 124,500 | 1,388 | |
Jones Lang LaSalle, Inc. | 243,300 | 5,744 | |
| 23,205 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Washington Federal, Inc. | 391,176 | 4,804 | |
TOTAL FINANCIALS | 733,404 | ||
HEALTH CARE - 13.0% | |||
Biotechnology - 4.0% | |||
Amgen, Inc. (a) | 929,700 | 50,994 | |
Biogen Idec, Inc. (a) | 270,700 | 13,170 | |
Cephalon, Inc. (a)(d) | 534,600 | 41,260 | |
DUSA Pharmaceuticals, Inc. (a)(e) | 1,402,453 | 1,585 | |
Genentech, Inc. (a) | 204,764 | 16,635 | |
Genzyme Corp. (a) | 96,300 | 6,637 | |
Gilead Sciences, Inc. (a) | 390,213 | 19,811 | |
Theravance, Inc. (a) | 1,985,445 | 26,168 | |
United Therapeutics Corp. (a) | 24,100 | 1,638 | |
Vertex Pharmaceuticals, Inc. (a) | 745,929 | 24,653 | |
| 202,551 | ||
Health Care Equipment & Supplies - 1.6% | |||
American Medical Systems Holdings, Inc. (a)(d) | 523,900 | 5,606 | |
Boston Scientific Corp. (a) | 986,300 | 8,748 | |
Covidien Ltd. | 779,600 | 29,890 | |
Integra LifeSciences Holdings Corp. (a) | 395,600 | 10,974 | |
Inverness Medical Innovations, Inc. (a) | 233,400 | 5,711 | |
Kinetic Concepts, Inc. (a) | 244,500 | 5,892 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Medtronic, Inc. | 132,200 | $ 4,427 | |
Sonova Holding AG | 228,611 | 11,037 | |
| 82,285 | ||
Health Care Providers & Services - 2.8% | |||
Amedisys, Inc. (a) | 44,178 | 1,821 | |
athenahealth, Inc. (a) | 12,000 | 433 | |
Brookdale Senior Living, Inc. | 1,279,900 | 8,703 | |
Coventry Health Care, Inc. (a) | 283,100 | 4,283 | |
Emeritus Corp. (a) | 64,300 | 532 | |
Express Scripts, Inc. (a) | 201,200 | 10,817 | |
Health Net, Inc. (a) | 272,900 | 3,993 | |
HealthSouth Corp. (a)(d) | 692,400 | 6,882 | |
McKesson Corp. | 236,300 | 10,444 | |
Medco Health Solutions, Inc. (a) | 458,300 | 20,591 | |
MEDNAX, Inc. (a) | 238,500 | 8,006 | |
Patterson Companies, Inc. (a) | 162,100 | 2,981 | |
Tenet Healthcare Corp. (a) | 717,200 | 767 | |
Triple-S Management Corp. (a) | 209,702 | 3,018 | |
UnitedHealth Group, Inc. | 957,100 | 27,115 | |
Universal American Financial Corp. (a) | 82,250 | 812 | |
Universal Health Services, Inc. Class B | 359,300 | 13,600 | |
VCA Antech, Inc. (a) | 40,200 | 757 | |
WellPoint, Inc. (a) | 399,700 | 16,568 | |
| 142,123 | ||
Health Care Technology - 0.1% | |||
IMS Health, Inc. | 245,300 | 3,562 | |
Life Sciences Tools & Services - 0.2% | |||
Bruker BioSciences Corp. (a) | 451,600 | 1,820 | |
Thermo Fisher Scientific, Inc. (a) | 195,000 | 7,006 | |
| 8,826 | ||
Pharmaceuticals - 4.3% | |||
Allergan, Inc. | 253,200 | 9,652 | |
Merck & Co., Inc. | 917,105 | 26,183 | |
Pfizer, Inc. | 3,520,725 | 51,332 | |
Schering-Plough Corp. | 1,601,830 | 28,128 | |
Shire PLC sponsored ADR | 64,200 | 2,804 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 152,500 | 6,321 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Wyeth | 2,040,760 | $ 87,691 | |
XenoPort, Inc. (a) | 257,400 | 6,723 | |
| 218,834 | ||
TOTAL HEALTH CARE | 658,181 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.7% | |||
Finmeccanica SpA | 542,708 | 8,526 | |
Honeywell International, Inc. | 779,100 | 25,562 | |
Lockheed Martin Corp. | 192,200 | 15,768 | |
Northrop Grumman Corp. | 277,300 | 13,344 | |
Orbital Sciences Corp. (a) | 585,200 | 9,814 | |
Raytheon Co. | 506,900 | 25,659 | |
United Technologies Corp. | 782,600 | 37,557 | |
| 136,230 | ||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 217,600 | 11,085 | |
Airlines - 0.8% | |||
AirTran Holdings, Inc. (a) | 1,321,300 | 5,417 | |
Alaska Air Group, Inc. (a) | 157,200 | 4,144 | |
Delta Air Lines, Inc. (a) | 4,586,675 | 31,648 | |
| 41,209 | ||
Building Products - 0.3% | |||
Masco Corp. | 1,291,200 | 10,097 | |
Owens Corning (a) | 479,725 | 6,400 | |
| 16,497 | ||
Commercial Services & Supplies - 1.2% | |||
ACCO Brands Corp. (a) | 1,321,188 | 2,537 | |
Avery Dennison Corp. | 173,400 | 4,201 | |
Cintas Corp. | 294,600 | 6,702 | |
Consolidated Graphics, Inc. (a) | 104,500 | 1,683 | |
EnergySolutions, Inc. | 897,400 | 4,029 | |
GeoEye, Inc. (a) | 741,061 | 12,783 | |
R.R. Donnelley & Sons Co. | 699,300 | 6,818 | |
Republic Services, Inc. | 457,795 | 11,839 | |
Waste Management, Inc. | 319,600 | 9,968 | |
| 60,560 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 1.3% | |||
Chicago Bridge & Iron Co. NV (NY Shares) | 443,700 | $ 4,996 | |
Great Lakes Dredge & Dock Corp. (e) | 4,190,361 | 13,996 | |
MasTec, Inc. (a) | 40,200 | 427 | |
MYR Group, Inc. (a) | 357,600 | 5,149 | |
Shaw Group, Inc. (a)(d) | 365,400 | 10,158 | |
URS Corp. (a) | 908,600 | 30,938 | |
| 65,664 | ||
Electrical Equipment - 1.3% | |||
Cooper Industries Ltd. Class A | 1,607,973 | 43,271 | |
First Solar, Inc. (a) | 28,100 | 4,013 | |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 711,800 | 1,893 | |
Renewable Energy Corp. AS (a)(d) | 761,600 | 7,684 | |
Saft Groupe SA | 343,500 | 8,435 | |
Thomas & Betts Corp. (a) | 24,081 | 515 | |
| 65,811 | ||
Industrial Conglomerates - 0.8% | |||
McDermott International, Inc. (a) | 1,794,450 | 18,608 | |
Rheinmetall AG | 34,800 | 1,109 | |
Siemens AG sponsored ADR (d) | 314,700 | 17,642 | |
Textron, Inc. | 457,900 | 4,135 | |
| 41,494 | ||
Machinery - 1.0% | |||
Cummins, Inc. | 381,200 | 9,141 | |
Danaher Corp. | 215,700 | 12,064 | |
Eaton Corp. | 129,800 | 5,714 | |
Ingersoll-Rand Co. Ltd. Class A | 280,000 | 4,539 | |
Navistar International Corp. (a) | 501,400 | 15,228 | |
Vallourec SA | 42,600 | 4,193 | |
| 50,879 | ||
Marine - 0.1% | |||
Alexander & Baldwin, Inc. | 192,600 | 4,245 | |
Professional Services - 0.1% | |||
Monster Worldwide, Inc. (a) | 578,300 | 5,326 | |
Road & Rail - 1.1% | |||
Burlington Northern Santa Fe Corp. | 92,800 | 6,148 | |
Con-way, Inc. | 413,600 | 9,112 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Union Pacific Corp. | 524,200 | $ 22,955 | |
Universal Truckload Services, Inc. (a)(e) | 1,172,499 | 14,492 | |
| 52,707 | ||
TOTAL INDUSTRIALS | 551,707 | ||
INFORMATION TECHNOLOGY - 17.9% | |||
Communications Equipment - 3.7% | |||
Adtran, Inc. | 854,600 | 12,947 | |
Cisco Systems, Inc. (a) | 5,314,900 | 79,564 | |
Comverse Technology, Inc. (a) | 1,739,200 | 10,992 | |
Corning, Inc. | 1,862,600 | 18,831 | |
Juniper Networks, Inc. (a) | 1,582,000 | 22,401 | |
Motorola, Inc. | 6,299,620 | 27,907 | |
QUALCOMM, Inc. | 346,400 | 11,968 | |
| 184,610 | ||
Computers & Peripherals - 1.5% | |||
Apple, Inc. (a) | 116,700 | 10,518 | |
Hewlett-Packard Co. | 1,384,000 | 48,094 | |
International Business Machines Corp. | 78,553 | 7,199 | |
SanDisk Corp. (a) | 487,701 | 5,574 | |
Seagate Technology | 1,701,300 | 6,448 | |
| 77,833 | ||
Electronic Equipment & Components - 1.9% | |||
Amphenol Corp. Class A | 658,400 | 17,217 | |
Arrow Electronics, Inc. (a) | 640,400 | 12,212 | |
Avnet, Inc. (a) | 1,240,589 | 24,588 | |
Bell Microproducts, Inc. (a)(e) | 2,045,259 | 1,841 | |
BYD Co. Ltd. (H Shares) | 281,000 | 524 | |
Cogent, Inc. (a) | 144,300 | 1,680 | |
Ingram Micro, Inc. Class A (a) | 1,012,600 | 12,425 | |
Itron, Inc. (a)(d) | 221,400 | 14,457 | |
Tyco Electronics Ltd. | 604,372 | 8,558 | |
| 93,502 | ||
Internet Software & Services - 1.4% | |||
Art Technology Group, Inc. (a) | 1,457,100 | 2,492 | |
Google, Inc. Class A (sub. vtg.) (a) | 123,700 | 41,876 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Open Text Corp. (a) | 145,980 | $ 5,160 | |
VeriSign, Inc. (a) | 1,006,400 | 19,434 | |
| 68,962 | ||
IT Services - 3.1% | |||
Accenture Ltd. Class A | 1,366,404 | 43,124 | |
Affiliated Computer Services, Inc. Class A (a) | 95,300 | 4,370 | |
Alliance Data Systems Corp. (a) | 124,552 | 5,180 | |
Cognizant Technology Solutions Corp. Class A (a) | 394,900 | 7,396 | |
Fidelity National Information Services, Inc. | 596,500 | 9,490 | |
Lender Processing Services, Inc. | 786,465 | 20,385 | |
MasterCard, Inc. Class A | 22,300 | 3,028 | |
Perot Systems Corp. Class A (a) | 759,800 | 9,870 | |
Sapient Corp. (a) | 1,642,741 | 6,998 | |
The Western Union Co. | 547,394 | 7,477 | |
Unisys Corp. (a) | 6,598,800 | 4,949 | |
Visa, Inc. | 634,300 | 31,303 | |
WNS Holdings Ltd. sponsored ADR (a) | 582,800 | 3,788 | |
| 157,358 | ||
Semiconductors & Semiconductor Equipment - 4.3% | |||
Altera Corp. | 338,700 | 5,209 | |
Analog Devices, Inc. | 502,700 | 10,044 | |
Applied Materials, Inc. | 2,179,000 | 20,417 | |
Atmel Corp. (a) | 14,971,594 | 50,005 | |
Axcelis Technologies, Inc. (a) | 3,912,100 | 1,115 | |
Cymer, Inc. (a) | 486,900 | 9,933 | |
Fairchild Semiconductor International, Inc. (a) | 981,800 | 4,467 | |
International Rectifier Corp. (a) | 709,200 | 9,659 | |
Lam Research Corp. (a) | 2,048,393 | 41,398 | |
LTX-Credence Corp. (a)(e) | 7,536,843 | 2,186 | |
Maxim Integrated Products, Inc. | 1,447,400 | 19,149 | |
MEMC Electronic Materials, Inc. (a) | 381,000 | 5,182 | |
Microchip Technology, Inc. | 113,700 | 2,157 | |
Micron Technology, Inc. (a) | 804,500 | 2,993 | |
National Semiconductor Corp. | 684,777 | 6,944 | |
ON Semiconductor Corp. (a) | 3,138,654 | 13,088 | |
Semitool, Inc. (a) | 1,012,400 | 2,804 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 309,000 | 5,883 | |
Xilinx, Inc. | 277,800 | 4,681 | |
| 217,314 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - 2.0% | |||
CA, Inc. | 424,800 | $ 7,642 | |
McAfee, Inc. (a) | 368,400 | 11,233 | |
Misys PLC | 3,050,400 | 5,152 | |
Oracle Corp. (a) | 1,894,700 | 31,888 | |
Phoenix Technologies Ltd. (a) | 100,532 | 259 | |
Quest Software, Inc. (a) | 1,269,100 | 15,826 | |
Sourcefire, Inc. (a) | 1,219,077 | 8,204 | |
Symantec Corp. (a) | 927,100 | 14,212 | |
THQ, Inc. (a) | 1,940,600 | 7,665 | |
| 102,081 | ||
TOTAL INFORMATION TECHNOLOGY | 901,660 | ||
MATERIALS - 5.1% | |||
Chemicals - 2.2% | |||
Airgas, Inc. | 179,500 | 6,338 | |
Albemarle Corp. | 357,400 | 7,952 | |
Arkema sponsored ADR | 263,977 | 3,709 | |
Celanese Corp. Class A | 1,152,500 | 12,274 | |
Lubrizol Corp. | 213,100 | 7,271 | |
Monsanto Co. | 379,300 | 28,850 | |
Solutia, Inc. (a) | 1,605,400 | 6,277 | |
Spartech Corp. | 1,103,200 | 3,497 | |
Symrise AG | 528,400 | 4,939 | |
Terra Industries, Inc. | 144,600 | 2,961 | |
The Mosaic Co. | 326,300 | 11,639 | |
Valspar Corp. | 426,300 | 7,396 | |
W.R. Grace & Co. (a) | 1,573,025 | 9,076 | |
| 112,179 | ||
Containers & Packaging - 0.9% | |||
Greif, Inc. Class A | 160,600 | 4,860 | |
Owens-Illinois, Inc. (a) | 217,176 | 4,126 | |
Pactiv Corp. (a) | 564,700 | 12,209 | |
Rock-Tenn Co. Class A | 307,100 | 9,572 | |
Temple-Inland, Inc. | 2,161,100 | 12,253 | |
| 43,020 | ||
Metals & Mining - 1.9% | |||
Agnico-Eagle Mines Ltd. | 42,800 | 2,287 | |
Alamos Gold, Inc. (a) | 1,637,000 | 10,523 | |
ArcelorMittal SA (NY Shares) Class A | 221,300 | 4,995 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Commercial Metals Co. | 722,300 | $ 8,306 | |
Compass Minerals International, Inc. | 8,100 | 487 | |
Eldorado Gold Corp. (a) | 1,742,100 | 13,643 | |
Ivanhoe Mines Ltd. (a) | 1,172,100 | 3,232 | |
Lihir Gold Ltd. (a) | 4,086,470 | 8,109 | |
Newcrest Mining Ltd. | 403,188 | 7,816 | |
Newmont Mining Corp. | 200,800 | 7,988 | |
Red Back Mining, Inc. (a)(f) | 66,300 | 426 | |
Silver Wheaton Corp. (a) | 461,700 | 3,021 | |
Stillwater Mining Co. (a)(d) | 590,400 | 2,450 | |
Timminco Ltd. (a) | 1,450,275 | 4,093 | |
Titanium Metals Corp. (d) | 476,900 | 3,362 | |
United States Steel Corp. | 110,700 | 3,324 | |
Yamana Gold, Inc. | 1,735,100 | 14,069 | |
| 98,131 | ||
Paper & Forest Products - 0.1% | |||
Clearwater Paper Corp. (a) | 253,000 | 2,861 | |
TOTAL MATERIALS | 256,191 | ||
TELECOMMUNICATION SERVICES - 2.0% | |||
Diversified Telecommunication Services - 1.9% | |||
AT&T, Inc. | 1,543,246 | 37,995 | |
Cincinnati Bell, Inc. (a) | 3,035,400 | 4,219 | |
Qwest Communications International, Inc. | 9,645,371 | 31,058 | |
Verizon Communications, Inc. | 782,932 | 23,386 | |
| 96,658 | ||
Wireless Telecommunication Services - 0.1% | |||
Sprint Nextel Corp. (a) | 2,189,000 | 5,319 | |
Vivo Participacoes SA sponsored ADR | 21,025 | 298 | |
| 5,617 | ||
TOTAL TELECOMMUNICATION SERVICES | 102,275 | ||
UTILITIES - 3.5% | |||
Electric Utilities - 2.0% | |||
Allegheny Energy, Inc. | 598,200 | 19,884 | |
E.ON AG | 23,900 | 772 | |
Entergy Corp. | 199,500 | 15,234 | |
Exelon Corp. | 610,405 | 33,096 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
FirstEnergy Corp. | 524,800 | $ 26,235 | |
PPL Corp. | 66,600 | 2,042 | |
Public Power Corp. of Greece | 276,600 | 4,653 | |
| 101,916 | ||
Gas Utilities - 0.2% | |||
Equitable Resources, Inc. | 310,000 | 10,611 | |
Questar Corp. | 53,900 | 1,832 | |
| 12,443 | ||
Independent Power Producers & Energy Traders - 1.1% | |||
AES Corp. (a) | 852,400 | 6,742 | |
NRG Energy, Inc. (a) | 1,752,500 | 40,938 | |
Reliant Energy, Inc. (a) | 1,495,600 | 7,613 | |
| 55,293 | ||
Multi-Utilities - 0.2% | |||
CMS Energy Corp. | 234,100 | 2,751 | |
NorthWestern Energy Corp. | 20,100 | 487 | |
RWE AG | 65,200 | 5,081 | |
| 8,319 | ||
Water Utilities - 0.0% | |||
Southwest Water Co. | 80,362 | 360 | |
TOTAL UTILITIES | 178,331 | ||
TOTAL COMMON STOCKS (Cost $7,112,408) | 4,916,507 | ||
Preferred Stocks - 1.2% | |||
|
|
|
|
Convertible Preferred Stocks - 1.1% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
McMoRan Exploration Co. 6.75% | 48,000 | 2,116 | |
SandRidge Energy, Inc. 8.50% (a)(f) | 80,500 | 7,964 | |
| 10,080 | ||
FINANCIALS - 0.7% | |||
Capital Markets - 0.1% | |||
Legg Mason, Inc. 7.00% | 155,200 | 2,857 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Commercial Banks - 0.4% | |||
East West Bancorp, Inc. Series A, 8.00% | 3,127 | $ 1,929 | |
Fifth Third Bancorp 8.50% | 79,200 | 2,773 | |
Huntington Bancshares, Inc. 8.50% | 7,400 | 3,244 | |
KeyCorp Series A, 7.75% | 40,200 | 2,603 | |
UCBH Holdings, Inc. Series B, 8.50% | 3,800 | 2,091 | |
Wells Fargo & Co. 7.50% | 9,600 | 6,115 | |
| 18,755 | ||
Diversified Financial Services - 0.2% | |||
CIT Group, Inc. Series C, 8.75% | 592,100 | 11,309 | |
TOTAL FINANCIALS | 32,921 | ||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Mylan, Inc. 6.50% | 10,000 | 7,401 | |
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 135,700 | 6,351 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 56,753 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Fiat SpA | 1,130,500 | 3,260 | |
TOTAL PREFERRED STOCKS (Cost $98,028) | 60,013 | ||
Investment Companies - 0.2% | |||
|
|
|
|
Ares Capital Corp. | 2,550,900 | 12,015 |
Corporate Bonds - 0.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.4% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Media - 0.1% | ||||
Virgin Media, Inc. 6.5% 11/15/16 (f) | $ 7,720 | $ 3,269 | ||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (f) | 15,273 | 5,082 | ||
HEALTH CARE - 0.2% | ||||
Pharmaceuticals - 0.2% | ||||
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 (f) | 12,270 | 10,951 | ||
TOTAL CONVERTIBLE BONDS | 19,302 | |||
Nonconvertible Bonds - 0.2% | ||||
HEALTH CARE - 0.2% | ||||
Pharmaceuticals - 0.2% | ||||
Alpharma, Inc. 2.125% 3/15/27 | 6,570 | 8,436 | ||
INFORMATION TECHNOLOGY - 0.0% | ||||
Semiconductors & Semiconductor Equipment - 0.0% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 19,510 | 3,317 | ||
TOTAL NONCONVERTIBLE BONDS | 11,753 | |||
TOTAL CORPORATE BONDS (Cost $43,231) | 31,055 |
Money Market Funds - 2.3% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 37,129,838 | $ 37,130 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 79,469,810 | 79,470 | |
TOTAL MONEY MARKET FUNDS (Cost $116,600) | 116,600 | ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $7,402,434) | 5,136,190 | ||
NET OTHER ASSETS - (1.7)% | (87,204) | ||
NET ASSETS - 100% | $ 5,048,986 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $31,635,000 or 0.6% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,478 |
Fidelity Securities Lending Cash Central Fund | 826 |
Total | $ 2,304 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Bell Microproducts, Inc. | $ - | $ 3,861 | $ - | $ - | $ 1,841 |
DUSA Pharmaceuticals, Inc. | - | 1,872 | 50 | - | 1,585 |
Great Lakes Dredge & Dock Corp. | - | 31,981 | 1,383 | 77 | 13,996 |
LTX-Credence Corp. | - | 14,429 | - | - | 2,186 |
Tween Brands, Inc. | - | 24,152 | - | - | 5,685 |
Universal Truckload Services, Inc. | - | 28,875 | 1,578 | - | 14,492 |
Total | $ - | $ 105,170 | $ 3,011 | $ 77 | $ 39,785 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 5,136,190 | $ 4,978,089 | $ 133,981 | $ 24,120 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (4,090) |
Cost of Purchases | 28,210 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 24,120 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.8% |
Bermuda | 3.6% |
Canada | 1.6% |
Others (individually less than 1%) | 6.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $74,009) - See accompanying schedule: Unaffiliated issuers (cost $7,185,258) | $ 4,979,805 |
|
Fidelity Central Funds (cost $116,600) | 116,600 |
|
Other affiliated issuers (cost $100,576) | 39,785 |
|
Total Investments (cost $7,402,434) |
| $ 5,136,190 |
Receivable for investments sold | 69,677 | |
Receivable for fund shares sold | 5,386 | |
Dividends receivable | 6,063 | |
Interest receivable | 921 | |
Distributions receivable from Fidelity Central Funds | 115 | |
Prepaid expenses | 68 | |
Other receivables | 181 | |
Total assets | 5,218,601 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 595 | |
Payable for investments purchased | 62,292 | |
Payable for fund shares redeemed | 16,816 | |
Accrued management fee | 456 | |
Other affiliated payables | 1,382 | |
Other payables and accrued expenses | 8,604 | |
Collateral on securities loaned, at value | 79,470 | |
Total liabilities | 169,615 | |
|
|
|
Net Assets | $ 5,048,986 | |
Net Assets consist of: |
| |
Paid in capital | $ 8,699,220 | |
Accumulated net investment loss | (59,615) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,316,075) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,274,544) | |
Net Assets | $ 5,048,986 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Dividend Growth: | $ 14.55 | |
|
|
|
Class K: | $ 14.55 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $77 earned from other affiliated issuers) |
| $ 10,944 |
Interest |
| 1,738 |
Income from Fidelity Central Funds (including $826 from security lending) |
| 2,304 |
Total income |
| 14,986 |
|
|
|
Expenses | ||
Management fee | $ 19,007 | |
Performance adjustment | (11,967) | |
Transfer agent fees | 8,906 | |
Accounting and security lending fees | 590 | |
Custodian fees and expenses | 153 | |
Independent trustees' compensation | 20 | |
Registration fees | 37 | |
Audit | 46 | |
Legal | 35 | |
Interest | 1 | |
Miscellaneous | 577 | |
Total expenses before reductions | 17,405 | |
Expense reductions | (133) | 17,272 |
Net investment income (loss) | (2,286) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,270,268) | |
Other affiliated issuers | (1,583) |
|
Foreign currency transactions | (248) | |
Total net realized gain (loss) |
| (1,272,099) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,142,929) | |
Assets and liabilities in foreign currencies | 3 | |
Total change in net unrealized appreciation (depreciation) |
| (2,142,926) |
Net gain (loss) | (3,415,025) | |
Net increase (decrease) in net assets resulting from operations | $ (3,417,311) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,286) | $ 193,226 |
Net realized gain (loss) | (1,272,099) | 719,192 |
Change in net unrealized appreciation (depreciation) | (2,142,926) | (2,925,394) |
Net increase (decrease) in net assets resulting from operations | (3,417,311) | (2,012,976) |
Distributions to shareholders from net investment income | (132,869) | (220,835) |
Distributions to shareholders from net realized gain | (361,308) | (1,096,481) |
Total distributions | (494,177) | (1,317,316) |
Share transactions - net increase (decrease) | (541,668) | (3,432,228) |
Total increase (decrease) in net assets | (4,453,156) | (6,762,520) |
|
|
|
Net Assets | ||
Beginning of period | 9,502,142 | 16,264,662 |
End of period (including accumulated net investment loss of $59,615 and undistributed net investment income of $96,848, respectively) | $ 5,048,986 | $ 9,502,142 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2009 | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 | $ 24.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | .43 | .52 G | .35 | .45 H | .20 |
Net realized and unrealized gain (loss) | (9.46) | (5.08) | 3.98 | .99 | 2.21 | 1.84 |
Total from investment operations | (9.47) | (4.65) | 4.50 | 1.34 | 2.66 | 2.04 |
Distributions from net investment income | (.37) | (.45) | (.45) | (.31) | (.39) | (.22) |
Distributions from net realized gain | (1.01) | (2.23) | (.82) | (.38) | - | - |
Total distributions | (1.38) | (2.68) | (1.27) | (.69) | (.39) | (.22) |
Net asset value, end of period | $ 14.55 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 |
Total Return B, C | (39.16)% | (15.45)% | 15.62% | 4.73% | 10.08% | 8.27% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .52% A | .64% | .61% | .60% | .68% | .90% |
Expenses net of fee waivers, if any | .52% A | .64% | .61% | .60% | .68% | .90% |
Expenses net of all reductions | .51% A | .63% | .60% | .59% | .66% | .89% |
Net investment income (loss) | (.07)% A | 1.47% | 1.62% G | 1.21% | 1.64% H | .75% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,921 | $ 9,502 | $ 16,265 | $ 15,523 | $ 17,399 | $ 18,387 |
Portfolio turnover rate F | 249% A | 52% | 36% | 30% | 26% | 37% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%. H Investment income per share reflects a special dividend which amounted to $.16 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2009 | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .01 | .10 |
Net realized and unrealized gain (loss) | (9.46) | (2.41) |
Total from investment operations | (9.45) | (2.31) |
Distributions from net investment income | (.41) | - |
Distributions from net realized gain | (1.01) | - |
Total distributions | (1.41) I | - |
Net asset value, end of period | $ 14.55 | $ 25.41 |
Total Return B, C | (39.07)% | (8.33)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .30% A | .47% A |
Expenses net of fee waivers, if any | .30% A | .47% A |
Expenses net of all reductions | .30% A | .47% A |
Net investment income (loss) | .14% A | 1.66% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 127,609 | $ 92 |
Portfolio turnover rate F | 249% A | 52% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Total distributions of $1.41 per share is comprised of distributions from net investment income of $.407 and distributions from net realized gain of $1.005 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Dividend Growth and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the fund began offering conversion privileges between Dividend Growth and Class K to eligible shareholders of Dividend Growth. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships, deferred trustees compensation 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 | $ 202,546 |
Unrealized depreciation | (2,561,763) |
Net unrealized appreciation (depreciation) | $ (2,359,217) |
Cost for federal income tax purposes | $ 7,495,407 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale
Semiannual Report
4. Operating Policies - continued
Restricted Securities - continued
at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $8,506,657 and $9,083,006, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Dividend Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .21% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Dividend Growth | 8,887 | .27 |
Class K | 19 | .05 |
| $ 8,906 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $111 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 10,764 | .96% | $ 1 |
7. 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, which amounted to $9 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
8. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Dividend Growth's operating expenses. During the period, this reimbursement reduced the class' expenses by $3.
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 $62 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $33. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
|
|
Dividend Growth | $ 35 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Other - continued
process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 131,615 | $ 220,835 |
Class K | 1,254 | - |
Total | $ 132,869 | $ 220,835 |
From net realized gain |
|
|
Dividend Growth | $ 361,271 | $ 1,096,481 |
Class K | 37 | - |
Total | $ 361,308 | $ 1,096,481 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2009 | Year ended | Six months ended January 31, 2009 | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 35,534 | 49,077 | $ 614,921 | $ 1,434,899 |
Conversion to Class K | (8,685) | - | $ (163,400) | $ - |
Reinvestment of distributions | 21,265 | 41,883 | 478,641 | 1,277,084 |
Shares redeemed | (84,044) | (213,761) | (1,637,030) | (6,144,311) |
Net increase (decrease) | (35,930) | (122,801) | $ (706,868) | $ (3,432,328) |
Class K |
|
|
|
|
Shares sold | 776 | 4 | $ 12,985 | $ 100 |
Conversion from Dividend Growth | 8,685 | - | $ 163,400 | $ - |
Reinvestment of distributions | 86 | - | 1,291 | - |
Shares redeemed | (778) | - | (12,476) | - |
Net increase (decrease) | 8,769 | 4 | $ 165,200 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
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(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
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For Non-Retirement
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Fidelity Investments
Attn: Distribution Services
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Covington, KY 41015
Selling shares
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P.O. Box 770001
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
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(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
Fidelity Investments Japan Limited
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
DGF-USAN-0309 1.789283.106
Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 608.40 | $ 2.11 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
Class K | .30% |
|
|
|
Actual |
| $ 1,000.00 | $ 609.30 | $ 1.22 |
Hypothetical A |
| $ 1,000.00 | $ 1,023.69 | $ 1.53 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
National Oilwell Varco, Inc. | 1.8 | 0.0 |
Wyeth | 1.7 | 2.8 |
JPMorgan Chase & Co. | 1.6 | 0.0 |
Wells Fargo & Co. | 1.6 | 0.0 |
Cisco Systems, Inc. | 1.6 | 3.4 |
Petrohawk Energy Corp. | 1.4 | 0.0 |
Bank of New York Mellon Corp. | 1.0 | 0.5 |
Pfizer, Inc. | 1.0 | 1.4 |
Amgen, Inc. | 1.0 | 0.9 |
Atmel Corp. | 1.0 | 0.0 |
| 13.7 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 17.9 | 20.0 |
Financials | 15.3 | 16.0 |
Health Care | 13.5 | 19.8 |
Energy | 12.4 | 9.7 |
Consumer Discretionary | 11.3 | 11.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks 95.2% |
| ||
![]() | Bonds 0.2% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.2% |
| ** Foreign investments | 6.8% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.1% | |||
Auto Components - 0.5% | |||
BorgWarner, Inc. | 233,800 | $ 3,947 | |
Federal-Mogul Corp. Class A (a) | 538,688 | 3,103 | |
Johnson Controls, Inc. | 733,800 | 9,180 | |
The Goodyear Tire & Rubber Co. (a) | 1,050,900 | 6,484 | |
| 22,714 | ||
Automobiles - 0.1% | |||
Renault SA | 116,100 | 2,253 | |
Thor Industries, Inc. | 52,300 | 553 | |
Winnebago Industries, Inc. | 210,439 | 1,164 | |
| 3,970 | ||
Distributors - 0.1% | |||
LKQ Corp. (a) | 548,400 | 6,334 | |
Diversified Consumer Services - 1.3% | |||
H&R Block, Inc. | 958,210 | 19,864 | |
Hillenbrand, Inc. | 1,103,200 | 20,398 | |
Navitas Ltd. | 1,210,428 | 1,683 | |
Princeton Review, Inc. (a) | 604,132 | 2,966 | |
Service Corp. International | 1,072,000 | 4,878 | |
Stewart Enterprises, Inc. Class A (d) | 3,705,332 | 12,672 | |
| 62,461 | ||
Hotels, Restaurants & Leisure - 1.5% | |||
Brinker International, Inc. | 843,500 | 9,253 | |
Darden Restaurants, Inc. | 314,900 | 8,257 | |
DineEquity, Inc. | 491,600 | 4,346 | |
Las Vegas Sands Corp. unit (a) | 282,100 | 24,120 | |
McCormick & Schmick's Seafood Restaurants (a) | 355,862 | 1,256 | |
McDonald's Corp. | 166,500 | 9,660 | |
Sonic Corp. (a) | 614,900 | 5,989 | |
Starwood Hotels & Resorts Worldwide, Inc. | 689,300 | 10,422 | |
Vail Resorts, Inc. (a)(d) | 89,263 | 2,082 | |
WMS Industries, Inc. (a) | 44,200 | 982 | |
| 76,367 | ||
Household Durables - 1.0% | |||
Black & Decker Corp. | 203,100 | 5,872 | |
Centex Corp. | 281,600 | 2,396 | |
Jarden Corp. (a) | 95,100 | 992 | |
La-Z-Boy, Inc. | 413,000 | 401 | |
Meritage Homes Corp. (a) | 241,400 | 2,660 | |
Mohawk Industries, Inc. (a) | 148,600 | 4,772 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Newell Rubbermaid, Inc. | 639,800 | $ 5,170 | |
Pulte Homes, Inc. | 860,500 | 8,734 | |
Snap-On, Inc. | 157,700 | 4,759 | |
Stanley Furniture Co., Inc. | 221,660 | 1,740 | |
The Stanley Works | 177,300 | 5,542 | |
Whirlpool Corp. | 242,300 | 8,100 | |
| 51,138 | ||
Leisure Equipment & Products - 0.2% | |||
Eastman Kodak Co. | 333,400 | 1,510 | |
Hasbro, Inc. | 361,500 | 8,723 | |
| 10,233 | ||
Media - 3.2% | |||
Ascent Media Corp. (a) | 454,700 | 11,859 | |
CC Media Holdings, Inc. Class A (a) | 1,200,000 | 2,160 | |
Comcast Corp. Class A (special) (non-vtg.) (d) | 3,067,300 | 42,574 | |
Discovery Communications, Inc. (a) | 112,500 | 1,631 | |
DISH Network Corp. Class A (a) | 1,100,800 | 14,134 | |
Informa PLC | 1,046,500 | 3,637 | |
Lamar Advertising Co. Class A (a)(d) | 280,600 | 2,528 | |
Liberty Media Corp. - Entertainment Class A (a) | 1,006,968 | 18,478 | |
Live Nation, Inc. (a) | 1,442,400 | 7,544 | |
Scripps Networks Interactive, Inc. Class A | 186,195 | 3,998 | |
The DIRECTV Group, Inc. (a) | 445,700 | 9,761 | |
The Walt Disney Co. | 579,767 | 11,990 | |
Time Warner, Inc. | 3,446,000 | 32,151 | |
| 162,445 | ||
Multiline Retail - 0.3% | |||
Target Corp. | 509,264 | 15,889 | |
Tuesday Morning Corp. (a) | 798,200 | 942 | |
| 16,831 | ||
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 585,000 | 19,147 | |
Asbury Automotive Group, Inc. | 249,400 | 893 | |
AutoNation, Inc. (a) | 60,300 | 560 | |
Collective Brands, Inc. (a) | 582,529 | 6,216 | |
Dick's Sporting Goods, Inc. (a) | 96,395 | 1,061 | |
Group 1 Automotive, Inc. | 94,000 | 937 | |
Home Depot, Inc. | 647,668 | 13,944 | |
Lowe's Companies, Inc. | 1,857,500 | 33,937 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Lumber Liquidators, Inc. (a)(d) | 522,797 | $ 4,637 | |
MarineMax, Inc. (a) | 43,000 | 76 | |
OfficeMax, Inc. | 610,400 | 3,363 | |
Pacific Sunwear of California, Inc. (a) | 161,000 | 201 | |
Ross Stores, Inc. | 112,000 | 3,295 | |
Sally Beauty Holdings, Inc. (a) | 1,380,600 | 6,530 | |
Sherwin-Williams Co. | 162,530 | 7,761 | |
Sonic Automotive, Inc. Class A (sub. vtg.) | 631,500 | 1,282 | |
Staples, Inc. | 1,090,682 | 17,385 | |
The Men's Wearhouse, Inc. | 959,000 | 11,172 | |
Tween Brands, Inc. (a)(e) | 2,113,500 | 5,685 | |
Urban Outfitters, Inc. (a) | 100,300 | 1,563 | |
| 139,645 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
adidas AG | 41,700 | 1,448 | |
American Apparel, Inc. (a) | 1,789,500 | 3,633 | |
| 5,081 | ||
TOTAL CONSUMER DISCRETIONARY | 557,219 | ||
CONSUMER STAPLES - 7.2% | |||
Beverages - 0.9% | |||
Anheuser-Busch InBev NV | 981,860 | 25,028 | |
Carlsberg AS Series B | 158,100 | 5,266 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 108,600 | 3,057 | |
PepsiCo, Inc. | 98,400 | 4,943 | |
The Coca-Cola Co. | 228,800 | 9,774 | |
| 48,068 | ||
Food & Staples Retailing - 1.5% | |||
CVS Caremark Corp. | 1,373,300 | 36,914 | |
Kroger Co. | 582,400 | 13,104 | |
Rite Aid Corp. (a) | 1,263,044 | 354 | |
Safeway, Inc. | 73,100 | 1,567 | |
Winn-Dixie Stores, Inc. (a) | 1,812,300 | 24,901 | |
| 76,840 | ||
Food Products - 2.3% | |||
Cermaq ASA | 1,122,100 | 4,276 | |
Corn Products International, Inc. | 543,600 | 12,584 | |
Global Bio-Chem Technology Group Co. Ltd. | 49,932,000 | 7,196 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Leroy Seafood Group ASA | 1,000,900 | $ 6,559 | |
Marine Harvest ASA (a)(d) | 67,032,000 | 14,513 | |
Nestle SA (Reg.) | 300,804 | 10,420 | |
Ralcorp Holdings, Inc. (a) | 292,700 | 17,334 | |
Smithfield Foods, Inc. (a)(d) | 924,500 | 10,974 | |
The J.M. Smucker Co. | 111,424 | 5,031 | |
Tyson Foods, Inc. Class A | 2,843,900 | 25,169 | |
| 114,056 | ||
Household Products - 1.6% | |||
Central Garden & Pet Co. (a) | 951,500 | 5,747 | |
Clorox Co. | 202,400 | 10,150 | |
Energizer Holdings, Inc. (a) | 209,587 | 9,983 | |
Kimberly-Clark Corp. | 338,400 | 17,417 | |
Procter & Gamble Co. | 673,306 | 36,695 | |
| 79,992 | ||
Personal Products - 0.2% | |||
Avon Products, Inc. | 284,200 | 5,812 | |
Estee Lauder Companies, Inc. Class A | 92,200 | 2,420 | |
| 8,232 | ||
Tobacco - 0.7% | |||
Imperial Tobacco Group PLC | 301,800 | 8,282 | |
Philip Morris International, Inc. | 779,800 | 28,970 | |
| 37,252 | ||
TOTAL CONSUMER STAPLES | 364,440 | ||
ENERGY - 12.2% | |||
Energy Equipment & Services - 4.7% | |||
BJ Services Co. | 151,700 | 1,669 | |
Exterran Holdings, Inc. (a)(d) | 465,300 | 10,311 | |
Global Industries Ltd. (a) | 3,266,302 | 11,269 | |
Halliburton Co. | 816,600 | 14,086 | |
Helix Energy Solutions Group, Inc. (a) | 524,800 | 2,703 | |
Hercules Offshore, Inc. (a) | 696,200 | 2,590 | |
Nabors Industries Ltd. (a) | 585,582 | 6,412 | |
National Oilwell Varco, Inc. (a) | 3,496,900 | 92,463 | |
Parker Drilling Co. (a) | 628,400 | 1,332 | |
Pride International, Inc. (a) | 475,927 | 7,672 | |
Rowan Companies, Inc. | 436,275 | 5,523 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Smith International, Inc. | 907,400 | $ 20,598 | |
Superior Energy Services, Inc. (a) | 364,400 | 5,677 | |
Tidewater, Inc. | 455,300 | 18,945 | |
Transocean Ltd. (a) | 80,300 | 4,386 | |
Weatherford International Ltd. (a) | 2,627,700 | 28,984 | |
| 234,620 | ||
Oil, Gas & Consumable Fuels - 7.5% | |||
Arch Coal, Inc. | 262,100 | 3,981 | |
Boardwalk Pipeline Partners, LP | 602,875 | 12,841 | |
Cabot Oil & Gas Corp. | 78,500 | 2,158 | |
Chesapeake Energy Corp. | 2,215,400 | 35,025 | |
Comstock Resources, Inc. (a) | 166,900 | 6,364 | |
Concho Resources, Inc. (a) | 190,165 | 4,796 | |
Denbury Resources, Inc. (a) | 844,190 | 10,333 | |
El Paso Corp. | 666,300 | 5,450 | |
Energy Transfer Equity LP | 565,800 | 10,456 | |
EXCO Resources, Inc. (a) | 2,149,000 | 21,791 | |
Foundation Coal Holdings, Inc. | 378,500 | 6,139 | |
Frontier Oil Corp. | 580,400 | 8,288 | |
GMX Resources, Inc. (a)(d) | 98,203 | 2,226 | |
Goodrich Petroleum Corp. (a)(d) | 428,722 | 12,390 | |
Hess Corp. | 504,800 | 28,072 | |
James River Coal Co. (a) | 60,200 | 816 | |
McMoRan Exploration Co. (a) | 233,697 | 1,563 | |
Nexen, Inc. | 714,900 | 10,416 | |
OPTI Canada, Inc. (a) | 4,825,100 | 6,298 | |
Peabody Energy Corp. | 184,000 | 4,600 | |
Penn Virginia Corp. | 363,700 | 7,492 | |
Petrohawk Energy Corp. (a) | 3,452,438 | 68,048 | |
Plains Exploration & Production Co. (a) | 870,968 | 18,395 | |
Quicksilver Resources, Inc. (a) | 2,031,900 | 14,081 | |
Range Resources Corp. | 301,600 | 10,809 | |
Southwestern Energy Co. (a) | 778,037 | 24,625 | |
Suncor Energy, Inc. | 262,300 | 5,031 | |
Sunoco, Inc. | 377,398 | 17,481 | |
Talisman Energy, Inc. | 578,900 | 5,483 | |
Uranium One, Inc. (a) | 522,800 | 789 | |
Valero Energy Corp. | 263,705 | 6,361 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Walter Industries, Inc. | 32,300 | $ 596 | |
Williams Companies, Inc. | 373,500 | 5,285 | |
| 378,479 | ||
TOTAL ENERGY | 613,099 | ||
FINANCIALS - 14.5% | |||
Capital Markets - 3.4% | |||
Affiliated Managers Group, Inc. (a)(d) | 94,528 | 3,799 | |
Ameriprise Financial, Inc. | 180,700 | 3,641 | |
Bank of New York Mellon Corp. | 2,049,407 | 52,752 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 214,500 | 5,169 | |
Cohen & Steers, Inc. | 261,100 | 2,820 | |
EFG International | 222,610 | 2,706 | |
Fortress Investment Group LLC (d) | 1,528,500 | 2,293 | |
Franklin Resources, Inc. | 285,500 | 13,824 | |
Goldman Sachs Group, Inc. | 483,398 | 39,025 | |
Janus Capital Group, Inc. | 40,200 | 211 | |
Morgan Stanley | 1,406,544 | 28,454 | |
Partners Group Holding | 12,066 | 804 | |
State Street Corp. | 386,968 | 9,005 | |
T. Rowe Price Group, Inc. | 126,700 | 3,494 | |
The Blackstone Group LP | 444,000 | 2,002 | |
| 169,999 | ||
Commercial Banks - 2.8% | |||
Associated Banc-Corp. | 78,400 | 1,227 | |
Mitsubishi UFJ Financial Group, Inc. | 3,455,300 | 19,169 | |
PNC Financial Services Group, Inc. | 632,067 | 20,555 | |
Regions Financial Corp. (d) | 503,300 | 1,741 | |
Sumitomo Mitsui Financial Group, Inc. | 268,200 | 10,630 | |
TCF Financial Corp. | 140,500 | 1,741 | |
UCBH Holdings, Inc. | 552,700 | 1,288 | |
UniCredit SpA | 401,600 | 711 | |
Wells Fargo & Co. | 4,220,841 | 79,774 | |
Wintrust Financial Corp. | 352,250 | 4,710 | |
| 141,546 | ||
Consumer Finance - 0.7% | |||
Capital One Financial Corp. | 360,400 | 5,709 | |
Discover Financial Services | 760,113 | 5,435 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Consumer Finance - continued | |||
Promise Co. Ltd. (d) | 884,900 | $ 16,242 | |
SLM Corp. (a) | 566,400 | 6,485 | |
| 33,871 | ||
Diversified Financial Services - 3.8% | |||
Bank of America Corp. | 5,151,842 | 33,899 | |
CIT Group, Inc. (d) | 1,477,900 | 4,123 | |
Citigroup, Inc. | 4,809,605 | 17,074 | |
CME Group, Inc. | 71,800 | 12,487 | |
IntercontinentalExchange, Inc. (a)(d) | 143,900 | 8,192 | |
JPMorgan Chase & Co. | 3,192,600 | 81,443 | |
PICO Holdings, Inc. (a) | 1,495,700 | 38,021 | |
| 195,239 | ||
Insurance - 2.4% | |||
ACE Ltd. | 238,700 | 10,422 | |
AFLAC, Inc. | 20,100 | 467 | |
Assurant, Inc. | 304,971 | 8,051 | |
Everest Re Group Ltd. | 153,800 | 9,689 | |
Genworth Financial, Inc. Class A (non-vtg.) | 873,844 | 2,027 | |
Hartford Financial Services Group, Inc. | 323,120 | 4,252 | |
Loews Corp. | 280,100 | 6,834 | |
Maiden Holdings Ltd. (f) | 866,542 | 3,943 | |
MBIA, Inc. (d) | 1,443,200 | 5,571 | |
MetLife, Inc. | 597,776 | 17,174 | |
Montpelier Re Holdings Ltd. | 577,400 | 8,164 | |
PartnerRe Ltd. | 234,200 | 15,347 | |
Platinum Underwriters Holdings Ltd. | 184,700 | 5,137 | |
Principal Financial Group, Inc. | 120,500 | 1,999 | |
Prudential Financial, Inc. | 123,500 | 3,180 | |
Reinsurance Group of America, Inc. | 193,761 | 6,904 | |
The Travelers Companies, Inc. | 259,500 | 10,027 | |
W.R. Berkley Corp. | 13,400 | 355 | |
XL Capital Ltd. Class A | 315,400 | 915 | |
| 120,458 | ||
Real Estate Investment Trusts - 0.9% | |||
CapitalSource, Inc. | 4,449,245 | 16,195 | |
CBL & Associates Properties, Inc. | 120,400 | 490 | |
Developers Diversified Realty Corp. | 247,500 | 1,188 | |
General Growth Properties, Inc. (d) | 1,665,406 | 1,083 | |
Highwoods Properties, Inc. (SBI) | 119,998 | 2,707 | |
Home Properties, Inc. | 26,300 | 944 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Pennsylvania Real Estate Investment Trust (SBI) (d) | 183,300 | $ 812 | |
ProLogis Trust | 733,500 | 7,342 | |
Senior Housing Properties Trust (SBI) | 152,000 | 2,459 | |
SL Green Realty Corp. | 163,000 | 2,561 | |
UDR, Inc. | 146,000 | 1,713 | |
Vornado Realty Trust | 133,600 | 6,788 | |
| 44,282 | ||
Real Estate Management & Development - 0.4% | |||
CB Richard Ellis Group, Inc. Class A (a) | 4,464,600 | 16,073 | |
Forestar Group, Inc. (a) | 124,500 | 1,388 | |
Jones Lang LaSalle, Inc. | 243,300 | 5,744 | |
| 23,205 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Washington Federal, Inc. | 391,176 | 4,804 | |
TOTAL FINANCIALS | 733,404 | ||
HEALTH CARE - 13.0% | |||
Biotechnology - 4.0% | |||
Amgen, Inc. (a) | 929,700 | 50,994 | |
Biogen Idec, Inc. (a) | 270,700 | 13,170 | |
Cephalon, Inc. (a)(d) | 534,600 | 41,260 | |
DUSA Pharmaceuticals, Inc. (a)(e) | 1,402,453 | 1,585 | |
Genentech, Inc. (a) | 204,764 | 16,635 | |
Genzyme Corp. (a) | 96,300 | 6,637 | |
Gilead Sciences, Inc. (a) | 390,213 | 19,811 | |
Theravance, Inc. (a) | 1,985,445 | 26,168 | |
United Therapeutics Corp. (a) | 24,100 | 1,638 | |
Vertex Pharmaceuticals, Inc. (a) | 745,929 | 24,653 | |
| 202,551 | ||
Health Care Equipment & Supplies - 1.6% | |||
American Medical Systems Holdings, Inc. (a)(d) | 523,900 | 5,606 | |
Boston Scientific Corp. (a) | 986,300 | 8,748 | |
Covidien Ltd. | 779,600 | 29,890 | |
Integra LifeSciences Holdings Corp. (a) | 395,600 | 10,974 | |
Inverness Medical Innovations, Inc. (a) | 233,400 | 5,711 | |
Kinetic Concepts, Inc. (a) | 244,500 | 5,892 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Medtronic, Inc. | 132,200 | $ 4,427 | |
Sonova Holding AG | 228,611 | 11,037 | |
| 82,285 | ||
Health Care Providers & Services - 2.8% | |||
Amedisys, Inc. (a) | 44,178 | 1,821 | |
athenahealth, Inc. (a) | 12,000 | 433 | |
Brookdale Senior Living, Inc. | 1,279,900 | 8,703 | |
Coventry Health Care, Inc. (a) | 283,100 | 4,283 | |
Emeritus Corp. (a) | 64,300 | 532 | |
Express Scripts, Inc. (a) | 201,200 | 10,817 | |
Health Net, Inc. (a) | 272,900 | 3,993 | |
HealthSouth Corp. (a)(d) | 692,400 | 6,882 | |
McKesson Corp. | 236,300 | 10,444 | |
Medco Health Solutions, Inc. (a) | 458,300 | 20,591 | |
MEDNAX, Inc. (a) | 238,500 | 8,006 | |
Patterson Companies, Inc. (a) | 162,100 | 2,981 | |
Tenet Healthcare Corp. (a) | 717,200 | 767 | |
Triple-S Management Corp. (a) | 209,702 | 3,018 | |
UnitedHealth Group, Inc. | 957,100 | 27,115 | |
Universal American Financial Corp. (a) | 82,250 | 812 | |
Universal Health Services, Inc. Class B | 359,300 | 13,600 | |
VCA Antech, Inc. (a) | 40,200 | 757 | |
WellPoint, Inc. (a) | 399,700 | 16,568 | |
| 142,123 | ||
Health Care Technology - 0.1% | |||
IMS Health, Inc. | 245,300 | 3,562 | |
Life Sciences Tools & Services - 0.2% | |||
Bruker BioSciences Corp. (a) | 451,600 | 1,820 | |
Thermo Fisher Scientific, Inc. (a) | 195,000 | 7,006 | |
| 8,826 | ||
Pharmaceuticals - 4.3% | |||
Allergan, Inc. | 253,200 | 9,652 | |
Merck & Co., Inc. | 917,105 | 26,183 | |
Pfizer, Inc. | 3,520,725 | 51,332 | |
Schering-Plough Corp. | 1,601,830 | 28,128 | |
Shire PLC sponsored ADR | 64,200 | 2,804 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 152,500 | 6,321 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Wyeth | 2,040,760 | $ 87,691 | |
XenoPort, Inc. (a) | 257,400 | 6,723 | |
| 218,834 | ||
TOTAL HEALTH CARE | 658,181 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.7% | |||
Finmeccanica SpA | 542,708 | 8,526 | |
Honeywell International, Inc. | 779,100 | 25,562 | |
Lockheed Martin Corp. | 192,200 | 15,768 | |
Northrop Grumman Corp. | 277,300 | 13,344 | |
Orbital Sciences Corp. (a) | 585,200 | 9,814 | |
Raytheon Co. | 506,900 | 25,659 | |
United Technologies Corp. | 782,600 | 37,557 | |
| 136,230 | ||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 217,600 | 11,085 | |
Airlines - 0.8% | |||
AirTran Holdings, Inc. (a) | 1,321,300 | 5,417 | |
Alaska Air Group, Inc. (a) | 157,200 | 4,144 | |
Delta Air Lines, Inc. (a) | 4,586,675 | 31,648 | |
| 41,209 | ||
Building Products - 0.3% | |||
Masco Corp. | 1,291,200 | 10,097 | |
Owens Corning (a) | 479,725 | 6,400 | |
| 16,497 | ||
Commercial Services & Supplies - 1.2% | |||
ACCO Brands Corp. (a) | 1,321,188 | 2,537 | |
Avery Dennison Corp. | 173,400 | 4,201 | |
Cintas Corp. | 294,600 | 6,702 | |
Consolidated Graphics, Inc. (a) | 104,500 | 1,683 | |
EnergySolutions, Inc. | 897,400 | 4,029 | |
GeoEye, Inc. (a) | 741,061 | 12,783 | |
R.R. Donnelley & Sons Co. | 699,300 | 6,818 | |
Republic Services, Inc. | 457,795 | 11,839 | |
Waste Management, Inc. | 319,600 | 9,968 | |
| 60,560 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 1.3% | |||
Chicago Bridge & Iron Co. NV (NY Shares) | 443,700 | $ 4,996 | |
Great Lakes Dredge & Dock Corp. (e) | 4,190,361 | 13,996 | |
MasTec, Inc. (a) | 40,200 | 427 | |
MYR Group, Inc. (a) | 357,600 | 5,149 | |
Shaw Group, Inc. (a)(d) | 365,400 | 10,158 | |
URS Corp. (a) | 908,600 | 30,938 | |
| 65,664 | ||
Electrical Equipment - 1.3% | |||
Cooper Industries Ltd. Class A | 1,607,973 | 43,271 | |
First Solar, Inc. (a) | 28,100 | 4,013 | |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 711,800 | 1,893 | |
Renewable Energy Corp. AS (a)(d) | 761,600 | 7,684 | |
Saft Groupe SA | 343,500 | 8,435 | |
Thomas & Betts Corp. (a) | 24,081 | 515 | |
| 65,811 | ||
Industrial Conglomerates - 0.8% | |||
McDermott International, Inc. (a) | 1,794,450 | 18,608 | |
Rheinmetall AG | 34,800 | 1,109 | |
Siemens AG sponsored ADR (d) | 314,700 | 17,642 | |
Textron, Inc. | 457,900 | 4,135 | |
| 41,494 | ||
Machinery - 1.0% | |||
Cummins, Inc. | 381,200 | 9,141 | |
Danaher Corp. | 215,700 | 12,064 | |
Eaton Corp. | 129,800 | 5,714 | |
Ingersoll-Rand Co. Ltd. Class A | 280,000 | 4,539 | |
Navistar International Corp. (a) | 501,400 | 15,228 | |
Vallourec SA | 42,600 | 4,193 | |
| 50,879 | ||
Marine - 0.1% | |||
Alexander & Baldwin, Inc. | 192,600 | 4,245 | |
Professional Services - 0.1% | |||
Monster Worldwide, Inc. (a) | 578,300 | 5,326 | |
Road & Rail - 1.1% | |||
Burlington Northern Santa Fe Corp. | 92,800 | 6,148 | |
Con-way, Inc. | 413,600 | 9,112 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Union Pacific Corp. | 524,200 | $ 22,955 | |
Universal Truckload Services, Inc. (a)(e) | 1,172,499 | 14,492 | |
| 52,707 | ||
TOTAL INDUSTRIALS | 551,707 | ||
INFORMATION TECHNOLOGY - 17.9% | |||
Communications Equipment - 3.7% | |||
Adtran, Inc. | 854,600 | 12,947 | |
Cisco Systems, Inc. (a) | 5,314,900 | 79,564 | |
Comverse Technology, Inc. (a) | 1,739,200 | 10,992 | |
Corning, Inc. | 1,862,600 | 18,831 | |
Juniper Networks, Inc. (a) | 1,582,000 | 22,401 | |
Motorola, Inc. | 6,299,620 | 27,907 | |
QUALCOMM, Inc. | 346,400 | 11,968 | |
| 184,610 | ||
Computers & Peripherals - 1.5% | |||
Apple, Inc. (a) | 116,700 | 10,518 | |
Hewlett-Packard Co. | 1,384,000 | 48,094 | |
International Business Machines Corp. | 78,553 | 7,199 | |
SanDisk Corp. (a) | 487,701 | 5,574 | |
Seagate Technology | 1,701,300 | 6,448 | |
| 77,833 | ||
Electronic Equipment & Components - 1.9% | |||
Amphenol Corp. Class A | 658,400 | 17,217 | |
Arrow Electronics, Inc. (a) | 640,400 | 12,212 | |
Avnet, Inc. (a) | 1,240,589 | 24,588 | |
Bell Microproducts, Inc. (a)(e) | 2,045,259 | 1,841 | |
BYD Co. Ltd. (H Shares) | 281,000 | 524 | |
Cogent, Inc. (a) | 144,300 | 1,680 | |
Ingram Micro, Inc. Class A (a) | 1,012,600 | 12,425 | |
Itron, Inc. (a)(d) | 221,400 | 14,457 | |
Tyco Electronics Ltd. | 604,372 | 8,558 | |
| 93,502 | ||
Internet Software & Services - 1.4% | |||
Art Technology Group, Inc. (a) | 1,457,100 | 2,492 | |
Google, Inc. Class A (sub. vtg.) (a) | 123,700 | 41,876 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Open Text Corp. (a) | 145,980 | $ 5,160 | |
VeriSign, Inc. (a) | 1,006,400 | 19,434 | |
| 68,962 | ||
IT Services - 3.1% | |||
Accenture Ltd. Class A | 1,366,404 | 43,124 | |
Affiliated Computer Services, Inc. Class A (a) | 95,300 | 4,370 | |
Alliance Data Systems Corp. (a) | 124,552 | 5,180 | |
Cognizant Technology Solutions Corp. Class A (a) | 394,900 | 7,396 | |
Fidelity National Information Services, Inc. | 596,500 | 9,490 | |
Lender Processing Services, Inc. | 786,465 | 20,385 | |
MasterCard, Inc. Class A | 22,300 | 3,028 | |
Perot Systems Corp. Class A (a) | 759,800 | 9,870 | |
Sapient Corp. (a) | 1,642,741 | 6,998 | |
The Western Union Co. | 547,394 | 7,477 | |
Unisys Corp. (a) | 6,598,800 | 4,949 | |
Visa, Inc. | 634,300 | 31,303 | |
WNS Holdings Ltd. sponsored ADR (a) | 582,800 | 3,788 | |
| 157,358 | ||
Semiconductors & Semiconductor Equipment - 4.3% | |||
Altera Corp. | 338,700 | 5,209 | |
Analog Devices, Inc. | 502,700 | 10,044 | |
Applied Materials, Inc. | 2,179,000 | 20,417 | |
Atmel Corp. (a) | 14,971,594 | 50,005 | |
Axcelis Technologies, Inc. (a) | 3,912,100 | 1,115 | |
Cymer, Inc. (a) | 486,900 | 9,933 | |
Fairchild Semiconductor International, Inc. (a) | 981,800 | 4,467 | |
International Rectifier Corp. (a) | 709,200 | 9,659 | |
Lam Research Corp. (a) | 2,048,393 | 41,398 | |
LTX-Credence Corp. (a)(e) | 7,536,843 | 2,186 | |
Maxim Integrated Products, Inc. | 1,447,400 | 19,149 | |
MEMC Electronic Materials, Inc. (a) | 381,000 | 5,182 | |
Microchip Technology, Inc. | 113,700 | 2,157 | |
Micron Technology, Inc. (a) | 804,500 | 2,993 | |
National Semiconductor Corp. | 684,777 | 6,944 | |
ON Semiconductor Corp. (a) | 3,138,654 | 13,088 | |
Semitool, Inc. (a) | 1,012,400 | 2,804 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 309,000 | 5,883 | |
Xilinx, Inc. | 277,800 | 4,681 | |
| 217,314 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - 2.0% | |||
CA, Inc. | 424,800 | $ 7,642 | |
McAfee, Inc. (a) | 368,400 | 11,233 | |
Misys PLC | 3,050,400 | 5,152 | |
Oracle Corp. (a) | 1,894,700 | 31,888 | |
Phoenix Technologies Ltd. (a) | 100,532 | 259 | |
Quest Software, Inc. (a) | 1,269,100 | 15,826 | |
Sourcefire, Inc. (a) | 1,219,077 | 8,204 | |
Symantec Corp. (a) | 927,100 | 14,212 | |
THQ, Inc. (a) | 1,940,600 | 7,665 | |
| 102,081 | ||
TOTAL INFORMATION TECHNOLOGY | 901,660 | ||
MATERIALS - 5.1% | |||
Chemicals - 2.2% | |||
Airgas, Inc. | 179,500 | 6,338 | |
Albemarle Corp. | 357,400 | 7,952 | |
Arkema sponsored ADR | 263,977 | 3,709 | |
Celanese Corp. Class A | 1,152,500 | 12,274 | |
Lubrizol Corp. | 213,100 | 7,271 | |
Monsanto Co. | 379,300 | 28,850 | |
Solutia, Inc. (a) | 1,605,400 | 6,277 | |
Spartech Corp. | 1,103,200 | 3,497 | |
Symrise AG | 528,400 | 4,939 | |
Terra Industries, Inc. | 144,600 | 2,961 | |
The Mosaic Co. | 326,300 | 11,639 | |
Valspar Corp. | 426,300 | 7,396 | |
W.R. Grace & Co. (a) | 1,573,025 | 9,076 | |
| 112,179 | ||
Containers & Packaging - 0.9% | |||
Greif, Inc. Class A | 160,600 | 4,860 | |
Owens-Illinois, Inc. (a) | 217,176 | 4,126 | |
Pactiv Corp. (a) | 564,700 | 12,209 | |
Rock-Tenn Co. Class A | 307,100 | 9,572 | |
Temple-Inland, Inc. | 2,161,100 | 12,253 | |
| 43,020 | ||
Metals & Mining - 1.9% | |||
Agnico-Eagle Mines Ltd. | 42,800 | 2,287 | |
Alamos Gold, Inc. (a) | 1,637,000 | 10,523 | |
ArcelorMittal SA (NY Shares) Class A | 221,300 | 4,995 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Commercial Metals Co. | 722,300 | $ 8,306 | |
Compass Minerals International, Inc. | 8,100 | 487 | |
Eldorado Gold Corp. (a) | 1,742,100 | 13,643 | |
Ivanhoe Mines Ltd. (a) | 1,172,100 | 3,232 | |
Lihir Gold Ltd. (a) | 4,086,470 | 8,109 | |
Newcrest Mining Ltd. | 403,188 | 7,816 | |
Newmont Mining Corp. | 200,800 | 7,988 | |
Red Back Mining, Inc. (a)(f) | 66,300 | 426 | |
Silver Wheaton Corp. (a) | 461,700 | 3,021 | |
Stillwater Mining Co. (a)(d) | 590,400 | 2,450 | |
Timminco Ltd. (a) | 1,450,275 | 4,093 | |
Titanium Metals Corp. (d) | 476,900 | 3,362 | |
United States Steel Corp. | 110,700 | 3,324 | |
Yamana Gold, Inc. | 1,735,100 | 14,069 | |
| 98,131 | ||
Paper & Forest Products - 0.1% | |||
Clearwater Paper Corp. (a) | 253,000 | 2,861 | |
TOTAL MATERIALS | 256,191 | ||
TELECOMMUNICATION SERVICES - 2.0% | |||
Diversified Telecommunication Services - 1.9% | |||
AT&T, Inc. | 1,543,246 | 37,995 | |
Cincinnati Bell, Inc. (a) | 3,035,400 | 4,219 | |
Qwest Communications International, Inc. | 9,645,371 | 31,058 | |
Verizon Communications, Inc. | 782,932 | 23,386 | |
| 96,658 | ||
Wireless Telecommunication Services - 0.1% | |||
Sprint Nextel Corp. (a) | 2,189,000 | 5,319 | |
Vivo Participacoes SA sponsored ADR | 21,025 | 298 | |
| 5,617 | ||
TOTAL TELECOMMUNICATION SERVICES | 102,275 | ||
UTILITIES - 3.5% | |||
Electric Utilities - 2.0% | |||
Allegheny Energy, Inc. | 598,200 | 19,884 | |
E.ON AG | 23,900 | 772 | |
Entergy Corp. | 199,500 | 15,234 | |
Exelon Corp. | 610,405 | 33,096 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
FirstEnergy Corp. | 524,800 | $ 26,235 | |
PPL Corp. | 66,600 | 2,042 | |
Public Power Corp. of Greece | 276,600 | 4,653 | |
| 101,916 | ||
Gas Utilities - 0.2% | |||
Equitable Resources, Inc. | 310,000 | 10,611 | |
Questar Corp. | 53,900 | 1,832 | |
| 12,443 | ||
Independent Power Producers & Energy Traders - 1.1% | |||
AES Corp. (a) | 852,400 | 6,742 | |
NRG Energy, Inc. (a) | 1,752,500 | 40,938 | |
Reliant Energy, Inc. (a) | 1,495,600 | 7,613 | |
| 55,293 | ||
Multi-Utilities - 0.2% | |||
CMS Energy Corp. | 234,100 | 2,751 | |
NorthWestern Energy Corp. | 20,100 | 487 | |
RWE AG | 65,200 | 5,081 | |
| 8,319 | ||
Water Utilities - 0.0% | |||
Southwest Water Co. | 80,362 | 360 | |
TOTAL UTILITIES | 178,331 | ||
TOTAL COMMON STOCKS (Cost $7,112,408) | 4,916,507 | ||
Preferred Stocks - 1.2% | |||
|
|
|
|
Convertible Preferred Stocks - 1.1% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
McMoRan Exploration Co. 6.75% | 48,000 | 2,116 | |
SandRidge Energy, Inc. 8.50% (a)(f) | 80,500 | 7,964 | |
| 10,080 | ||
FINANCIALS - 0.7% | |||
Capital Markets - 0.1% | |||
Legg Mason, Inc. 7.00% | 155,200 | 2,857 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Commercial Banks - 0.4% | |||
East West Bancorp, Inc. Series A, 8.00% | 3,127 | $ 1,929 | |
Fifth Third Bancorp 8.50% | 79,200 | 2,773 | |
Huntington Bancshares, Inc. 8.50% | 7,400 | 3,244 | |
KeyCorp Series A, 7.75% | 40,200 | 2,603 | |
UCBH Holdings, Inc. Series B, 8.50% | 3,800 | 2,091 | |
Wells Fargo & Co. 7.50% | 9,600 | 6,115 | |
| 18,755 | ||
Diversified Financial Services - 0.2% | |||
CIT Group, Inc. Series C, 8.75% | 592,100 | 11,309 | |
TOTAL FINANCIALS | 32,921 | ||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Mylan, Inc. 6.50% | 10,000 | 7,401 | |
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 135,700 | 6,351 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 56,753 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Fiat SpA | 1,130,500 | 3,260 | |
TOTAL PREFERRED STOCKS (Cost $98,028) | 60,013 | ||
Investment Companies - 0.2% | |||
|
|
|
|
Ares Capital Corp. | 2,550,900 | 12,015 |
Corporate Bonds - 0.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.4% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Media - 0.1% | ||||
Virgin Media, Inc. 6.5% 11/15/16 (f) | $ 7,720 | $ 3,269 | ||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (f) | 15,273 | 5,082 | ||
HEALTH CARE - 0.2% | ||||
Pharmaceuticals - 0.2% | ||||
Endo Pharmaceuticals Holdings, Inc. 1.75% 4/15/15 (f) | 12,270 | 10,951 | ||
TOTAL CONVERTIBLE BONDS | 19,302 | |||
Nonconvertible Bonds - 0.2% | ||||
HEALTH CARE - 0.2% | ||||
Pharmaceuticals - 0.2% | ||||
Alpharma, Inc. 2.125% 3/15/27 | 6,570 | 8,436 | ||
INFORMATION TECHNOLOGY - 0.0% | ||||
Semiconductors & Semiconductor Equipment - 0.0% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | 19,510 | 3,317 | ||
TOTAL NONCONVERTIBLE BONDS | 11,753 | |||
TOTAL CORPORATE BONDS (Cost $43,231) | 31,055 |
Money Market Funds - 2.3% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 37,129,838 | $ 37,130 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 79,469,810 | 79,470 | |
TOTAL MONEY MARKET FUNDS (Cost $116,600) | 116,600 | ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $7,402,434) | 5,136,190 | ||
NET OTHER ASSETS - (1.7)% | (87,204) | ||
NET ASSETS - 100% | $ 5,048,986 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $31,635,000 or 0.6% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,478 |
Fidelity Securities Lending Cash Central Fund | 826 |
Total | $ 2,304 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Bell Microproducts, Inc. | $ - | $ 3,861 | $ - | $ - | $ 1,841 |
DUSA Pharmaceuticals, Inc. | - | 1,872 | 50 | - | 1,585 |
Great Lakes Dredge & Dock Corp. | - | 31,981 | 1,383 | 77 | 13,996 |
LTX-Credence Corp. | - | 14,429 | - | - | 2,186 |
Tween Brands, Inc. | - | 24,152 | - | - | 5,685 |
Universal Truckload Services, Inc. | - | 28,875 | 1,578 | - | 14,492 |
Total | $ - | $ 105,170 | $ 3,011 | $ 77 | $ 39,785 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 5,136,190 | $ 4,978,089 | $ 133,981 | $ 24,120 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (4,090) |
Cost of Purchases | 28,210 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 24,120 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.8% |
Bermuda | 3.6% |
Canada | 1.6% |
Others (individually less than 1%) | 6.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $74,009) - See accompanying schedule: Unaffiliated issuers (cost $7,185,258) | $ 4,979,805 |
|
Fidelity Central Funds (cost $116,600) | 116,600 |
|
Other affiliated issuers (cost $100,576) | 39,785 |
|
Total Investments (cost $7,402,434) |
| $ 5,136,190 |
Receivable for investments sold | 69,677 | |
Receivable for fund shares sold | 5,386 | |
Dividends receivable | 6,063 | |
Interest receivable | 921 | |
Distributions receivable from Fidelity Central Funds | 115 | |
Prepaid expenses | 68 | |
Other receivables | 181 | |
Total assets | 5,218,601 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 595 | |
Payable for investments purchased | 62,292 | |
Payable for fund shares redeemed | 16,816 | |
Accrued management fee | 456 | |
Other affiliated payables | 1,382 | |
Other payables and accrued expenses | 8,604 | |
Collateral on securities loaned, at value | 79,470 | |
Total liabilities | 169,615 | |
|
|
|
Net Assets | $ 5,048,986 | |
Net Assets consist of: |
| |
Paid in capital | $ 8,699,220 | |
Accumulated net investment loss | (59,615) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,316,075) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,274,544) | |
Net Assets | $ 5,048,986 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Dividend Growth: | $ 14.55 | |
|
|
|
Class K: | $ 14.55 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $77 earned from other affiliated issuers) |
| $ 10,944 |
Interest |
| 1,738 |
Income from Fidelity Central Funds (including $826 from security lending) |
| 2,304 |
Total income |
| 14,986 |
|
|
|
Expenses | ||
Management fee | $ 19,007 | |
Performance adjustment | (11,967) | |
Transfer agent fees | 8,906 | |
Accounting and security lending fees | 590 | |
Custodian fees and expenses | 153 | |
Independent trustees' compensation | 20 | |
Registration fees | 37 | |
Audit | 46 | |
Legal | 35 | |
Interest | 1 | |
Miscellaneous | 577 | |
Total expenses before reductions | 17,405 | |
Expense reductions | (133) | 17,272 |
Net investment income (loss) | (2,286) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,270,268) | |
Other affiliated issuers | (1,583) |
|
Foreign currency transactions | (248) | |
Total net realized gain (loss) |
| (1,272,099) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,142,929) | |
Assets and liabilities in foreign currencies | 3 | |
Total change in net unrealized appreciation (depreciation) |
| (2,142,926) |
Net gain (loss) | (3,415,025) | |
Net increase (decrease) in net assets resulting from operations | $ (3,417,311) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,286) | $ 193,226 |
Net realized gain (loss) | (1,272,099) | 719,192 |
Change in net unrealized appreciation (depreciation) | (2,142,926) | (2,925,394) |
Net increase (decrease) in net assets resulting from operations | (3,417,311) | (2,012,976) |
Distributions to shareholders from net investment income | (132,869) | (220,835) |
Distributions to shareholders from net realized gain | (361,308) | (1,096,481) |
Total distributions | (494,177) | (1,317,316) |
Share transactions - net increase (decrease) | (541,668) | (3,432,228) |
Total increase (decrease) in net assets | (4,453,156) | (6,762,520) |
|
|
|
Net Assets | ||
Beginning of period | 9,502,142 | 16,264,662 |
End of period (including accumulated net investment loss of $59,615 and undistributed net investment income of $96,848, respectively) | $ 5,048,986 | $ 9,502,142 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2009 | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 | $ 24.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | .43 | .52 G | .35 | .45 H | .20 |
Net realized and unrealized gain (loss) | (9.46) | (5.08) | 3.98 | .99 | 2.21 | 1.84 |
Total from investment operations | (9.47) | (4.65) | 4.50 | 1.34 | 2.66 | 2.04 |
Distributions from net investment income | (.37) | (.45) | (.45) | (.31) | (.39) | (.22) |
Distributions from net realized gain | (1.01) | (2.23) | (.82) | (.38) | - | - |
Total distributions | (1.38) | (2.68) | (1.27) | (.69) | (.39) | (.22) |
Net asset value, end of period | $ 14.55 | $ 25.40 | $ 32.73 | $ 29.50 | $ 28.85 | $ 26.58 |
Total Return B, C | (39.16)% | (15.45)% | 15.62% | 4.73% | 10.08% | 8.27% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .52% A | .64% | .61% | .60% | .68% | .90% |
Expenses net of fee waivers, if any | .52% A | .64% | .61% | .60% | .68% | .90% |
Expenses net of all reductions | .51% A | .63% | .60% | .59% | .66% | .89% |
Net investment income (loss) | (.07)% A | 1.47% | 1.62% G | 1.21% | 1.64% H | .75% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,921 | $ 9,502 | $ 16,265 | $ 15,523 | $ 17,399 | $ 18,387 |
Portfolio turnover rate F | 249% A | 52% | 36% | 30% | 26% | 37% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%. H Investment income per share reflects a special dividend which amounted to $.16 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.06%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2009 | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .01 | .10 |
Net realized and unrealized gain (loss) | (9.46) | (2.41) |
Total from investment operations | (9.45) | (2.31) |
Distributions from net investment income | (.41) | - |
Distributions from net realized gain | (1.01) | - |
Total distributions | (1.41) I | - |
Net asset value, end of period | $ 14.55 | $ 25.41 |
Total Return B, C | (39.07)% | (8.33)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .30% A | .47% A |
Expenses net of fee waivers, if any | .30% A | .47% A |
Expenses net of all reductions | .30% A | .47% A |
Net investment income (loss) | .14% A | 1.66% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 127,609 | $ 92 |
Portfolio turnover rate F | 249% A | 52% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Total distributions of $1.41 per share is comprised of distributions from net investment income of $.407 and distributions from net realized gain of $1.005 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Dividend Growth and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the fund began offering conversion privileges between Dividend Growth and Class K to eligible shareholders of Dividend Growth. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships, deferred trustees compensation 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 | $ 202,546 |
Unrealized depreciation | (2,561,763) |
Net unrealized appreciation (depreciation) | $ (2,359,217) |
Cost for federal income tax purposes | $ 7,495,407 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale
Semiannual Report
4. Operating Policies - continued
Restricted Securities - continued
at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $8,506,657 and $9,083,006, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Dividend Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .21% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Dividend Growth | 8,887 | .27 |
Class K | 19 | .05 |
| $ 8,906 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $111 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 10,764 | .96% | $ 1 |
7. 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, which amounted to $9 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
8. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Dividend Growth's operating expenses. During the period, this reimbursement reduced the class' expenses by $3.
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 $62 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $33. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
|
|
Dividend Growth | $ 35 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Other - continued
process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 131,615 | $ 220,835 |
Class K | 1,254 | - |
Total | $ 132,869 | $ 220,835 |
From net realized gain |
|
|
Dividend Growth | $ 361,271 | $ 1,096,481 |
Class K | 37 | - |
Total | $ 361,308 | $ 1,096,481 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2009 | Year ended | Six months ended January 31, 2009 | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 35,534 | 49,077 | $ 614,921 | $ 1,434,899 |
Conversion to Class K | (8,685) | - | $ (163,400) | $ - |
Reinvestment of distributions | 21,265 | 41,883 | 478,641 | 1,277,084 |
Shares redeemed | (84,044) | (213,761) | (1,637,030) | (6,144,311) |
Net increase (decrease) | (35,930) | (122,801) | $ (706,868) | $ (3,432,328) |
Class K |
|
|
|
|
Shares sold | 776 | 4 | $ 12,985 | $ 100 |
Conversion from Dividend Growth | 8,685 | - | $ 163,400 | $ - |
Reinvestment of distributions | 86 | - | 1,291 | - |
Shares redeemed | (778) | - | (12,476) | - |
Net increase (decrease) | 8,769 | 4 | $ 165,200 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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44 Mall Road
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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501 Route 73 South
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150 Essex Street
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35 Morris Street
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396 Route 17, North
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3518 Route 1 North
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530 Broad Street
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Semiannual Report
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Semiannual Report
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DGF-K-USAN-0309 1.863067.100
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.fidelity.advisor.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| AnnualizedExpense Ratio | Beginning | Ending | Expenses Paid |
Growth and Income | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 538.00 | $ 2.91 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.42 | $ 3.82 |
Class K | .54% |
|
|
|
Actual |
| $ 1,000.00 | $ 538.40 | $ 2.09 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.48 | $ 2.75 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 3.0 | 0.0 |
JPMorgan Chase & Co. | 2.8 | 1.0 |
Wal-Mart Stores, Inc. | 2.4 | 0.0 |
Hewlett-Packard Co. | 2.4 | 2.6 |
Wells Fargo & Co. | 2.1 | 0.7 |
Google, Inc. Class A (sub. vtg.) | 2.0 | 2.3 |
Apple, Inc. | 1.9 | 0.0 |
ACE Ltd. | 1.9 | 1.1 |
Cognizant Technology Solutions Corp. Class A | 1.7 | 1.6 |
Corning, Inc. | 1.5 | 1.3 |
| 21.7 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 22.6 | 17.7 |
Health Care | 18.4 | 11.9 |
Financials | 17.4 | 29.7 |
Consumer Discretionary | 9.2 | 10.6 |
Energy | 8.9 | 8.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 96.3% |
| ![]() | Stocks 99.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.9% |
| ** Foreign investments | 23.0% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 8.9% | |||
Auto Components - 0.2% | |||
Johnson Controls, Inc. | 250,000 | $ 3,128 | |
The Goodyear Tire & Rubber Co. (a) | 1,000,000 | 6,170 | |
| 9,298 | ||
Automobiles - 0.3% | |||
Ford Motor Co. (a)(d) | 3,000,000 | 5,610 | |
Toyota Motor Corp. sponsored ADR | 150,000 | 9,527 | |
| 15,137 | ||
Distributors - 0.5% | |||
Li & Fung Ltd. | 14,000,000 | 27,850 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Burger King Holdings, Inc. | 1,100,000 | 24,475 | |
Carnival Corp. unit | 450,000 | 8,186 | |
Darden Restaurants, Inc. | 450,000 | 11,799 | |
Las Vegas Sands Corp. warrants 11/16/13 (a) | 400,000 | 17,280 | |
| 61,740 | ||
Household Durables - 3.1% | |||
Centex Corp. | 3,310,124 | 28,169 | |
KB Home (d) | 3,800,000 | 40,546 | |
Ryland Group, Inc. (d)(e) | 2,500,000 | 39,000 | |
Toll Brothers, Inc. (a) | 3,542,792 | 60,298 | |
Whirlpool Corp. | 150,000 | 5,015 | |
| 173,028 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. | 250,000 | 14,705 | |
Media - 1.2% | |||
Comcast Corp. Class A | 1,900,000 | 27,835 | |
Focus Media Holding Ltd. ADR (a)(d) | 400,000 | 2,952 | |
Lamar Advertising Co. Class A (a) | 250,000 | 2,253 | |
The DIRECTV Group, Inc. (a) | 700,000 | 15,330 | |
Time Warner, Inc. | 2,000,000 | 18,660 | |
| 67,030 | ||
Specialty Retail - 1.9% | |||
Best Buy Co., Inc. | 530,000 | 14,851 | |
Sherwin-Williams Co. | 235,000 | 11,221 | |
Staples, Inc. | 4,248,700 | 67,724 | |
TJX Companies, Inc. | 700,000 | 13,594 | |
| 107,390 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Coach, Inc. (a) | 450,000 | $ 6,570 | |
Hanesbrands, Inc. (a) | 184,410 | 1,658 | |
Ports Design Ltd. | 9,698,000 | 9,808 | |
| 18,036 | ||
TOTAL CONSUMER DISCRETIONARY | 494,214 | ||
CONSUMER STAPLES - 6.6% | |||
Beverages - 0.3% | |||
Molson Coors Brewing Co. Class B | 350,000 | 14,095 | |
Food & Staples Retailing - 3.3% | |||
CVS Caremark Corp. | 1,817,900 | 48,865 | |
Wal-Mart Stores, Inc. | 2,900,000 | 136,648 | |
| 185,513 | ||
Food Products - 1.1% | |||
Kraft Foods, Inc. Class A | 650,000 | 18,233 | |
Nestle SA (Reg.) | 1,200,000 | 41,569 | |
| 59,802 | ||
Household Products - 1.4% | |||
Colgate-Palmolive Co. | 400,000 | 26,016 | |
Procter & Gamble Co. | 900,000 | 49,050 | |
| 75,066 | ||
Tobacco - 0.5% | |||
Philip Morris International, Inc. | 800,000 | 29,720 | |
TOTAL CONSUMER STAPLES | 364,196 | ||
ENERGY - 8.9% | |||
Energy Equipment & Services - 1.7% | |||
BJ Services Co. | 1,100,000 | 12,100 | |
Cameron International Corp. (a) | 1,100,000 | 25,476 | |
Nabors Industries Ltd. (a) | 1,250,000 | 13,688 | |
Schlumberger Ltd. (NY Shares) | 760,000 | 31,016 | |
Smith International, Inc. | 550,000 | 12,485 | |
| 94,765 | ||
Oil, Gas & Consumable Fuels - 7.2% | |||
Apache Corp. | 450,000 | 33,750 | |
Chesapeake Energy Corp. | 1,575,000 | 24,901 | |
EOG Resources, Inc. | 655,000 | 44,389 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Exxon Mobil Corp. | 2,200,000 | $ 168,236 | |
Hess Corp. | 635,000 | 35,312 | |
Plains Exploration & Production Co. (a) | 525,000 | 11,088 | |
Range Resources Corp. | 550,000 | 19,712 | |
Southwestern Energy Co. (a) | 700,000 | 22,155 | |
Ultra Petroleum Corp. (a) | 700,000 | 25,081 | |
Williams Companies, Inc. | 950,000 | 13,443 | |
| 398,067 | ||
TOTAL ENERGY | 492,832 | ||
FINANCIALS - 17.4% | |||
Capital Markets - 3.3% | |||
AP Alternative Assets, L.P. Restricted Depositary Units (a)(f) | 4,454,200 | 10,245 | |
Bank of New York Mellon Corp. | 500,000 | 12,870 | |
Charles Schwab Corp. | 1,600,000 | 21,744 | |
Goldman Sachs Group, Inc. | 200,000 | 16,146 | |
Morgan Stanley | 3,100,000 | 62,713 | |
State Street Corp. | 2,440,000 | 56,779 | |
| 180,497 | ||
Commercial Banks - 2.2% | |||
U.S. Bancorp, Delaware | 500,000 | 7,420 | |
Wells Fargo & Co. | 6,094,600 | 115,188 | |
| 122,608 | ||
Consumer Finance - 0.2% | |||
American Express Co. | 450,000 | 7,529 | |
Capital One Financial Corp. (d) | 400,000 | 6,336 | |
| 13,865 | ||
Diversified Financial Services - 3.8% | |||
Bank of America Corp. | 6,995,600 | 46,031 | |
Citigroup, Inc. | 2,100,000 | 7,455 | |
JPMorgan Chase & Co. | 6,100,000 | 155,611 | |
| 209,097 | ||
Insurance - 7.5% | |||
ACE Ltd. | 2,425,000 | 105,876 | |
AFLAC, Inc. | 225,000 | 5,222 | |
AMBAC Financial Group, Inc. | 3,000,000 | 3,420 | |
Arch Capital Group Ltd. (a) | 310,000 | 18,647 | |
Assured Guaranty Ltd. | 3,250,000 | 24,798 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Insurance - continued | |||
Everest Re Group Ltd. | 1,000,000 | $ 63,000 | |
Hartford Financial Services Group, Inc. | 1,200,000 | 15,792 | |
MBIA, Inc. (d) | 925,000 | 3,571 | |
MetLife, Inc. | 1,550,000 | 44,532 | |
PartnerRe Ltd. | 600,000 | 39,318 | |
Prudential Financial, Inc. | 650,000 | 16,738 | |
RenaissanceRe Holdings Ltd. | 1,618,000 | 72,308 | |
W.R. Berkley Corp. | 174,200 | 4,613 | |
| 417,835 | ||
Real Estate Management & Development - 0.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 4,600,000 | 16,560 | |
Thrifts & Mortgage Finance - 0.1% | |||
Radian Group, Inc. | 1,950,000 | 6,279 | |
TOTAL FINANCIALS | 966,741 | ||
HEALTH CARE - 18.4% | |||
Biotechnology - 5.6% | |||
Amgen, Inc. (a) | 800,000 | 43,880 | |
Amylin Pharmaceuticals, Inc. (a) | 2,100,000 | 24,276 | |
Biogen Idec, Inc. (a) | 297,800 | 14,488 | |
Celgene Corp. (a) | 600,000 | 31,770 | |
Cephalon, Inc. (a) | 250,000 | 19,295 | |
Genentech, Inc. (a) | 640,000 | 51,994 | |
Genzyme Corp. (a) | 320,000 | 22,054 | |
Gilead Sciences, Inc. (a) | 890,000 | 45,185 | |
MannKind Corp. (a)(d) | 2,934,088 | 10,416 | |
Myriad Genetics, Inc. (a) | 240,000 | 17,897 | |
OSI Pharmaceuticals, Inc. (a) | 280,000 | 9,968 | |
Vertex Pharmaceuticals, Inc. (a) | 585,000 | 19,334 | |
| 310,557 | ||
Health Care Equipment & Supplies - 2.5% | |||
Baxter International, Inc. | 1,000,000 | 58,650 | |
C.R. Bard, Inc. | 175,000 | 14,975 | |
Covidien Ltd. | 1,000,000 | 38,340 | |
St. Jude Medical, Inc. (a) | 575,000 | 20,913 | |
Wright Medical Group, Inc. (a) | 205,000 | 4,252 | |
| 137,130 | ||
Health Care Providers & Services - 3.6% | |||
Henry Schein, Inc. (a) | 950,000 | 35,559 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Medco Health Solutions, Inc. (a) | 1,633,487 | $ 73,393 | |
UnitedHealth Group, Inc. | 1,850,000 | 52,411 | |
Universal Health Services, Inc. Class B | 370,000 | 14,005 | |
WellPoint, Inc. (a) | 550,000 | 22,798 | |
| 198,166 | ||
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a)(d) | 700,000 | 19,152 | |
Pharmaceuticals - 6.4% | |||
Abbott Laboratories | 1,000,000 | 55,440 | |
Allergan, Inc. | 250,000 | 9,530 | |
Bristol-Myers Squibb Co. | 980,000 | 20,982 | |
Elan Corp. PLC sponsored ADR (a) | 1,400,000 | 10,122 | |
Johnson & Johnson | 1,100,000 | 63,459 | |
Merck & Co., Inc. | 1,400,000 | 39,970 | |
Pfizer, Inc. | 5,398,600 | 78,712 | |
Schering-Plough Corp. | 1,300,000 | 22,828 | |
Wyeth | 1,350,000 | 58,010 | |
| 359,053 | ||
TOTAL HEALTH CARE | 1,024,058 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 2.2% | |||
Honeywell International, Inc. | 1,650,000 | 54,137 | |
Lockheed Martin Corp. | 250,000 | 20,510 | |
Precision Castparts Corp. | 150,000 | 9,743 | |
United Technologies Corp. | 750,000 | 35,993 | |
| 120,383 | ||
Air Freight & Logistics - 0.6% | |||
C.H. Robinson Worldwide, Inc. | 260,000 | 11,955 | |
FedEx Corp. | 450,000 | 22,923 | |
| 34,878 | ||
Airlines - 0.4% | |||
UAL Corp. | 2,200,000 | 20,768 | |
Building Products - 0.3% | |||
Masco Corp. | 2,000,000 | 15,640 | |
Electrical Equipment - 1.8% | |||
Evergreen Solar, Inc. (a)(d)(e) | 10,000,000 | 22,100 | |
First Solar, Inc. (a) | 175,000 | 24,990 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Q-Cells SE (a)(d) | 923,300 | $ 22,696 | |
Renewable Energy Corp. AS (a)(d) | 2,000,000 | 20,178 | |
Sunpower Corp. Class B (a) | 125,000 | 3,303 | |
Vestas Wind Systems AS (a) | 125,000 | 6,106 | |
| 99,373 | ||
Industrial Conglomerates - 0.2% | |||
McDermott International, Inc. (a) | 1,000,000 | 10,370 | |
Machinery - 1.2% | |||
Danaher Corp. | 250,000 | 13,983 | |
Eaton Corp. | 700,000 | 30,814 | |
Ingersoll-Rand Co. Ltd. Class A | 400,000 | 6,484 | |
Navistar International Corp. (a) | 525,000 | 15,944 | |
| 67,225 | ||
Professional Services - 0.5% | |||
Robert Half International, Inc. (d) | 1,850,000 | 31,358 | |
Road & Rail - 0.6% | |||
Landstar System, Inc. | 250,000 | 8,968 | |
Union Pacific Corp. | 520,000 | 22,771 | |
| 31,739 | ||
TOTAL INDUSTRIALS | 431,734 | ||
INFORMATION TECHNOLOGY - 22.6% | |||
Communications Equipment - 3.8% | |||
Cisco Systems, Inc. (a) | 4,850,000 | 72,605 | |
Corning, Inc. | 8,200,000 | 82,902 | |
Juniper Networks, Inc. (a) | 1,043,000 | 14,769 | |
Motorola, Inc. | 2,100,000 | 9,303 | |
QUALCOMM, Inc. | 500,000 | 17,275 | |
Research In Motion Ltd. (a) | 240,000 | 13,296 | |
| 210,150 | ||
Computers & Peripherals - 5.1% | |||
Apple, Inc. (a) | 1,175,000 | 105,903 | |
Hewlett-Packard Co. | 3,750,000 | 130,313 | |
International Business Machines Corp. | 500,000 | 45,825 | |
| 282,041 | ||
Electronic Equipment & Components - 0.8% | |||
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 25,300,000 | 44,338 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.3% | |||
eBay, Inc. (a) | 425,000 | $ 5,109 | |
Google, Inc. Class A (sub. vtg.) (a) | 320,000 | 108,330 | |
Move, Inc. (a) | 1,046,000 | 1,768 | |
Yahoo!, Inc. (a) | 1,090,000 | 12,786 | |
| 127,993 | ||
IT Services - 2.5% | |||
Cognizant Technology Solutions Corp. Class A (a) | 5,200,000 | 97,396 | |
Visa, Inc. | 870,000 | 42,935 | |
| 140,331 | ||
Semiconductors & Semiconductor Equipment - 5.4% | |||
Applied Materials, Inc. | 7,820,300 | 73,276 | |
ARM Holdings PLC | 15,000,000 | 19,951 | |
ASML Holding NV (NY Shares) | 3,800,000 | 62,852 | |
Intel Corp. | 1,500,000 | 19,350 | |
KLA-Tencor Corp. | 500,000 | 10,020 | |
MediaTek, Inc. | 2,040,000 | 14,616 | |
MEMC Electronic Materials, Inc. (a) | 2,900,000 | 39,440 | |
Micron Technology, Inc. (a) | 1,290,000 | 4,799 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 45,000,000 | 55,018 | |
| 299,322 | ||
Software - 2.7% | |||
Adobe Systems, Inc. (a) | 200,000 | 3,862 | |
Autonomy Corp. PLC (a) | 1,300,000 | 20,617 | |
Microsoft Corp. | 3,000,000 | 51,300 | |
Oracle Corp. (a) | 3,825,000 | 64,375 | |
Quest Software, Inc. (a) | 600,000 | 7,482 | |
| 147,636 | ||
TOTAL INFORMATION TECHNOLOGY | 1,251,811 | ||
MATERIALS - 2.2% | |||
Chemicals - 1.4% | |||
Airgas, Inc. | 260,000 | 9,181 | |
E.I. du Pont de Nemours & Co. | 700,000 | 16,072 | |
Monsanto Co. | 700,000 | 53,242 | |
| 78,495 | ||
Metals & Mining - 0.8% | |||
AMG Advanced Metallurgical Group NV (a)(d) | 202,094 | 1,705 | |
Barrick Gold Corp. | 650,000 | 24,465 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Nucor Corp. | 295,000 | $ 12,033 | |
Timminco Ltd. (a)(d) | 2,243,200 | 6,332 | |
| 44,535 | ||
TOTAL MATERIALS | 123,030 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.7% | |||
Verizon Communications, Inc. | 1,250,000 | 37,338 | |
Wireless Telecommunication Services - 0.3% | |||
American Tower Corp. Class A (a) | 600,000 | 18,204 | |
TOTAL TELECOMMUNICATION SERVICES | 55,542 | ||
UTILITIES - 2.2% | |||
Electric Utilities - 2.2% | |||
Entergy Corp. | 395,100 | 30,170 | |
Exelon Corp. | 1,450,000 | 78,619 | |
FirstEnergy Corp. | 300,000 | 14,997 | |
| 123,786 | ||
TOTAL COMMON STOCKS (Cost $6,969,006) | 5,327,944 | ||
Nonconvertible Preferred Stocks - 0.3% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.3% | |||
Hotels, Restaurants & Leisure - 0.3% | |||
Las Vegas Sands Corp. Series A 10.00% | 400,000 | 16,920 | |
Money Market Funds - 5.8% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 209,640,919 | $ 209,641 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 111,839,934 | 111,840 | |
TOTAL MONEY MARKET FUNDS (Cost $321,481) | 321,481 | ||
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $7,310,693) | 5,666,345 | ||
NET OTHER ASSETS - (2.1)% | (116,094) | ||
NET ASSETS - 100% | $ 5,550,251 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $10,245,000 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned (Amount in thousands) |
Fidelity Cash Central Fund | $ 201 |
Fidelity Securities Lending Cash Central Fund | 3,687 |
Total | $ 3,888 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,end ofperiod |
AMBAC Financial Group, Inc. | $ 52,920 | $ 8,577 | $ 45,737 | $ 360 | $ - |
Assured Guaranty Ltd. | 68,760 | 5,545 | 27,748 | 558 | - |
Evergreen Solar, Inc. | 84,060 | 3,942 | - | - | 22,100 |
Ryland Group, Inc. | 51,475 | - | - | 375 | 39,000 |
Total | $ 257,215 | $ 18,064 | $ 73,485 | $ 1,293 | $ 61,100 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 5,666,345 | $ 5,480,515 | $ 151,630 | $ 34,200 |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (5,800) |
Cost of Purchases | 40,000 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 34,200 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.1% |
Bermuda | 4.8% |
Switzerland | 2.7% |
Taiwan | 2.1% |
Canada | 1.3% |
Netherlands | 1.1% |
United Kingdom | 1.0% |
Others (individually less than 1%) | 2.9% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $69,150,000 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $105,062) - See accompanying schedule: Unaffiliated issuers (cost $6,795,977) | $ 5,283,764 |
|
Fidelity Central Funds (cost $321,481) | 321,481 |
|
Other affiliated issuers (cost $193,235) | 61,100 |
|
Total Investments (cost $7,310,693) |
| $ 5,666,345 |
Receivable for investments sold | 892,041 | |
Receivable for fund shares sold | 5,032 | |
Dividends receivable | 6,114 | |
Distributions receivable from Fidelity Central Funds | 404 | |
Prepaid expenses | 86 | |
Other receivables | 3,603 | |
Total assets | 6,573,625 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 900,049 | |
Payable for fund shares redeemed | 6,914 | |
Accrued management fee | 2,346 | |
Other affiliated payables | 1,661 | |
Other payables and accrued expenses | 564 | |
Collateral on securities loaned, at value | 111,840 | |
Total liabilities | 1,023,374 | |
|
|
|
Net Assets | $ 5,550,251 | |
Net Assets consist of: |
| |
Paid in capital | $ 13,143,368 | |
Distributions in excess of net investment income | (369) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,948,439) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,644,309) | |
Net Assets | $ 5,550,251 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Growth and Income: | $ 11.66 | |
|
|
|
Class K: | $ 11.65 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $1,293 earned from other affiliated issuers) |
| $ 76,770 |
Interest |
| 7 |
Income from Fidelity Central Funds |
| 3,888 |
Total income |
| 80,665 |
|
|
|
Expenses | ||
Management fee | $ 19,569 | |
Transfer agent fees | 10,873 | |
Accounting and security lending fees | 675 | |
Custodian fees and expenses | 278 | |
Independent trustees' compensation | 26 | |
Depreciation in deferred trustee compensation account | (7) | |
Registration fees | 33 | |
Audit | 67 | |
Legal | 56 | |
Interest | 62 | |
Miscellaneous | 87 | |
Total expenses before reductions | 31,719 | |
Expense reductions | (151) | 31,568 |
Net investment income (loss) | 49,097 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (5,412,000) | |
Other affiliated issuers | (358,212) |
|
Foreign currency transactions | (660) | |
Total net realized gain (loss) |
| (5,770,872) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 337,210 | |
Assets and liabilities in foreign currencies | 111 | |
Total change in net unrealized appreciation (depreciation) |
| 337,321 |
Net gain (loss) | (5,433,551) | |
Net increase (decrease) in net assets resulting from operations | $ (5,384,454) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | Year endedJuly 31,2008 |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 49,097 | $ 229,303 |
Net realized gain (loss) | (5,770,872) | 734,862 |
Change in net unrealized appreciation (depreciation) | 337,321 | (4,659,604) |
Net increase (decrease) in net assets resulting from operations | (5,384,454) | (3,695,439) |
Distributions to shareholders from net investment income | (66,781) | (214,589) |
Distributions to shareholders from net realized gain | (16,566) | (2,632,786) |
Total distributions | (83,347) | (2,847,375) |
Share transactions - net increase (decrease) | (1,533,732) | (3,598,621) |
Total increase (decrease) in net assets | (7,001,533) | (10,141,435) |
Net Assets | ||
Beginning of period | 12,551,784 | 22,693,219 |
End of period (including distributions in excess of net investment income of $369 and undistributed net investment income of $17,315, respectively) | $ 5,550,251 | $ 12,551,784 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth and Income
| Six months endedJanuary 31, 2009 | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 | $ 32.84 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .09 | .35 | .27 | .34 | .60 G | .40 |
Net realized and unrealized gain (loss) | (10.15) | (6.25) | 3.84 | .18 | 3.31 | 2.63 |
Total from investment operations | (10.06) | (5.90) | 4.11 | .52 | 3.91 | 3.03 |
Distributions from net investment income | (.13) | (.33) | (.27) | (.38) | (.61) | (.41) |
Distributions from net realized gain | (.03) | (3.81) | (6.08) | (4.40) | (.34) | - |
Total distributions | (.16) | (4.14) | (6.35) | (4.78) | (.95) | (.41) |
Net asset value, end of period | $ 11.66 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 |
Total Return B, C | (46.20)% | (20.91)% | 14.28% | 1.22% | 11.15% | 9.24% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .75% A | .68% | .68% | .69% | .69% | .70% |
Expenses net of fee waivers, if any | .75% A | .68% | .68% | .69% | .69% | .70% |
Expenses net of all reductions | .75% A | .67% | .67% | .65% | .68% | .69% |
Net investment income (loss) | 1.16% A | 1.29% | .84% | .94% | 1.63% G | 1.13% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,276 | $ 12,552 | $ 22,693 | $ 28,861 | $ 31,789 | $ 29,776 |
Portfolio turnover rate F | 123% A | 52% | 52% | 120% | 31% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.13 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.27%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2009 | Year ended July 31, |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .09 | .09 |
Net realized and unrealized gain (loss) | (10.14) | (3.45) |
Total from investment operations | (10.05) | (3.36) |
Distributions from net investment income | (.15) | (.10) |
Distributions from net realized gain | (.03) | - |
Total distributions | (.18) | (.10) |
Net asset value, end of period | $ 11.65 | $ 21.88 |
Total Return B, C | (46.16)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .54% A | .55% A |
Expenses net of fee waivers, if any | .54% A | .55% A |
Expenses net of all reductions | .54% A | .55% A |
Net investment income (loss) | 1.37% A | 1.73% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 274,264 | $ 87 |
Portfolio turnover rate F | 123% A | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth & Income and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Growth & Income and Class K to eligible shareholders of Growth & Income. Each class has exclusive voting rights with respect to matters that affect that class. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 186,375,527 |
Unrealized depreciation | (1,878,596,548) |
Net unrealized appreciation (depreciation) | $ (1,692,221,021) |
Cost for federal income tax purposes | $ 7,358,566,355 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $5,370,025,064 and $7,076,895,228, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Growth and Income | $ 10,839,018 | .26 |
Class K | 34,358 | .05 |
| $ 10,873,376 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $205,010 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 20,650,208 | 1.87% | $ 56,920 |
7. 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, which amounted to $11,210 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $3,686,505.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $22,257,600. The weighted average interest rate was 1.54%. The interest expense amounted to $4,752 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Growth & Income's operating expenses. During the period, this reimbursement reduced the class' expenses by $2,965.
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 $104,750 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4,894. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Growth and Income | $ 38,678 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
12. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth and Income | $ 65,599,706 | $ 214,588,903 |
Class K | 1,181,359 | 406 |
Total | $ 66,781,065 | $ 214,589,309 |
From net realized gain |
|
|
Growth and Income | $ 16,536,474 | $ 2,632,785,503 |
Class K | 29,248 | - |
Total | $ 16,565,722 | $ 2,632,785,503 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Growth and Income |
|
|
| |
Shares sold | 19,263,530 | 47,943,646 | $ 301,044,472 | $ 1,282,795,975 |
Conversion to Class K | (22,848,511) | - | (345,465,740) | - |
Reinvestment of distributions | 4,852,295 | 99,265,243 | 79,630,881 | 2,778,444,196 |
Shares redeemed | (122,398,855) | (284,542,625) | (1,924,223,572) | (7,659,963,140) |
Net increase (decrease) | (121,131,541) | (137,333,736) | $ (1,889,013,959) | $ (3,598,722,969) |
Class K |
|
|
|
|
Shares sold | 1,759,345 | 3,946 | $ 24,983,952 | $ 100,000 |
Conversion from Growth and Income | 22,856,711 | - | 345,465,740 | - |
Reinvestment of distributions | 80,703 | 20 | 1,210,607 | 406 |
Shares redeemed | (1,166,084) | - | (16,375,436) | - |
Net increase (decrease) | 23,530,675 | 3,966 | $ 355,284,863 | $ 100,406 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
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By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
Investment Adviser
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Investment Sub-Advisers
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(U.K.) Inc.
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GAI-USAN-0309 1.789285.106
Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.fidelity.advisor.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| AnnualizedExpense Ratio | Beginning | Ending | Expenses Paid |
Growth and Income | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 538.00 | $ 2.91 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.42 | $ 3.82 |
Class K | .54% |
|
|
|
Actual |
| $ 1,000.00 | $ 538.40 | $ 2.09 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.48 | $ 2.75 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 3.0 | 0.0 |
JPMorgan Chase & Co. | 2.8 | 1.0 |
Wal-Mart Stores, Inc. | 2.4 | 0.0 |
Hewlett-Packard Co. | 2.4 | 2.6 |
Wells Fargo & Co. | 2.1 | 0.7 |
Google, Inc. Class A (sub. vtg.) | 2.0 | 2.3 |
Apple, Inc. | 1.9 | 0.0 |
ACE Ltd. | 1.9 | 1.1 |
Cognizant Technology Solutions Corp. Class A | 1.7 | 1.6 |
Corning, Inc. | 1.5 | 1.3 |
| 21.7 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 22.6 | 17.7 |
Health Care | 18.4 | 11.9 |
Financials | 17.4 | 29.7 |
Consumer Discretionary | 9.2 | 10.6 |
Energy | 8.9 | 8.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 96.3% |
| ![]() | Stocks 99.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 15.9% |
| ** Foreign investments | 23.0% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 8.9% | |||
Auto Components - 0.2% | |||
Johnson Controls, Inc. | 250,000 | $ 3,128 | |
The Goodyear Tire & Rubber Co. (a) | 1,000,000 | 6,170 | |
| 9,298 | ||
Automobiles - 0.3% | |||
Ford Motor Co. (a)(d) | 3,000,000 | 5,610 | |
Toyota Motor Corp. sponsored ADR | 150,000 | 9,527 | |
| 15,137 | ||
Distributors - 0.5% | |||
Li & Fung Ltd. | 14,000,000 | 27,850 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Burger King Holdings, Inc. | 1,100,000 | 24,475 | |
Carnival Corp. unit | 450,000 | 8,186 | |
Darden Restaurants, Inc. | 450,000 | 11,799 | |
Las Vegas Sands Corp. warrants 11/16/13 (a) | 400,000 | 17,280 | |
| 61,740 | ||
Household Durables - 3.1% | |||
Centex Corp. | 3,310,124 | 28,169 | |
KB Home (d) | 3,800,000 | 40,546 | |
Ryland Group, Inc. (d)(e) | 2,500,000 | 39,000 | |
Toll Brothers, Inc. (a) | 3,542,792 | 60,298 | |
Whirlpool Corp. | 150,000 | 5,015 | |
| 173,028 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. | 250,000 | 14,705 | |
Media - 1.2% | |||
Comcast Corp. Class A | 1,900,000 | 27,835 | |
Focus Media Holding Ltd. ADR (a)(d) | 400,000 | 2,952 | |
Lamar Advertising Co. Class A (a) | 250,000 | 2,253 | |
The DIRECTV Group, Inc. (a) | 700,000 | 15,330 | |
Time Warner, Inc. | 2,000,000 | 18,660 | |
| 67,030 | ||
Specialty Retail - 1.9% | |||
Best Buy Co., Inc. | 530,000 | 14,851 | |
Sherwin-Williams Co. | 235,000 | 11,221 | |
Staples, Inc. | 4,248,700 | 67,724 | |
TJX Companies, Inc. | 700,000 | 13,594 | |
| 107,390 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Coach, Inc. (a) | 450,000 | $ 6,570 | |
Hanesbrands, Inc. (a) | 184,410 | 1,658 | |
Ports Design Ltd. | 9,698,000 | 9,808 | |
| 18,036 | ||
TOTAL CONSUMER DISCRETIONARY | 494,214 | ||
CONSUMER STAPLES - 6.6% | |||
Beverages - 0.3% | |||
Molson Coors Brewing Co. Class B | 350,000 | 14,095 | |
Food & Staples Retailing - 3.3% | |||
CVS Caremark Corp. | 1,817,900 | 48,865 | |
Wal-Mart Stores, Inc. | 2,900,000 | 136,648 | |
| 185,513 | ||
Food Products - 1.1% | |||
Kraft Foods, Inc. Class A | 650,000 | 18,233 | |
Nestle SA (Reg.) | 1,200,000 | 41,569 | |
| 59,802 | ||
Household Products - 1.4% | |||
Colgate-Palmolive Co. | 400,000 | 26,016 | |
Procter & Gamble Co. | 900,000 | 49,050 | |
| 75,066 | ||
Tobacco - 0.5% | |||
Philip Morris International, Inc. | 800,000 | 29,720 | |
TOTAL CONSUMER STAPLES | 364,196 | ||
ENERGY - 8.9% | |||
Energy Equipment & Services - 1.7% | |||
BJ Services Co. | 1,100,000 | 12,100 | |
Cameron International Corp. (a) | 1,100,000 | 25,476 | |
Nabors Industries Ltd. (a) | 1,250,000 | 13,688 | |
Schlumberger Ltd. (NY Shares) | 760,000 | 31,016 | |
Smith International, Inc. | 550,000 | 12,485 | |
| 94,765 | ||
Oil, Gas & Consumable Fuels - 7.2% | |||
Apache Corp. | 450,000 | 33,750 | |
Chesapeake Energy Corp. | 1,575,000 | 24,901 | |
EOG Resources, Inc. | 655,000 | 44,389 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Exxon Mobil Corp. | 2,200,000 | $ 168,236 | |
Hess Corp. | 635,000 | 35,312 | |
Plains Exploration & Production Co. (a) | 525,000 | 11,088 | |
Range Resources Corp. | 550,000 | 19,712 | |
Southwestern Energy Co. (a) | 700,000 | 22,155 | |
Ultra Petroleum Corp. (a) | 700,000 | 25,081 | |
Williams Companies, Inc. | 950,000 | 13,443 | |
| 398,067 | ||
TOTAL ENERGY | 492,832 | ||
FINANCIALS - 17.4% | |||
Capital Markets - 3.3% | |||
AP Alternative Assets, L.P. Restricted Depositary Units (a)(f) | 4,454,200 | 10,245 | |
Bank of New York Mellon Corp. | 500,000 | 12,870 | |
Charles Schwab Corp. | 1,600,000 | 21,744 | |
Goldman Sachs Group, Inc. | 200,000 | 16,146 | |
Morgan Stanley | 3,100,000 | 62,713 | |
State Street Corp. | 2,440,000 | 56,779 | |
| 180,497 | ||
Commercial Banks - 2.2% | |||
U.S. Bancorp, Delaware | 500,000 | 7,420 | |
Wells Fargo & Co. | 6,094,600 | 115,188 | |
| 122,608 | ||
Consumer Finance - 0.2% | |||
American Express Co. | 450,000 | 7,529 | |
Capital One Financial Corp. (d) | 400,000 | 6,336 | |
| 13,865 | ||
Diversified Financial Services - 3.8% | |||
Bank of America Corp. | 6,995,600 | 46,031 | |
Citigroup, Inc. | 2,100,000 | 7,455 | |
JPMorgan Chase & Co. | 6,100,000 | 155,611 | |
| 209,097 | ||
Insurance - 7.5% | |||
ACE Ltd. | 2,425,000 | 105,876 | |
AFLAC, Inc. | 225,000 | 5,222 | |
AMBAC Financial Group, Inc. | 3,000,000 | 3,420 | |
Arch Capital Group Ltd. (a) | 310,000 | 18,647 | |
Assured Guaranty Ltd. | 3,250,000 | 24,798 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Insurance - continued | |||
Everest Re Group Ltd. | 1,000,000 | $ 63,000 | |
Hartford Financial Services Group, Inc. | 1,200,000 | 15,792 | |
MBIA, Inc. (d) | 925,000 | 3,571 | |
MetLife, Inc. | 1,550,000 | 44,532 | |
PartnerRe Ltd. | 600,000 | 39,318 | |
Prudential Financial, Inc. | 650,000 | 16,738 | |
RenaissanceRe Holdings Ltd. | 1,618,000 | 72,308 | |
W.R. Berkley Corp. | 174,200 | 4,613 | |
| 417,835 | ||
Real Estate Management & Development - 0.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 4,600,000 | 16,560 | |
Thrifts & Mortgage Finance - 0.1% | |||
Radian Group, Inc. | 1,950,000 | 6,279 | |
TOTAL FINANCIALS | 966,741 | ||
HEALTH CARE - 18.4% | |||
Biotechnology - 5.6% | |||
Amgen, Inc. (a) | 800,000 | 43,880 | |
Amylin Pharmaceuticals, Inc. (a) | 2,100,000 | 24,276 | |
Biogen Idec, Inc. (a) | 297,800 | 14,488 | |
Celgene Corp. (a) | 600,000 | 31,770 | |
Cephalon, Inc. (a) | 250,000 | 19,295 | |
Genentech, Inc. (a) | 640,000 | 51,994 | |
Genzyme Corp. (a) | 320,000 | 22,054 | |
Gilead Sciences, Inc. (a) | 890,000 | 45,185 | |
MannKind Corp. (a)(d) | 2,934,088 | 10,416 | |
Myriad Genetics, Inc. (a) | 240,000 | 17,897 | |
OSI Pharmaceuticals, Inc. (a) | 280,000 | 9,968 | |
Vertex Pharmaceuticals, Inc. (a) | 585,000 | 19,334 | |
| 310,557 | ||
Health Care Equipment & Supplies - 2.5% | |||
Baxter International, Inc. | 1,000,000 | 58,650 | |
C.R. Bard, Inc. | 175,000 | 14,975 | |
Covidien Ltd. | 1,000,000 | 38,340 | |
St. Jude Medical, Inc. (a) | 575,000 | 20,913 | |
Wright Medical Group, Inc. (a) | 205,000 | 4,252 | |
| 137,130 | ||
Health Care Providers & Services - 3.6% | |||
Henry Schein, Inc. (a) | 950,000 | 35,559 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Medco Health Solutions, Inc. (a) | 1,633,487 | $ 73,393 | |
UnitedHealth Group, Inc. | 1,850,000 | 52,411 | |
Universal Health Services, Inc. Class B | 370,000 | 14,005 | |
WellPoint, Inc. (a) | 550,000 | 22,798 | |
| 198,166 | ||
Life Sciences Tools & Services - 0.3% | |||
Illumina, Inc. (a)(d) | 700,000 | 19,152 | |
Pharmaceuticals - 6.4% | |||
Abbott Laboratories | 1,000,000 | 55,440 | |
Allergan, Inc. | 250,000 | 9,530 | |
Bristol-Myers Squibb Co. | 980,000 | 20,982 | |
Elan Corp. PLC sponsored ADR (a) | 1,400,000 | 10,122 | |
Johnson & Johnson | 1,100,000 | 63,459 | |
Merck & Co., Inc. | 1,400,000 | 39,970 | |
Pfizer, Inc. | 5,398,600 | 78,712 | |
Schering-Plough Corp. | 1,300,000 | 22,828 | |
Wyeth | 1,350,000 | 58,010 | |
| 359,053 | ||
TOTAL HEALTH CARE | 1,024,058 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 2.2% | |||
Honeywell International, Inc. | 1,650,000 | 54,137 | |
Lockheed Martin Corp. | 250,000 | 20,510 | |
Precision Castparts Corp. | 150,000 | 9,743 | |
United Technologies Corp. | 750,000 | 35,993 | |
| 120,383 | ||
Air Freight & Logistics - 0.6% | |||
C.H. Robinson Worldwide, Inc. | 260,000 | 11,955 | |
FedEx Corp. | 450,000 | 22,923 | |
| 34,878 | ||
Airlines - 0.4% | |||
UAL Corp. | 2,200,000 | 20,768 | |
Building Products - 0.3% | |||
Masco Corp. | 2,000,000 | 15,640 | |
Electrical Equipment - 1.8% | |||
Evergreen Solar, Inc. (a)(d)(e) | 10,000,000 | 22,100 | |
First Solar, Inc. (a) | 175,000 | 24,990 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - continued | |||
Q-Cells SE (a)(d) | 923,300 | $ 22,696 | |
Renewable Energy Corp. AS (a)(d) | 2,000,000 | 20,178 | |
Sunpower Corp. Class B (a) | 125,000 | 3,303 | |
Vestas Wind Systems AS (a) | 125,000 | 6,106 | |
| 99,373 | ||
Industrial Conglomerates - 0.2% | |||
McDermott International, Inc. (a) | 1,000,000 | 10,370 | |
Machinery - 1.2% | |||
Danaher Corp. | 250,000 | 13,983 | |
Eaton Corp. | 700,000 | 30,814 | |
Ingersoll-Rand Co. Ltd. Class A | 400,000 | 6,484 | |
Navistar International Corp. (a) | 525,000 | 15,944 | |
| 67,225 | ||
Professional Services - 0.5% | |||
Robert Half International, Inc. (d) | 1,850,000 | 31,358 | |
Road & Rail - 0.6% | |||
Landstar System, Inc. | 250,000 | 8,968 | |
Union Pacific Corp. | 520,000 | 22,771 | |
| 31,739 | ||
TOTAL INDUSTRIALS | 431,734 | ||
INFORMATION TECHNOLOGY - 22.6% | |||
Communications Equipment - 3.8% | |||
Cisco Systems, Inc. (a) | 4,850,000 | 72,605 | |
Corning, Inc. | 8,200,000 | 82,902 | |
Juniper Networks, Inc. (a) | 1,043,000 | 14,769 | |
Motorola, Inc. | 2,100,000 | 9,303 | |
QUALCOMM, Inc. | 500,000 | 17,275 | |
Research In Motion Ltd. (a) | 240,000 | 13,296 | |
| 210,150 | ||
Computers & Peripherals - 5.1% | |||
Apple, Inc. (a) | 1,175,000 | 105,903 | |
Hewlett-Packard Co. | 3,750,000 | 130,313 | |
International Business Machines Corp. | 500,000 | 45,825 | |
| 282,041 | ||
Electronic Equipment & Components - 0.8% | |||
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 25,300,000 | 44,338 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.3% | |||
eBay, Inc. (a) | 425,000 | $ 5,109 | |
Google, Inc. Class A (sub. vtg.) (a) | 320,000 | 108,330 | |
Move, Inc. (a) | 1,046,000 | 1,768 | |
Yahoo!, Inc. (a) | 1,090,000 | 12,786 | |
| 127,993 | ||
IT Services - 2.5% | |||
Cognizant Technology Solutions Corp. Class A (a) | 5,200,000 | 97,396 | |
Visa, Inc. | 870,000 | 42,935 | |
| 140,331 | ||
Semiconductors & Semiconductor Equipment - 5.4% | |||
Applied Materials, Inc. | 7,820,300 | 73,276 | |
ARM Holdings PLC | 15,000,000 | 19,951 | |
ASML Holding NV (NY Shares) | 3,800,000 | 62,852 | |
Intel Corp. | 1,500,000 | 19,350 | |
KLA-Tencor Corp. | 500,000 | 10,020 | |
MediaTek, Inc. | 2,040,000 | 14,616 | |
MEMC Electronic Materials, Inc. (a) | 2,900,000 | 39,440 | |
Micron Technology, Inc. (a) | 1,290,000 | 4,799 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 45,000,000 | 55,018 | |
| 299,322 | ||
Software - 2.7% | |||
Adobe Systems, Inc. (a) | 200,000 | 3,862 | |
Autonomy Corp. PLC (a) | 1,300,000 | 20,617 | |
Microsoft Corp. | 3,000,000 | 51,300 | |
Oracle Corp. (a) | 3,825,000 | 64,375 | |
Quest Software, Inc. (a) | 600,000 | 7,482 | |
| 147,636 | ||
TOTAL INFORMATION TECHNOLOGY | 1,251,811 | ||
MATERIALS - 2.2% | |||
Chemicals - 1.4% | |||
Airgas, Inc. | 260,000 | 9,181 | |
E.I. du Pont de Nemours & Co. | 700,000 | 16,072 | |
Monsanto Co. | 700,000 | 53,242 | |
| 78,495 | ||
Metals & Mining - 0.8% | |||
AMG Advanced Metallurgical Group NV (a)(d) | 202,094 | 1,705 | |
Barrick Gold Corp. | 650,000 | 24,465 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Nucor Corp. | 295,000 | $ 12,033 | |
Timminco Ltd. (a)(d) | 2,243,200 | 6,332 | |
| 44,535 | ||
TOTAL MATERIALS | 123,030 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.7% | |||
Verizon Communications, Inc. | 1,250,000 | 37,338 | |
Wireless Telecommunication Services - 0.3% | |||
American Tower Corp. Class A (a) | 600,000 | 18,204 | |
TOTAL TELECOMMUNICATION SERVICES | 55,542 | ||
UTILITIES - 2.2% | |||
Electric Utilities - 2.2% | |||
Entergy Corp. | 395,100 | 30,170 | |
Exelon Corp. | 1,450,000 | 78,619 | |
FirstEnergy Corp. | 300,000 | 14,997 | |
| 123,786 | ||
TOTAL COMMON STOCKS (Cost $6,969,006) | 5,327,944 | ||
Nonconvertible Preferred Stocks - 0.3% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.3% | |||
Hotels, Restaurants & Leisure - 0.3% | |||
Las Vegas Sands Corp. Series A 10.00% | 400,000 | 16,920 | |
Money Market Funds - 5.8% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 209,640,919 | $ 209,641 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 111,839,934 | 111,840 | |
TOTAL MONEY MARKET FUNDS (Cost $321,481) | 321,481 | ||
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $7,310,693) | 5,666,345 | ||
NET OTHER ASSETS - (2.1)% | (116,094) | ||
NET ASSETS - 100% | $ 5,550,251 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $10,245,000 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned (Amount in thousands) |
Fidelity Cash Central Fund | $ 201 |
Fidelity Securities Lending Cash Central Fund | 3,687 |
Total | $ 3,888 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,end ofperiod |
AMBAC Financial Group, Inc. | $ 52,920 | $ 8,577 | $ 45,737 | $ 360 | $ - |
Assured Guaranty Ltd. | 68,760 | 5,545 | 27,748 | 558 | - |
Evergreen Solar, Inc. | 84,060 | 3,942 | - | - | 22,100 |
Ryland Group, Inc. | 51,475 | - | - | 375 | 39,000 |
Total | $ 257,215 | $ 18,064 | $ 73,485 | $ 1,293 | $ 61,100 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 5,666,345 | $ 5,480,515 | $ 151,630 | $ 34,200 |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (5,800) |
Cost of Purchases | 40,000 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 34,200 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.1% |
Bermuda | 4.8% |
Switzerland | 2.7% |
Taiwan | 2.1% |
Canada | 1.3% |
Netherlands | 1.1% |
United Kingdom | 1.0% |
Others (individually less than 1%) | 2.9% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $69,150,000 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $105,062) - See accompanying schedule: Unaffiliated issuers (cost $6,795,977) | $ 5,283,764 |
|
Fidelity Central Funds (cost $321,481) | 321,481 |
|
Other affiliated issuers (cost $193,235) | 61,100 |
|
Total Investments (cost $7,310,693) |
| $ 5,666,345 |
Receivable for investments sold | 892,041 | |
Receivable for fund shares sold | 5,032 | |
Dividends receivable | 6,114 | |
Distributions receivable from Fidelity Central Funds | 404 | |
Prepaid expenses | 86 | |
Other receivables | 3,603 | |
Total assets | 6,573,625 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 900,049 | |
Payable for fund shares redeemed | 6,914 | |
Accrued management fee | 2,346 | |
Other affiliated payables | 1,661 | |
Other payables and accrued expenses | 564 | |
Collateral on securities loaned, at value | 111,840 | |
Total liabilities | 1,023,374 | |
|
|
|
Net Assets | $ 5,550,251 | |
Net Assets consist of: |
| |
Paid in capital | $ 13,143,368 | |
Distributions in excess of net investment income | (369) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,948,439) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,644,309) | |
Net Assets | $ 5,550,251 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Growth and Income: | $ 11.66 | |
|
|
|
Class K: | $ 11.65 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $1,293 earned from other affiliated issuers) |
| $ 76,770 |
Interest |
| 7 |
Income from Fidelity Central Funds |
| 3,888 |
Total income |
| 80,665 |
|
|
|
Expenses | ||
Management fee | $ 19,569 | |
Transfer agent fees | 10,873 | |
Accounting and security lending fees | 675 | |
Custodian fees and expenses | 278 | |
Independent trustees' compensation | 26 | |
Depreciation in deferred trustee compensation account | (7) | |
Registration fees | 33 | |
Audit | 67 | |
Legal | 56 | |
Interest | 62 | |
Miscellaneous | 87 | |
Total expenses before reductions | 31,719 | |
Expense reductions | (151) | 31,568 |
Net investment income (loss) | 49,097 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (5,412,000) | |
Other affiliated issuers | (358,212) |
|
Foreign currency transactions | (660) | |
Total net realized gain (loss) |
| (5,770,872) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 337,210 | |
Assets and liabilities in foreign currencies | 111 | |
Total change in net unrealized appreciation (depreciation) |
| 337,321 |
Net gain (loss) | (5,433,551) | |
Net increase (decrease) in net assets resulting from operations | $ (5,384,454) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | Year endedJuly 31,2008 |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 49,097 | $ 229,303 |
Net realized gain (loss) | (5,770,872) | 734,862 |
Change in net unrealized appreciation (depreciation) | 337,321 | (4,659,604) |
Net increase (decrease) in net assets resulting from operations | (5,384,454) | (3,695,439) |
Distributions to shareholders from net investment income | (66,781) | (214,589) |
Distributions to shareholders from net realized gain | (16,566) | (2,632,786) |
Total distributions | (83,347) | (2,847,375) |
Share transactions - net increase (decrease) | (1,533,732) | (3,598,621) |
Total increase (decrease) in net assets | (7,001,533) | (10,141,435) |
Net Assets | ||
Beginning of period | 12,551,784 | 22,693,219 |
End of period (including distributions in excess of net investment income of $369 and undistributed net investment income of $17,315, respectively) | $ 5,550,251 | $ 12,551,784 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth and Income
| Six months endedJanuary 31, 2009 | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 | $ 32.84 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .09 | .35 | .27 | .34 | .60 G | .40 |
Net realized and unrealized gain (loss) | (10.15) | (6.25) | 3.84 | .18 | 3.31 | 2.63 |
Total from investment operations | (10.06) | (5.90) | 4.11 | .52 | 3.91 | 3.03 |
Distributions from net investment income | (.13) | (.33) | (.27) | (.38) | (.61) | (.41) |
Distributions from net realized gain | (.03) | (3.81) | (6.08) | (4.40) | (.34) | - |
Total distributions | (.16) | (4.14) | (6.35) | (4.78) | (.95) | (.41) |
Net asset value, end of period | $ 11.66 | $ 21.88 | $ 31.92 | $ 34.16 | $ 38.42 | $ 35.46 |
Total Return B, C | (46.20)% | (20.91)% | 14.28% | 1.22% | 11.15% | 9.24% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .75% A | .68% | .68% | .69% | .69% | .70% |
Expenses net of fee waivers, if any | .75% A | .68% | .68% | .69% | .69% | .70% |
Expenses net of all reductions | .75% A | .67% | .67% | .65% | .68% | .69% |
Net investment income (loss) | 1.16% A | 1.29% | .84% | .94% | 1.63% G | 1.13% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,276 | $ 12,552 | $ 22,693 | $ 28,861 | $ 31,789 | $ 29,776 |
Portfolio turnover rate F | 123% A | 52% | 52% | 120% | 31% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.13 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.27%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2009 | Year ended July 31, |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .09 | .09 |
Net realized and unrealized gain (loss) | (10.14) | (3.45) |
Total from investment operations | (10.05) | (3.36) |
Distributions from net investment income | (.15) | (.10) |
Distributions from net realized gain | (.03) | - |
Total distributions | (.18) | (.10) |
Net asset value, end of period | $ 11.65 | $ 21.88 |
Total Return B, C | (46.16)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .54% A | .55% A |
Expenses net of fee waivers, if any | .54% A | .55% A |
Expenses net of all reductions | .54% A | .55% A |
Net investment income (loss) | 1.37% A | 1.73% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 274,264 | $ 87 |
Portfolio turnover rate F | 123% A | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth & Income and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Growth & Income and Class K to eligible shareholders of Growth & Income. Each class has exclusive voting rights with respect to matters that affect that class. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 186,375,527 |
Unrealized depreciation | (1,878,596,548) |
Net unrealized appreciation (depreciation) | $ (1,692,221,021) |
Cost for federal income tax purposes | $ 7,358,566,355 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $5,370,025,064 and $7,076,895,228, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Growth and Income | $ 10,839,018 | .26 |
Class K | 34,358 | .05 |
| $ 10,873,376 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $205,010 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average Interest Rate | Interest |
Borrower | $ 20,650,208 | 1.87% | $ 56,920 |
7. 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, which amounted to $11,210 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $3,686,505.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $22,257,600. The weighted average interest rate was 1.54%. The interest expense amounted to $4,752 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Growth & Income's operating expenses. During the period, this reimbursement reduced the class' expenses by $2,965.
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 $104,750 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4,894. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Growth and Income | $ 38,678 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
12. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth and Income | $ 65,599,706 | $ 214,588,903 |
Class K | 1,181,359 | 406 |
Total | $ 66,781,065 | $ 214,589,309 |
From net realized gain |
|
|
Growth and Income | $ 16,536,474 | $ 2,632,785,503 |
Class K | 29,248 | - |
Total | $ 16,565,722 | $ 2,632,785,503 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Growth and Income |
|
|
| |
Shares sold | 19,263,530 | 47,943,646 | $ 301,044,472 | $ 1,282,795,975 |
Conversion to Class K | (22,848,511) | - | (345,465,740) | - |
Reinvestment of distributions | 4,852,295 | 99,265,243 | 79,630,881 | 2,778,444,196 |
Shares redeemed | (122,398,855) | (284,542,625) | (1,924,223,572) | (7,659,963,140) |
Net increase (decrease) | (121,131,541) | (137,333,736) | $ (1,889,013,959) | $ (3,598,722,969) |
Class K |
|
|
|
|
Shares sold | 1,759,345 | 3,946 | $ 24,983,952 | $ 100,000 |
Conversion from Growth and Income | 22,856,711 | - | 345,465,740 | - |
Reinvestment of distributions | 80,703 | 20 | 1,210,607 | 406 |
Shares redeemed | (1,166,084) | - | (16,375,436) | - |
Net increase (decrease) | 23,530,675 | 3,966 | $ 355,284,863 | $ 100,406 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
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For mutual fund and brokerage trading.
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To change your PIN.
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By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Semiannual Report
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Semiannual Report
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Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
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Fidelity Investments
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Merrimack, NH 03054-0500
(letter_graphic)
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Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
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GAI-K-USAN-0309 1.863232.100
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2009
(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 last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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 redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Leveraged Company Stock | .89% |
|
|
|
Actual |
| $ 1,000.00 | $ 446.30 | $ 3.24 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Class K | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 446.60 | $ 2.52 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Freeport-McMoRan Copper & Gold, Inc. Class B | 3.9 | 5.2 |
El Paso Corp. | 3.8 | 3.0 |
ON Semiconductor Corp. | 3.3 | 2.7 |
Exterran Holdings, Inc. | 2.9 | 3.0 |
Republic Services, Inc. | 2.9 | 1.1 |
AES Corp. | 2.8 | 1.7 |
Service Corp. International | 2.7 | 2.1 |
DaVita, Inc. | 2.6 | 1.4 |
Peabody Energy Corp. | 2.6 | 3.2 |
Forest Oil Corp. | 2.4 | 3.4 |
| 29.9 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Energy | 28.3 | 42.6 |
Industrials | 16.5 | 11.8 |
Consumer Discretionary | 10.3 | 5.6 |
Materials | 10.1 | 12.1 |
Information Technology | 8.4 | 8.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 89.1% |
| ![]() | Stocks 95.5% |
| ||
![]() | Bonds 5.5% |
| ![]() | Bonds 0.7% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 2.3% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.2% |
| ** Foreign investments | 11.8% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 89.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.0% | |||
Auto Components - 0.2% | |||
The Goodyear Tire & Rubber Co. (a) | 564,063 | $ 3,480 | |
WABCO Holdings, Inc. | 211,533 | 3,162 | |
| 6,642 | ||
Automobiles - 0.2% | |||
Daimler AG | 209,400 | 5,861 | |
Diversified Consumer Services - 3.1% | |||
Brinks Home Security Holdings, Inc. (a) | 244,500 | 5,592 | |
Carriage Services, Inc. Class A (a) | 266,200 | 588 | |
Service Corp. International (f) | 17,505,900 | 79,652 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 5,182 | |
| 91,014 | ||
Hotels, Restaurants & Leisure - 1.6% | |||
Bally Technologies, Inc. (a)(e) | 852,360 | 17,209 | |
Las Vegas Sands Corp. (a)(e) | 2,971,300 | 15,302 | |
Penn National Gaming, Inc. (a) | 537,836 | 10,031 | |
The Steak n Shake Co. (a)(e) | 659,400 | 3,772 | |
| 46,314 | ||
Household Durables - 0.9% | |||
Lennar Corp. Class A | 983,400 | 7,562 | |
Newell Rubbermaid, Inc. | 2,332,300 | 18,845 | |
| 26,407 | ||
Leisure Equipment & Products - 0.2% | |||
Callaway Golf Co. (e) | 870,287 | 6,623 | |
Media - 1.8% | |||
Cinemark Holdings, Inc. | 1,554,497 | 12,296 | |
Comcast Corp. Class A | 2,590,900 | 37,957 | |
Gray Television, Inc. | 1,995,535 | 659 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 904 | |
| 51,816 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Coach, Inc. (a) | 1,652,320 | 24,124 | |
Hanesbrands, Inc. (a) | 562,400 | 5,056 | |
| 29,180 | ||
TOTAL CONSUMER DISCRETIONARY | 263,857 | ||
CONSUMER STAPLES - 3.4% | |||
Food & Staples Retailing - 2.3% | |||
Koninklijke Ahold NV sponsored ADR | 2,484,960 | 29,596 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - continued | |||
Kroger Co. | 339,300 | $ 7,634 | |
Safeway, Inc. | 783,800 | 16,797 | |
SUPERVALU, Inc. | 735,545 | 12,901 | |
| 66,928 | ||
Food Products - 1.0% | |||
Corn Products International, Inc. | 281,534 | 6,518 | |
Darling International, Inc. (a) | 2,498,930 | 11,470 | |
Dean Foods Co. (a) | 569,900 | 11,022 | |
| 29,010 | ||
Personal Products - 0.1% | |||
Revlon, Inc. (a) | 639,576 | 3,780 | |
TOTAL CONSUMER STAPLES | 99,718 | ||
ENERGY - 26.5% | |||
Energy Equipment & Services - 4.9% | |||
Exterran Holdings, Inc. (a)(e)(f) | 3,835,627 | 84,997 | |
Hercules Offshore, Inc. (a) | 1,861,231 | 6,924 | |
Noble Corp. | 524,700 | 14,246 | |
Oil States International, Inc. (a) | 270,700 | 4,957 | |
Parker Drilling Co. (a) | 1,200,000 | 2,544 | |
Petroleum Geo-Services ASA sponsored ADR (a) | 1,408,677 | 4,550 | |
Precision Drilling Trust | 1,283,528 | 6,523 | |
Pride International, Inc. (a) | 346,100 | 5,579 | |
Rowan Companies, Inc. | 321,100 | 4,065 | |
Schoeller-Bleckmann Oilfield Equipment AG | 387,300 | 10,542 | |
| 144,927 | ||
Oil, Gas & Consumable Fuels - 21.6% | |||
Alpha Natural Resources, Inc. (a) | 2,057,201 | 33,574 | |
Arch Coal, Inc. | 688,255 | 10,455 | |
CONSOL Energy, Inc. | 573,200 | 15,625 | |
El Paso Corp. (e) | 13,676,376 | 111,873 | |
Forest Oil Corp. (a)(e) | 4,614,100 | 69,212 | |
Frontier Oil Corp. | 1,972,600 | 28,169 | |
General Maritime Corp. (e) | 2,678,328 | 28,444 | |
Hess Corp. | 358,840 | 19,955 | |
Mariner Energy, Inc. (a) | 2,721,653 | 26,944 | |
Nexen, Inc. | 188,000 | 2,739 | |
Occidental Petroleum Corp. | 211,600 | 11,543 | |
OPTI Canada, Inc. (a) | 1,111,300 | 1,450 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Overseas Shipholding Group, Inc. (f) | 1,730,410 | $ 61,776 | |
Paladin Energy Ltd. (a)(e) | 2,042,400 | 3,881 | |
Peabody Energy Corp. | 2,990,508 | 74,763 | |
Plains Exploration & Production Co. (a) | 360,660 | 7,617 | |
Ship Finance International Ltd.: | |||
(Norway) | 33,099 | 399 | |
(NY Shares) (e) | 1,275,051 | 14,485 | |
Teekay Corp. | 3,343,200 | 58,573 | |
Valero Energy Corp. | 667,900 | 16,110 | |
Western Refining, Inc. | 682,458 | 7,957 | |
Williams Companies, Inc. | 1,784,400 | 25,249 | |
| 630,793 | ||
TOTAL ENERGY | 775,720 | ||
FINANCIALS - 2.6% | |||
Commercial Banks - 2.5% | |||
Huntington Bancshares, Inc. | 221,100 | 637 | |
KeyCorp (e) | 4,848,238 | 35,295 | |
PNC Financial Services Group, Inc. | 486,900 | 15,834 | |
Wells Fargo & Co. | 1,093,316 | 20,664 | |
| 72,430 | ||
Diversified Financial Services - 0.1% | |||
Bank of America Corp. | 410,300 | 2,700 | |
CIT Group, Inc. | 334,900 | 934 | |
| 3,634 | ||
Thrifts & Mortgage Finance - 0.0% | |||
Washington Mutual, Inc. | 5,352,200 | 214 | |
| |||
TOTAL FINANCIALS | 76,278 | ||
HEALTH CARE - 7.4% | |||
Biotechnology - 0.0% | |||
Lexicon Pharmaceuticals, Inc. (a) | 392,187 | 467 | |
Health Care Equipment & Supplies - 2.1% | |||
Baxter International, Inc. | 430,100 | 25,225 | |
Beckman Coulter, Inc. | 304,200 | 15,125 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Hospira, Inc. (a) | 361,900 | $ 9,011 | |
Inverness Medical Innovations, Inc. (a) | 518,708 | 12,693 | |
| 62,054 | ||
Health Care Providers & Services - 5.1% | |||
Community Health Systems, Inc. (a) | 1,574,785 | 29,354 | |
DaVita, Inc. (a) | 1,642,600 | 77,202 | |
Rural/Metro Corp. (a) | 834,200 | 1,368 | |
Sun Healthcare Group, Inc. (a) | 1,205,054 | 13,653 | |
Tenet Healthcare Corp. (a)(f) | 26,164,783 | 27,996 | |
| 149,573 | ||
Health Care Technology - 0.2% | |||
Cerner Corp. (a)(e) | 110,600 | 3,729 | |
TOTAL HEALTH CARE | 215,823 | ||
INDUSTRIALS - 16.0% | |||
Aerospace & Defense - 0.9% | |||
American Science & Engineering, Inc. | 196,070 | 15,293 | |
Teledyne Technologies, Inc. (a) | 368,594 | 10,273 | |
| 25,566 | ||
Air Freight & Logistics - 0.0% | |||
Park-Ohio Holdings Corp. (a) | 78,022 | 287 | |
Airlines - 2.0% | |||
AirTran Holdings, Inc. (a) | 861,500 | 3,532 | |
AMR Corp. (a) | 670,630 | 3,984 | |
Delta Air Lines, Inc. (a) | 7,063,248 | 48,736 | |
UAL Corp. | 280,400 | 2,647 | |
| 58,899 | ||
Building Products - 2.3% | |||
Masco Corp. | 110,800 | 866 | |
Owens Corning (a) | 4,928,290 | 65,743 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 651 | |
| 67,260 | ||
Commercial Services & Supplies - 6.0% | |||
Cenveo, Inc. (a)(e)(f) | 3,858,300 | 15,240 | |
Deluxe Corp. | 1,481,104 | 17,077 | |
R.R. Donnelley & Sons Co. | 450,900 | 4,396 | |
Republic Services, Inc. | 3,270,375 | 84,572 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
The Brink's Co. | 244,500 | $ 6,462 | |
Waste Management, Inc. | 1,494,300 | 46,607 | |
| 174,354 | ||
Construction & Engineering - 0.1% | |||
Great Lakes Dredge & Dock Corp. | 429,400 | 1,434 | |
Electrical Equipment - 1.3% | |||
Baldor Electric Co. (e) | 404,900 | 5,673 | |
Belden, Inc. (e) | 1,270,366 | 16,591 | |
EnerSys (a) | 743,188 | 6,770 | |
General Cable Corp. (a)(e) | 197,700 | 3,254 | |
JA Solar Holdings Co. Ltd. ADR (a)(e) | 839,500 | 2,233 | |
Sunpower Corp. Class B (a) | 178,606 | 4,719 | |
| 39,240 | ||
Industrial Conglomerates - 0.1% | |||
Tyco International Ltd. | 167,400 | 3,519 | |
Machinery - 1.8% | |||
Accuride Corp. (a) | 1,384,197 | 512 | |
Badger Meter, Inc. | 328,461 | 7,748 | |
Cummins, Inc. | 824,000 | 19,760 | |
Dynamic Materials Corp. | 170,252 | 2,067 | |
Ingersoll-Rand Co. Ltd. Class A | 352,400 | 5,712 | |
John Bean Technologies Corp. | 26,049 | 253 | |
Middleby Corp. (a) | 627,529 | 14,534 | |
Thermadyne Holdings Corp. (a) | 64,900 | 227 | |
Timken Co. | 92,800 | 1,382 | |
| 52,195 | ||
Marine - 1.3% | |||
Diana Shipping, Inc. | 277,900 | 3,693 | |
Genco Shipping & Trading Ltd. (e) | 867,423 | 13,488 | |
Navios Maritime Holdings, Inc. | 4,711,986 | 16,869 | |
OceanFreight, Inc. | 740,600 | 2,607 | |
| 36,657 | ||
Trading Companies & Distributors - 0.1% | |||
H&E Equipment Services, Inc. (a) | 12,900 | 86 | |
Houston Wire & Cable Co. | 559,595 | 4,001 | |
| 4,087 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Transportation Infrastructure - 0.1% | |||
Aegean Marine Petroleum Network, Inc. | 215,300 | $ 3,684 | |
TOTAL INDUSTRIALS | 467,182 | ||
INFORMATION TECHNOLOGY - 7.8% | |||
Electronic Equipment & Components - 2.7% | |||
Avnet, Inc. (a) | 298,600 | 5,918 | |
Bell Microproducts, Inc. (a) | 623,761 | 561 | |
Cogent, Inc. (a)(e) | 1,966,117 | 22,886 | |
DDi Corp. (a) | 295,899 | 1,000 | |
Flextronics International Ltd. (a) | 13,177,863 | 34,394 | |
Merix Corp. (a)(f) | 1,545,123 | 556 | |
TTM Technologies, Inc. (a) | 1,402,619 | 8,458 | |
Viasystems Group, Inc. (a) | 775,300 | 2,326 | |
Viasystems Group, Inc. (a)(i) | 625,780 | 1,877 | |
| 77,976 | ||
Internet Software & Services - 0.1% | |||
VeriSign, Inc. (a) | 194,300 | 3,752 | |
IT Services - 0.9% | |||
CACI International, Inc. Class A (a) | 348,000 | 15,712 | |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | 1,053 | |
SAIC, Inc. (a) | 407,500 | 8,044 | |
| 24,809 | ||
Semiconductors & Semiconductor Equipment - 4.1% | |||
Amkor Technology, Inc. (a) | 5,242,218 | 12,162 | |
Cypress Semiconductor Corp. (a) | 651,200 | 2,937 | |
Intel Corp. | 693,100 | 8,941 | |
ON Semiconductor Corp. (a)(e)(f) | 23,079,802 | 96,243 | |
Spansion, Inc. Class A (a) | 2,709,705 | 182 | |
| 120,465 | ||
TOTAL INFORMATION TECHNOLOGY | 227,002 | ||
MATERIALS - 9.3% | |||
Chemicals - 4.5% | |||
Albemarle Corp. | 1,163,406 | 25,886 | |
Arch Chemicals, Inc. | 344,342 | 7,717 | |
Celanese Corp. Class A | 4,687,200 | 49,919 | |
FMC Corp. | 60,100 | 2,682 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Georgia Gulf Corp. | 1,613,584 | $ 1,517 | |
H.B. Fuller Co. | 1,582,241 | 22,104 | |
Nalco Holding Co. | 894,300 | 8,773 | |
Phosphate Holdings, Inc. (i) | 307,500 | 2,537 | |
Pliant Corp. (a) | 567 | 0 | |
Solutia, Inc. (a) | 371,700 | 1,453 | |
W.R. Grace & Co. (a) | 1,589,619 | 9,172 | |
| 131,760 | ||
Containers & Packaging - 0.4% | |||
Rock-Tenn Co. Class A | 355,202 | 11,072 | |
Temple-Inland, Inc. | 107,200 | 608 | |
| 11,680 | ||
Metals & Mining - 4.0% | |||
Compass Minerals International, Inc. | 39,100 | 2,353 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 4,549,229 | 114,363 | |
Ormet Corp. (a) | 330,000 | 116 | |
Ormet Corp. (a)(i) | 1,075,000 | 339 | |
| 117,171 | ||
Paper & Forest Products - 0.4% | |||
Domtar Corp. (a) | 2,059,700 | 3,069 | |
Neenah Paper, Inc. | 518,300 | 3,488 | |
Weyerhaeuser Co. | 194,300 | 5,312 | |
| 11,869 | ||
TOTAL MATERIALS | 272,480 | ||
TELECOMMUNICATION SERVICES - 3.2% | |||
Diversified Telecommunication Services - 0.7% | |||
Level 3 Communications, Inc. (a) | 2,000,000 | 2,000 | |
PAETEC Holding Corp. (a) | 2,980,233 | 4,023 | |
Qwest Communications International, Inc. (e) | 4,637,500 | 14,933 | |
| 20,956 | ||
Wireless Telecommunication Services - 2.5% | |||
Centennial Communications Corp. Class A (a) | 827,032 | 6,765 | |
Crown Castle International Corp. (a) | 1,658,900 | 32,382 | |
Syniverse Holdings, Inc. (a) | 2,385,527 | 32,348 | |
| 71,495 | ||
TOTAL TELECOMMUNICATION SERVICES | 92,451 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 3.9% | |||
Gas Utilities - 0.3% | |||
ONEOK, Inc. | 317,600 | $ 9,280 | |
Independent Power Producers & Energy Traders - 3.6% | |||
AES Corp. (a) | 10,506,133 | 83,104 | |
Calpine Corp. (a) | 926,200 | 6,863 | |
Dynegy, Inc. Class A (a) | 1,987,000 | 4,193 | |
Mirant Corp. (a) | 714,500 | 12,268 | |
| 106,428 | ||
TOTAL UTILITIES | 115,708 | ||
TOTAL COMMON STOCKS (Cost $4,778,555) | 2,606,219 | ||
Preferred Stocks - 0.3% | |||
|
|
|
|
Convertible Preferred Stocks - 0.3% | |||
ENERGY - 0.3% | |||
Oil, Gas & Consumable Fuels - 0.3% | |||
El Paso Corp. 4.99% | 11,200 | 8,075 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
CIT Group, Inc. Series C, 8.75% | 62,300 | 1,190 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 9,265 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Preferred Blocker, Inc. 7.00% (g) | 944 | 241 | |
MATERIALS - 0.0% | |||
Chemicals - 0.0% | |||
Pliant Corp. Series AA 13.00% (a) | 4,808 | 14 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 255 | ||
TOTAL PREFERRED STOCKS (Cost $14,162) | 9,520 |
Corporate Bonds - 5.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | ||||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
ICO North America, Inc. 7.5% 8/15/09 (i) | $ 16,839 | $ 3,368 | ||
Nonconvertible Bonds - 5.5% | ||||
CONSUMER DISCRETIONARY - 0.5% | ||||
Automobiles - 0.1% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 | 3,090 | 355 | ||
7.4% 9/1/25 | 3,250 | 390 | ||
8.375% 7/15/33 | 5,450 | 763 | ||
| 1,508 | |||
Hotels, Restaurants & Leisure - 0.4% | ||||
MGM Mirage, Inc. 13% 11/15/13 (g) | 10,250 | 9,225 | ||
Station Casinos, Inc.: | ||||
6% 4/1/12 | 8,360 | 1,588 | ||
7.75% 8/15/16 | 9,380 | 1,782 | ||
| 12,595 | |||
Specialty Retail - 0.0% | ||||
Sonic Automotive, Inc. 8.625% 8/15/13 | 2,545 | 1,018 | ||
TOTAL CONSUMER DISCRETIONARY | 15,121 | |||
CONSUMER STAPLES - 0.4% | ||||
Food Products - 0.4% | ||||
Smithfield Foods, Inc.: | ||||
7% 8/1/11 | 13,215 | 10,803 | ||
7.75% 7/1/17 | 805 | 531 | ||
| 11,334 | |||
ENERGY - 1.5% | ||||
Oil, Gas & Consumable Fuels - 1.5% | ||||
Chesapeake Energy Corp.: | ||||
6.625% 1/15/16 | 2,805 | 2,370 | ||
6.875% 1/15/16 | 2,805 | 2,391 | ||
El Paso Corp.: | ||||
7.75% 1/15/32 | 8,985 | 6,963 | ||
7.8% 8/1/31 | 1,960 | 1,529 | ||
Forest Oil Corp.: | ||||
7.25% 6/15/19 | 11,165 | 9,211 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
ENERGY - continued | ||||
Oil, Gas & Consumable Fuels - continued | ||||
Forest Oil Corp.: - continued | ||||
7.25% 6/15/19 (g) | $ 1,605 | $ 1,324 | ||
Plains Exploration & Production Co. 7.75% 6/15/15 | 8,400 | 7,602 | ||
Range Resources Corp.: | ||||
7.25% 5/1/18 | 560 | 507 | ||
7.5% 10/1/17 | 6,715 | 6,228 | ||
SandRidge Energy, Inc. 8% 6/1/18 (g) | 2,990 | 2,243 | ||
Southwestern Energy Co. 7.5% 2/1/18 (g) | 2,420 | 2,287 | ||
| 42,655 | |||
FINANCIALS - 0.8% | ||||
Consumer Finance - 0.6% | ||||
GMAC LLC: | ||||
6.75% 12/1/14 (g) | 2,631 | 1,710 | ||
6.875% 8/28/12 (g) | 1,355 | 949 | ||
7.5% 12/31/13 (g) | 15,583 | 8,882 | ||
8% 12/31/18 (g) | 13,924 | 5,570 | ||
| 17,111 | |||
Diversified Financial Services - 0.2% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp. 8.75% 11/15/13 (d) | 7,990 | 5,873 | ||
TOTAL FINANCIALS | 22,984 | |||
INDUSTRIALS - 0.1% | ||||
Airlines - 0.0% | ||||
Delta Air Lines, Inc. 8% 12/15/07 (a)(g) | 4,145 | 83 | ||
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | 7,000 | 53 | ||
| 136 | |||
Building Products - 0.0% | ||||
Owens Corning 7% 12/1/36 | 1,115 | 693 | ||
Commercial Services & Supplies - 0.1% | ||||
Cenveo Corp. 7.875% 12/1/13 | 2,680 | 1,648 | ||
TOTAL INDUSTRIALS | 2,477 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | $ 8,505 | $ 1,446 | ||
NXP BV: | ||||
7.875% 10/15/14 | 8,039 | 2,251 | ||
9.5% 10/15/15 | 9,740 | 877 | ||
| 4,574 | |||
MATERIALS - 0.6% | ||||
Chemicals - 0.1% | ||||
Chemtura Corp. 6.875% 6/1/16 | 5,550 | 1,776 | ||
Georgia Gulf Corp. 9.5% 10/15/14 | 3,519 | 528 | ||
| 2,304 | |||
Metals & Mining - 0.5% | ||||
Freeport-McMoRan Copper & Gold, Inc. 8.375% 4/1/17 | 12,050 | 9,941 | ||
Steel Dynamics, Inc. 7.75% 4/15/16 (g) | 7,270 | 5,743 | ||
| 15,684 | |||
TOTAL MATERIALS | 17,988 | |||
TELECOMMUNICATION SERVICES - 1.2% | ||||
Diversified Telecommunication Services - 0.5% | ||||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 14,800 | 8,399 | ||
6.9% 5/1/19 | 10,410 | 6,975 | ||
| 15,374 | |||
Wireless Telecommunication Services - 0.7% | ||||
Digicel Group Ltd. 8.875% 1/15/15 (g) | 1,890 | 1,389 | ||
Nextel Communications, Inc. 7.375% 8/1/15 | 16,405 | 7,710 | ||
Sprint Nextel Corp. 6% 12/1/16 | 15,340 | 10,278 | ||
| 19,377 | |||
TOTAL TELECOMMUNICATION SERVICES | 34,751 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
UTILITIES - 0.3% | ||||
Independent Power Producers & Energy Traders - 0.3% | ||||
AES Corp. 7.75% 10/15/15 | $ 8,405 | $ 7,817 | ||
TOTAL NONCONVERTIBLE BONDS | 159,701 | |||
TOTAL CORPORATE BONDS (Cost $181,012) | 163,069 | |||
Floating Rate Loans - 2.3% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.8% | ||||
Automobiles - 0.2% | ||||
Ford Motor Co. term loan 5% 12/15/13 (h) | 13,375 | 4,815 | ||
Hotels, Restaurants & Leisure - 0.0% | ||||
Venetian Macau Ltd. Tranche B, term loan: | ||||
2.66% 5/26/12 (h) | 820 | 467 | ||
2.66% 5/26/13 (h) | 1,420 | 809 | ||
| 1,276 | |||
Media - 0.6% | ||||
Univision Communications, Inc. Tranche 1LN, term loan 2.6594% 9/29/14 (h) | 13,885 | 7,290 | ||
VNU, Inc. term loan 3.8835% 8/9/13 (h) | 11,092 | 8,957 | ||
| 16,247 | |||
TOTAL CONSUMER DISCRETIONARY | 22,338 | |||
CONSUMER STAPLES - 0.2% | ||||
Household Products - 0.1% | ||||
Huish Detergents, Inc. Tranche B 1LN, term loan 2.23% 4/26/14 (h) | 1,671 | 1,403 | ||
Personal Products - 0.1% | ||||
Revlon Consumer Products Corp. term loan 5.7051% 1/15/12 (h) | 5,546 | 4,104 | ||
TOTAL CONSUMER STAPLES | 5,507 | |||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
INDUSTRIALS - 0.4% | ||||
Airlines - 0.3% | ||||
Delta Air Lines, Inc. Tranche 2LN, term loan 3.6863% 4/30/14 (h) | $ 17,384 | $ 8,431 | ||
Machinery - 0.0% | ||||
Oshkosh Co. Tranche B, term loan 2.8862% 12/6/13 (h) | 740 | 511 | ||
Trading Companies & Distributors - 0.1% | ||||
VWR Funding, Inc. term loan 2.9094% 6/29/14 (h) | 4,690 | 3,424 | ||
TOTAL INDUSTRIALS | 12,366 | |||
INFORMATION TECHNOLOGY - 0.5% | ||||
Electronic Equipment & Components - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC Tranche B2, term loan 4.7518% 10/10/14 (h) | 5,794 | 4,041 | ||
Semiconductors & Semiconductor Equipment - 0.4% | ||||
Freescale Semiconductor, Inc. term loan 3.9313% 12/1/13 (h) | 19,910 | 10,254 | ||
TOTAL INFORMATION TECHNOLOGY | 14,295 | |||
MATERIALS - 0.2% | ||||
Chemicals - 0.2% | ||||
Georgia Gulf Corp. term loan 7.9106% 10/3/13 (h) | 5,949 | 2,975 | ||
Solutia, Inc. term loan 8.5% 2/28/14 (h) | 4,389 | 2,941 | ||
| 5,916 | |||
TELECOMMUNICATION SERVICES - 0.2% | ||||
Diversified Telecommunication Services - 0.2% | ||||
Level 3 Financing, Inc. term loan 3.2546% 3/13/14 (h) | 10,000 | 7,300 | ||
TOTAL FLOATING RATE LOANS (Cost $76,156) | 67,722 |
Money Market Funds - 6.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.78% (b) | 96,128,816 | 96,129 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 85,472,623 | 85,473 | |
TOTAL MONEY MARKET FUNDS (Cost $181,602) | 181,602 | ||
Other - 0.0% | |||
Shares | Value (000s) | ||
Other - 0.0% | |||
Delta Air Lines ALPA Claim (a) | 64,750,000 | $ 1,133 | |
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $5,232,236) | 3,029,265 | ||
NET OTHER ASSETS - (3.5)% | (103,368) | ||
NET ASSETS - 100% | $ 2,925,897 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Issuer is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $39,646,000 or 1.4% of net assets. |
(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,121,000 or 0.3% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
ICO North America, Inc. 7.5% 8/15/09 | 8/12/05 - 8/15/08 | $ 17,007 |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Phosphate Holdings, Inc. | 1/25/08 | $ 9,994 |
Viasystems Group, Inc. | 2/13/04 | $ 12,594 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,214 |
Fidelity Securities Lending Cash Central Fund | 1,465 |
Total | $ 2,679 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
American Science & Engineering, Inc. | $ 28,830 | $ - | $ 21,654 | $ 144 | $ - |
Cenveo, Inc. | 35,651 | - | - | - | 15,240 |
Exterran Holdings, Inc. | 239,059 | - | 7,358 | - | 84,997 |
Forest Oil Corp. | 274,548 | - | 3,092 | - | - |
General Maritime Corp. | 76,757 | - | 11,205 | 2,317 | - |
Grey Wolf, Inc. | 90,434 | - | 67,370 | - | - |
H.B. Fuller Co. | 74,575 | - | 22,365 | 138 | - |
Merix Corp. | 3,059 | - | - | - | 556 |
OceanFreight, Inc. | 14,375 | - | - | 342 | - |
ON Semiconductor Corp. | 216,719 | - | - | - | 96,243 |
Overseas Shipholding Group, Inc. | 158,169 | - | 11,015 | 1,705 | 61,776 |
Service Corp. International | 167,531 | - | - | 1,400 | 79,652 |
Tenet Healthcare Corp. | 132,911 | 9,444 | - | - | 27,996 |
Total | $ 1,512,618 | $ 9,444 | $ 144,059 | $ 6,046 | $ 366,460 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,029,265 | $ 2,778,747 | $ 241,814 | $ 8,704 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ 1,457 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (19,463) |
Cost of Purchases | 693 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | 26,017 |
Ending Balance | $ 8,704 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
AAA,AA,A | 0.0% |
BBB | 0.0% |
BB | 3.0% |
B | 3.4% |
CCC,CC,C | 0.5% |
D | 0.0% |
Not Rated | 1.0% |
Equities | 89.4% |
Short-Term Investments and Net Other Assets | 2.7% |
| 100.0% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $80,034) - See accompanying schedule: Unaffiliated issuers (cost $4,266,564) | $ 2,481,203 |
|
Fidelity Central Funds (cost $181,602) | 181,602 |
|
Other affiliated issuers (cost $784,070) | 366,460 |
|
Total Investments (cost $5,232,236) |
| $ 3,029,265 |
Cash | 1,107 | |
Receivable for investments sold | 13,723 | |
Receivable for fund shares sold | 4,767 | |
Dividends receivable | 660 | |
Interest receivable | 5,984 | |
Distributions receivable from Fidelity Central Funds | 180 | |
Prepaid expenses | 44 | |
Other receivables | 22 | |
Total assets | 3,055,752 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 35,845 | |
Payable for fund shares redeemed | 6,121 | |
Accrued management fee | 1,608 | |
Other affiliated payables | 778 | |
Other payables and accrued expenses | 30 | |
Collateral on securities loaned, at value | 85,473 | |
Total liabilities | 129,855 | |
|
|
|
Net Assets | $ 2,925,897 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,910,389 | |
Undistributed net investment income | 5,220 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (786,714) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,202,998) | |
Net Assets | $ 2,925,897 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Leveraged Company Stock: | $ 13.63 | |
|
|
|
Class K: | $ 13.62 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $6,046 earned from other affiliated issuers) |
| $ 30,600 |
Interest |
| 14,780 |
Income from Fidelity Central Funds |
| 2,679 |
Total income |
| 48,059 |
|
|
|
Expenses | ||
Management fee | $ 14,224 | |
Transfer agent fees | 5,599 | |
Accounting and security lending fees | 532 | |
Custodian fees and expenses | 37 | |
Independent trustees' compensation | 15 | |
Registration fees | 89 | |
Audit | 36 | |
Legal | 22 | |
Miscellaneous | 15 | |
Total expenses before reductions | 20,569 | |
Expense reductions | (29) | 20,540 |
Net investment income (loss) | 27,519 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (732,231) | |
Other affiliated issuers | (54,208) |
|
Foreign currency transactions | (36) | |
Total net realized gain (loss) |
| (786,475) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (3,493,094) | |
Assets and liabilities in foreign currencies | (27) | |
Total change in net unrealized appreciation (depreciation) |
| (3,493,121) |
Net gain (loss) | (4,279,596) | |
Net increase (decrease) in net assets resulting from operations | $ (4,252,077) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 27,519 | $ 33,470 |
Net realized gain (loss) | (786,475) | 151,060 |
Change in net unrealized appreciation (depreciation) | (3,493,121) | (527,187) |
Net increase (decrease) in net assets resulting from operations | (4,252,077) | (342,657) |
Distributions to shareholders from net investment income | (31,749) | (89,831) |
Distributions to shareholders from net realized gain | (63,967) | (319,818) |
Total distributions | (95,716) | (409,649) |
Share transactions - net increase (decrease) | (760,298) | 950,964 |
Redemption fees | 1,881 | 3,350 |
Total increase (decrease) in net assets | (5,106,210) | 202,008 |
|
|
|
Net Assets | ||
Beginning of period | 8,032,107 | 7,830,099 |
End of period (including undistributed net investment income of $5,220 and undistributed net investment income of $11,678, respectively) | $ 2,925,897 | $ 8,032,107 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 | $ 14.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .14 | .44 G | .16 | .24 H | .04 |
Net realized and unrealized gain (loss) | (17.20) | (1.06) | 6.78 | 3.04 | 6.21 | 5.45 |
Total from investment operations | (17.08) | (.92) | 7.22 | 3.20 | 6.45 | 5.49 |
Distributions from net investment income | (.14) | (.39) | (.12) | (.21) | (.04) | - |
Distributions from net realized gain | (.25) | (1.39) | (1.40) | (.41) | (1.12) | (.27) |
Total distributions | (.39) | (1.78) | (1.52) | (.62) | (1.16) | (.27) |
Redemption fees added to paid in capital D | .01 | .01 | .01 | .01 | .01 | .03 |
Net asset value, end of period | $ 13.63 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 |
Total Return B,C | (55.37)% | (2.76)% | 27.08% | 12.80% | 33.93% | 37.27% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .89% A | .83% | .83% | .86% | .87% | .88% |
Expenses net of fee waivers, if any | .89% A | .83% | .83% | .86% | .87% | .88% |
Expenses net of all reductions | .89% A | .83% | .83% | .85% | .84% | .85% |
Net investment income (loss) | 1.18% A | .44% | 1.43% G | .60% | 1.04% H | .23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 2,711 | $ 8,032 | $ 7,830 | $ 4,174 | $ 3,328 | $ 1,504 |
Portfolio turnover rate F | 27% A | 30% | 20% | 23% | 16% | 35% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a special dividend which amounted to $.26 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%. HInvestment income per share reflects a special dividend which amounted to $.10 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been ..61%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .05 |
Net realized and unrealized gain (loss) | (17.19) | (3.04) |
Total from investment operations | (17.08) | (2.99) |
Distributions from net investment income | (.17) | - |
Distributions from net realized gain | (.25) | - |
Total distributions | (.42) | - |
Redemption fees added to paid in capital D | .01 | - I |
Net asset value, end of period | $ 13.62 | $ 31.11 |
Total Return B,C | (55.34)% | (8.77)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .69% A | .70% A |
Expenses net of fee waivers, if any | .69% A | .70% A |
Expenses net of all reductions | .69% A | .70% A |
Net investment income (loss) | 1.37% A | .58% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 214,695 | $ 91 |
Portfolio turnover rate F | 27% A | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Leveraged Company Stock and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Leveraged Company Stock and Class K to eligible shareholders of Leveraged Company Stock. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount 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 | $ 160,094 |
Unrealized depreciation | (2,398,391) |
Net unrealized appreciation (depreciation) | $ (2,238,297) |
Cost for federal income tax purposes | $ 5,267,562 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $656,095 and $1,383,828, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 5,564 | .25 |
Class K | 35 | .05 |
| $ 5,599 |
|
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $27 for the period.
7. 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, which amounted to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,465.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Leverage Company Stock's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
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 $12 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Leveraged Company Stock | $ 11 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 30,127 | $ 89,831 |
Class K | 1,622 | - |
Total | $ 31,749 | $ 89,831 |
From net realized gain |
|
|
Leveraged Company Stock | $ 63,966 | $ 319,818 |
Class K | 1 | - |
Total | $ 63,967 | $ 319,818 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Leveraged Company Stock |
|
|
|
|
Shares sold | 29,086 | 100,393 | $ 598,411 | $ 3,279,172 |
Conversion to Class K | (12,879) | - | (288,716) | - |
Reinvestment of distributions | 3,995 | 12,305 | 89,681 | 391,353 |
Shares redeemed | (79,551) | (86,186) | (1,491,807) | (2,719,661) |
Net increase (decrease) | (59,349) | 26,512 | $ (1,092,431) | $ 950,864 |
Class K |
|
|
|
|
Shares sold | 4,495 | 3 | $ 69,926 | $ 100 |
Conversion from Leveraged Company Stock | 12,875 | - | 288,716 | - |
Reinvestment of distributions | 118 | - | 1,623 | - |
Shares redeemed | (1,725) | - | (28,132) | - |
Net increase (decrease) | 15,763 | 3 | $ 332,133 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Investments Japan Limited
FIL International Investment Advisors
FIL International Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
LSF-USAN-0309 1.789286.106
Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2009
(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 last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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 redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Leveraged Company Stock | .89% |
|
|
|
Actual |
| $ 1,000.00 | $ 446.30 | $ 3.24 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Class K | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 446.60 | $ 2.52 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Freeport-McMoRan Copper & Gold, Inc. Class B | 3.9 | 5.2 |
El Paso Corp. | 3.8 | 3.0 |
ON Semiconductor Corp. | 3.3 | 2.7 |
Exterran Holdings, Inc. | 2.9 | 3.0 |
Republic Services, Inc. | 2.9 | 1.1 |
AES Corp. | 2.8 | 1.7 |
Service Corp. International | 2.7 | 2.1 |
DaVita, Inc. | 2.6 | 1.4 |
Peabody Energy Corp. | 2.6 | 3.2 |
Forest Oil Corp. | 2.4 | 3.4 |
| 29.9 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Energy | 28.3 | 42.6 |
Industrials | 16.5 | 11.8 |
Consumer Discretionary | 10.3 | 5.6 |
Materials | 10.1 | 12.1 |
Information Technology | 8.4 | 8.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 89.1% |
| ![]() | Stocks 95.5% |
| ||
![]() | Bonds 5.5% |
| ![]() | Bonds 0.7% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 2.3% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.2% |
| ** Foreign investments | 11.8% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 89.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 9.0% | |||
Auto Components - 0.2% | |||
The Goodyear Tire & Rubber Co. (a) | 564,063 | $ 3,480 | |
WABCO Holdings, Inc. | 211,533 | 3,162 | |
| 6,642 | ||
Automobiles - 0.2% | |||
Daimler AG | 209,400 | 5,861 | |
Diversified Consumer Services - 3.1% | |||
Brinks Home Security Holdings, Inc. (a) | 244,500 | 5,592 | |
Carriage Services, Inc. Class A (a) | 266,200 | 588 | |
Service Corp. International (f) | 17,505,900 | 79,652 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 5,182 | |
| 91,014 | ||
Hotels, Restaurants & Leisure - 1.6% | |||
Bally Technologies, Inc. (a)(e) | 852,360 | 17,209 | |
Las Vegas Sands Corp. (a)(e) | 2,971,300 | 15,302 | |
Penn National Gaming, Inc. (a) | 537,836 | 10,031 | |
The Steak n Shake Co. (a)(e) | 659,400 | 3,772 | |
| 46,314 | ||
Household Durables - 0.9% | |||
Lennar Corp. Class A | 983,400 | 7,562 | |
Newell Rubbermaid, Inc. | 2,332,300 | 18,845 | |
| 26,407 | ||
Leisure Equipment & Products - 0.2% | |||
Callaway Golf Co. (e) | 870,287 | 6,623 | |
Media - 1.8% | |||
Cinemark Holdings, Inc. | 1,554,497 | 12,296 | |
Comcast Corp. Class A | 2,590,900 | 37,957 | |
Gray Television, Inc. | 1,995,535 | 659 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 904 | |
| 51,816 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Coach, Inc. (a) | 1,652,320 | 24,124 | |
Hanesbrands, Inc. (a) | 562,400 | 5,056 | |
| 29,180 | ||
TOTAL CONSUMER DISCRETIONARY | 263,857 | ||
CONSUMER STAPLES - 3.4% | |||
Food & Staples Retailing - 2.3% | |||
Koninklijke Ahold NV sponsored ADR | 2,484,960 | 29,596 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - continued | |||
Kroger Co. | 339,300 | $ 7,634 | |
Safeway, Inc. | 783,800 | 16,797 | |
SUPERVALU, Inc. | 735,545 | 12,901 | |
| 66,928 | ||
Food Products - 1.0% | |||
Corn Products International, Inc. | 281,534 | 6,518 | |
Darling International, Inc. (a) | 2,498,930 | 11,470 | |
Dean Foods Co. (a) | 569,900 | 11,022 | |
| 29,010 | ||
Personal Products - 0.1% | |||
Revlon, Inc. (a) | 639,576 | 3,780 | |
TOTAL CONSUMER STAPLES | 99,718 | ||
ENERGY - 26.5% | |||
Energy Equipment & Services - 4.9% | |||
Exterran Holdings, Inc. (a)(e)(f) | 3,835,627 | 84,997 | |
Hercules Offshore, Inc. (a) | 1,861,231 | 6,924 | |
Noble Corp. | 524,700 | 14,246 | |
Oil States International, Inc. (a) | 270,700 | 4,957 | |
Parker Drilling Co. (a) | 1,200,000 | 2,544 | |
Petroleum Geo-Services ASA sponsored ADR (a) | 1,408,677 | 4,550 | |
Precision Drilling Trust | 1,283,528 | 6,523 | |
Pride International, Inc. (a) | 346,100 | 5,579 | |
Rowan Companies, Inc. | 321,100 | 4,065 | |
Schoeller-Bleckmann Oilfield Equipment AG | 387,300 | 10,542 | |
| 144,927 | ||
Oil, Gas & Consumable Fuels - 21.6% | |||
Alpha Natural Resources, Inc. (a) | 2,057,201 | 33,574 | |
Arch Coal, Inc. | 688,255 | 10,455 | |
CONSOL Energy, Inc. | 573,200 | 15,625 | |
El Paso Corp. (e) | 13,676,376 | 111,873 | |
Forest Oil Corp. (a)(e) | 4,614,100 | 69,212 | |
Frontier Oil Corp. | 1,972,600 | 28,169 | |
General Maritime Corp. (e) | 2,678,328 | 28,444 | |
Hess Corp. | 358,840 | 19,955 | |
Mariner Energy, Inc. (a) | 2,721,653 | 26,944 | |
Nexen, Inc. | 188,000 | 2,739 | |
Occidental Petroleum Corp. | 211,600 | 11,543 | |
OPTI Canada, Inc. (a) | 1,111,300 | 1,450 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Overseas Shipholding Group, Inc. (f) | 1,730,410 | $ 61,776 | |
Paladin Energy Ltd. (a)(e) | 2,042,400 | 3,881 | |
Peabody Energy Corp. | 2,990,508 | 74,763 | |
Plains Exploration & Production Co. (a) | 360,660 | 7,617 | |
Ship Finance International Ltd.: | |||
(Norway) | 33,099 | 399 | |
(NY Shares) (e) | 1,275,051 | 14,485 | |
Teekay Corp. | 3,343,200 | 58,573 | |
Valero Energy Corp. | 667,900 | 16,110 | |
Western Refining, Inc. | 682,458 | 7,957 | |
Williams Companies, Inc. | 1,784,400 | 25,249 | |
| 630,793 | ||
TOTAL ENERGY | 775,720 | ||
FINANCIALS - 2.6% | |||
Commercial Banks - 2.5% | |||
Huntington Bancshares, Inc. | 221,100 | 637 | |
KeyCorp (e) | 4,848,238 | 35,295 | |
PNC Financial Services Group, Inc. | 486,900 | 15,834 | |
Wells Fargo & Co. | 1,093,316 | 20,664 | |
| 72,430 | ||
Diversified Financial Services - 0.1% | |||
Bank of America Corp. | 410,300 | 2,700 | |
CIT Group, Inc. | 334,900 | 934 | |
| 3,634 | ||
Thrifts & Mortgage Finance - 0.0% | |||
Washington Mutual, Inc. | 5,352,200 | 214 | |
| |||
TOTAL FINANCIALS | 76,278 | ||
HEALTH CARE - 7.4% | |||
Biotechnology - 0.0% | |||
Lexicon Pharmaceuticals, Inc. (a) | 392,187 | 467 | |
Health Care Equipment & Supplies - 2.1% | |||
Baxter International, Inc. | 430,100 | 25,225 | |
Beckman Coulter, Inc. | 304,200 | 15,125 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Hospira, Inc. (a) | 361,900 | $ 9,011 | |
Inverness Medical Innovations, Inc. (a) | 518,708 | 12,693 | |
| 62,054 | ||
Health Care Providers & Services - 5.1% | |||
Community Health Systems, Inc. (a) | 1,574,785 | 29,354 | |
DaVita, Inc. (a) | 1,642,600 | 77,202 | |
Rural/Metro Corp. (a) | 834,200 | 1,368 | |
Sun Healthcare Group, Inc. (a) | 1,205,054 | 13,653 | |
Tenet Healthcare Corp. (a)(f) | 26,164,783 | 27,996 | |
| 149,573 | ||
Health Care Technology - 0.2% | |||
Cerner Corp. (a)(e) | 110,600 | 3,729 | |
TOTAL HEALTH CARE | 215,823 | ||
INDUSTRIALS - 16.0% | |||
Aerospace & Defense - 0.9% | |||
American Science & Engineering, Inc. | 196,070 | 15,293 | |
Teledyne Technologies, Inc. (a) | 368,594 | 10,273 | |
| 25,566 | ||
Air Freight & Logistics - 0.0% | |||
Park-Ohio Holdings Corp. (a) | 78,022 | 287 | |
Airlines - 2.0% | |||
AirTran Holdings, Inc. (a) | 861,500 | 3,532 | |
AMR Corp. (a) | 670,630 | 3,984 | |
Delta Air Lines, Inc. (a) | 7,063,248 | 48,736 | |
UAL Corp. | 280,400 | 2,647 | |
| 58,899 | ||
Building Products - 2.3% | |||
Masco Corp. | 110,800 | 866 | |
Owens Corning (a) | 4,928,290 | 65,743 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 651 | |
| 67,260 | ||
Commercial Services & Supplies - 6.0% | |||
Cenveo, Inc. (a)(e)(f) | 3,858,300 | 15,240 | |
Deluxe Corp. | 1,481,104 | 17,077 | |
R.R. Donnelley & Sons Co. | 450,900 | 4,396 | |
Republic Services, Inc. | 3,270,375 | 84,572 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
The Brink's Co. | 244,500 | $ 6,462 | |
Waste Management, Inc. | 1,494,300 | 46,607 | |
| 174,354 | ||
Construction & Engineering - 0.1% | |||
Great Lakes Dredge & Dock Corp. | 429,400 | 1,434 | |
Electrical Equipment - 1.3% | |||
Baldor Electric Co. (e) | 404,900 | 5,673 | |
Belden, Inc. (e) | 1,270,366 | 16,591 | |
EnerSys (a) | 743,188 | 6,770 | |
General Cable Corp. (a)(e) | 197,700 | 3,254 | |
JA Solar Holdings Co. Ltd. ADR (a)(e) | 839,500 | 2,233 | |
Sunpower Corp. Class B (a) | 178,606 | 4,719 | |
| 39,240 | ||
Industrial Conglomerates - 0.1% | |||
Tyco International Ltd. | 167,400 | 3,519 | |
Machinery - 1.8% | |||
Accuride Corp. (a) | 1,384,197 | 512 | |
Badger Meter, Inc. | 328,461 | 7,748 | |
Cummins, Inc. | 824,000 | 19,760 | |
Dynamic Materials Corp. | 170,252 | 2,067 | |
Ingersoll-Rand Co. Ltd. Class A | 352,400 | 5,712 | |
John Bean Technologies Corp. | 26,049 | 253 | |
Middleby Corp. (a) | 627,529 | 14,534 | |
Thermadyne Holdings Corp. (a) | 64,900 | 227 | |
Timken Co. | 92,800 | 1,382 | |
| 52,195 | ||
Marine - 1.3% | |||
Diana Shipping, Inc. | 277,900 | 3,693 | |
Genco Shipping & Trading Ltd. (e) | 867,423 | 13,488 | |
Navios Maritime Holdings, Inc. | 4,711,986 | 16,869 | |
OceanFreight, Inc. | 740,600 | 2,607 | |
| 36,657 | ||
Trading Companies & Distributors - 0.1% | |||
H&E Equipment Services, Inc. (a) | 12,900 | 86 | |
Houston Wire & Cable Co. | 559,595 | 4,001 | |
| 4,087 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Transportation Infrastructure - 0.1% | |||
Aegean Marine Petroleum Network, Inc. | 215,300 | $ 3,684 | |
TOTAL INDUSTRIALS | 467,182 | ||
INFORMATION TECHNOLOGY - 7.8% | |||
Electronic Equipment & Components - 2.7% | |||
Avnet, Inc. (a) | 298,600 | 5,918 | |
Bell Microproducts, Inc. (a) | 623,761 | 561 | |
Cogent, Inc. (a)(e) | 1,966,117 | 22,886 | |
DDi Corp. (a) | 295,899 | 1,000 | |
Flextronics International Ltd. (a) | 13,177,863 | 34,394 | |
Merix Corp. (a)(f) | 1,545,123 | 556 | |
TTM Technologies, Inc. (a) | 1,402,619 | 8,458 | |
Viasystems Group, Inc. (a) | 775,300 | 2,326 | |
Viasystems Group, Inc. (a)(i) | 625,780 | 1,877 | |
| 77,976 | ||
Internet Software & Services - 0.1% | |||
VeriSign, Inc. (a) | 194,300 | 3,752 | |
IT Services - 0.9% | |||
CACI International, Inc. Class A (a) | 348,000 | 15,712 | |
Cognizant Technology Solutions Corp. Class A (a) | 56,200 | 1,053 | |
SAIC, Inc. (a) | 407,500 | 8,044 | |
| 24,809 | ||
Semiconductors & Semiconductor Equipment - 4.1% | |||
Amkor Technology, Inc. (a) | 5,242,218 | 12,162 | |
Cypress Semiconductor Corp. (a) | 651,200 | 2,937 | |
Intel Corp. | 693,100 | 8,941 | |
ON Semiconductor Corp. (a)(e)(f) | 23,079,802 | 96,243 | |
Spansion, Inc. Class A (a) | 2,709,705 | 182 | |
| 120,465 | ||
TOTAL INFORMATION TECHNOLOGY | 227,002 | ||
MATERIALS - 9.3% | |||
Chemicals - 4.5% | |||
Albemarle Corp. | 1,163,406 | 25,886 | |
Arch Chemicals, Inc. | 344,342 | 7,717 | |
Celanese Corp. Class A | 4,687,200 | 49,919 | |
FMC Corp. | 60,100 | 2,682 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Georgia Gulf Corp. | 1,613,584 | $ 1,517 | |
H.B. Fuller Co. | 1,582,241 | 22,104 | |
Nalco Holding Co. | 894,300 | 8,773 | |
Phosphate Holdings, Inc. (i) | 307,500 | 2,537 | |
Pliant Corp. (a) | 567 | 0 | |
Solutia, Inc. (a) | 371,700 | 1,453 | |
W.R. Grace & Co. (a) | 1,589,619 | 9,172 | |
| 131,760 | ||
Containers & Packaging - 0.4% | |||
Rock-Tenn Co. Class A | 355,202 | 11,072 | |
Temple-Inland, Inc. | 107,200 | 608 | |
| 11,680 | ||
Metals & Mining - 4.0% | |||
Compass Minerals International, Inc. | 39,100 | 2,353 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 4,549,229 | 114,363 | |
Ormet Corp. (a) | 330,000 | 116 | |
Ormet Corp. (a)(i) | 1,075,000 | 339 | |
| 117,171 | ||
Paper & Forest Products - 0.4% | |||
Domtar Corp. (a) | 2,059,700 | 3,069 | |
Neenah Paper, Inc. | 518,300 | 3,488 | |
Weyerhaeuser Co. | 194,300 | 5,312 | |
| 11,869 | ||
TOTAL MATERIALS | 272,480 | ||
TELECOMMUNICATION SERVICES - 3.2% | |||
Diversified Telecommunication Services - 0.7% | |||
Level 3 Communications, Inc. (a) | 2,000,000 | 2,000 | |
PAETEC Holding Corp. (a) | 2,980,233 | 4,023 | |
Qwest Communications International, Inc. (e) | 4,637,500 | 14,933 | |
| 20,956 | ||
Wireless Telecommunication Services - 2.5% | |||
Centennial Communications Corp. Class A (a) | 827,032 | 6,765 | |
Crown Castle International Corp. (a) | 1,658,900 | 32,382 | |
Syniverse Holdings, Inc. (a) | 2,385,527 | 32,348 | |
| 71,495 | ||
TOTAL TELECOMMUNICATION SERVICES | 92,451 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 3.9% | |||
Gas Utilities - 0.3% | |||
ONEOK, Inc. | 317,600 | $ 9,280 | |
Independent Power Producers & Energy Traders - 3.6% | |||
AES Corp. (a) | 10,506,133 | 83,104 | |
Calpine Corp. (a) | 926,200 | 6,863 | |
Dynegy, Inc. Class A (a) | 1,987,000 | 4,193 | |
Mirant Corp. (a) | 714,500 | 12,268 | |
| 106,428 | ||
TOTAL UTILITIES | 115,708 | ||
TOTAL COMMON STOCKS (Cost $4,778,555) | 2,606,219 | ||
Preferred Stocks - 0.3% | |||
|
|
|
|
Convertible Preferred Stocks - 0.3% | |||
ENERGY - 0.3% | |||
Oil, Gas & Consumable Fuels - 0.3% | |||
El Paso Corp. 4.99% | 11,200 | 8,075 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
CIT Group, Inc. Series C, 8.75% | 62,300 | 1,190 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 9,265 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Preferred Blocker, Inc. 7.00% (g) | 944 | 241 | |
MATERIALS - 0.0% | |||
Chemicals - 0.0% | |||
Pliant Corp. Series AA 13.00% (a) | 4,808 | 14 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 255 | ||
TOTAL PREFERRED STOCKS (Cost $14,162) | 9,520 |
Corporate Bonds - 5.6% | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | ||||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
ICO North America, Inc. 7.5% 8/15/09 (i) | $ 16,839 | $ 3,368 | ||
Nonconvertible Bonds - 5.5% | ||||
CONSUMER DISCRETIONARY - 0.5% | ||||
Automobiles - 0.1% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 | 3,090 | 355 | ||
7.4% 9/1/25 | 3,250 | 390 | ||
8.375% 7/15/33 | 5,450 | 763 | ||
| 1,508 | |||
Hotels, Restaurants & Leisure - 0.4% | ||||
MGM Mirage, Inc. 13% 11/15/13 (g) | 10,250 | 9,225 | ||
Station Casinos, Inc.: | ||||
6% 4/1/12 | 8,360 | 1,588 | ||
7.75% 8/15/16 | 9,380 | 1,782 | ||
| 12,595 | |||
Specialty Retail - 0.0% | ||||
Sonic Automotive, Inc. 8.625% 8/15/13 | 2,545 | 1,018 | ||
TOTAL CONSUMER DISCRETIONARY | 15,121 | |||
CONSUMER STAPLES - 0.4% | ||||
Food Products - 0.4% | ||||
Smithfield Foods, Inc.: | ||||
7% 8/1/11 | 13,215 | 10,803 | ||
7.75% 7/1/17 | 805 | 531 | ||
| 11,334 | |||
ENERGY - 1.5% | ||||
Oil, Gas & Consumable Fuels - 1.5% | ||||
Chesapeake Energy Corp.: | ||||
6.625% 1/15/16 | 2,805 | 2,370 | ||
6.875% 1/15/16 | 2,805 | 2,391 | ||
El Paso Corp.: | ||||
7.75% 1/15/32 | 8,985 | 6,963 | ||
7.8% 8/1/31 | 1,960 | 1,529 | ||
Forest Oil Corp.: | ||||
7.25% 6/15/19 | 11,165 | 9,211 | ||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
ENERGY - continued | ||||
Oil, Gas & Consumable Fuels - continued | ||||
Forest Oil Corp.: - continued | ||||
7.25% 6/15/19 (g) | $ 1,605 | $ 1,324 | ||
Plains Exploration & Production Co. 7.75% 6/15/15 | 8,400 | 7,602 | ||
Range Resources Corp.: | ||||
7.25% 5/1/18 | 560 | 507 | ||
7.5% 10/1/17 | 6,715 | 6,228 | ||
SandRidge Energy, Inc. 8% 6/1/18 (g) | 2,990 | 2,243 | ||
Southwestern Energy Co. 7.5% 2/1/18 (g) | 2,420 | 2,287 | ||
| 42,655 | |||
FINANCIALS - 0.8% | ||||
Consumer Finance - 0.6% | ||||
GMAC LLC: | ||||
6.75% 12/1/14 (g) | 2,631 | 1,710 | ||
6.875% 8/28/12 (g) | 1,355 | 949 | ||
7.5% 12/31/13 (g) | 15,583 | 8,882 | ||
8% 12/31/18 (g) | 13,924 | 5,570 | ||
| 17,111 | |||
Diversified Financial Services - 0.2% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp. 8.75% 11/15/13 (d) | 7,990 | 5,873 | ||
TOTAL FINANCIALS | 22,984 | |||
INDUSTRIALS - 0.1% | ||||
Airlines - 0.0% | ||||
Delta Air Lines, Inc. 8% 12/15/07 (a)(g) | 4,145 | 83 | ||
Northwest Airlines, Inc. 9.875% 3/15/07 (a) | 7,000 | 53 | ||
| 136 | |||
Building Products - 0.0% | ||||
Owens Corning 7% 12/1/36 | 1,115 | 693 | ||
Commercial Services & Supplies - 0.1% | ||||
Cenveo Corp. 7.875% 12/1/13 | 2,680 | 1,648 | ||
TOTAL INDUSTRIALS | 2,477 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
INFORMATION TECHNOLOGY - 0.1% | ||||
Semiconductors & Semiconductor Equipment - 0.1% | ||||
Freescale Semiconductor, Inc. 10.125% 12/15/16 | $ 8,505 | $ 1,446 | ||
NXP BV: | ||||
7.875% 10/15/14 | 8,039 | 2,251 | ||
9.5% 10/15/15 | 9,740 | 877 | ||
| 4,574 | |||
MATERIALS - 0.6% | ||||
Chemicals - 0.1% | ||||
Chemtura Corp. 6.875% 6/1/16 | 5,550 | 1,776 | ||
Georgia Gulf Corp. 9.5% 10/15/14 | 3,519 | 528 | ||
| 2,304 | |||
Metals & Mining - 0.5% | ||||
Freeport-McMoRan Copper & Gold, Inc. 8.375% 4/1/17 | 12,050 | 9,941 | ||
Steel Dynamics, Inc. 7.75% 4/15/16 (g) | 7,270 | 5,743 | ||
| 15,684 | |||
TOTAL MATERIALS | 17,988 | |||
TELECOMMUNICATION SERVICES - 1.2% | ||||
Diversified Telecommunication Services - 0.5% | ||||
Sprint Capital Corp.: | ||||
6.875% 11/15/28 | 14,800 | 8,399 | ||
6.9% 5/1/19 | 10,410 | 6,975 | ||
| 15,374 | |||
Wireless Telecommunication Services - 0.7% | ||||
Digicel Group Ltd. 8.875% 1/15/15 (g) | 1,890 | 1,389 | ||
Nextel Communications, Inc. 7.375% 8/1/15 | 16,405 | 7,710 | ||
Sprint Nextel Corp. 6% 12/1/16 | 15,340 | 10,278 | ||
| 19,377 | |||
TOTAL TELECOMMUNICATION SERVICES | 34,751 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - continued | ||||
UTILITIES - 0.3% | ||||
Independent Power Producers & Energy Traders - 0.3% | ||||
AES Corp. 7.75% 10/15/15 | $ 8,405 | $ 7,817 | ||
TOTAL NONCONVERTIBLE BONDS | 159,701 | |||
TOTAL CORPORATE BONDS (Cost $181,012) | 163,069 | |||
Floating Rate Loans - 2.3% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.8% | ||||
Automobiles - 0.2% | ||||
Ford Motor Co. term loan 5% 12/15/13 (h) | 13,375 | 4,815 | ||
Hotels, Restaurants & Leisure - 0.0% | ||||
Venetian Macau Ltd. Tranche B, term loan: | ||||
2.66% 5/26/12 (h) | 820 | 467 | ||
2.66% 5/26/13 (h) | 1,420 | 809 | ||
| 1,276 | |||
Media - 0.6% | ||||
Univision Communications, Inc. Tranche 1LN, term loan 2.6594% 9/29/14 (h) | 13,885 | 7,290 | ||
VNU, Inc. term loan 3.8835% 8/9/13 (h) | 11,092 | 8,957 | ||
| 16,247 | |||
TOTAL CONSUMER DISCRETIONARY | 22,338 | |||
CONSUMER STAPLES - 0.2% | ||||
Household Products - 0.1% | ||||
Huish Detergents, Inc. Tranche B 1LN, term loan 2.23% 4/26/14 (h) | 1,671 | 1,403 | ||
Personal Products - 0.1% | ||||
Revlon Consumer Products Corp. term loan 5.7051% 1/15/12 (h) | 5,546 | 4,104 | ||
TOTAL CONSUMER STAPLES | 5,507 | |||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
INDUSTRIALS - 0.4% | ||||
Airlines - 0.3% | ||||
Delta Air Lines, Inc. Tranche 2LN, term loan 3.6863% 4/30/14 (h) | $ 17,384 | $ 8,431 | ||
Machinery - 0.0% | ||||
Oshkosh Co. Tranche B, term loan 2.8862% 12/6/13 (h) | 740 | 511 | ||
Trading Companies & Distributors - 0.1% | ||||
VWR Funding, Inc. term loan 2.9094% 6/29/14 (h) | 4,690 | 3,424 | ||
TOTAL INDUSTRIALS | 12,366 | |||
INFORMATION TECHNOLOGY - 0.5% | ||||
Electronic Equipment & Components - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC Tranche B2, term loan 4.7518% 10/10/14 (h) | 5,794 | 4,041 | ||
Semiconductors & Semiconductor Equipment - 0.4% | ||||
Freescale Semiconductor, Inc. term loan 3.9313% 12/1/13 (h) | 19,910 | 10,254 | ||
TOTAL INFORMATION TECHNOLOGY | 14,295 | |||
MATERIALS - 0.2% | ||||
Chemicals - 0.2% | ||||
Georgia Gulf Corp. term loan 7.9106% 10/3/13 (h) | 5,949 | 2,975 | ||
Solutia, Inc. term loan 8.5% 2/28/14 (h) | 4,389 | 2,941 | ||
| 5,916 | |||
TELECOMMUNICATION SERVICES - 0.2% | ||||
Diversified Telecommunication Services - 0.2% | ||||
Level 3 Financing, Inc. term loan 3.2546% 3/13/14 (h) | 10,000 | 7,300 | ||
TOTAL FLOATING RATE LOANS (Cost $76,156) | 67,722 |
Money Market Funds - 6.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.78% (b) | 96,128,816 | 96,129 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 85,472,623 | 85,473 | |
TOTAL MONEY MARKET FUNDS (Cost $181,602) | 181,602 | ||
Other - 0.0% | |||
Shares | Value (000s) | ||
Other - 0.0% | |||
Delta Air Lines ALPA Claim (a) | 64,750,000 | $ 1,133 | |
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $5,232,236) | 3,029,265 | ||
NET OTHER ASSETS - (3.5)% | (103,368) | ||
NET ASSETS - 100% | $ 2,925,897 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Issuer is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $39,646,000 or 1.4% of net assets. |
(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,121,000 or 0.3% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
ICO North America, Inc. 7.5% 8/15/09 | 8/12/05 - 8/15/08 | $ 17,007 |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Phosphate Holdings, Inc. | 1/25/08 | $ 9,994 |
Viasystems Group, Inc. | 2/13/04 | $ 12,594 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,214 |
Fidelity Securities Lending Cash Central Fund | 1,465 |
Total | $ 2,679 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
American Science & Engineering, Inc. | $ 28,830 | $ - | $ 21,654 | $ 144 | $ - |
Cenveo, Inc. | 35,651 | - | - | - | 15,240 |
Exterran Holdings, Inc. | 239,059 | - | 7,358 | - | 84,997 |
Forest Oil Corp. | 274,548 | - | 3,092 | - | - |
General Maritime Corp. | 76,757 | - | 11,205 | 2,317 | - |
Grey Wolf, Inc. | 90,434 | - | 67,370 | - | - |
H.B. Fuller Co. | 74,575 | - | 22,365 | 138 | - |
Merix Corp. | 3,059 | - | - | - | 556 |
OceanFreight, Inc. | 14,375 | - | - | 342 | - |
ON Semiconductor Corp. | 216,719 | - | - | - | 96,243 |
Overseas Shipholding Group, Inc. | 158,169 | - | 11,015 | 1,705 | 61,776 |
Service Corp. International | 167,531 | - | - | 1,400 | 79,652 |
Tenet Healthcare Corp. | 132,911 | 9,444 | - | - | 27,996 |
Total | $ 1,512,618 | $ 9,444 | $ 144,059 | $ 6,046 | $ 366,460 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,029,265 | $ 2,778,747 | $ 241,814 | $ 8,704 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ 1,457 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (19,463) |
Cost of Purchases | 693 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | 26,017 |
Ending Balance | $ 8,704 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
AAA,AA,A | 0.0% |
BBB | 0.0% |
BB | 3.0% |
B | 3.4% |
CCC,CC,C | 0.5% |
D | 0.0% |
Not Rated | 1.0% |
Equities | 89.4% |
Short-Term Investments and Net Other Assets | 2.7% |
| 100.0% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $80,034) - See accompanying schedule: Unaffiliated issuers (cost $4,266,564) | $ 2,481,203 |
|
Fidelity Central Funds (cost $181,602) | 181,602 |
|
Other affiliated issuers (cost $784,070) | 366,460 |
|
Total Investments (cost $5,232,236) |
| $ 3,029,265 |
Cash | 1,107 | |
Receivable for investments sold | 13,723 | |
Receivable for fund shares sold | 4,767 | |
Dividends receivable | 660 | |
Interest receivable | 5,984 | |
Distributions receivable from Fidelity Central Funds | 180 | |
Prepaid expenses | 44 | |
Other receivables | 22 | |
Total assets | 3,055,752 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 35,845 | |
Payable for fund shares redeemed | 6,121 | |
Accrued management fee | 1,608 | |
Other affiliated payables | 778 | |
Other payables and accrued expenses | 30 | |
Collateral on securities loaned, at value | 85,473 | |
Total liabilities | 129,855 | |
|
|
|
Net Assets | $ 2,925,897 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,910,389 | |
Undistributed net investment income | 5,220 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (786,714) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,202,998) | |
Net Assets | $ 2,925,897 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
Leveraged Company Stock: | $ 13.63 | |
|
|
|
Class K: | $ 13.62 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
Investment Income |
|
|
Dividends (including $6,046 earned from other affiliated issuers) |
| $ 30,600 |
Interest |
| 14,780 |
Income from Fidelity Central Funds |
| 2,679 |
Total income |
| 48,059 |
|
|
|
Expenses | ||
Management fee | $ 14,224 | |
Transfer agent fees | 5,599 | |
Accounting and security lending fees | 532 | |
Custodian fees and expenses | 37 | |
Independent trustees' compensation | 15 | |
Registration fees | 89 | |
Audit | 36 | |
Legal | 22 | |
Miscellaneous | 15 | |
Total expenses before reductions | 20,569 | |
Expense reductions | (29) | 20,540 |
Net investment income (loss) | 27,519 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (732,231) | |
Other affiliated issuers | (54,208) |
|
Foreign currency transactions | (36) | |
Total net realized gain (loss) |
| (786,475) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (3,493,094) | |
Assets and liabilities in foreign currencies | (27) | |
Total change in net unrealized appreciation (depreciation) |
| (3,493,121) |
Net gain (loss) | (4,279,596) | |
Net increase (decrease) in net assets resulting from operations | $ (4,252,077) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 27,519 | $ 33,470 |
Net realized gain (loss) | (786,475) | 151,060 |
Change in net unrealized appreciation (depreciation) | (3,493,121) | (527,187) |
Net increase (decrease) in net assets resulting from operations | (4,252,077) | (342,657) |
Distributions to shareholders from net investment income | (31,749) | (89,831) |
Distributions to shareholders from net realized gain | (63,967) | (319,818) |
Total distributions | (95,716) | (409,649) |
Share transactions - net increase (decrease) | (760,298) | 950,964 |
Redemption fees | 1,881 | 3,350 |
Total increase (decrease) in net assets | (5,106,210) | 202,008 |
|
|
|
Net Assets | ||
Beginning of period | 8,032,107 | 7,830,099 |
End of period (including undistributed net investment income of $5,220 and undistributed net investment income of $11,678, respectively) | $ 2,925,897 | $ 8,032,107 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 | $ 14.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .14 | .44 G | .16 | .24 H | .04 |
Net realized and unrealized gain (loss) | (17.20) | (1.06) | 6.78 | 3.04 | 6.21 | 5.45 |
Total from investment operations | (17.08) | (.92) | 7.22 | 3.20 | 6.45 | 5.49 |
Distributions from net investment income | (.14) | (.39) | (.12) | (.21) | (.04) | - |
Distributions from net realized gain | (.25) | (1.39) | (1.40) | (.41) | (1.12) | (.27) |
Total distributions | (.39) | (1.78) | (1.52) | (.62) | (1.16) | (.27) |
Redemption fees added to paid in capital D | .01 | .01 | .01 | .01 | .01 | .03 |
Net asset value, end of period | $ 13.63 | $ 31.09 | $ 33.78 | $ 28.07 | $ 25.48 | $ 20.18 |
Total Return B,C | (55.37)% | (2.76)% | 27.08% | 12.80% | 33.93% | 37.27% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .89% A | .83% | .83% | .86% | .87% | .88% |
Expenses net of fee waivers, if any | .89% A | .83% | .83% | .86% | .87% | .88% |
Expenses net of all reductions | .89% A | .83% | .83% | .85% | .84% | .85% |
Net investment income (loss) | 1.18% A | .44% | 1.43% G | .60% | 1.04% H | .23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 2,711 | $ 8,032 | $ 7,830 | $ 4,174 | $ 3,328 | $ 1,504 |
Portfolio turnover rate F | 27% A | 30% | 20% | 23% | 16% | 35% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a special dividend which amounted to $.26 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .59%. HInvestment income per share reflects a special dividend which amounted to $.10 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been ..61%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .05 |
Net realized and unrealized gain (loss) | (17.19) | (3.04) |
Total from investment operations | (17.08) | (2.99) |
Distributions from net investment income | (.17) | - |
Distributions from net realized gain | (.25) | - |
Total distributions | (.42) | - |
Redemption fees added to paid in capital D | .01 | - I |
Net asset value, end of period | $ 13.62 | $ 31.11 |
Total Return B,C | (55.34)% | (8.77)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .69% A | .70% A |
Expenses net of fee waivers, if any | .69% A | .70% A |
Expenses net of all reductions | .69% A | .70% A |
Net investment income (loss) | 1.37% A | .58% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 214,695 | $ 91 |
Portfolio turnover rate F | 27% A | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Leveraged Company Stock and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between Leveraged Company Stock and Class K to eligible shareholders of Leveraged Company Stock. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount 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 | $ 160,094 |
Unrealized depreciation | (2,398,391) |
Net unrealized appreciation (depreciation) | $ (2,238,297) |
Cost for federal income tax purposes | $ 5,267,562 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $656,095 and $1,383,828, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 5,564 | .25 |
Class K | 35 | .05 |
| $ 5,599 |
|
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $27 for the period.
7. 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, which amounted to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,465.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Leverage Company Stock's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
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 $12 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Leveraged Company Stock | $ 11 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 30,127 | $ 89,831 |
Class K | 1,622 | - |
Total | $ 31,749 | $ 89,831 |
From net realized gain |
|
|
Leveraged Company Stock | $ 63,966 | $ 319,818 |
Class K | 1 | - |
Total | $ 63,967 | $ 319,818 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Leveraged Company Stock |
|
|
|
|
Shares sold | 29,086 | 100,393 | $ 598,411 | $ 3,279,172 |
Conversion to Class K | (12,879) | - | (288,716) | - |
Reinvestment of distributions | 3,995 | 12,305 | 89,681 | 391,353 |
Shares redeemed | (79,551) | (86,186) | (1,491,807) | (2,719,661) |
Net increase (decrease) | (59,349) | 26,512 | $ (1,092,431) | $ 950,864 |
Class K |
|
|
|
|
Shares sold | 4,495 | 3 | $ 69,926 | $ 100 |
Conversion from Leveraged Company Stock | 12,875 | - | 288,716 | - |
Reinvestment of distributions | 118 | - | 1,623 | - |
Shares redeemed | (1,725) | - | (28,132) | - |
Net increase (decrease) | 15,763 | 3 | $ 332,133 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Investments Japan Limited
FIL International Investment Advisors
FIL International Investment Advisors (U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
LSF-K-USAN-0309 1.863384.100
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
OTC | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 612.90 | $ 4.23 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.96 | $ 5.30 |
Class K | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 613.50 | $ 3.38 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A (sub. vtg.) | 6.2 | 6.6 |
Microsoft Corp. | 5.3 | 4.3 |
QUALCOMM, Inc. | 4.5 | 4.7 |
Apple, Inc. | 4.3 | 8.1 |
Cisco Systems, Inc. | 4.2 | 3.8 |
Amgen, Inc. | 2.9 | 1.4 |
Research In Motion Ltd. | 2.7 | 3.5 |
Gilead Sciences, Inc. | 2.4 | 1.9 |
Celgene Corp. | 2.2 | 2.3 |
Express Scripts, Inc. | 2.2 | 1.6 |
| 36.9 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 48.3 | 50.2 |
Health Care | 23.3 | 19.7 |
Consumer Discretionary | 10.8 | 7.6 |
Financials | 5.9 | 4.5 |
Industrials | 5.3 | 7.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.2% |
| ** Foreign investments | 14.1% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.8% | |||
Auto Components - 0.5% | |||
Amerigon, Inc. (a) | 241,531 | $ 828 | |
Exide Technologies (a) | 1,549,100 | 5,623 | |
Federal-Mogul Corp. Class A (a) | 1,399,100 | 8,059 | |
The Goodyear Tire & Rubber Co. (a) | 545,600 | 3,366 | |
| 17,876 | ||
Diversified Consumer Services - 0.8% | |||
American Public Education, Inc. (a) | 211,900 | 8,298 | |
Apollo Group, Inc. Class A (non-vtg.) (a) | 65,100 | 5,303 | |
Coinstar, Inc. (a) | 234,400 | 5,387 | |
Grand Canyon Education, Inc. | 133,251 | 2,309 | |
Strayer Education, Inc. | 32,900 | 7,121 | |
| 28,418 | ||
Hotels, Restaurants & Leisure - 2.3% | |||
Buffalo Wild Wings, Inc. (a) | 246,091 | 5,527 | |
Darden Restaurants, Inc. | 755,300 | 19,804 | |
Las Vegas Sands Corp. unit (a) | 123,900 | 10,593 | |
McDonald's Corp. | 56,300 | 3,267 | |
Red Robin Gourmet Burgers, Inc. (a) | 221,076 | 2,693 | |
Starbucks Corp. (a) | 1,917,800 | 18,104 | |
The Cheesecake Factory, Inc. (a) | 239,400 | 2,078 | |
Wendy's/Arby's Group, Inc. | 3,248,571 | 16,373 | |
| 78,439 | ||
Household Durables - 0.3% | |||
Pulte Homes, Inc. | 809,500 | 8,216 | |
Internet & Catalog Retail - 1.5% | |||
Amazon.com, Inc. | 847,900 | 49,873 | |
Media - 3.0% | |||
Comcast Corp. Class A | 4,526,100 | 66,307 | |
DISH Network Corp. Class A (a) | 540,000 | 6,934 | |
Liberty Media Corp. - Entertainment Class A (a) | 193,500 | 3,551 | |
The DIRECTV Group, Inc. (a) | 830,200 | 18,181 | |
Virgin Media, Inc. | 1,301,000 | 5,907 | |
| 100,880 | ||
Multiline Retail - 0.1% | |||
JCPenney Co., Inc. | 94,800 | 1,588 | |
Macy's, Inc. | 183,600 | 1,643 | |
| 3,231 | ||
Specialty Retail - 1.8% | |||
Charlotte Russe Holding, Inc. (a) | 113,400 | 584 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Citi Trends, Inc. (a) | 644,637 | $ 6,143 | |
Gymboree Corp. (a) | 307,400 | 7,531 | |
Staples, Inc. | 1,563,900 | 24,929 | |
The Children's Place Retail Stores, Inc. (a) | 325,100 | 6,115 | |
Urban Outfitters, Inc. (a)(d) | 1,094,100 | 17,046 | |
| 62,348 | ||
Textiles, Apparel & Luxury Goods - 0.5% | |||
American Apparel, Inc. (a)(d) | 2,628,213 | 5,335 | |
G-III Apparel Group Ltd. (a) | 260,000 | 1,430 | |
Lululemon Athletica, Inc. (a)(d) | 1,259,873 | 8,567 | |
Provogue (India) Ltd. | 3,511,941 | 2,631 | |
| 17,963 | ||
TOTAL CONSUMER DISCRETIONARY | 367,244 | ||
CONSUMER STAPLES - 1.3% | |||
Beverages - 0.1% | |||
Central European Distribution Corp. (a)(d) | 193,700 | 2,344 | |
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 574,800 | 25,883 | |
Food Products - 0.4% | |||
Chiquita Brands International, Inc. (a) | 303,500 | 4,243 | |
Diamond Foods, Inc. | 200,000 | 5,136 | |
SunOpta, Inc. (a) | 1,296,600 | 3,060 | |
Tyson Foods, Inc. Class A | 360,100 | 3,187 | |
| 15,626 | ||
TOTAL CONSUMER STAPLES | 43,853 | ||
ENERGY - 2.6% | |||
Energy Equipment & Services - 0.2% | |||
BJ Services Co. | 149,500 | 1,645 | |
Patterson-UTI Energy, Inc. | 282,500 | 2,701 | |
Trico Marine Services, Inc. (a)(d) | 200,000 | 1,244 | |
Weatherford International Ltd. (a) | 155,000 | 1,710 | |
| 7,300 | ||
Oil, Gas & Consumable Fuels - 2.4% | |||
Chesapeake Energy Corp. | 1,401,975 | 22,165 | |
Delta Petroleum Corp. (a)(d) | 683,800 | 2,968 | |
Devon Energy Corp. | 37,600 | 2,316 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
EOG Resources, Inc. | 80,500 | $ 5,455 | |
Golar LNG Ltd. (NASDAQ) | 559,600 | 3,447 | |
Hess Corp. | 69,400 | 3,859 | |
James River Coal Co. (a) | 202,900 | 2,751 | |
Patriot Coal Corp. (a) | 757,100 | 3,884 | |
Peabody Energy Corp. | 281,300 | 7,033 | |
Petrohawk Energy Corp. (a) | 185,200 | 3,650 | |
Range Resources Corp. | 123,800 | 4,437 | |
Rex Energy Corp. (a) | 750,000 | 1,793 | |
Southwestern Energy Co. (a) | 378,900 | 11,992 | |
Walter Industries, Inc. | 265,200 | 4,890 | |
| 80,640 | ||
TOTAL ENERGY | 87,940 | ||
FINANCIALS - 5.9% | |||
Capital Markets - 3.8% | |||
Charles Schwab Corp. | 1,581,800 | 21,497 | |
Credit Suisse Group sponsored ADR | 141,500 | 3,607 | |
Goldman Sachs Group, Inc. | 446,300 | 36,030 | |
Morgan Stanley | 2,201,200 | 44,530 | |
Northern Trust Corp. | 70,200 | 4,038 | |
T. Rowe Price Group, Inc. | 660,500 | 18,217 | |
| 127,919 | ||
Diversified Financial Services - 1.7% | |||
Bank of America Corp. | 1,309,200 | 8,615 | |
Citigroup, Inc. | 1,992,800 | 7,074 | |
CME Group, Inc. | 171,900 | 29,895 | |
JPMorgan Chase & Co. | 489,500 | 12,487 | |
| 58,071 | ||
Insurance - 0.4% | |||
Fidelity National Financial, Inc. Class A | 557,800 | 8,155 | |
The First American Corp. | 322,800 | 7,050 | |
| 15,205 | ||
Real Estate Investment Trusts - 0.0% | |||
SWA REIT Ltd. unit (a) | 38,400 | 0 | |
TOTAL FINANCIALS | 201,195 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 17.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 360,960 | $ 13,309 | |
Alkermes, Inc. (a) | 1,109,941 | 12,731 | |
Alnylam Pharmaceuticals, Inc. (a) | 574,300 | 12,112 | |
Amgen, Inc. (a) | 1,772,200 | 97,205 | |
Amylin Pharmaceuticals, Inc. (a)(d) | 2,108,209 | 24,371 | |
Biogen Idec, Inc. (a) | 1,347,775 | 65,569 | |
Celgene Corp. (a) | 1,436,692 | 76,073 | |
Cephalon, Inc. (a) | 576,000 | 44,456 | |
Cougar Biotechnology, Inc. (a) | 968,145 | 28,251 | |
Gilead Sciences, Inc. (a) | 1,585,500 | 80,496 | |
GTx, Inc. (a)(d) | 544,100 | 6,007 | |
InterMune, Inc. (a) | 478,200 | 5,471 | |
Isis Pharmaceuticals, Inc. (a) | 1,335,749 | 18,874 | |
Myriad Genetics, Inc. (a) | 142,689 | 10,640 | |
Regeneron Pharmaceuticals, Inc. (a) | 1,150,500 | 20,111 | |
Rigel Pharmaceuticals, Inc. (a)(d) | 833,284 | 5,825 | |
Seattle Genetics, Inc. (a) | 1,159,303 | 11,697 | |
Transition Therapeutics, Inc. (a) | 674,633 | 3,269 | |
Vertex Pharmaceuticals, Inc. (a) | 1,214,088 | 40,126 | |
| 576,593 | ||
Health Care Equipment & Supplies - 0.2% | |||
NuVasive, Inc. (a) | 157,100 | 5,866 | |
Thoratec Corp. (a) | 49,500 | 1,434 | |
| 7,300 | ||
Health Care Providers & Services - 2.3% | |||
Emeritus Corp. (a) | 289,500 | 2,394 | |
Express Scripts, Inc. (a) | 1,364,410 | 73,351 | |
| 75,745 | ||
Life Sciences Tools & Services - 1.5% | |||
Exelixis, Inc. (a)(d) | 1,699,972 | 8,381 | |
Illumina, Inc. (a)(d) | 1,077,492 | 29,480 | |
Illumina, Inc.: | |||
warrants 11/20/10 (a)(e) | 354,776 | 3,517 | |
warrants 1/19/11 (a)(e) | 452,917 | 4,620 | |
Medivation, Inc. (a)(d) | 247,300 | 4,637 | |
| 50,635 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 2.3% | |||
Elan Corp. PLC sponsored ADR (a) | 3,162,900 | $ 22,868 | |
Salix Pharmaceuticals Ltd. (a)(d) | 250,000 | 2,000 | |
Sepracor, Inc. (a) | 370,500 | 5,632 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,169,973 | 48,495 | |
| 78,995 | ||
TOTAL HEALTH CARE | 789,268 | ||
INDUSTRIALS - 5.3% | |||
Aerospace & Defense - 0.1% | |||
BE Aerospace, Inc. (a) | 443,100 | 4,285 | |
Air Freight & Logistics - 0.3% | |||
Expeditors International of Washington, Inc. | 163,300 | 4,541 | |
FedEx Corp. | 98,400 | 5,012 | |
Pacer International, Inc. | 200,000 | 1,720 | |
| 11,273 | ||
Airlines - 1.1% | |||
Continental Airlines, Inc. Class B (a) | 742,500 | 10,001 | |
Delta Air Lines, Inc. (a) | 1,030,274 | 7,109 | |
UAL Corp. | 1,059,377 | 10,001 | |
US Airways Group, Inc. (a) | 1,860,800 | 10,551 | |
| 37,662 | ||
Commercial Services & Supplies - 0.3% | |||
EnergySolutions, Inc. | 1,033,900 | 4,642 | |
Fuel Tech, Inc. (a) | 148,440 | 1,486 | |
Interface, Inc. Class A | 874,900 | 3,570 | |
| 9,698 | ||
Construction & Engineering - 0.1% | |||
MYR Group, Inc. (a) | 150,130 | 2,162 | |
Electrical Equipment - 1.7% | |||
Energy Conversion Devices, Inc. (a)(d) | 478,900 | 12,054 | |
EnerSys (a) | 73,700 | 671 | |
First Solar, Inc. (a) | 217,400 | 31,045 | |
Sunpower Corp. Class A (a)(d) | 159,400 | 5,349 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 330,400 | 3,109 | |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 826,000 | 4,617 | |
| 56,845 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 0.3% | |||
Navistar International Corp. (a) | 203,789 | $ 6,189 | |
PACCAR, Inc. | 123,200 | 3,251 | |
| 9,440 | ||
Marine - 0.3% | |||
Diana Shipping, Inc. | 362,200 | 4,814 | |
Genco Shipping & Trading Ltd. (d) | 235,800 | 3,667 | |
| 8,481 | ||
Professional Services - 0.0% | |||
Monster Worldwide, Inc. (a) | 173,500 | 1,598 | |
Road & Rail - 0.6% | |||
J.B. Hunt Transport Services, Inc. | 496,500 | 11,057 | |
Landstar System, Inc. | 248,400 | 8,910 | |
| 19,967 | ||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. (d) | 154,200 | 5,271 | |
Interline Brands, Inc. (a) | 434,400 | 3,475 | |
Rush Enterprises, Inc. Class A (a) | 242,800 | 2,209 | |
| 10,955 | ||
Transportation Infrastructure - 0.2% | |||
Aegean Marine Petroleum Network, Inc. | 407,100 | 6,965 | |
TOTAL INDUSTRIALS | 179,331 | ||
INFORMATION TECHNOLOGY - 48.3% | |||
Communications Equipment - 12.3% | |||
China TechFaith Wireless Communication Technology Ltd. sponsored ADR (a)(d) | 1,748,753 | 2,396 | |
Cisco Systems, Inc. (a) | 9,451,500 | 141,489 | |
Corning, Inc. | 870,000 | 8,796 | |
QUALCOMM, Inc. | 4,438,100 | 153,336 | |
Research In Motion Ltd. (a) | 1,674,766 | 92,782 | |
Starent Networks Corp. (a) | 1,232,300 | 18,115 | |
| 416,914 | ||
Computers & Peripherals - 6.5% | |||
Apple, Inc. (a) | 1,610,900 | 145,190 | |
Dell, Inc. (a) | 1,085,600 | 10,313 | |
Hewlett-Packard Co. | 221,300 | 7,690 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Palm, Inc. (a)(d) | 4,909,259 | $ 37,654 | |
Seagate Technology | 4,781,300 | 18,121 | |
| 218,968 | ||
Electronic Equipment & Components - 0.9% | |||
Arrow Electronics, Inc. (a) | 116,200 | 2,216 | |
Avnet, Inc. (a) | 115,200 | 2,283 | |
BYD Co. Ltd. (H Shares) | 1,132,000 | 2,110 | |
Cogent, Inc. (a) | 148,700 | 1,731 | |
DTS, Inc. (a) | 99,954 | 1,359 | |
Flextronics International Ltd. (a) | 6,007,900 | 15,681 | |
Insight Enterprises, Inc. (a) | 354,100 | 1,834 | |
Itron, Inc. (a) | 29,000 | 1,894 | |
Orbotech Ltd. (a) | 451,900 | 1,880 | |
| 30,988 | ||
Internet Software & Services - 8.0% | |||
Akamai Technologies, Inc. (a) | 909,500 | 12,260 | |
Ariba, Inc. (a) | 257,000 | 1,963 | |
China Finance Online Co. Ltd. ADR (a) | 60,800 | 489 | |
eBay, Inc. (a) | 766,500 | 9,213 | |
Google, Inc. Class A (sub. vtg.) (a) | 616,240 | 208,620 | |
Mercadolibre, Inc. (a)(d) | 583,250 | 7,821 | |
The Knot, Inc. (a) | 350,000 | 2,408 | |
Yahoo!, Inc. (a) | 2,323,100 | 27,250 | |
| 270,024 | ||
IT Services - 3.3% | |||
Cognizant Technology Solutions Corp. Class A (a) | 3,632,845 | 68,043 | |
MasterCard, Inc. Class A | 50,100 | 6,803 | |
Visa, Inc. | 737,000 | 36,371 | |
| 111,217 | ||
Semiconductors & Semiconductor Equipment - 6.4% | |||
Advanced Analogic Technologies, Inc. (a) | 458,400 | 1,380 | |
Applied Materials, Inc. | 3,133,251 | 29,359 | |
ASML Holding NV (NY Shares) | 232,600 | 3,847 | |
Cypress Semiconductor Corp. (a) | 863,950 | 3,896 | |
Diodes, Inc. (a) | 412,900 | 2,676 | |
Fairchild Semiconductor International, Inc. (a) | 615,800 | 2,802 | |
Integrated Device Technology, Inc. (a) | 1,498,500 | 8,601 | |
Intel Corp. | 1,084,300 | 13,987 | |
Intersil Corp. Class A | 1,768,500 | 16,465 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Lam Research Corp. (a) | 691,600 | $ 13,977 | |
Marvell Technology Group Ltd. (a) | 1,396,700 | 10,182 | |
Maxim Integrated Products, Inc. | 2,013,972 | 26,645 | |
MEMC Electronic Materials, Inc. (a) | 1,026,200 | 13,956 | |
Microchip Technology, Inc. | 270,500 | 5,131 | |
Monolithic Power Systems, Inc. (a) | 491,800 | 5,975 | |
NVIDIA Corp. (a) | 649,900 | 5,167 | |
O2Micro International Ltd. sponsored ADR (a) | 1,850,700 | 4,257 | |
Omnivision Technologies, Inc. (a) | 642,000 | 4,295 | |
ON Semiconductor Corp. (a) | 165,300 | 689 | |
Skyworks Solutions, Inc. (a) | 2,464,808 | 10,648 | |
Standard Microsystems Corp. (a) | 410,600 | 5,687 | |
Supertex, Inc. (a) | 100,000 | 2,269 | |
TriQuint Semiconductor, Inc. (a) | 1,346,000 | 2,719 | |
Varian Semiconductor Equipment Associates, Inc. (a)(d) | 1,166,700 | 22,214 | |
| 216,824 | ||
Software - 10.9% | |||
Adobe Systems, Inc. (a) | 257,800 | 4,978 | |
ArcSight, Inc. | 222,000 | 2,062 | |
Autodesk, Inc. (a) | 103,400 | 1,712 | |
Autonomy Corp. PLC (a) | 411,800 | 6,531 | |
Electronic Arts, Inc. (a) | 3,829,400 | 59,126 | |
Microsoft Corp. | 10,395,200 | 177,758 | |
Nintendo Co. Ltd. | 51,100 | 14,880 | |
Nintendo Co. Ltd. ADR | 640,168 | 23,302 | |
Oracle Corp. (a) | 1,600,400 | 26,935 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 107,300 | 1,589 | |
Phoenix Technologies Ltd. (a) | 483,500 | 1,247 | |
Symantec Corp. (a) | 1,027,600 | 15,753 | |
Take-Two Interactive Software, Inc. | 479,600 | 3,367 | |
THQ, Inc. (a) | 1,315,900 | 5,198 | |
TiVo, Inc. (a)(d) | 2,583,075 | 18,572 | |
VMware, Inc. Class A (a) | 261,400 | 5,411 | |
| 368,421 | ||
TOTAL INFORMATION TECHNOLOGY | 1,633,356 | ||
MATERIALS - 2.0% | |||
Chemicals - 1.1% | |||
FMC Corp. | 139,300 | 6,216 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Monsanto Co. | 133,400 | $ 10,146 | |
Solutia, Inc. (a) | 652,000 | 2,549 | |
Terra Industries, Inc. | 506,500 | 10,373 | |
The Mosaic Co. | 93,000 | 3,317 | |
W.R. Grace & Co. (a) | 461,300 | 2,662 | |
| 35,263 | ||
Containers & Packaging - 0.3% | |||
Rock-Tenn Co. Class A | 158,750 | 4,948 | |
Temple-Inland, Inc. | 1,047,200 | 5,938 | |
| 10,886 | ||
Metals & Mining - 0.6% | |||
Commercial Metals Co. | 158,700 | 1,825 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 323,000 | 8,120 | |
Impala Platinum Holdings Ltd. (sponsored ADR) | 307,800 | 3,558 | |
Steel Dynamics, Inc. | 319,500 | 3,393 | |
United States Steel Corp. | 115,300 | 3,462 | |
| 20,358 | ||
TOTAL MATERIALS | 66,507 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Wireless Telecommunication Services - 0.3% | |||
Crown Castle International Corp. (a) | 265,000 | 5,173 | |
SBA Communications Corp. Class A (a) | 250,000 | 4,975 | |
| 10,148 | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
Exelon Corp. | 31,800 | 1,724 | |
TOTAL COMMON STOCKS (Cost $4,516,924) | 3,380,566 | ||
Money Market Funds - 1.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 326,825 | $ 327 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 64,965,725 | 64,966 | |
TOTAL MONEY MARKET FUNDS (Cost $65,293) | 65,293 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $4,582,217) | 3,445,859 | ||
NET OTHER ASSETS - (1.8)% | (61,197) | ||
NET ASSETS - 100% | $ 3,384,662 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,137,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Illumina, Inc. warrants 11/20/10 | 11/21/05 | $ - |
1/19/11 | 1/18/06 | $ - |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 215 |
Fidelity Securities Lending Cash Central Fund | 1,731 |
Total | $ 1,946 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
FreightCar America, Inc. | $ 24,187 | $ - | $ 16,975 | $ 38 | $ - |
Provogue (India) Ltd. | 22,092 | 16 | 1,988 | 44 | - |
Total | $ 46,279 | $ 16 | $ 18,963 | $ 82 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,445,859 | $ 3,407,508 | $ 27,758 | $ 10,593 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | (85) |
Total Unrealized Gain (Loss) | (1,784) |
Cost of Purchases | 12,900 |
Proceeds of Sales | (534) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | 96 |
Ending Balance | $ 10,593 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $2,131,358,000 of which $881,463,000 and $1,249,895,000 will expire on July 31, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $61,739) - See accompanying schedule: Unaffiliated issuers (cost $4,516,924) | $ 3,380,566 |
|
Fidelity Central Funds (cost $65,293) | 65,293 |
|
Total Investments (cost $4,582,217) |
| $ 3,445,859 |
Cash | 271 | |
Foreign currency held at value (cost $6) | 6 | |
Receivable for investments sold | 79,533 | |
Receivable for fund shares sold | 4,183 | |
Dividends receivable | 856 | |
Distributions receivable from Fidelity Central Funds | 199 | |
Prepaid expenses | 45 | |
Other receivables | 605 | |
Total assets | 3,531,557 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 76,350 | |
Payable for fund shares redeemed | 2,301 | |
Accrued management fee | 2,246 | |
Other affiliated payables | 882 | |
Other payables and accrued expenses | 150 | |
Collateral on securities loaned, at value | 64,966 | |
Total liabilities | 146,895 | |
|
|
|
Net Assets | $ 3,384,662 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,487,622 | |
Accumulated net investment loss | (5,959) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,960,952) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,136,049) | |
Net Assets | $ 3,384,662 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
|
|
|
OTC: | $ 27.37 | |
|
|
|
Class K: | $ 27.41 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $82 earned from other affiliated issuers) |
| $ 15,559 |
Interest |
| 3 |
Income from Fidelity Central Funds (including $1,731 from security lending) |
| 1,946 |
Total income |
| 17,508 |
|
|
|
Expenses | ||
Management fee | $ 13,893 | |
Performance adjustment | 3,185 | |
Transfer agent fees | 5,636 | |
Accounting and security lending fees | 546 | |
Custodian fees and expenses | 70 | |
Independent trustees' compensation | 14 | |
Depreciation in deferred trustee compensation account | (2) | |
Registration fees | 40 | |
Audit | 47 | |
Legal | 23 | |
Interest | 21 | |
Miscellaneous | (103) | |
Total expenses before reductions | 23,370 | |
Expense reductions | (73) | 23,297 |
Net investment income (loss) | (5,789) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (740,401) | |
Redemption in-kind with affiliated entities | (11,026) | |
Other affiliated issuers | (10,509) |
|
Foreign currency transactions | (359) | |
Total net realized gain (loss) |
| (762,295) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,663,785) | |
Assets and liabilities in foreign currencies | (63) | |
Total change in net unrealized appreciation (depreciation) |
| (1,663,848) |
Net gain (loss) | (2,426,143) | |
Net increase (decrease) in net assets resulting from operations | $ (2,431,932) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (5,789) | $ (34,156) |
Net realized gain (loss) | (762,295) | 849,834 |
Change in net unrealized appreciation (depreciation) | (1,663,848) | (1,152,439) |
Net increase (decrease) in net assets resulting from operations | (2,431,932) | (336,761) |
Share transactions - net increase (decrease) | (1,054,127) | (1,570,431) |
Total increase (decrease) in net assets | (3,486,059) | (1,907,192) |
|
|
|
Net Assets | ||
Beginning of period | 6,870,721 | 8,777,913 |
End of period (including accumulated net investment loss of $5,959 and accumulated net investment loss of $170, respectively) | $ 3,384,662 | $ 6,870,721 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 | $ 28.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | (.20) | (.19) | (.10) G | .37 H | (.17) |
Net realized and unrealized gain (loss) | (17.25) | (2.23) | 12.58 | (1.19) | 5.60 | 2.27 |
Total from investment operations | (17.29) | (2.43) | 12.39 | (1.29) | 5.97 | 2.10 |
Distributions from net investment income | - | - | - | - | (.41) | - |
Net asset value, end of period | $ 27.37 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 |
Total Return B,C | (38.71)% | (5.16)% | 35.71% | (3.58)% | 19.70% | 7.41% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.06% | .96% | .80% | .81% | .91% |
Expenses net of fee waivers, if any | 1.04% A | 1.06% | .96% | .80% | .81% | .91% |
Expenses net of all reductions | 1.03% A | 1.05% | .95% | .75% | .75% | .89% |
Net investment income (loss) | (.26)% A | (.42)% | (.45)% | (.26)% G | 1.13% H | (.53)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,105 | $ 6,871 | $ 8,778 | $ 7,370 | $ 8,063 | $ 7,322 |
Portfolio turnover rate F | 135% A | 145% | 121% | 149% | 117% | 61% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
H Investment income per share reflects a special dividend which amounted to $.46 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.27)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
Net investment income (loss) D | (.01) | (.05) |
Net realized and unrealized gain (loss) | (17.26) | (3.06) |
Total from investment operations | (17.27) | (3.11) |
Net asset value, end of period | $ 27.41 | $ 44.68 |
Total Return B,C | (38.65)% | (6.51)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .83% A | .91% A |
Expenses net of fee waivers, if any | .83% A | .91% A |
Expenses net of all reductions | .83% A | .91% A |
Net investment income (loss) | (.06)% A | (.47)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 279,782 | $ 93 |
Portfolio turnover rate F | 135% A | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity OTC Portfolio (the Fund) is a non-diversified fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers OTC and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between OTC and Class K to eligible shareholders of OTC. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 195,551 |
Unrealized depreciation | (1,421,680) |
Net unrealized appreciation (depreciation) | $ (1,226,129) |
Cost for federal income tax purposes | $ 4,671,988 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $3,163,061 and $4,209,818, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35%
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, OTC, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .75% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
OTC | $ 5,602 | .25 |
Class K | 34 | .05 |
| $ 5,636 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $74 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 15,950 | 2.47% | $ 20 |
7. Redemption-in-Kind.
On October 17, 2008, 11,638 fund shares held by affiliated entities were redeemed in kind for cash and securities with a value of $340,258. The realized gain (loss) of $(11,026) on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations and is not taxable to the Fund.
8. 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, which amounted to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
9. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
10. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,641. The weighted average interest rate was 1.49%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
11. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of OTC's operating expenses. During the period, this reimbursement reduced the class' expenses by $3.
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 $36 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
OTC | $ 30 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
OTC |
|
|
|
|
Shares sold | 9,926 | 36,635 | $ 327,095 | $ 1,795,997 |
Conversion to Class K | (10,197) | - | $ (301,574) | $ - |
Shares redeemed | (40,132) | (69,178) | (1,381,811) | (3,366,528) |
Net increase (decrease) | (40,403) | (32,543) | $ (1,356,290) | $ (1,570,531) |
Class K |
|
|
|
|
Shares sold | 507 | 2 | $ 14,198 | $ 100 |
Conversion from OTC | 10,186 | - | $ 301,574 | $ - |
Shares redeemed | (487) | - | (13,609) | - |
Net increase (decrease) | 10,206 | 2 | $ 302,163 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
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1-800-544-5555
Press
For mutual fund and brokerage trading.
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To change your PIN.
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By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
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Semiannual Report
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OTC-USAN-0309 1.789288.106
Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized | Beginning | Ending | Expenses Paid |
OTC | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 612.90 | $ 4.23 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.96 | $ 5.30 |
Class K | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 613.50 | $ 3.38 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A (sub. vtg.) | 6.2 | 6.6 |
Microsoft Corp. | 5.3 | 4.3 |
QUALCOMM, Inc. | 4.5 | 4.7 |
Apple, Inc. | 4.3 | 8.1 |
Cisco Systems, Inc. | 4.2 | 3.8 |
Amgen, Inc. | 2.9 | 1.4 |
Research In Motion Ltd. | 2.7 | 3.5 |
Gilead Sciences, Inc. | 2.4 | 1.9 |
Celgene Corp. | 2.2 | 2.3 |
Express Scripts, Inc. | 2.2 | 1.6 |
| 36.9 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 48.3 | 50.2 |
Health Care | 23.3 | 19.7 |
Consumer Discretionary | 10.8 | 7.6 |
Financials | 5.9 | 4.5 |
Industrials | 5.3 | 7.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.2% |
| ** Foreign investments | 14.1% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.8% | |||
Auto Components - 0.5% | |||
Amerigon, Inc. (a) | 241,531 | $ 828 | |
Exide Technologies (a) | 1,549,100 | 5,623 | |
Federal-Mogul Corp. Class A (a) | 1,399,100 | 8,059 | |
The Goodyear Tire & Rubber Co. (a) | 545,600 | 3,366 | |
| 17,876 | ||
Diversified Consumer Services - 0.8% | |||
American Public Education, Inc. (a) | 211,900 | 8,298 | |
Apollo Group, Inc. Class A (non-vtg.) (a) | 65,100 | 5,303 | |
Coinstar, Inc. (a) | 234,400 | 5,387 | |
Grand Canyon Education, Inc. | 133,251 | 2,309 | |
Strayer Education, Inc. | 32,900 | 7,121 | |
| 28,418 | ||
Hotels, Restaurants & Leisure - 2.3% | |||
Buffalo Wild Wings, Inc. (a) | 246,091 | 5,527 | |
Darden Restaurants, Inc. | 755,300 | 19,804 | |
Las Vegas Sands Corp. unit (a) | 123,900 | 10,593 | |
McDonald's Corp. | 56,300 | 3,267 | |
Red Robin Gourmet Burgers, Inc. (a) | 221,076 | 2,693 | |
Starbucks Corp. (a) | 1,917,800 | 18,104 | |
The Cheesecake Factory, Inc. (a) | 239,400 | 2,078 | |
Wendy's/Arby's Group, Inc. | 3,248,571 | 16,373 | |
| 78,439 | ||
Household Durables - 0.3% | |||
Pulte Homes, Inc. | 809,500 | 8,216 | |
Internet & Catalog Retail - 1.5% | |||
Amazon.com, Inc. | 847,900 | 49,873 | |
Media - 3.0% | |||
Comcast Corp. Class A | 4,526,100 | 66,307 | |
DISH Network Corp. Class A (a) | 540,000 | 6,934 | |
Liberty Media Corp. - Entertainment Class A (a) | 193,500 | 3,551 | |
The DIRECTV Group, Inc. (a) | 830,200 | 18,181 | |
Virgin Media, Inc. | 1,301,000 | 5,907 | |
| 100,880 | ||
Multiline Retail - 0.1% | |||
JCPenney Co., Inc. | 94,800 | 1,588 | |
Macy's, Inc. | 183,600 | 1,643 | |
| 3,231 | ||
Specialty Retail - 1.8% | |||
Charlotte Russe Holding, Inc. (a) | 113,400 | 584 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Citi Trends, Inc. (a) | 644,637 | $ 6,143 | |
Gymboree Corp. (a) | 307,400 | 7,531 | |
Staples, Inc. | 1,563,900 | 24,929 | |
The Children's Place Retail Stores, Inc. (a) | 325,100 | 6,115 | |
Urban Outfitters, Inc. (a)(d) | 1,094,100 | 17,046 | |
| 62,348 | ||
Textiles, Apparel & Luxury Goods - 0.5% | |||
American Apparel, Inc. (a)(d) | 2,628,213 | 5,335 | |
G-III Apparel Group Ltd. (a) | 260,000 | 1,430 | |
Lululemon Athletica, Inc. (a)(d) | 1,259,873 | 8,567 | |
Provogue (India) Ltd. | 3,511,941 | 2,631 | |
| 17,963 | ||
TOTAL CONSUMER DISCRETIONARY | 367,244 | ||
CONSUMER STAPLES - 1.3% | |||
Beverages - 0.1% | |||
Central European Distribution Corp. (a)(d) | 193,700 | 2,344 | |
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 574,800 | 25,883 | |
Food Products - 0.4% | |||
Chiquita Brands International, Inc. (a) | 303,500 | 4,243 | |
Diamond Foods, Inc. | 200,000 | 5,136 | |
SunOpta, Inc. (a) | 1,296,600 | 3,060 | |
Tyson Foods, Inc. Class A | 360,100 | 3,187 | |
| 15,626 | ||
TOTAL CONSUMER STAPLES | 43,853 | ||
ENERGY - 2.6% | |||
Energy Equipment & Services - 0.2% | |||
BJ Services Co. | 149,500 | 1,645 | |
Patterson-UTI Energy, Inc. | 282,500 | 2,701 | |
Trico Marine Services, Inc. (a)(d) | 200,000 | 1,244 | |
Weatherford International Ltd. (a) | 155,000 | 1,710 | |
| 7,300 | ||
Oil, Gas & Consumable Fuels - 2.4% | |||
Chesapeake Energy Corp. | 1,401,975 | 22,165 | |
Delta Petroleum Corp. (a)(d) | 683,800 | 2,968 | |
Devon Energy Corp. | 37,600 | 2,316 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
EOG Resources, Inc. | 80,500 | $ 5,455 | |
Golar LNG Ltd. (NASDAQ) | 559,600 | 3,447 | |
Hess Corp. | 69,400 | 3,859 | |
James River Coal Co. (a) | 202,900 | 2,751 | |
Patriot Coal Corp. (a) | 757,100 | 3,884 | |
Peabody Energy Corp. | 281,300 | 7,033 | |
Petrohawk Energy Corp. (a) | 185,200 | 3,650 | |
Range Resources Corp. | 123,800 | 4,437 | |
Rex Energy Corp. (a) | 750,000 | 1,793 | |
Southwestern Energy Co. (a) | 378,900 | 11,992 | |
Walter Industries, Inc. | 265,200 | 4,890 | |
| 80,640 | ||
TOTAL ENERGY | 87,940 | ||
FINANCIALS - 5.9% | |||
Capital Markets - 3.8% | |||
Charles Schwab Corp. | 1,581,800 | 21,497 | |
Credit Suisse Group sponsored ADR | 141,500 | 3,607 | |
Goldman Sachs Group, Inc. | 446,300 | 36,030 | |
Morgan Stanley | 2,201,200 | 44,530 | |
Northern Trust Corp. | 70,200 | 4,038 | |
T. Rowe Price Group, Inc. | 660,500 | 18,217 | |
| 127,919 | ||
Diversified Financial Services - 1.7% | |||
Bank of America Corp. | 1,309,200 | 8,615 | |
Citigroup, Inc. | 1,992,800 | 7,074 | |
CME Group, Inc. | 171,900 | 29,895 | |
JPMorgan Chase & Co. | 489,500 | 12,487 | |
| 58,071 | ||
Insurance - 0.4% | |||
Fidelity National Financial, Inc. Class A | 557,800 | 8,155 | |
The First American Corp. | 322,800 | 7,050 | |
| 15,205 | ||
Real Estate Investment Trusts - 0.0% | |||
SWA REIT Ltd. unit (a) | 38,400 | 0 | |
TOTAL FINANCIALS | 201,195 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 23.3% | |||
Biotechnology - 17.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 360,960 | $ 13,309 | |
Alkermes, Inc. (a) | 1,109,941 | 12,731 | |
Alnylam Pharmaceuticals, Inc. (a) | 574,300 | 12,112 | |
Amgen, Inc. (a) | 1,772,200 | 97,205 | |
Amylin Pharmaceuticals, Inc. (a)(d) | 2,108,209 | 24,371 | |
Biogen Idec, Inc. (a) | 1,347,775 | 65,569 | |
Celgene Corp. (a) | 1,436,692 | 76,073 | |
Cephalon, Inc. (a) | 576,000 | 44,456 | |
Cougar Biotechnology, Inc. (a) | 968,145 | 28,251 | |
Gilead Sciences, Inc. (a) | 1,585,500 | 80,496 | |
GTx, Inc. (a)(d) | 544,100 | 6,007 | |
InterMune, Inc. (a) | 478,200 | 5,471 | |
Isis Pharmaceuticals, Inc. (a) | 1,335,749 | 18,874 | |
Myriad Genetics, Inc. (a) | 142,689 | 10,640 | |
Regeneron Pharmaceuticals, Inc. (a) | 1,150,500 | 20,111 | |
Rigel Pharmaceuticals, Inc. (a)(d) | 833,284 | 5,825 | |
Seattle Genetics, Inc. (a) | 1,159,303 | 11,697 | |
Transition Therapeutics, Inc. (a) | 674,633 | 3,269 | |
Vertex Pharmaceuticals, Inc. (a) | 1,214,088 | 40,126 | |
| 576,593 | ||
Health Care Equipment & Supplies - 0.2% | |||
NuVasive, Inc. (a) | 157,100 | 5,866 | |
Thoratec Corp. (a) | 49,500 | 1,434 | |
| 7,300 | ||
Health Care Providers & Services - 2.3% | |||
Emeritus Corp. (a) | 289,500 | 2,394 | |
Express Scripts, Inc. (a) | 1,364,410 | 73,351 | |
| 75,745 | ||
Life Sciences Tools & Services - 1.5% | |||
Exelixis, Inc. (a)(d) | 1,699,972 | 8,381 | |
Illumina, Inc. (a)(d) | 1,077,492 | 29,480 | |
Illumina, Inc.: | |||
warrants 11/20/10 (a)(e) | 354,776 | 3,517 | |
warrants 1/19/11 (a)(e) | 452,917 | 4,620 | |
Medivation, Inc. (a)(d) | 247,300 | 4,637 | |
| 50,635 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 2.3% | |||
Elan Corp. PLC sponsored ADR (a) | 3,162,900 | $ 22,868 | |
Salix Pharmaceuticals Ltd. (a)(d) | 250,000 | 2,000 | |
Sepracor, Inc. (a) | 370,500 | 5,632 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,169,973 | 48,495 | |
| 78,995 | ||
TOTAL HEALTH CARE | 789,268 | ||
INDUSTRIALS - 5.3% | |||
Aerospace & Defense - 0.1% | |||
BE Aerospace, Inc. (a) | 443,100 | 4,285 | |
Air Freight & Logistics - 0.3% | |||
Expeditors International of Washington, Inc. | 163,300 | 4,541 | |
FedEx Corp. | 98,400 | 5,012 | |
Pacer International, Inc. | 200,000 | 1,720 | |
| 11,273 | ||
Airlines - 1.1% | |||
Continental Airlines, Inc. Class B (a) | 742,500 | 10,001 | |
Delta Air Lines, Inc. (a) | 1,030,274 | 7,109 | |
UAL Corp. | 1,059,377 | 10,001 | |
US Airways Group, Inc. (a) | 1,860,800 | 10,551 | |
| 37,662 | ||
Commercial Services & Supplies - 0.3% | |||
EnergySolutions, Inc. | 1,033,900 | 4,642 | |
Fuel Tech, Inc. (a) | 148,440 | 1,486 | |
Interface, Inc. Class A | 874,900 | 3,570 | |
| 9,698 | ||
Construction & Engineering - 0.1% | |||
MYR Group, Inc. (a) | 150,130 | 2,162 | |
Electrical Equipment - 1.7% | |||
Energy Conversion Devices, Inc. (a)(d) | 478,900 | 12,054 | |
EnerSys (a) | 73,700 | 671 | |
First Solar, Inc. (a) | 217,400 | 31,045 | |
Sunpower Corp. Class A (a)(d) | 159,400 | 5,349 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 330,400 | 3,109 | |
Yingli Green Energy Holding Co. Ltd. ADR (a)(d) | 826,000 | 4,617 | |
| 56,845 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 0.3% | |||
Navistar International Corp. (a) | 203,789 | $ 6,189 | |
PACCAR, Inc. | 123,200 | 3,251 | |
| 9,440 | ||
Marine - 0.3% | |||
Diana Shipping, Inc. | 362,200 | 4,814 | |
Genco Shipping & Trading Ltd. (d) | 235,800 | 3,667 | |
| 8,481 | ||
Professional Services - 0.0% | |||
Monster Worldwide, Inc. (a) | 173,500 | 1,598 | |
Road & Rail - 0.6% | |||
J.B. Hunt Transport Services, Inc. | 496,500 | 11,057 | |
Landstar System, Inc. | 248,400 | 8,910 | |
| 19,967 | ||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. (d) | 154,200 | 5,271 | |
Interline Brands, Inc. (a) | 434,400 | 3,475 | |
Rush Enterprises, Inc. Class A (a) | 242,800 | 2,209 | |
| 10,955 | ||
Transportation Infrastructure - 0.2% | |||
Aegean Marine Petroleum Network, Inc. | 407,100 | 6,965 | |
TOTAL INDUSTRIALS | 179,331 | ||
INFORMATION TECHNOLOGY - 48.3% | |||
Communications Equipment - 12.3% | |||
China TechFaith Wireless Communication Technology Ltd. sponsored ADR (a)(d) | 1,748,753 | 2,396 | |
Cisco Systems, Inc. (a) | 9,451,500 | 141,489 | |
Corning, Inc. | 870,000 | 8,796 | |
QUALCOMM, Inc. | 4,438,100 | 153,336 | |
Research In Motion Ltd. (a) | 1,674,766 | 92,782 | |
Starent Networks Corp. (a) | 1,232,300 | 18,115 | |
| 416,914 | ||
Computers & Peripherals - 6.5% | |||
Apple, Inc. (a) | 1,610,900 | 145,190 | |
Dell, Inc. (a) | 1,085,600 | 10,313 | |
Hewlett-Packard Co. | 221,300 | 7,690 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Palm, Inc. (a)(d) | 4,909,259 | $ 37,654 | |
Seagate Technology | 4,781,300 | 18,121 | |
| 218,968 | ||
Electronic Equipment & Components - 0.9% | |||
Arrow Electronics, Inc. (a) | 116,200 | 2,216 | |
Avnet, Inc. (a) | 115,200 | 2,283 | |
BYD Co. Ltd. (H Shares) | 1,132,000 | 2,110 | |
Cogent, Inc. (a) | 148,700 | 1,731 | |
DTS, Inc. (a) | 99,954 | 1,359 | |
Flextronics International Ltd. (a) | 6,007,900 | 15,681 | |
Insight Enterprises, Inc. (a) | 354,100 | 1,834 | |
Itron, Inc. (a) | 29,000 | 1,894 | |
Orbotech Ltd. (a) | 451,900 | 1,880 | |
| 30,988 | ||
Internet Software & Services - 8.0% | |||
Akamai Technologies, Inc. (a) | 909,500 | 12,260 | |
Ariba, Inc. (a) | 257,000 | 1,963 | |
China Finance Online Co. Ltd. ADR (a) | 60,800 | 489 | |
eBay, Inc. (a) | 766,500 | 9,213 | |
Google, Inc. Class A (sub. vtg.) (a) | 616,240 | 208,620 | |
Mercadolibre, Inc. (a)(d) | 583,250 | 7,821 | |
The Knot, Inc. (a) | 350,000 | 2,408 | |
Yahoo!, Inc. (a) | 2,323,100 | 27,250 | |
| 270,024 | ||
IT Services - 3.3% | |||
Cognizant Technology Solutions Corp. Class A (a) | 3,632,845 | 68,043 | |
MasterCard, Inc. Class A | 50,100 | 6,803 | |
Visa, Inc. | 737,000 | 36,371 | |
| 111,217 | ||
Semiconductors & Semiconductor Equipment - 6.4% | |||
Advanced Analogic Technologies, Inc. (a) | 458,400 | 1,380 | |
Applied Materials, Inc. | 3,133,251 | 29,359 | |
ASML Holding NV (NY Shares) | 232,600 | 3,847 | |
Cypress Semiconductor Corp. (a) | 863,950 | 3,896 | |
Diodes, Inc. (a) | 412,900 | 2,676 | |
Fairchild Semiconductor International, Inc. (a) | 615,800 | 2,802 | |
Integrated Device Technology, Inc. (a) | 1,498,500 | 8,601 | |
Intel Corp. | 1,084,300 | 13,987 | |
Intersil Corp. Class A | 1,768,500 | 16,465 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Lam Research Corp. (a) | 691,600 | $ 13,977 | |
Marvell Technology Group Ltd. (a) | 1,396,700 | 10,182 | |
Maxim Integrated Products, Inc. | 2,013,972 | 26,645 | |
MEMC Electronic Materials, Inc. (a) | 1,026,200 | 13,956 | |
Microchip Technology, Inc. | 270,500 | 5,131 | |
Monolithic Power Systems, Inc. (a) | 491,800 | 5,975 | |
NVIDIA Corp. (a) | 649,900 | 5,167 | |
O2Micro International Ltd. sponsored ADR (a) | 1,850,700 | 4,257 | |
Omnivision Technologies, Inc. (a) | 642,000 | 4,295 | |
ON Semiconductor Corp. (a) | 165,300 | 689 | |
Skyworks Solutions, Inc. (a) | 2,464,808 | 10,648 | |
Standard Microsystems Corp. (a) | 410,600 | 5,687 | |
Supertex, Inc. (a) | 100,000 | 2,269 | |
TriQuint Semiconductor, Inc. (a) | 1,346,000 | 2,719 | |
Varian Semiconductor Equipment Associates, Inc. (a)(d) | 1,166,700 | 22,214 | |
| 216,824 | ||
Software - 10.9% | |||
Adobe Systems, Inc. (a) | 257,800 | 4,978 | |
ArcSight, Inc. | 222,000 | 2,062 | |
Autodesk, Inc. (a) | 103,400 | 1,712 | |
Autonomy Corp. PLC (a) | 411,800 | 6,531 | |
Electronic Arts, Inc. (a) | 3,829,400 | 59,126 | |
Microsoft Corp. | 10,395,200 | 177,758 | |
Nintendo Co. Ltd. | 51,100 | 14,880 | |
Nintendo Co. Ltd. ADR | 640,168 | 23,302 | |
Oracle Corp. (a) | 1,600,400 | 26,935 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 107,300 | 1,589 | |
Phoenix Technologies Ltd. (a) | 483,500 | 1,247 | |
Symantec Corp. (a) | 1,027,600 | 15,753 | |
Take-Two Interactive Software, Inc. | 479,600 | 3,367 | |
THQ, Inc. (a) | 1,315,900 | 5,198 | |
TiVo, Inc. (a)(d) | 2,583,075 | 18,572 | |
VMware, Inc. Class A (a) | 261,400 | 5,411 | |
| 368,421 | ||
TOTAL INFORMATION TECHNOLOGY | 1,633,356 | ||
MATERIALS - 2.0% | |||
Chemicals - 1.1% | |||
FMC Corp. | 139,300 | 6,216 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Monsanto Co. | 133,400 | $ 10,146 | |
Solutia, Inc. (a) | 652,000 | 2,549 | |
Terra Industries, Inc. | 506,500 | 10,373 | |
The Mosaic Co. | 93,000 | 3,317 | |
W.R. Grace & Co. (a) | 461,300 | 2,662 | |
| 35,263 | ||
Containers & Packaging - 0.3% | |||
Rock-Tenn Co. Class A | 158,750 | 4,948 | |
Temple-Inland, Inc. | 1,047,200 | 5,938 | |
| 10,886 | ||
Metals & Mining - 0.6% | |||
Commercial Metals Co. | 158,700 | 1,825 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 323,000 | 8,120 | |
Impala Platinum Holdings Ltd. (sponsored ADR) | 307,800 | 3,558 | |
Steel Dynamics, Inc. | 319,500 | 3,393 | |
United States Steel Corp. | 115,300 | 3,462 | |
| 20,358 | ||
TOTAL MATERIALS | 66,507 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Wireless Telecommunication Services - 0.3% | |||
Crown Castle International Corp. (a) | 265,000 | 5,173 | |
SBA Communications Corp. Class A (a) | 250,000 | 4,975 | |
| 10,148 | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
Exelon Corp. | 31,800 | 1,724 | |
TOTAL COMMON STOCKS (Cost $4,516,924) | 3,380,566 | ||
Money Market Funds - 1.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.78% (b) | 326,825 | $ 327 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 64,965,725 | 64,966 | |
TOTAL MONEY MARKET FUNDS (Cost $65,293) | 65,293 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $4,582,217) | 3,445,859 | ||
NET OTHER ASSETS - (1.8)% | (61,197) | ||
NET ASSETS - 100% | $ 3,384,662 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,137,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Illumina, Inc. warrants 11/20/10 | 11/21/05 | $ - |
1/19/11 | 1/18/06 | $ - |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 215 |
Fidelity Securities Lending Cash Central Fund | 1,731 |
Total | $ 1,946 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales Proceeds | Dividend Income | Value, |
FreightCar America, Inc. | $ 24,187 | $ - | $ 16,975 | $ 38 | $ - |
Provogue (India) Ltd. | 22,092 | 16 | 1,988 | 44 | - |
Total | $ 46,279 | $ 16 | $ 18,963 | $ 82 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,445,859 | $ 3,407,508 | $ 27,758 | $ 10,593 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | (85) |
Total Unrealized Gain (Loss) | (1,784) |
Cost of Purchases | 12,900 |
Proceeds of Sales | (534) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | 96 |
Ending Balance | $ 10,593 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $2,131,358,000 of which $881,463,000 and $1,249,895,000 will expire on July 31, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $61,739) - See accompanying schedule: Unaffiliated issuers (cost $4,516,924) | $ 3,380,566 |
|
Fidelity Central Funds (cost $65,293) | 65,293 |
|
Total Investments (cost $4,582,217) |
| $ 3,445,859 |
Cash | 271 | |
Foreign currency held at value (cost $6) | 6 | |
Receivable for investments sold | 79,533 | |
Receivable for fund shares sold | 4,183 | |
Dividends receivable | 856 | |
Distributions receivable from Fidelity Central Funds | 199 | |
Prepaid expenses | 45 | |
Other receivables | 605 | |
Total assets | 3,531,557 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 76,350 | |
Payable for fund shares redeemed | 2,301 | |
Accrued management fee | 2,246 | |
Other affiliated payables | 882 | |
Other payables and accrued expenses | 150 | |
Collateral on securities loaned, at value | 64,966 | |
Total liabilities | 146,895 | |
|
|
|
Net Assets | $ 3,384,662 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,487,622 | |
Accumulated net investment loss | (5,959) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,960,952) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,136,049) | |
Net Assets | $ 3,384,662 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | January 31, 2009 (Unaudited) | |
|
|
|
OTC: | $ 27.37 | |
|
|
|
Class K: | $ 27.41 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2009 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $82 earned from other affiliated issuers) |
| $ 15,559 |
Interest |
| 3 |
Income from Fidelity Central Funds (including $1,731 from security lending) |
| 1,946 |
Total income |
| 17,508 |
|
|
|
Expenses | ||
Management fee | $ 13,893 | |
Performance adjustment | 3,185 | |
Transfer agent fees | 5,636 | |
Accounting and security lending fees | 546 | |
Custodian fees and expenses | 70 | |
Independent trustees' compensation | 14 | |
Depreciation in deferred trustee compensation account | (2) | |
Registration fees | 40 | |
Audit | 47 | |
Legal | 23 | |
Interest | 21 | |
Miscellaneous | (103) | |
Total expenses before reductions | 23,370 | |
Expense reductions | (73) | 23,297 |
Net investment income (loss) | (5,789) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (740,401) | |
Redemption in-kind with affiliated entities | (11,026) | |
Other affiliated issuers | (10,509) |
|
Foreign currency transactions | (359) | |
Total net realized gain (loss) |
| (762,295) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,663,785) | |
Assets and liabilities in foreign currencies | (63) | |
Total change in net unrealized appreciation (depreciation) |
| (1,663,848) |
Net gain (loss) | (2,426,143) | |
Net increase (decrease) in net assets resulting from operations | $ (2,431,932) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (5,789) | $ (34,156) |
Net realized gain (loss) | (762,295) | 849,834 |
Change in net unrealized appreciation (depreciation) | (1,663,848) | (1,152,439) |
Net increase (decrease) in net assets resulting from operations | (2,431,932) | (336,761) |
Share transactions - net increase (decrease) | (1,054,127) | (1,570,431) |
Total increase (decrease) in net assets | (3,486,059) | (1,907,192) |
|
|
|
Net Assets | ||
Beginning of period | 6,870,721 | 8,777,913 |
End of period (including accumulated net investment loss of $5,959 and accumulated net investment loss of $170, respectively) | $ 3,384,662 | $ 6,870,721 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 | $ 28.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | (.20) | (.19) | (.10) G | .37 H | (.17) |
Net realized and unrealized gain (loss) | (17.25) | (2.23) | 12.58 | (1.19) | 5.60 | 2.27 |
Total from investment operations | (17.29) | (2.43) | 12.39 | (1.29) | 5.97 | 2.10 |
Distributions from net investment income | - | - | - | - | (.41) | - |
Net asset value, end of period | $ 27.37 | $ 44.66 | $ 47.09 | $ 34.70 | $ 35.99 | $ 30.43 |
Total Return B,C | (38.71)% | (5.16)% | 35.71% | (3.58)% | 19.70% | 7.41% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.06% | .96% | .80% | .81% | .91% |
Expenses net of fee waivers, if any | 1.04% A | 1.06% | .96% | .80% | .81% | .91% |
Expenses net of all reductions | 1.03% A | 1.05% | .95% | .75% | .75% | .89% |
Net investment income (loss) | (.26)% A | (.42)% | (.45)% | (.26)% G | 1.13% H | (.53)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,105 | $ 6,871 | $ 8,778 | $ 7,370 | $ 8,063 | $ 7,322 |
Portfolio turnover rate F | 135% A | 145% | 121% | 149% | 117% | 61% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
H Investment income per share reflects a special dividend which amounted to $.46 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.27)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Year ended |
(Unaudited) | 2008 G | |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
Net investment income (loss) D | (.01) | (.05) |
Net realized and unrealized gain (loss) | (17.26) | (3.06) |
Total from investment operations | (17.27) | (3.11) |
Net asset value, end of period | $ 27.41 | $ 44.68 |
Total Return B,C | (38.65)% | (6.51)% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions | .83% A | .91% A |
Expenses net of fee waivers, if any | .83% A | .91% A |
Expenses net of all reductions | .83% A | .91% A |
Net investment income (loss) | (.06)% A | (.47)% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 279,782 | $ 93 |
Portfolio turnover rate F | 135% A | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity OTC Portfolio (the Fund) is a non-diversified fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers OTC and Class K shares, each of which has equal rights as to assets and voting privileges. After the commencement of Class K, the Fund began offering conversion privileges between OTC and Class K to eligible shareholders of OTC. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 195,551 |
Unrealized depreciation | (1,421,680) |
Net unrealized appreciation (depreciation) | $ (1,226,129) |
Cost for federal income tax purposes | $ 4,671,988 |
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $3,163,061 and $4,209,818, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35%
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, OTC, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .75% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
OTC | $ 5,602 | .25 |
Class K | 34 | .05 |
| $ 5,636 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $74 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily | Weighted Average | Interest |
Borrower | $ 15,950 | 2.47% | $ 20 |
7. Redemption-in-Kind.
On October 17, 2008, 11,638 fund shares held by affiliated entities were redeemed in kind for cash and securities with a value of $340,258. The realized gain (loss) of $(11,026) on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations and is not taxable to the Fund.
8. 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, which amounted to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses
Semiannual Report
9. Security Lending - continued
associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
10. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,641. The weighted average interest rate was 1.49%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
11. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of OTC's operating expenses. During the period, this reimbursement reduced the class' expenses by $3.
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 $36 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
OTC | $ 30 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
OTC |
|
|
|
|
Shares sold | 9,926 | 36,635 | $ 327,095 | $ 1,795,997 |
Conversion to Class K | (10,197) | - | $ (301,574) | $ - |
Shares redeemed | (40,132) | (69,178) | (1,381,811) | (3,366,528) |
Net increase (decrease) | (40,403) | (32,543) | $ (1,356,290) | $ (1,570,531) |
Class K |
|
|
|
|
Shares sold | 507 | 2 | $ 14,198 | $ 100 |
Conversion from OTC | 10,186 | - | $ 301,574 | $ - |
Shares redeemed | (487) | - | (13,609) | - |
Net increase (decrease) | 10,206 | 2 | $ 302,163 | $ 100 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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For directions and hours,
please call 1-800-544-9797.
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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Semiannual Report
To Write Fidelity
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Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OTC-K-USAN-0309 1.863312.100
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines.") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.28% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.20 | $ 5.23 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.75 | $ 6.51 |
Class T | 1.54% |
|
|
|
Actual |
| $ 1,000.00 | $ 620.30 | $ 6.29 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.44 | $ 7.83 |
Class B | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.60 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.50 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Small Cap Growth | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.50 | $ 4.21 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Institutional Class | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.80 | $ 4.01 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.27 | $ 4.99 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
j2 Global Communications, Inc. | 1.8 | 1.4 |
CACI International, Inc. Class A | 1.7 | 1.0 |
Perrigo Co. | 1.6 | 1.0 |
Concho Resources, Inc. | 1.6 | 1.4 |
Compass Minerals International, Inc. | 1.5 | 0.6 |
PSS World Medical, Inc. | 1.4 | 1.2 |
EXCO Resources, Inc. | 1.3 | 1.3 |
CMS Energy Corp. | 1.2 | 0.8 |
Immucor, Inc. | 1.2 | 1.1 |
Hillenbrand, Inc. | 1.2 | 0.8 |
| 14.5 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.0 | 20.1 |
Information Technology | 18.9 | 18.5 |
Industrials | 15.1 | 18.8 |
Consumer Discretionary | 12.6 | 9.4 |
Energy | 9.0 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 94.7% |
| ![]() | Stocks 95.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.8% |
| ** Foreign investments | 13.4% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 3.7% | |||
Brinks Home Security Holdings, Inc. (a) | 298,200 | $ 6,819,834 | |
DeVry, Inc. | 146,000 | 7,822,680 | |
Hillenbrand, Inc. | 551,507 | 10,197,364 | |
Strayer Education, Inc. | 31,000 | 6,709,330 | |
| 31,549,208 | ||
Hotels, Restaurants & Leisure - 3.8% | |||
Bally Technologies, Inc. (a) | 381,600 | 7,704,504 | |
Burger King Holdings, Inc. | 387,000 | 8,610,750 | |
Life Time Fitness, Inc. (a)(d) | 345,000 | 5,109,450 | |
Penn National Gaming, Inc. (a) | 423,000 | 7,888,950 | |
WMS Industries, Inc. (a) | 175,000 | 3,888,500 | |
| 33,202,154 | ||
Internet & Catalog Retail - 0.5% | |||
Priceline.com, Inc. (a)(d) | 65,900 | 4,421,231 | |
Media - 0.5% | |||
Virgin Media, Inc. | 891,000 | 4,045,140 | |
Specialty Retail - 2.0% | |||
Advance Auto Parts, Inc. | 226,900 | 7,426,437 | |
Citi Trends, Inc. (a) | 371,985 | 3,545,017 | |
O'Reilly Automotive, Inc. (a) | 114,000 | 3,313,980 | |
The Men's Wearhouse, Inc. | 269,900 | 3,144,335 | |
| 17,429,769 | ||
Textiles, Apparel & Luxury Goods - 2.1% | |||
FGX International Ltd. (a) | 415,000 | 5,146,000 | |
G-III Apparel Group Ltd. (a) | 529,403 | 2,911,717 | |
Iconix Brand Group, Inc. (a)(d) | 898,600 | 7,431,422 | |
Steven Madden Ltd. (a) | 135,000 | 2,346,300 | |
| 17,835,439 | ||
TOTAL CONSUMER DISCRETIONARY | 108,482,941 | ||
CONSUMER STAPLES - 2.5% | |||
Food Products - 1.9% | |||
Chiquita Brands International, Inc. (a) | 338,000 | 4,725,240 | |
Corn Products International, Inc. | 217,000 | 5,023,550 | |
Tyson Foods, Inc. Class A | 795,000 | 7,035,750 | |
| 16,784,540 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Chattem, Inc. (a)(d) | 72,300 | $ 4,887,480 | |
TOTAL CONSUMER STAPLES | 21,672,020 | ||
ENERGY - 9.0% | |||
Energy Equipment & Services - 1.8% | |||
Hornbeck Offshore Services, Inc. (a) | 309,900 | 5,497,626 | |
Patterson-UTI Energy, Inc. | 496,000 | 4,741,760 | |
Superior Energy Services, Inc. (a) | 331,400 | 5,163,212 | |
| 15,402,598 | ||
Oil, Gas & Consumable Fuels - 7.2% | |||
Cabot Oil & Gas Corp. | 193,600 | 5,322,064 | |
Comstock Resources, Inc. (a) | 85,198 | 3,248,600 | |
Concho Resources, Inc. (a) | 537,800 | 13,563,316 | |
EXCO Resources, Inc. (a) | 1,083,400 | 10,985,676 | |
Mariner Energy, Inc. (a) | 730,000 | 7,227,000 | |
Petroleum Development Corp. (a) | 312,217 | 5,385,743 | |
Range Resources Corp. | 249,850 | 8,954,624 | |
Whiting Petroleum Corp. (a) | 252,000 | 7,308,000 | |
| 61,995,023 | ||
TOTAL ENERGY | 77,397,621 | ||
FINANCIALS - 6.7% | |||
Capital Markets - 1.2% | |||
FCStone Group, Inc. (a) | 838,200 | 3,227,070 | |
Janus Capital Group, Inc. | 456,200 | 2,395,050 | |
Waddell & Reed Financial, Inc. Class A | 316,000 | 4,461,920 | |
| 10,084,040 | ||
Commercial Banks - 1.1% | |||
Signature Bank, New York (a) | 211,000 | 5,420,590 | |
UMB Financial Corp. | 116,000 | 4,493,840 | |
| 9,914,430 | ||
Insurance - 2.4% | |||
Allied World Assurance Co. Holdings Ltd. | 225,000 | 8,482,500 | |
Aspen Insurance Holdings Ltd. | 312,100 | 6,897,410 | |
Endurance Specialty Holdings Ltd. | 210,000 | 5,724,600 | |
| 21,104,510 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 1.6% | |||
American Campus Communities, Inc. | 271,200 | $ 5,795,544 | |
CapitalSource, Inc. | 330,000 | 1,201,200 | |
Digital Realty Trust, Inc. | 207,000 | 6,603,300 | |
| 13,600,044 | ||
Real Estate Management & Development - 0.4% | |||
Jones Lang LaSalle, Inc. | 138,000 | 3,258,180 | |
TOTAL FINANCIALS | 57,961,204 | ||
HEALTH CARE - 23.0% | |||
Biotechnology - 4.8% | |||
BioMarin Pharmaceutical, Inc. (a)(d) | 388,000 | 7,472,880 | |
Cephalon, Inc. (a)(d) | 129,800 | 10,017,964 | |
Grifols SA | 515,574 | 9,096,032 | |
Myriad Genetics, Inc. (a) | 50,000 | 3,728,500 | |
Theravance, Inc. (a) | 250,000 | 3,295,000 | |
United Therapeutics Corp. (a) | 113,000 | 7,678,350 | |
| 41,288,726 | ||
Health Care Equipment & Supplies - 7.1% | |||
American Medical Systems Holdings, Inc. (a)(d) | 597,345 | 6,391,592 | |
DENTSPLY International, Inc. (d) | 257,300 | 6,923,943 | |
Haemonetics Corp. (a) | 146,000 | 8,635,900 | |
Immucor, Inc. (a) | 373,900 | 10,360,769 | |
Integra LifeSciences Holdings Corp. (a) | 265,200 | 7,356,648 | |
Kinetic Concepts, Inc. (a) | 175,267 | 4,223,935 | |
Masimo Corp. (a) | 150,000 | 4,165,500 | |
Meridian Bioscience, Inc. | 358,505 | 7,621,816 | |
ResMed, Inc. (a) | 130,000 | 5,187,000 | |
| 60,867,103 | ||
Health Care Providers & Services - 7.5% | |||
Amedisys, Inc. (a)(d) | 218,000 | 8,988,140 | |
Brookdale Senior Living, Inc. (d) | 923,000 | 6,276,400 | |
Centene Corp. (a) | 407,233 | 7,220,241 | |
Hanger Orthopedic Group, Inc. (a) | 400,000 | 5,460,000 | |
IPC The Hospitalist Co., Inc. | 75,641 | 1,447,769 | |
Patterson Companies, Inc. (a)(d) | 189,100 | 3,477,549 | |
PSS World Medical, Inc. (a) | 759,499 | 12,060,844 | |
Sun Healthcare Group, Inc. (a) | 725,800 | 8,223,314 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Synergy Health PLC | 749,967 | $ 4,348,759 | |
VCA Antech, Inc. (a) | 355,600 | 6,692,392 | |
| 64,195,408 | ||
Life Sciences Tools & Services - 2.0% | |||
Illumina, Inc. (a) | 157,000 | 4,295,520 | |
PAREXEL International Corp. (a) | 702,700 | 6,949,703 | |
QIAGEN NV (a) | 360,000 | 6,174,000 | |
| 17,419,223 | ||
Pharmaceuticals - 1.6% | |||
Perrigo Co. (d) | 466,800 | 13,700,580 | |
TOTAL HEALTH CARE | 197,471,040 | ||
INDUSTRIALS - 15.1% | |||
Aerospace & Defense - 2.3% | |||
Alliant Techsystems, Inc. (a) | 85,000 | 6,868,850 | |
Stanley, Inc. (a) | 316,000 | 9,562,160 | |
Teledyne Technologies, Inc. (a) | 120,000 | 3,344,400 | |
| 19,775,410 | ||
Airlines - 0.9% | |||
Alaska Air Group, Inc. (a) | 280,000 | 7,380,800 | |
Commercial Services & Supplies - 0.8% | |||
Corrections Corp. of America (a)(d) | 183,200 | 2,524,496 | |
InnerWorkings, Inc. (a) | 1,421,900 | 4,706,489 | |
| 7,230,985 | ||
Construction & Engineering - 0.4% | |||
KBR, Inc. | 234,400 | 3,319,104 | |
Electrical Equipment - 3.2% | |||
Acuity Brands, Inc. | 174,100 | 4,678,067 | |
American Superconductor Corp. (a)(d) | 302,000 | 4,886,360 | |
EnerSys (a)(d) | 579,600 | 5,280,156 | |
SMA Solar Technology AG | 183,300 | 7,108,427 | |
Sunpower Corp. Class B (a) | 217,000 | 5,733,140 | |
| 27,686,150 | ||
Industrial Conglomerates - 0.6% | |||
McDermott International, Inc. (a) | 480,000 | 4,977,600 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 1.4% | |||
Navistar International Corp. (a) | 263,000 | $ 7,987,310 | |
Sulzer AG (Reg.) | 83,302 | 4,165,459 | |
| 12,152,769 | ||
Professional Services - 3.9% | |||
CoStar Group, Inc. (a) | 214,736 | 6,360,480 | |
FTI Consulting, Inc. (a)(d) | 219,000 | 8,981,190 | |
Huron Consulting Group, Inc. (a)(d) | 153,400 | 7,666,932 | |
Monster Worldwide, Inc. (a) | 301,997 | 2,781,392 | |
Navigant Consulting, Inc. (a) | 528,800 | 7,577,704 | |
| 33,367,698 | ||
Road & Rail - 0.9% | |||
Con-way, Inc. | 181,000 | 3,987,430 | |
Knight Transportation, Inc. | 274,300 | 3,659,162 | |
| 7,646,592 | ||
Transportation Infrastructure - 0.7% | |||
Aegean Marine Petroleum Network, Inc. | 370,000 | 6,330,700 | |
TOTAL INDUSTRIALS | 129,867,808 | ||
INFORMATION TECHNOLOGY - 18.9% | |||
Communications Equipment - 2.4% | |||
Harris Corp. | 176,700 | 7,649,343 | |
Polycom, Inc. (a) | 395,500 | 5,556,775 | |
ViaSat, Inc. (a) | 330,700 | 7,328,312 | |
| 20,534,430 | ||
Computers & Peripherals - 0.9% | |||
Logitech International SA (a) | 371,000 | 3,557,890 | |
Wincor Nixdorf AG | 87,400 | 4,165,971 | |
| 7,723,861 | ||
Electronic Equipment & Components - 1.3% | |||
Cogent, Inc. (a) | 538,400 | 6,266,976 | |
Ingram Micro, Inc. Class A (a) | 415,000 | 5,092,050 | |
| 11,359,026 | ||
Internet Software & Services - 4.2% | |||
Art Technology Group, Inc. (a) | 2,420,000 | 4,138,200 | |
Equinix, Inc. (a)(d) | 141,600 | 7,554,360 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
j2 Global Communications, Inc. (a) | 792,500 | $ 15,517,147 | |
Telecity Group PLC (a) | 3,553,600 | 8,757,510 | |
| 35,967,217 | ||
IT Services - 5.7% | |||
Alliance Data Systems Corp. (a) | 196,400 | 8,168,276 | |
CACI International, Inc. Class A (a) | 319,400 | 14,420,910 | |
CyberSource Corp. (a) | 665,466 | 7,939,009 | |
Datacash Group PLC | 1,921,200 | 6,837,341 | |
Integral Systems, Inc. (a) | 404,000 | 4,415,720 | |
Perot Systems Corp. Class A (a) | 263,593 | 3,424,073 | |
WNS Holdings Ltd. sponsored ADR (a) | 541,500 | 3,519,750 | |
| 48,725,079 | ||
Semiconductors & Semiconductor Equipment - 2.3% | |||
Hittite Microwave Corp. (a) | 238,821 | 6,118,594 | |
Lam Research Corp. (a) | 343,500 | 6,942,135 | |
Varian Semiconductor Equipment Associates, Inc. (a)(d) | 350,490 | 6,673,330 | |
| 19,734,059 | ||
Software - 2.1% | |||
Ansys, Inc. (a) | 136,500 | 3,393,390 | |
Autodesk, Inc. (a) | 215,000 | 3,560,400 | |
Blackbaud, Inc. | 321,059 | 3,573,387 | |
PROS Holdings, Inc. (a) | 806,705 | 4,848,297 | |
Taleo Corp. Class A (a) | 348,639 | 2,939,027 | |
| 18,314,501 | ||
TOTAL INFORMATION TECHNOLOGY | 162,358,173 | ||
MATERIALS - 5.0% | |||
Chemicals - 1.0% | |||
Solutia, Inc. (a) | 1,029,000 | 4,023,390 | |
Terra Industries, Inc. | 215,000 | 4,403,200 | |
| 8,426,590 | ||
Containers & Packaging - 0.6% | |||
Myers Industries, Inc. | 858,000 | 5,379,660 | |
Metals & Mining - 3.4% | |||
Compass Minerals International, Inc. | 206,000 | 12,395,020 | |
IAMGOLD Corp. | 484,700 | 3,321,353 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Randgold Resources Ltd. sponsored ADR | 157,200 | $ 6,989,112 | |
Red Back Mining, Inc. (a) | 954,400 | 6,135,067 | |
| 28,840,552 | ||
TOTAL MATERIALS | 42,646,802 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 582,000 | 5,639,580 | |
UTILITIES - 1.3% | |||
Multi-Utilities - 1.2% | |||
CMS Energy Corp. (d) | 893,200 | 10,495,100 | |
Water Utilities - 0.1% | |||
Southwest Water Co. | 81,971 | 367,230 | |
TOTAL UTILITIES | 10,862,330 | ||
TOTAL COMMON STOCKS (Cost $1,033,233,638) | 814,359,519 | ||
Money Market Funds - 12.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.78% (b) | 56,637,425 | 56,637,425 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 51,074,712 | 51,074,712 | |
TOTAL MONEY MARKET FUNDS (Cost $107,712,137) | 107,712,137 | ||
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $1,140,945,775) | 922,071,656 | ||
NET OTHER ASSETS - (7.2)% | (62,146,127) | ||
NET ASSETS - 100% | $ 859,925,529 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 388,677 |
Fidelity Securities Lending Cash Central Fund | 589,787 |
Total | $ 978,464 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 922,071,656 | $ 922,071,656 | $ - | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
United Kingdom | 3.5% |
Bermuda | 2.4% |
Germany | 1.3% |
Canada | 1.1% |
Spain | 1.0% |
Others (individually less than 1%) | 3.5% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $101,242,350 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $49,233,933) - See accompanying schedule: Unaffiliated issuers (cost $1,033,233,638) | $ 814,359,519 |
|
Fidelity Central Funds (cost $107,712,137) | 107,712,137 |
|
Total Investments (cost $1,140,945,775) |
| $ 922,071,656 |
Cash | 215,135 | |
Receivable for investments sold | 21,697,996 | |
Receivable for fund shares sold | 1,490,617 | |
Dividends receivable | 191,936 | |
Distributions receivable from Fidelity Central Funds | 157,265 | |
Prepaid expenses | 10,489 | |
Other receivables | 575,087 | |
Total assets | 946,410,181 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,007,425 | |
Payable for fund shares redeemed | 565,934 | |
Accrued management fee | 537,315 | |
Distribution fees payable | 23,934 | |
Other affiliated payables | 235,788 | |
Other payables and accrued expenses | 39,544 | |
Collateral on securities loaned, at value | 51,074,712 | |
Total liabilities | 86,484,652 | |
|
|
|
Net Assets | $ 859,925,529 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,474,817,990 | |
Accumulated net investment loss | (1,081,402) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (394,922,427) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (218,888,632) | |
Net Assets | $ 859,925,529 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 8.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.20) | $ 8.70 | |
Class T: | $ 8.17 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.17) | $ 8.47 | |
Class B: | $ 8.06 | |
|
|
|
Class C: | $ 8.04 | |
|
|
|
|
|
|
Small Cap Growth: | $ 8.26 | |
|
|
|
Institutional Class: | $ 8.27 |
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 January 31, 2009 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,320,786 |
Interest |
| 39 |
Income from Fidelity Central Funds (including $589,787 from security lending) |
| 978,464 |
Total income |
| 4,299,289 |
|
|
|
Expenses | ||
Management fee | $ 3,654,463 | |
Performance adjustment | (225,958) | |
Transfer agent fees | 1,484,124 | |
Distribution fees | 163,956 | |
Accounting and security lending fees | 180,554 | |
Custodian fees and expenses | 27,420 | |
Independent trustees' compensation | 3,032 | |
Registration fees | 82,518 | |
Audit | 29,729 | |
Legal | 3,932 | |
Miscellaneous | 17,879 | |
Total expenses before reductions | 5,421,649 | |
Expense reductions | (40,958) | 5,380,691 |
Net investment income (loss) | (1,081,402) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (289,328,487) | |
Foreign currency transactions | (26,844) | |
Total net realized gain (loss) |
| (289,355,331) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (218,647,073) | |
Assets and liabilities in foreign currencies | (12,303) | |
Total change in net unrealized appreciation (depreciation) |
| (218,659,376) |
Net gain (loss) | (508,014,707) | |
Net increase (decrease) in net assets resulting from operations | $ (509,096,109) |
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) | $ (1,081,402) | $ (6,524,319) |
Net realized gain (loss) | (289,355,331) | (103,756,345) |
Change in net unrealized appreciation (depreciation) | (218,659,376) | (72,236,255) |
Net increase (decrease) in net assets resulting from operations | (509,096,109) | (182,516,919) |
Distributions to shareholders from net realized gain | - | (81,199,740) |
Share transactions - net increase (decrease) | 43,496,846 | 331,568,501 |
Redemption fees | 156,981 | 439,174 |
Total increase (decrease) in net assets | (465,442,282) | 68,291,016 |
|
|
|
Net Assets | ||
Beginning of period | 1,325,367,811 | 1,257,076,795 |
End of period (including accumulated net investment loss of $1,081,402 and $0, respectively) | $ 859,925,529 | $ 1,325,367,811 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.02) | (.11) | (.12) H | (.10) I | (.07) |
Net realized and unrealized gain (loss) | (4.98) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | (5.00) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.20 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | (37.88)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.28% A | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.28% A | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.27% A | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.44)% A | (.74)% | (.80)% H | (.79)% I | (.78)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 26,361 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.03) | (.15) | (.16) H | (.14) I | (.09) |
Net realized and unrealized gain (loss) | (4.97) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | (5.00) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.17 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | (37.97)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.54% A | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.54% A | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.53% A | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.69)% A | (.99)% | (1.05)% H | (1.04)% I | (1.03)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 16,811 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.91) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | (4.97) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.06 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | (38.14)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.02% A | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.53)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,088 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.90) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | (4.96) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.04 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | (38.15)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.02% A | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.50)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,929 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.07) | (.08) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | (5.03) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.26 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | (37.85)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.02% A | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.18)% A | (.45)% | (.50)% G | (.52)% H | (.49)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 790,815 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.06) | (.07) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | (5.03) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.27 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | (37.82)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | .98% A | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | .98% A | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | .98% A | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.14)% A | (.38)% | (.46)% G | (.49)% H | (.51)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 12,921 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 34,914,324 |
Unrealized depreciation | (270,042,863) |
Net unrealized appreciation (depreciation) | $ (235,128,539) |
Cost for federal income tax purposes | $ 1,157,200,195 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $867,848,006 and $814,425,380, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .67% 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,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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% | $ 40,237 | $ 1,683 |
Class T | .25% | .25% | 43,072 | - |
Class B | .75% | .25% | 19,748 | 14,824 |
Class C | .75% | .25% | 60,899 | 12,918 |
|
|
| $ 163,956 | $ 29,425 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,059 |
Class T | 2,369 |
Class B* | 5,894 |
Class C* | 1,116 |
| $ 17,438 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 47,634 | .30 |
Class T | 26,137 | .30 |
Class B | 5,840 | .30 |
Class C | 17,852 | .29 |
Small Cap Growth | 1,366,461 | .29 |
Institutional Class | 20,200 | .25 |
| $ 1,484,124 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $18,294 for the period.
7. 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, which amounted to $1,309 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $33,223 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $781. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Small Cap Growth | $ 6,954 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ - | $ 2,216,913 |
Class T | - | 1,570,296 |
Class B | - | 348,424 |
Class C | - | 1,307,950 |
Small Cap Growth | - | 74,608,644 |
Institutional Class | - | 1,147,513 |
Total | $ - | $ 81,199,740 |
12. 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 | 589,786 | 1,742,262 | $ 5,937,137 | $ 25,505,334 |
Reinvestment of distributions | - | 126,731 | - | 1,912,181 |
Shares redeemed | (569,567) | (763,921) | (5,459,040) | (11,052,109) |
Net increase (decrease) | 20,219 | 1,105,072 | $ 478,097 | $ 16,365,406 |
Class T |
|
|
|
|
Shares sold | 878,491 | 487,722 | $ 7,158,358 | $ 7,048,735 |
Reinvestment of distributions | - | 99,906 | - | 1,507,341 |
Shares redeemed | (471,956) | (586,050) | (4,232,506) | (8,531,977) |
Net increase (decrease) | 406,535 | 1,578 | $ 2,925,852 | $ 24,099 |
Class B |
|
|
|
|
Shares sold | 47,994 | 132,932 | $ 443,093 | $ 1,958,446 |
Reinvestment of distributions | - | 22,166 | - | 332,229 |
Shares redeemed | (88,288) | (125,460) | (877,037) | (1,804,323) |
Net increase (decrease) | (40,294) | 29,638 | $ (433,944) | $ 486,352 |
Class C |
|
|
|
|
Shares sold | 314,944 | 436,957 | $ 3,104,278 | $ 6,320,995 |
Reinvestment of distributions | - | 82,544 | - | 1,234,732 |
Shares redeemed | (306,943) | (703,886) | (2,853,105) | (9,901,355) |
Net increase (decrease) | 8,001 | (184,385) | $ 251,173 | $ (2,345,628) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 16,570,293 | 38,610,197 | $ 158,484,622 | $ 574,316,675 |
Reinvestment of distributions | - | 4,701,343 | - | 71,216,320 |
Shares redeemed | (12,473,614) | (22,858,332) | (117,323,416) | (336,543,207) |
Net increase (decrease) | 4,096,679 | 20,453,208 | $ 41,161,206 | $ 308,989,788 |
Institutional Class |
|
|
|
|
Shares sold | 407,791 | 788,829 | $ 3,686,981 | $ 11,907,085 |
Reinvestment of distributions | - | 66,279 | - | 1,004,006 |
Shares redeemed | (532,900) | (323,911) | (4,572,519) | (4,862,607) |
Net increase (decrease) | (125,109) | 531,197 | $ (885,538) | $ 8,048,484 |
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
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For quotes.*
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By PC
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Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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SCP-USAN-0309 1.803699.104
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2009
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.28% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.20 | $ 5.23 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.75 | $ 6.51 |
Class T | 1.54% |
|
|
|
Actual |
| $ 1,000.00 | $ 620.30 | $ 6.29 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.44 | $ 7.83 |
Class B | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.60 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.50 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Small Cap Growth | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.50 | $ 4.21 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Institutional Class | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.80 | $ 4.01 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.27 | $ 4.99 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
j2 Global Communications, Inc. | 1.8 | 1.4 |
CACI International, Inc. Class A | 1.7 | 1.0 |
Perrigo Co. | 1.6 | 1.0 |
Concho Resources, Inc. | 1.6 | 1.4 |
Compass Minerals International, Inc. | 1.5 | 0.6 |
PSS World Medical, Inc. | 1.4 | 1.2 |
EXCO Resources, Inc. | 1.3 | 1.3 |
CMS Energy Corp. | 1.2 | 0.8 |
Immucor, Inc. | 1.2 | 1.1 |
Hillenbrand, Inc. | 1.2 | 0.8 |
| 14.5 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.0 | 20.1 |
Information Technology | 18.9 | 18.5 |
Industrials | 15.1 | 18.8 |
Consumer Discretionary | 12.6 | 9.4 |
Energy | 9.0 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 94.7% |
| ![]() | Stocks 95.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.8% |
| ** Foreign investments | 13.4% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 3.7% | |||
Brinks Home Security Holdings, Inc. (a) | 298,200 | $ 6,819,834 | |
DeVry, Inc. | 146,000 | 7,822,680 | |
Hillenbrand, Inc. | 551,507 | 10,197,364 | |
Strayer Education, Inc. | 31,000 | 6,709,330 | |
| 31,549,208 | ||
Hotels, Restaurants & Leisure - 3.8% | |||
Bally Technologies, Inc. (a) | 381,600 | 7,704,504 | |
Burger King Holdings, Inc. | 387,000 | 8,610,750 | |
Life Time Fitness, Inc. (a)(d) | 345,000 | 5,109,450 | |
Penn National Gaming, Inc. (a) | 423,000 | 7,888,950 | |
WMS Industries, Inc. (a) | 175,000 | 3,888,500 | |
| 33,202,154 | ||
Internet & Catalog Retail - 0.5% | |||
Priceline.com, Inc. (a)(d) | 65,900 | 4,421,231 | |
Media - 0.5% | |||
Virgin Media, Inc. | 891,000 | 4,045,140 | |
Specialty Retail - 2.0% | |||
Advance Auto Parts, Inc. | 226,900 | 7,426,437 | |
Citi Trends, Inc. (a) | 371,985 | 3,545,017 | |
O'Reilly Automotive, Inc. (a) | 114,000 | 3,313,980 | |
The Men's Wearhouse, Inc. | 269,900 | 3,144,335 | |
| 17,429,769 | ||
Textiles, Apparel & Luxury Goods - 2.1% | |||
FGX International Ltd. (a) | 415,000 | 5,146,000 | |
G-III Apparel Group Ltd. (a) | 529,403 | 2,911,717 | |
Iconix Brand Group, Inc. (a)(d) | 898,600 | 7,431,422 | |
Steven Madden Ltd. (a) | 135,000 | 2,346,300 | |
| 17,835,439 | ||
TOTAL CONSUMER DISCRETIONARY | 108,482,941 | ||
CONSUMER STAPLES - 2.5% | |||
Food Products - 1.9% | |||
Chiquita Brands International, Inc. (a) | 338,000 | 4,725,240 | |
Corn Products International, Inc. | 217,000 | 5,023,550 | |
Tyson Foods, Inc. Class A | 795,000 | 7,035,750 | |
| 16,784,540 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Chattem, Inc. (a)(d) | 72,300 | $ 4,887,480 | |
TOTAL CONSUMER STAPLES | 21,672,020 | ||
ENERGY - 9.0% | |||
Energy Equipment & Services - 1.8% | |||
Hornbeck Offshore Services, Inc. (a) | 309,900 | 5,497,626 | |
Patterson-UTI Energy, Inc. | 496,000 | 4,741,760 | |
Superior Energy Services, Inc. (a) | 331,400 | 5,163,212 | |
| 15,402,598 | ||
Oil, Gas & Consumable Fuels - 7.2% | |||
Cabot Oil & Gas Corp. | 193,600 | 5,322,064 | |
Comstock Resources, Inc. (a) | 85,198 | 3,248,600 | |
Concho Resources, Inc. (a) | 537,800 | 13,563,316 | |
EXCO Resources, Inc. (a) | 1,083,400 | 10,985,676 | |
Mariner Energy, Inc. (a) | 730,000 | 7,227,000 | |
Petroleum Development Corp. (a) | 312,217 | 5,385,743 | |
Range Resources Corp. | 249,850 | 8,954,624 | |
Whiting Petroleum Corp. (a) | 252,000 | 7,308,000 | |
| 61,995,023 | ||
TOTAL ENERGY | 77,397,621 | ||
FINANCIALS - 6.7% | |||
Capital Markets - 1.2% | |||
FCStone Group, Inc. (a) | 838,200 | 3,227,070 | |
Janus Capital Group, Inc. | 456,200 | 2,395,050 | |
Waddell & Reed Financial, Inc. Class A | 316,000 | 4,461,920 | |
| 10,084,040 | ||
Commercial Banks - 1.1% | |||
Signature Bank, New York (a) | 211,000 | 5,420,590 | |
UMB Financial Corp. | 116,000 | 4,493,840 | |
| 9,914,430 | ||
Insurance - 2.4% | |||
Allied World Assurance Co. Holdings Ltd. | 225,000 | 8,482,500 | |
Aspen Insurance Holdings Ltd. | 312,100 | 6,897,410 | |
Endurance Specialty Holdings Ltd. | 210,000 | 5,724,600 | |
| 21,104,510 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 1.6% | |||
American Campus Communities, Inc. | 271,200 | $ 5,795,544 | |
CapitalSource, Inc. | 330,000 | 1,201,200 | |
Digital Realty Trust, Inc. | 207,000 | 6,603,300 | |
| 13,600,044 | ||
Real Estate Management & Development - 0.4% | |||
Jones Lang LaSalle, Inc. | 138,000 | 3,258,180 | |
TOTAL FINANCIALS | 57,961,204 | ||
HEALTH CARE - 23.0% | |||
Biotechnology - 4.8% | |||
BioMarin Pharmaceutical, Inc. (a)(d) | 388,000 | 7,472,880 | |
Cephalon, Inc. (a)(d) | 129,800 | 10,017,964 | |
Grifols SA | 515,574 | 9,096,032 | |
Myriad Genetics, Inc. (a) | 50,000 | 3,728,500 | |
Theravance, Inc. (a) | 250,000 | 3,295,000 | |
United Therapeutics Corp. (a) | 113,000 | 7,678,350 | |
| 41,288,726 | ||
Health Care Equipment & Supplies - 7.1% | |||
American Medical Systems Holdings, Inc. (a)(d) | 597,345 | 6,391,592 | |
DENTSPLY International, Inc. (d) | 257,300 | 6,923,943 | |
Haemonetics Corp. (a) | 146,000 | 8,635,900 | |
Immucor, Inc. (a) | 373,900 | 10,360,769 | |
Integra LifeSciences Holdings Corp. (a) | 265,200 | 7,356,648 | |
Kinetic Concepts, Inc. (a) | 175,267 | 4,223,935 | |
Masimo Corp. (a) | 150,000 | 4,165,500 | |
Meridian Bioscience, Inc. | 358,505 | 7,621,816 | |
ResMed, Inc. (a) | 130,000 | 5,187,000 | |
| 60,867,103 | ||
Health Care Providers & Services - 7.5% | |||
Amedisys, Inc. (a)(d) | 218,000 | 8,988,140 | |
Brookdale Senior Living, Inc. (d) | 923,000 | 6,276,400 | |
Centene Corp. (a) | 407,233 | 7,220,241 | |
Hanger Orthopedic Group, Inc. (a) | 400,000 | 5,460,000 | |
IPC The Hospitalist Co., Inc. | 75,641 | 1,447,769 | |
Patterson Companies, Inc. (a)(d) | 189,100 | 3,477,549 | |
PSS World Medical, Inc. (a) | 759,499 | 12,060,844 | |
Sun Healthcare Group, Inc. (a) | 725,800 | 8,223,314 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Synergy Health PLC | 749,967 | $ 4,348,759 | |
VCA Antech, Inc. (a) | 355,600 | 6,692,392 | |
| 64,195,408 | ||
Life Sciences Tools & Services - 2.0% | |||
Illumina, Inc. (a) | 157,000 | 4,295,520 | |
PAREXEL International Corp. (a) | 702,700 | 6,949,703 | |
QIAGEN NV (a) | 360,000 | 6,174,000 | |
| 17,419,223 | ||
Pharmaceuticals - 1.6% | |||
Perrigo Co. (d) | 466,800 | 13,700,580 | |
TOTAL HEALTH CARE | 197,471,040 | ||
INDUSTRIALS - 15.1% | |||
Aerospace & Defense - 2.3% | |||
Alliant Techsystems, Inc. (a) | 85,000 | 6,868,850 | |
Stanley, Inc. (a) | 316,000 | 9,562,160 | |
Teledyne Technologies, Inc. (a) | 120,000 | 3,344,400 | |
| 19,775,410 | ||
Airlines - 0.9% | |||
Alaska Air Group, Inc. (a) | 280,000 | 7,380,800 | |
Commercial Services & Supplies - 0.8% | |||
Corrections Corp. of America (a)(d) | 183,200 | 2,524,496 | |
InnerWorkings, Inc. (a) | 1,421,900 | 4,706,489 | |
| 7,230,985 | ||
Construction & Engineering - 0.4% | |||
KBR, Inc. | 234,400 | 3,319,104 | |
Electrical Equipment - 3.2% | |||
Acuity Brands, Inc. | 174,100 | 4,678,067 | |
American Superconductor Corp. (a)(d) | 302,000 | 4,886,360 | |
EnerSys (a)(d) | 579,600 | 5,280,156 | |
SMA Solar Technology AG | 183,300 | 7,108,427 | |
Sunpower Corp. Class B (a) | 217,000 | 5,733,140 | |
| 27,686,150 | ||
Industrial Conglomerates - 0.6% | |||
McDermott International, Inc. (a) | 480,000 | 4,977,600 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 1.4% | |||
Navistar International Corp. (a) | 263,000 | $ 7,987,310 | |
Sulzer AG (Reg.) | 83,302 | 4,165,459 | |
| 12,152,769 | ||
Professional Services - 3.9% | |||
CoStar Group, Inc. (a) | 214,736 | 6,360,480 | |
FTI Consulting, Inc. (a)(d) | 219,000 | 8,981,190 | |
Huron Consulting Group, Inc. (a)(d) | 153,400 | 7,666,932 | |
Monster Worldwide, Inc. (a) | 301,997 | 2,781,392 | |
Navigant Consulting, Inc. (a) | 528,800 | 7,577,704 | |
| 33,367,698 | ||
Road & Rail - 0.9% | |||
Con-way, Inc. | 181,000 | 3,987,430 | |
Knight Transportation, Inc. | 274,300 | 3,659,162 | |
| 7,646,592 | ||
Transportation Infrastructure - 0.7% | |||
Aegean Marine Petroleum Network, Inc. | 370,000 | 6,330,700 | |
TOTAL INDUSTRIALS | 129,867,808 | ||
INFORMATION TECHNOLOGY - 18.9% | |||
Communications Equipment - 2.4% | |||
Harris Corp. | 176,700 | 7,649,343 | |
Polycom, Inc. (a) | 395,500 | 5,556,775 | |
ViaSat, Inc. (a) | 330,700 | 7,328,312 | |
| 20,534,430 | ||
Computers & Peripherals - 0.9% | |||
Logitech International SA (a) | 371,000 | 3,557,890 | |
Wincor Nixdorf AG | 87,400 | 4,165,971 | |
| 7,723,861 | ||
Electronic Equipment & Components - 1.3% | |||
Cogent, Inc. (a) | 538,400 | 6,266,976 | |
Ingram Micro, Inc. Class A (a) | 415,000 | 5,092,050 | |
| 11,359,026 | ||
Internet Software & Services - 4.2% | |||
Art Technology Group, Inc. (a) | 2,420,000 | 4,138,200 | |
Equinix, Inc. (a)(d) | 141,600 | 7,554,360 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
j2 Global Communications, Inc. (a) | 792,500 | $ 15,517,147 | |
Telecity Group PLC (a) | 3,553,600 | 8,757,510 | |
| 35,967,217 | ||
IT Services - 5.7% | |||
Alliance Data Systems Corp. (a) | 196,400 | 8,168,276 | |
CACI International, Inc. Class A (a) | 319,400 | 14,420,910 | |
CyberSource Corp. (a) | 665,466 | 7,939,009 | |
Datacash Group PLC | 1,921,200 | 6,837,341 | |
Integral Systems, Inc. (a) | 404,000 | 4,415,720 | |
Perot Systems Corp. Class A (a) | 263,593 | 3,424,073 | |
WNS Holdings Ltd. sponsored ADR (a) | 541,500 | 3,519,750 | |
| 48,725,079 | ||
Semiconductors & Semiconductor Equipment - 2.3% | |||
Hittite Microwave Corp. (a) | 238,821 | 6,118,594 | |
Lam Research Corp. (a) | 343,500 | 6,942,135 | |
Varian Semiconductor Equipment Associates, Inc. (a)(d) | 350,490 | 6,673,330 | |
| 19,734,059 | ||
Software - 2.1% | |||
Ansys, Inc. (a) | 136,500 | 3,393,390 | |
Autodesk, Inc. (a) | 215,000 | 3,560,400 | |
Blackbaud, Inc. | 321,059 | 3,573,387 | |
PROS Holdings, Inc. (a) | 806,705 | 4,848,297 | |
Taleo Corp. Class A (a) | 348,639 | 2,939,027 | |
| 18,314,501 | ||
TOTAL INFORMATION TECHNOLOGY | 162,358,173 | ||
MATERIALS - 5.0% | |||
Chemicals - 1.0% | |||
Solutia, Inc. (a) | 1,029,000 | 4,023,390 | |
Terra Industries, Inc. | 215,000 | 4,403,200 | |
| 8,426,590 | ||
Containers & Packaging - 0.6% | |||
Myers Industries, Inc. | 858,000 | 5,379,660 | |
Metals & Mining - 3.4% | |||
Compass Minerals International, Inc. | 206,000 | 12,395,020 | |
IAMGOLD Corp. | 484,700 | 3,321,353 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Randgold Resources Ltd. sponsored ADR | 157,200 | $ 6,989,112 | |
Red Back Mining, Inc. (a) | 954,400 | 6,135,067 | |
| 28,840,552 | ||
TOTAL MATERIALS | 42,646,802 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 582,000 | 5,639,580 | |
UTILITIES - 1.3% | |||
Multi-Utilities - 1.2% | |||
CMS Energy Corp. (d) | 893,200 | 10,495,100 | |
Water Utilities - 0.1% | |||
Southwest Water Co. | 81,971 | 367,230 | |
TOTAL UTILITIES | 10,862,330 | ||
TOTAL COMMON STOCKS (Cost $1,033,233,638) | 814,359,519 | ||
Money Market Funds - 12.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.78% (b) | 56,637,425 | 56,637,425 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 51,074,712 | 51,074,712 | |
TOTAL MONEY MARKET FUNDS (Cost $107,712,137) | 107,712,137 | ||
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $1,140,945,775) | 922,071,656 | ||
NET OTHER ASSETS - (7.2)% | (62,146,127) | ||
NET ASSETS - 100% | $ 859,925,529 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 388,677 |
Fidelity Securities Lending Cash Central Fund | 589,787 |
Total | $ 978,464 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 922,071,656 | $ 922,071,656 | $ - | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
United Kingdom | 3.5% |
Bermuda | 2.4% |
Germany | 1.3% |
Canada | 1.1% |
Spain | 1.0% |
Others (individually less than 1%) | 3.5% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $101,242,350 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $49,233,933) - See accompanying schedule: Unaffiliated issuers (cost $1,033,233,638) | $ 814,359,519 |
|
Fidelity Central Funds (cost $107,712,137) | 107,712,137 |
|
Total Investments (cost $1,140,945,775) |
| $ 922,071,656 |
Cash | 215,135 | |
Receivable for investments sold | 21,697,996 | |
Receivable for fund shares sold | 1,490,617 | |
Dividends receivable | 191,936 | |
Distributions receivable from Fidelity Central Funds | 157,265 | |
Prepaid expenses | 10,489 | |
Other receivables | 575,087 | |
Total assets | 946,410,181 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,007,425 | |
Payable for fund shares redeemed | 565,934 | |
Accrued management fee | 537,315 | |
Distribution fees payable | 23,934 | |
Other affiliated payables | 235,788 | |
Other payables and accrued expenses | 39,544 | |
Collateral on securities loaned, at value | 51,074,712 | |
Total liabilities | 86,484,652 | |
|
|
|
Net Assets | $ 859,925,529 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,474,817,990 | |
Accumulated net investment loss | (1,081,402) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (394,922,427) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (218,888,632) | |
Net Assets | $ 859,925,529 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 8.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.20) | $ 8.70 | |
Class T: | $ 8.17 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.17) | $ 8.47 | |
Class B: | $ 8.06 | |
|
|
|
Class C: | $ 8.04 | |
|
|
|
|
|
|
Small Cap Growth: | $ 8.26 | |
|
|
|
Institutional Class: | $ 8.27 |
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 January 31, 2009 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,320,786 |
Interest |
| 39 |
Income from Fidelity Central Funds (including $589,787 from security lending) |
| 978,464 |
Total income |
| 4,299,289 |
|
|
|
Expenses | ||
Management fee | $ 3,654,463 | |
Performance adjustment | (225,958) | |
Transfer agent fees | 1,484,124 | |
Distribution fees | 163,956 | |
Accounting and security lending fees | 180,554 | |
Custodian fees and expenses | 27,420 | |
Independent trustees' compensation | 3,032 | |
Registration fees | 82,518 | |
Audit | 29,729 | |
Legal | 3,932 | |
Miscellaneous | 17,879 | |
Total expenses before reductions | 5,421,649 | |
Expense reductions | (40,958) | 5,380,691 |
Net investment income (loss) | (1,081,402) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (289,328,487) | |
Foreign currency transactions | (26,844) | |
Total net realized gain (loss) |
| (289,355,331) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (218,647,073) | |
Assets and liabilities in foreign currencies | (12,303) | |
Total change in net unrealized appreciation (depreciation) |
| (218,659,376) |
Net gain (loss) | (508,014,707) | |
Net increase (decrease) in net assets resulting from operations | $ (509,096,109) |
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) | $ (1,081,402) | $ (6,524,319) |
Net realized gain (loss) | (289,355,331) | (103,756,345) |
Change in net unrealized appreciation (depreciation) | (218,659,376) | (72,236,255) |
Net increase (decrease) in net assets resulting from operations | (509,096,109) | (182,516,919) |
Distributions to shareholders from net realized gain | - | (81,199,740) |
Share transactions - net increase (decrease) | 43,496,846 | 331,568,501 |
Redemption fees | 156,981 | 439,174 |
Total increase (decrease) in net assets | (465,442,282) | 68,291,016 |
|
|
|
Net Assets | ||
Beginning of period | 1,325,367,811 | 1,257,076,795 |
End of period (including accumulated net investment loss of $1,081,402 and $0, respectively) | $ 859,925,529 | $ 1,325,367,811 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.02) | (.11) | (.12) H | (.10) I | (.07) |
Net realized and unrealized gain (loss) | (4.98) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | (5.00) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.20 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | (37.88)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.28% A | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.28% A | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.27% A | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.44)% A | (.74)% | (.80)% H | (.79)% I | (.78)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 26,361 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.03) | (.15) | (.16) H | (.14) I | (.09) |
Net realized and unrealized gain (loss) | (4.97) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | (5.00) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.17 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | (37.97)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.54% A | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.54% A | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.53% A | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.69)% A | (.99)% | (1.05)% H | (1.04)% I | (1.03)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 16,811 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.91) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | (4.97) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.06 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | (38.14)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.02% A | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.53)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,088 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.90) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | (4.96) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.04 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | (38.15)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.02% A | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.50)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,929 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.07) | (.08) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | (5.03) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.26 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | (37.85)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.02% A | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.18)% A | (.45)% | (.50)% G | (.52)% H | (.49)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 790,815 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.06) | (.07) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | (5.03) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.27 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | (37.82)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | .98% A | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | .98% A | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | .98% A | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.14)% A | (.38)% | (.46)% G | (.49)% H | (.51)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 12,921 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 34,914,324 |
Unrealized depreciation | (270,042,863) |
Net unrealized appreciation (depreciation) | $ (235,128,539) |
Cost for federal income tax purposes | $ 1,157,200,195 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $867,848,006 and $814,425,380, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .67% 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,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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% | $ 40,237 | $ 1,683 |
Class T | .25% | .25% | 43,072 | - |
Class B | .75% | .25% | 19,748 | 14,824 |
Class C | .75% | .25% | 60,899 | 12,918 |
|
|
| $ 163,956 | $ 29,425 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,059 |
Class T | 2,369 |
Class B* | 5,894 |
Class C* | 1,116 |
| $ 17,438 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 47,634 | .30 |
Class T | 26,137 | .30 |
Class B | 5,840 | .30 |
Class C | 17,852 | .29 |
Small Cap Growth | 1,366,461 | .29 |
Institutional Class | 20,200 | .25 |
| $ 1,484,124 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $18,294 for the period.
7. 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, which amounted to $1,309 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $33,223 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $781. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Small Cap Growth | $ 6,954 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ - | $ 2,216,913 |
Class T | - | 1,570,296 |
Class B | - | 348,424 |
Class C | - | 1,307,950 |
Small Cap Growth | - | 74,608,644 |
Institutional Class | - | 1,147,513 |
Total | $ - | $ 81,199,740 |
12. 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 | 589,786 | 1,742,262 | $ 5,937,137 | $ 25,505,334 |
Reinvestment of distributions | - | 126,731 | - | 1,912,181 |
Shares redeemed | (569,567) | (763,921) | (5,459,040) | (11,052,109) |
Net increase (decrease) | 20,219 | 1,105,072 | $ 478,097 | $ 16,365,406 |
Class T |
|
|
|
|
Shares sold | 878,491 | 487,722 | $ 7,158,358 | $ 7,048,735 |
Reinvestment of distributions | - | 99,906 | - | 1,507,341 |
Shares redeemed | (471,956) | (586,050) | (4,232,506) | (8,531,977) |
Net increase (decrease) | 406,535 | 1,578 | $ 2,925,852 | $ 24,099 |
Class B |
|
|
|
|
Shares sold | 47,994 | 132,932 | $ 443,093 | $ 1,958,446 |
Reinvestment of distributions | - | 22,166 | - | 332,229 |
Shares redeemed | (88,288) | (125,460) | (877,037) | (1,804,323) |
Net increase (decrease) | (40,294) | 29,638 | $ (433,944) | $ 486,352 |
Class C |
|
|
|
|
Shares sold | 314,944 | 436,957 | $ 3,104,278 | $ 6,320,995 |
Reinvestment of distributions | - | 82,544 | - | 1,234,732 |
Shares redeemed | (306,943) | (703,886) | (2,853,105) | (9,901,355) |
Net increase (decrease) | 8,001 | (184,385) | $ 251,173 | $ (2,345,628) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 16,570,293 | 38,610,197 | $ 158,484,622 | $ 574,316,675 |
Reinvestment of distributions | - | 4,701,343 | - | 71,216,320 |
Shares redeemed | (12,473,614) | (22,858,332) | (117,323,416) | (336,543,207) |
Net increase (decrease) | 4,096,679 | 20,453,208 | $ 41,161,206 | $ 308,989,788 |
Institutional Class |
|
|
|
|
Shares sold | 407,791 | 788,829 | $ 3,686,981 | $ 11,907,085 |
Reinvestment of distributions | - | 66,279 | - | 1,004,006 |
Shares redeemed | (532,900) | (323,911) | (4,572,519) | (4,862,607) |
Net increase (decrease) | (125,109) | 531,197 | $ (885,538) | $ 8,048,484 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCP-USAN-0309 1.803716.105
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2009
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.28% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.20 | $ 5.23 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.75 | $ 6.51 |
Class T | 1.54% |
|
|
|
Actual |
| $ 1,000.00 | $ 620.30 | $ 6.29 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.44 | $ 7.83 |
Class B | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.60 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 618.50 | $ 8.28 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.97 | $ 10.31 |
Small Cap Growth | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.50 | $ 4.21 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Institutional Class | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 621.80 | $ 4.01 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.27 | $ 4.99 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
j2 Global Communications, Inc. | 1.8 | 1.4 |
CACI International, Inc. Class A | 1.7 | 1.0 |
Perrigo Co. | 1.6 | 1.0 |
Concho Resources, Inc. | 1.6 | 1.4 |
Compass Minerals International, Inc. | 1.5 | 0.6 |
PSS World Medical, Inc. | 1.4 | 1.2 |
EXCO Resources, Inc. | 1.3 | 1.3 |
CMS Energy Corp. | 1.2 | 0.8 |
Immucor, Inc. | 1.2 | 1.1 |
Hillenbrand, Inc. | 1.2 | 0.8 |
| 14.5 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Health Care | 23.0 | 20.1 |
Information Technology | 18.9 | 18.5 |
Industrials | 15.1 | 18.8 |
Consumer Discretionary | 12.6 | 9.4 |
Energy | 9.0 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks 94.7% |
| ![]() | Stocks 95.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.8% |
| ** Foreign investments | 13.4% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 3.7% | |||
Brinks Home Security Holdings, Inc. (a) | 298,200 | $ 6,819,834 | |
DeVry, Inc. | 146,000 | 7,822,680 | |
Hillenbrand, Inc. | 551,507 | 10,197,364 | |
Strayer Education, Inc. | 31,000 | 6,709,330 | |
| 31,549,208 | ||
Hotels, Restaurants & Leisure - 3.8% | |||
Bally Technologies, Inc. (a) | 381,600 | 7,704,504 | |
Burger King Holdings, Inc. | 387,000 | 8,610,750 | |
Life Time Fitness, Inc. (a)(d) | 345,000 | 5,109,450 | |
Penn National Gaming, Inc. (a) | 423,000 | 7,888,950 | |
WMS Industries, Inc. (a) | 175,000 | 3,888,500 | |
| 33,202,154 | ||
Internet & Catalog Retail - 0.5% | |||
Priceline.com, Inc. (a)(d) | 65,900 | 4,421,231 | |
Media - 0.5% | |||
Virgin Media, Inc. | 891,000 | 4,045,140 | |
Specialty Retail - 2.0% | |||
Advance Auto Parts, Inc. | 226,900 | 7,426,437 | |
Citi Trends, Inc. (a) | 371,985 | 3,545,017 | |
O'Reilly Automotive, Inc. (a) | 114,000 | 3,313,980 | |
The Men's Wearhouse, Inc. | 269,900 | 3,144,335 | |
| 17,429,769 | ||
Textiles, Apparel & Luxury Goods - 2.1% | |||
FGX International Ltd. (a) | 415,000 | 5,146,000 | |
G-III Apparel Group Ltd. (a) | 529,403 | 2,911,717 | |
Iconix Brand Group, Inc. (a)(d) | 898,600 | 7,431,422 | |
Steven Madden Ltd. (a) | 135,000 | 2,346,300 | |
| 17,835,439 | ||
TOTAL CONSUMER DISCRETIONARY | 108,482,941 | ||
CONSUMER STAPLES - 2.5% | |||
Food Products - 1.9% | |||
Chiquita Brands International, Inc. (a) | 338,000 | 4,725,240 | |
Corn Products International, Inc. | 217,000 | 5,023,550 | |
Tyson Foods, Inc. Class A | 795,000 | 7,035,750 | |
| 16,784,540 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Chattem, Inc. (a)(d) | 72,300 | $ 4,887,480 | |
TOTAL CONSUMER STAPLES | 21,672,020 | ||
ENERGY - 9.0% | |||
Energy Equipment & Services - 1.8% | |||
Hornbeck Offshore Services, Inc. (a) | 309,900 | 5,497,626 | |
Patterson-UTI Energy, Inc. | 496,000 | 4,741,760 | |
Superior Energy Services, Inc. (a) | 331,400 | 5,163,212 | |
| 15,402,598 | ||
Oil, Gas & Consumable Fuels - 7.2% | |||
Cabot Oil & Gas Corp. | 193,600 | 5,322,064 | |
Comstock Resources, Inc. (a) | 85,198 | 3,248,600 | |
Concho Resources, Inc. (a) | 537,800 | 13,563,316 | |
EXCO Resources, Inc. (a) | 1,083,400 | 10,985,676 | |
Mariner Energy, Inc. (a) | 730,000 | 7,227,000 | |
Petroleum Development Corp. (a) | 312,217 | 5,385,743 | |
Range Resources Corp. | 249,850 | 8,954,624 | |
Whiting Petroleum Corp. (a) | 252,000 | 7,308,000 | |
| 61,995,023 | ||
TOTAL ENERGY | 77,397,621 | ||
FINANCIALS - 6.7% | |||
Capital Markets - 1.2% | |||
FCStone Group, Inc. (a) | 838,200 | 3,227,070 | |
Janus Capital Group, Inc. | 456,200 | 2,395,050 | |
Waddell & Reed Financial, Inc. Class A | 316,000 | 4,461,920 | |
| 10,084,040 | ||
Commercial Banks - 1.1% | |||
Signature Bank, New York (a) | 211,000 | 5,420,590 | |
UMB Financial Corp. | 116,000 | 4,493,840 | |
| 9,914,430 | ||
Insurance - 2.4% | |||
Allied World Assurance Co. Holdings Ltd. | 225,000 | 8,482,500 | |
Aspen Insurance Holdings Ltd. | 312,100 | 6,897,410 | |
Endurance Specialty Holdings Ltd. | 210,000 | 5,724,600 | |
| 21,104,510 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 1.6% | |||
American Campus Communities, Inc. | 271,200 | $ 5,795,544 | |
CapitalSource, Inc. | 330,000 | 1,201,200 | |
Digital Realty Trust, Inc. | 207,000 | 6,603,300 | |
| 13,600,044 | ||
Real Estate Management & Development - 0.4% | |||
Jones Lang LaSalle, Inc. | 138,000 | 3,258,180 | |
TOTAL FINANCIALS | 57,961,204 | ||
HEALTH CARE - 23.0% | |||
Biotechnology - 4.8% | |||
BioMarin Pharmaceutical, Inc. (a)(d) | 388,000 | 7,472,880 | |
Cephalon, Inc. (a)(d) | 129,800 | 10,017,964 | |
Grifols SA | 515,574 | 9,096,032 | |
Myriad Genetics, Inc. (a) | 50,000 | 3,728,500 | |
Theravance, Inc. (a) | 250,000 | 3,295,000 | |
United Therapeutics Corp. (a) | 113,000 | 7,678,350 | |
| 41,288,726 | ||
Health Care Equipment & Supplies - 7.1% | |||
American Medical Systems Holdings, Inc. (a)(d) | 597,345 | 6,391,592 | |
DENTSPLY International, Inc. (d) | 257,300 | 6,923,943 | |
Haemonetics Corp. (a) | 146,000 | 8,635,900 | |
Immucor, Inc. (a) | 373,900 | 10,360,769 | |
Integra LifeSciences Holdings Corp. (a) | 265,200 | 7,356,648 | |
Kinetic Concepts, Inc. (a) | 175,267 | 4,223,935 | |
Masimo Corp. (a) | 150,000 | 4,165,500 | |
Meridian Bioscience, Inc. | 358,505 | 7,621,816 | |
ResMed, Inc. (a) | 130,000 | 5,187,000 | |
| 60,867,103 | ||
Health Care Providers & Services - 7.5% | |||
Amedisys, Inc. (a)(d) | 218,000 | 8,988,140 | |
Brookdale Senior Living, Inc. (d) | 923,000 | 6,276,400 | |
Centene Corp. (a) | 407,233 | 7,220,241 | |
Hanger Orthopedic Group, Inc. (a) | 400,000 | 5,460,000 | |
IPC The Hospitalist Co., Inc. | 75,641 | 1,447,769 | |
Patterson Companies, Inc. (a)(d) | 189,100 | 3,477,549 | |
PSS World Medical, Inc. (a) | 759,499 | 12,060,844 | |
Sun Healthcare Group, Inc. (a) | 725,800 | 8,223,314 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Synergy Health PLC | 749,967 | $ 4,348,759 | |
VCA Antech, Inc. (a) | 355,600 | 6,692,392 | |
| 64,195,408 | ||
Life Sciences Tools & Services - 2.0% | |||
Illumina, Inc. (a) | 157,000 | 4,295,520 | |
PAREXEL International Corp. (a) | 702,700 | 6,949,703 | |
QIAGEN NV (a) | 360,000 | 6,174,000 | |
| 17,419,223 | ||
Pharmaceuticals - 1.6% | |||
Perrigo Co. (d) | 466,800 | 13,700,580 | |
TOTAL HEALTH CARE | 197,471,040 | ||
INDUSTRIALS - 15.1% | |||
Aerospace & Defense - 2.3% | |||
Alliant Techsystems, Inc. (a) | 85,000 | 6,868,850 | |
Stanley, Inc. (a) | 316,000 | 9,562,160 | |
Teledyne Technologies, Inc. (a) | 120,000 | 3,344,400 | |
| 19,775,410 | ||
Airlines - 0.9% | |||
Alaska Air Group, Inc. (a) | 280,000 | 7,380,800 | |
Commercial Services & Supplies - 0.8% | |||
Corrections Corp. of America (a)(d) | 183,200 | 2,524,496 | |
InnerWorkings, Inc. (a) | 1,421,900 | 4,706,489 | |
| 7,230,985 | ||
Construction & Engineering - 0.4% | |||
KBR, Inc. | 234,400 | 3,319,104 | |
Electrical Equipment - 3.2% | |||
Acuity Brands, Inc. | 174,100 | 4,678,067 | |
American Superconductor Corp. (a)(d) | 302,000 | 4,886,360 | |
EnerSys (a)(d) | 579,600 | 5,280,156 | |
SMA Solar Technology AG | 183,300 | 7,108,427 | |
Sunpower Corp. Class B (a) | 217,000 | 5,733,140 | |
| 27,686,150 | ||
Industrial Conglomerates - 0.6% | |||
McDermott International, Inc. (a) | 480,000 | 4,977,600 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - 1.4% | |||
Navistar International Corp. (a) | 263,000 | $ 7,987,310 | |
Sulzer AG (Reg.) | 83,302 | 4,165,459 | |
| 12,152,769 | ||
Professional Services - 3.9% | |||
CoStar Group, Inc. (a) | 214,736 | 6,360,480 | |
FTI Consulting, Inc. (a)(d) | 219,000 | 8,981,190 | |
Huron Consulting Group, Inc. (a)(d) | 153,400 | 7,666,932 | |
Monster Worldwide, Inc. (a) | 301,997 | 2,781,392 | |
Navigant Consulting, Inc. (a) | 528,800 | 7,577,704 | |
| 33,367,698 | ||
Road & Rail - 0.9% | |||
Con-way, Inc. | 181,000 | 3,987,430 | |
Knight Transportation, Inc. | 274,300 | 3,659,162 | |
| 7,646,592 | ||
Transportation Infrastructure - 0.7% | |||
Aegean Marine Petroleum Network, Inc. | 370,000 | 6,330,700 | |
TOTAL INDUSTRIALS | 129,867,808 | ||
INFORMATION TECHNOLOGY - 18.9% | |||
Communications Equipment - 2.4% | |||
Harris Corp. | 176,700 | 7,649,343 | |
Polycom, Inc. (a) | 395,500 | 5,556,775 | |
ViaSat, Inc. (a) | 330,700 | 7,328,312 | |
| 20,534,430 | ||
Computers & Peripherals - 0.9% | |||
Logitech International SA (a) | 371,000 | 3,557,890 | |
Wincor Nixdorf AG | 87,400 | 4,165,971 | |
| 7,723,861 | ||
Electronic Equipment & Components - 1.3% | |||
Cogent, Inc. (a) | 538,400 | 6,266,976 | |
Ingram Micro, Inc. Class A (a) | 415,000 | 5,092,050 | |
| 11,359,026 | ||
Internet Software & Services - 4.2% | |||
Art Technology Group, Inc. (a) | 2,420,000 | 4,138,200 | |
Equinix, Inc. (a)(d) | 141,600 | 7,554,360 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
j2 Global Communications, Inc. (a) | 792,500 | $ 15,517,147 | |
Telecity Group PLC (a) | 3,553,600 | 8,757,510 | |
| 35,967,217 | ||
IT Services - 5.7% | |||
Alliance Data Systems Corp. (a) | 196,400 | 8,168,276 | |
CACI International, Inc. Class A (a) | 319,400 | 14,420,910 | |
CyberSource Corp. (a) | 665,466 | 7,939,009 | |
Datacash Group PLC | 1,921,200 | 6,837,341 | |
Integral Systems, Inc. (a) | 404,000 | 4,415,720 | |
Perot Systems Corp. Class A (a) | 263,593 | 3,424,073 | |
WNS Holdings Ltd. sponsored ADR (a) | 541,500 | 3,519,750 | |
| 48,725,079 | ||
Semiconductors & Semiconductor Equipment - 2.3% | |||
Hittite Microwave Corp. (a) | 238,821 | 6,118,594 | |
Lam Research Corp. (a) | 343,500 | 6,942,135 | |
Varian Semiconductor Equipment Associates, Inc. (a)(d) | 350,490 | 6,673,330 | |
| 19,734,059 | ||
Software - 2.1% | |||
Ansys, Inc. (a) | 136,500 | 3,393,390 | |
Autodesk, Inc. (a) | 215,000 | 3,560,400 | |
Blackbaud, Inc. | 321,059 | 3,573,387 | |
PROS Holdings, Inc. (a) | 806,705 | 4,848,297 | |
Taleo Corp. Class A (a) | 348,639 | 2,939,027 | |
| 18,314,501 | ||
TOTAL INFORMATION TECHNOLOGY | 162,358,173 | ||
MATERIALS - 5.0% | |||
Chemicals - 1.0% | |||
Solutia, Inc. (a) | 1,029,000 | 4,023,390 | |
Terra Industries, Inc. | 215,000 | 4,403,200 | |
| 8,426,590 | ||
Containers & Packaging - 0.6% | |||
Myers Industries, Inc. | 858,000 | 5,379,660 | |
Metals & Mining - 3.4% | |||
Compass Minerals International, Inc. | 206,000 | 12,395,020 | |
IAMGOLD Corp. | 484,700 | 3,321,353 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Randgold Resources Ltd. sponsored ADR | 157,200 | $ 6,989,112 | |
Red Back Mining, Inc. (a) | 954,400 | 6,135,067 | |
| 28,840,552 | ||
TOTAL MATERIALS | 42,646,802 | ||
TELECOMMUNICATION SERVICES - 0.6% | |||
Diversified Telecommunication Services - 0.6% | |||
Premiere Global Services, Inc. (a) | 582,000 | 5,639,580 | |
UTILITIES - 1.3% | |||
Multi-Utilities - 1.2% | |||
CMS Energy Corp. (d) | 893,200 | 10,495,100 | |
Water Utilities - 0.1% | |||
Southwest Water Co. | 81,971 | 367,230 | |
TOTAL UTILITIES | 10,862,330 | ||
TOTAL COMMON STOCKS (Cost $1,033,233,638) | 814,359,519 | ||
Money Market Funds - 12.5% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.78% (b) | 56,637,425 | 56,637,425 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 51,074,712 | 51,074,712 | |
TOTAL MONEY MARKET FUNDS (Cost $107,712,137) | 107,712,137 | ||
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $1,140,945,775) | 922,071,656 | ||
NET OTHER ASSETS - (7.2)% | (62,146,127) | ||
NET ASSETS - 100% | $ 859,925,529 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 388,677 |
Fidelity Securities Lending Cash Central Fund | 589,787 |
Total | $ 978,464 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 922,071,656 | $ 922,071,656 | $ - | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
United Kingdom | 3.5% |
Bermuda | 2.4% |
Germany | 1.3% |
Canada | 1.1% |
Spain | 1.0% |
Others (individually less than 1%) | 3.5% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $101,242,350 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $49,233,933) - See accompanying schedule: Unaffiliated issuers (cost $1,033,233,638) | $ 814,359,519 |
|
Fidelity Central Funds (cost $107,712,137) | 107,712,137 |
|
Total Investments (cost $1,140,945,775) |
| $ 922,071,656 |
Cash | 215,135 | |
Receivable for investments sold | 21,697,996 | |
Receivable for fund shares sold | 1,490,617 | |
Dividends receivable | 191,936 | |
Distributions receivable from Fidelity Central Funds | 157,265 | |
Prepaid expenses | 10,489 | |
Other receivables | 575,087 | |
Total assets | 946,410,181 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,007,425 | |
Payable for fund shares redeemed | 565,934 | |
Accrued management fee | 537,315 | |
Distribution fees payable | 23,934 | |
Other affiliated payables | 235,788 | |
Other payables and accrued expenses | 39,544 | |
Collateral on securities loaned, at value | 51,074,712 | |
Total liabilities | 86,484,652 | |
|
|
|
Net Assets | $ 859,925,529 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,474,817,990 | |
Accumulated net investment loss | (1,081,402) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (394,922,427) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (218,888,632) | |
Net Assets | $ 859,925,529 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 8.20 | |
|
|
|
Maximum offering price per share (100/94.25 of $8.20) | $ 8.70 | |
Class T: | $ 8.17 | |
|
|
|
Maximum offering price per share (100/96.50 of $8.17) | $ 8.47 | |
Class B: | $ 8.06 | |
|
|
|
Class C: | $ 8.04 | |
|
|
|
|
|
|
Small Cap Growth: | $ 8.26 | |
|
|
|
Institutional Class: | $ 8.27 |
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 January 31, 2009 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,320,786 |
Interest |
| 39 |
Income from Fidelity Central Funds (including $589,787 from security lending) |
| 978,464 |
Total income |
| 4,299,289 |
|
|
|
Expenses | ||
Management fee | $ 3,654,463 | |
Performance adjustment | (225,958) | |
Transfer agent fees | 1,484,124 | |
Distribution fees | 163,956 | |
Accounting and security lending fees | 180,554 | |
Custodian fees and expenses | 27,420 | |
Independent trustees' compensation | 3,032 | |
Registration fees | 82,518 | |
Audit | 29,729 | |
Legal | 3,932 | |
Miscellaneous | 17,879 | |
Total expenses before reductions | 5,421,649 | |
Expense reductions | (40,958) | 5,380,691 |
Net investment income (loss) | (1,081,402) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (289,328,487) | |
Foreign currency transactions | (26,844) | |
Total net realized gain (loss) |
| (289,355,331) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (218,647,073) | |
Assets and liabilities in foreign currencies | (12,303) | |
Total change in net unrealized appreciation (depreciation) |
| (218,659,376) |
Net gain (loss) | (508,014,707) | |
Net increase (decrease) in net assets resulting from operations | $ (509,096,109) |
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) | $ (1,081,402) | $ (6,524,319) |
Net realized gain (loss) | (289,355,331) | (103,756,345) |
Change in net unrealized appreciation (depreciation) | (218,659,376) | (72,236,255) |
Net increase (decrease) in net assets resulting from operations | (509,096,109) | (182,516,919) |
Distributions to shareholders from net realized gain | - | (81,199,740) |
Share transactions - net increase (decrease) | 43,496,846 | 331,568,501 |
Redemption fees | 156,981 | 439,174 |
Total increase (decrease) in net assets | (465,442,282) | 68,291,016 |
|
|
|
Net Assets | ||
Beginning of period | 1,325,367,811 | 1,257,076,795 |
End of period (including accumulated net investment loss of $1,081,402 and $0, respectively) | $ 859,925,529 | $ 1,325,367,811 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.02) | (.11) | (.12) H | (.10) I | (.07) |
Net realized and unrealized gain (loss) | (4.98) | (1.73) | 3.39 | .18 | 3.01 |
Total from investment operations | (5.00) | (1.84) | 3.27 | .08 | 2.94 |
Distributions from net realized gain | - | (1.02) | (.09) | (.16) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.20 | $ 13.20 | $ 16.06 | $ 12.88 | $ 12.95 |
Total Return B, C, D | (37.88)% | (12.26)% | 25.52% | .70% | 29.50% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.28% A | 1.40% | 1.44% | 1.53% | 1.55% A |
Expenses net of fee waivers, if any | 1.28% A | 1.40% | 1.40% | 1.40% | 1.45% A |
Expenses net of all reductions | 1.27% A | 1.39% | 1.39% | 1.35% | 1.36% A |
Net investment income (loss) | (.44)% A | (.74)% | (.80)% H | (.79)% I | (.78)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 26,361 | $ 42,187 | $ 33,588 | $ 18,104 | $ 4,719 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.03) | (.15) | (.16) H | (.14) I | (.09) |
Net realized and unrealized gain (loss) | (4.97) | (1.73) | 3.38 | .19 | 3.01 |
Total from investment operations | (5.00) | (1.88) | 3.22 | .05 | 2.92 |
Distributions from net realized gain | - | (.96) | (.07) | (.13) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.17 | $ 13.17 | $ 16.01 | $ 12.86 | $ 12.93 |
Total Return B, C, D | (37.97)% | (12.50)% | 25.18% | .48% | 29.30% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 1.54% A | 1.65% | 1.67% | 1.73% | 1.79% A |
Expenses net of fee waivers, if any | 1.54% A | 1.65% | 1.65% | 1.65% | 1.70% A |
Expenses net of all reductions | 1.53% A | 1.65% | 1.65% | 1.60% | 1.61% A |
Net investment income (loss) | (.69)% A | (.99)% | (1.05)% H | (1.04)% I | (1.03)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 16,811 | $ 21,754 | $ 26,419 | $ 19,205 | $ 5,240 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.10)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.91) | (1.71) | 3.36 | .19 | 2.99 |
Total from investment operations | (4.97) | (1.93) | 3.13 | (.01) | 2.86 |
Distributions from net realized gain | - | (.89) | (.06) | (.09) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.06 | $ 13.03 | $ 15.85 | $ 12.78 | $ 12.87 |
Total Return B, C, D | (38.14)% | (12.92)% | 24.57% | (.03)% | 28.70% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.28% | 2.33% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.20% A |
Expenses net of all reductions | 2.02% A | 2.15% | 2.15% | 2.10% | 2.11% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.53)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,088 | $ 5,517 | $ 6,242 | $ 5,191 | $ 2,055 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 J | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | (.06) | (.22) | (.23) H | (.20) I | (.13) |
Net realized and unrealized gain (loss) | (4.90) | (1.71) | 3.36 | .18 | 3.00 |
Total from investment operations | (4.96) | (1.93) | 3.13 | (.02) | 2.87 |
Distributions from net realized gain | - | (.91) | (.06) | (.10) | - |
Redemption fees added to paid in capital E | - L | - L | - L | .01 | .01 |
Net asset value, end of period | $ 8.04 | $ 13.00 | $ 15.84 | $ 12.77 | $ 12.88 |
Total Return B, C, D | (38.15)% | (12.94)% | 24.59% | (.08)% | 28.80% |
Ratios to Average Net Assets F, K |
|
|
|
| |
Expenses before reductions | 2.03% A | 2.15% | 2.20% | 2.25% | 2.24% A |
Expenses net of fee waivers, if any | 2.03% A | 2.15% | 2.15% | 2.15% | 2.17% A |
Expenses net of all reductions | 2.02% A | 2.14% | 2.14% | 2.10% | 2.09% A |
Net investment income (loss) | (1.18)% A | (1.49)% | (1.55)% H | (1.54)% I | (1.50)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,929 | $ 15,946 | $ 22,348 | $ 14,682 | $ 8,372 |
Portfolio turnover rate G | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. J For the period November 3, 2004 (commencement of operations) to July 31, 2005. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.07) | (.08) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.40 | .19 | 3.01 |
Total from investment operations | (5.03) | (1.81) | 3.32 | .12 | 2.97 |
Distributions from net realized gain | - | (1.05) | (.10) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.26 | $ 13.29 | $ 16.15 | $ 12.93 | $ 12.98 |
Total Return B, C | (37.85)% | (11.98)% | 25.84% | 1.01% | 29.80% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of fee waivers, if any | 1.03% A | 1.11% | 1.10% | 1.13% | 1.16% A |
Expenses net of all reductions | 1.02% A | 1.10% | 1.09% | 1.08% | 1.08% A |
Net investment income (loss) | (.18)% A | (.45)% | (.50)% G | (.52)% H | (.49)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 790,815 | $ 1,217,520 | $ 1,149,809 | $ 402,353 | $ 205,652 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.58)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | |||
(Unaudited) | 2008 | 2007 | 2006 | 2005 I | |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.01) | (.06) | (.07) G | (.07) H | (.04) |
Net realized and unrealized gain (loss) | (5.02) | (1.74) | 3.41 | .19 | 3.00 |
Total from investment operations | (5.03) | (1.80) | 3.34 | .12 | 2.96 |
Distributions from net realized gain | - | (1.05) | (.11) | (.18) | - |
Redemption fees added to paid in capital D | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 8.27 | $ 13.30 | $ 16.15 | $ 12.92 | $ 12.97 |
Total Return B, C | (37.82)% | (11.93)% | 25.99% | .97% | 29.70% |
Ratios to Average Net Assets E, J |
|
|
|
| |
Expenses before reductions | .98% A | 1.04% | 1.05% | 1.10% | 1.20% A |
Expenses net of fee waivers, if any | .98% A | 1.04% | 1.05% | 1.10% | 1.18% A |
Expenses net of all reductions | .98% A | 1.03% | 1.05% | 1.05% | 1.10% A |
Net investment income (loss) | (.14)% A | (.38)% | (.46)% G | (.49)% H | (.51)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 12,921 | $ 22,444 | $ 18,671 | $ 14,233 | $ 1,906 |
Portfolio turnover rate F | 160% A | 113% | 91% | 129% | 93% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.55)%. I For the period November 3, 2004 (commencement of operations) to July 31, 2005. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Growth 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 34,914,324 |
Unrealized depreciation | (270,042,863) |
Net unrealized appreciation (depreciation) | $ (235,128,539) |
Cost for federal income tax purposes | $ 1,157,200,195 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $867,848,006 and $814,425,380, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the retail class of the Fund, Small Cap Growth, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .67% 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,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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% | $ 40,237 | $ 1,683 |
Class T | .25% | .25% | 43,072 | - |
Class B | .75% | .25% | 19,748 | 14,824 |
Class C | .75% | .25% | 60,899 | 12,918 |
|
|
| $ 163,956 | $ 29,425 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,059 |
Class T | 2,369 |
Class B* | 5,894 |
Class C* | 1,116 |
| $ 17,438 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 47,634 | .30 |
Class T | 26,137 | .30 |
Class B | 5,840 | .30 |
Class C | 17,852 | .29 |
Small Cap Growth | 1,366,461 | .29 |
Institutional Class | 20,200 | .25 |
| $ 1,484,124 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $18,294 for the period.
7. 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, which amounted to $1,309 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $33,223 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $781. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent |
Small Cap Growth | $ 6,954 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, Fidelity Freedom 2020 Fund and Fidelity Freedom 2030 Fund were the owners of record of approximately 12% and 10%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ - | $ 2,216,913 |
Class T | - | 1,570,296 |
Class B | - | 348,424 |
Class C | - | 1,307,950 |
Small Cap Growth | - | 74,608,644 |
Institutional Class | - | 1,147,513 |
Total | $ - | $ 81,199,740 |
12. 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 | 589,786 | 1,742,262 | $ 5,937,137 | $ 25,505,334 |
Reinvestment of distributions | - | 126,731 | - | 1,912,181 |
Shares redeemed | (569,567) | (763,921) | (5,459,040) | (11,052,109) |
Net increase (decrease) | 20,219 | 1,105,072 | $ 478,097 | $ 16,365,406 |
Class T |
|
|
|
|
Shares sold | 878,491 | 487,722 | $ 7,158,358 | $ 7,048,735 |
Reinvestment of distributions | - | 99,906 | - | 1,507,341 |
Shares redeemed | (471,956) | (586,050) | (4,232,506) | (8,531,977) |
Net increase (decrease) | 406,535 | 1,578 | $ 2,925,852 | $ 24,099 |
Class B |
|
|
|
|
Shares sold | 47,994 | 132,932 | $ 443,093 | $ 1,958,446 |
Reinvestment of distributions | - | 22,166 | - | 332,229 |
Shares redeemed | (88,288) | (125,460) | (877,037) | (1,804,323) |
Net increase (decrease) | (40,294) | 29,638 | $ (433,944) | $ 486,352 |
Class C |
|
|
|
|
Shares sold | 314,944 | 436,957 | $ 3,104,278 | $ 6,320,995 |
Reinvestment of distributions | - | 82,544 | - | 1,234,732 |
Shares redeemed | (306,943) | (703,886) | (2,853,105) | (9,901,355) |
Net increase (decrease) | 8,001 | (184,385) | $ 251,173 | $ (2,345,628) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 16,570,293 | 38,610,197 | $ 158,484,622 | $ 574,316,675 |
Reinvestment of distributions | - | 4,701,343 | - | 71,216,320 |
Shares redeemed | (12,473,614) | (22,858,332) | (117,323,416) | (336,543,207) |
Net increase (decrease) | 4,096,679 | 20,453,208 | $ 41,161,206 | $ 308,989,788 |
Institutional Class |
|
|
|
|
Shares sold | 407,791 | 788,829 | $ 3,686,981 | $ 11,907,085 |
Reinvestment of distributions | - | 66,279 | - | 1,004,006 |
Shares redeemed | (532,900) | (323,911) | (4,572,519) | (4,862,607) |
Net increase (decrease) | (125,109) | 531,197 | $ (885,538) | $ 8,048,484 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCPI-USAN-0309 1.803724.105
Fidelity®
Small Cap Opportunities
Fund
Semiannual Report
January 31, 2009
(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, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/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 redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .85% | $ 1,000.00 | $ 640.40 | $ 3.51 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Forestar Group, Inc. | 1.6 | 0.0 |
Affiliated Managers Group, Inc. | 1.1 | 0.0 |
PSS World Medical, Inc. | 1.1 | 0.7 |
Washington Federal, Inc. | 1.1 | 0.4 |
Genoptix, Inc. | 1.1 | 0.2 |
Waddell & Reed Financial, Inc. Class A | 1.1 | 0.2 |
Reinsurance Group of America, Inc. | 1.1 | 0.0 |
Ralcorp Holdings, Inc. | 1.0 | 0.0 |
Alliance Data Systems Corp. | 0.9 | 2.2 |
Haemonetics Corp. | 0.9 | 0.5 |
| 11.0 |
|
Top Five Market Sectors as of January 31, 2009 | ||
| % of fund's | % of fund's net assets |
Financials | 20.8 | 18.3 |
Information Technology | 16.3 | 18.1 |
Health Care | 15.3 | 12.9 |
Industrials | 14.5 | 14.3 |
Consumer Discretionary | 10.1 | 11.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2009 * | As of July 31, 2008 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks, Investment |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 0.0% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.4% |
| ** Foreign investments | 7.8% |
|
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.1% | |||
Auto Components - 0.1% | |||
American Axle & Manufacturing Holdings, Inc. | 148,200 | $ 161,538 | |
Lear Corp. (a) | 75,699 | 68,886 | |
Tenneco, Inc. (a) | 300,945 | 553,739 | |
The Goodyear Tire & Rubber Co. (a) | 58,700 | 362,179 | |
| 1,146,342 | ||
Diversified Consumer Services - 1.3% | |||
Brinks Home Security Holdings, Inc. (a) | 265,900 | 6,081,133 | |
Steiner Leisure Ltd. (a) | 55,900 | 1,393,587 | |
Universal Technical Institute, Inc. (a) | 260,100 | 4,559,553 | |
| 12,034,273 | ||
Hotels, Restaurants & Leisure - 1.8% | |||
Bally Technologies, Inc. (a) | 171,900 | 3,470,661 | |
Darden Restaurants, Inc. | 75,700 | 1,984,854 | |
Jack in the Box, Inc. (a) | 196,400 | 4,436,676 | |
Red Robin Gourmet Burgers, Inc. (a) | 203,660 | 2,480,579 | |
Ruth's Chris Steak House, Inc. (a) | 145,598 | 164,526 | |
Texas Roadhouse, Inc. Class A (a) | 315,985 | 2,410,966 | |
Town Sports International Holdings, Inc. (a)(d) | 491,912 | 973,986 | |
| 15,922,248 | ||
Household Durables - 0.2% | |||
Centex Corp. | 168,900 | 1,437,339 | |
Internet & Catalog Retail - 0.6% | |||
Netflix, Inc. (a) | 79,200 | 2,862,288 | |
Shutterfly, Inc. (a) | 329,800 | 2,179,978 | |
| 5,042,266 | ||
Leisure Equipment & Products - 0.6% | |||
JAKKS Pacific, Inc. (a) | 217,700 | 3,992,618 | |
Summer Infant, Inc. (a)(e) | 794,794 | 1,748,547 | |
| 5,741,165 | ||
Media - 0.2% | |||
Martha Stewart Living Omnimedia, Inc. Class A (a) | 621,534 | 1,454,390 | |
Multiline Retail - 0.3% | |||
Nordstrom, Inc. (d) | 197,500 | 2,506,275 | |
Specialty Retail - 3.1% | |||
Chico's FAS, Inc. (a) | 731,100 | 2,895,156 | |
Gamestop Corp. Class A (a) | 128,500 | 3,184,230 | |
Genesco, Inc. (a) | 119,055 | 1,833,447 | |
Jos. A. Bank Clothiers, Inc. (a)(d) | 127,900 | 3,512,134 | |
Monro Muffler Brake, Inc. | 169,500 | 4,113,765 | |
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Shoe Carnival, Inc. (a) | 309,095 | $ 2,426,396 | |
The Men's Wearhouse, Inc. | 148,842 | 1,734,009 | |
Tiffany & Co., Inc. | 114,400 | 2,373,800 | |
Urban Outfitters, Inc. (a) | 188,400 | 2,935,272 | |
Wet Seal, Inc. Class A (a) | 619,900 | 1,617,939 | |
Zumiez, Inc. (a) | 147,578 | 1,055,183 | |
| 27,681,331 | ||
Textiles, Apparel & Luxury Goods - 1.9% | |||
American Apparel, Inc. (a)(d) | 1,015,500 | 2,061,465 | |
Carter's, Inc. (a) | 268,100 | 4,555,019 | |
Gildan Activewear, Inc. (a) | 248,700 | 2,665,838 | |
Heelys, Inc. | 816,432 | 1,665,521 | |
Iconix Brand Group, Inc. (a) | 288,600 | 2,386,722 | |
Steven Madden Ltd. (a) | 198,200 | 3,444,716 | |
| 16,779,281 | ||
TOTAL CONSUMER DISCRETIONARY | 89,744,910 | ||
CONSUMER STAPLES - 3.6% | |||
Food & Staples Retailing - 0.5% | |||
United Natural Foods, Inc. (a) | 269,200 | 4,183,368 | |
Food Products - 2.6% | |||
Green Mountain Coffee Roasters, Inc. (a)(d) | 65,200 | 2,494,552 | |
Hain Celestial Group, Inc. (a) | 294,600 | 4,483,812 | |
PureCircle Ltd. (a) | 700 | 1,923 | |
Ralcorp Holdings, Inc. (a) | 145,800 | 8,634,276 | |
Smart Balance, Inc. (a) | 638,727 | 4,643,545 | |
Tyson Foods, Inc. Class A | 336,300 | 2,976,255 | |
| 23,234,363 | ||
Personal Products - 0.5% | |||
Chattem, Inc. (a)(d) | 22,090 | 1,493,284 | |
Elizabeth Arden, Inc. (a) | 253,800 | 1,479,654 | |
Inter Parfums, Inc. | 254,355 | 1,536,304 | |
| 4,509,242 | ||
TOTAL CONSUMER STAPLES | 31,926,973 | ||
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - 5.2% | |||
Energy Equipment & Services - 0.9% | |||
Hornbeck Offshore Services, Inc. (a) | 241,700 | $ 4,287,758 | |
Superior Energy Services, Inc. (a) | 244,350 | 3,806,973 | |
| 8,094,731 | ||
Oil, Gas & Consumable Fuels - 4.3% | |||
Concho Resources, Inc. (a) | 222,000 | 5,598,840 | |
Encore Acquisition Co. (a) | 110,300 | 2,997,954 | |
EXCO Resources, Inc. (a) | 589,248 | 5,974,975 | |
Goodrich Petroleum Corp. (a)(d) | 148,400 | 4,288,760 | |
Mariner Energy, Inc. (a) | 345,000 | 3,415,500 | |
Petrohawk Energy Corp. (a) | 281,040 | 5,539,298 | |
Range Resources Corp. | 152,400 | 5,462,016 | |
Sunoco Logistics Partners LP | 63,173 | 3,403,761 | |
Whiting Petroleum Corp. (a) | 53,000 | 1,537,000 | |
| 38,218,104 | ||
TOTAL ENERGY | 46,312,835 | ||
FINANCIALS - 19.9% | |||
Capital Markets - 3.8% | |||
Affiliated Managers Group, Inc. (a) | 243,700 | 9,794,303 | |
Cohen & Steers, Inc. | 425,000 | 4,590,000 | |
FCStone Group, Inc. (a)(e) | 1,400,400 | 5,391,540 | |
optionsXpress Holdings, Inc. | 403,100 | 4,389,759 | |
Waddell & Reed Financial, Inc. Class A | 660,900 | 9,331,908 | |
| 33,497,510 | ||
Commercial Banks - 4.3% | |||
Associated Banc-Corp. | 235,928 | 3,692,273 | |
Boston Private Financial Holdings, Inc. | 453,300 | 2,135,043 | |
City National Corp. | 197,400 | 6,832,014 | |
Huntington Bancshares, Inc. (d) | 840,400 | 2,420,352 | |
Intervest Bancshares Corp. Class A (e) | 385,240 | 1,444,650 | |
PacWest Bancorp | 270,000 | 4,565,700 | |
SVB Financial Group (a) | 255,000 | 5,296,350 | |
TCF Financial Corp. | 550,000 | 6,814,500 | |
Wilshire Bancorp, Inc. | 287,131 | 1,969,719 | |
Zions Bancorp | 168,900 | 2,519,988 | |
| 37,690,589 | ||
Insurance - 4.6% | |||
Allied World Assurance Co. Holdings Ltd. | 99,400 | 3,747,380 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
American Safety Insurance Group Ltd. (a) | 478,700 | $ 5,849,714 | |
Aspen Insurance Holdings Ltd. | 244,100 | 5,394,610 | |
Endurance Specialty Holdings Ltd. | 91,200 | 2,486,112 | |
IPC Holdings Ltd. | 254,200 | 6,522,772 | |
Max Capital Group Ltd. | 225,400 | 3,834,054 | |
Reinsurance Group of America, Inc. | 260,300 | 9,274,489 | |
W.R. Berkley Corp. | 131,300 | 3,476,824 | |
| 40,585,955 | ||
Real Estate Investment Trusts - 3.9% | |||
Alexandria Real Estate Equities, Inc. | 90,000 | 5,340,600 | |
Apartment Investment & Management Co. Class A | 236,718 | 2,104,423 | |
CapitalSource, Inc. (d) | 1,931,000 | 7,028,840 | |
Digital Realty Trust, Inc. | 131,700 | 4,201,230 | |
Highwoods Properties, Inc. (SBI) | 226,900 | 5,118,864 | |
Home Properties, Inc. | 151,600 | 5,440,924 | |
National Retail Properties, Inc. | 365,400 | 5,272,722 | |
| 34,507,603 | ||
Real Estate Management & Development - 2.2% | |||
Forestar Group, Inc. (a) | 1,292,200 | 14,408,029 | |
Jones Lang LaSalle, Inc. | 236,000 | 5,571,960 | |
| 19,979,989 | ||
Thrifts & Mortgage Finance - 1.1% | |||
Washington Federal, Inc. | 780,600 | 9,585,768 | |
TOTAL FINANCIALS | 175,847,414 | ||
HEALTH CARE - 15.3% | |||
Biotechnology - 4.9% | |||
Acorda Therapeutics, Inc. (a) | 21,900 | 537,207 | |
Alkermes, Inc. (a) | 313,100 | 3,591,257 | |
Amylin Pharmaceuticals, Inc. (a) | 63,100 | 729,436 | |
Biogen Idec, Inc. (a) | 59,600 | 2,899,540 | |
BioMarin Pharmaceutical, Inc. (a) | 247,400 | 4,764,924 | |
Cephalon, Inc. (a) | 40,000 | 3,087,200 | |
Medarex, Inc. (a)(d) | 526,000 | 3,140,220 | |
Myriad Genetics, Inc. (a) | 77,900 | 5,809,003 | |
ONYX Pharmaceuticals, Inc. (a) | 122,300 | 3,721,589 | |
Regeneron Pharmaceuticals, Inc. (a) | 243,800 | 4,261,624 | |
Savient Pharmaceuticals, Inc. (a) | 85,400 | 473,116 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Theravance, Inc. (a) | 291,600 | $ 3,843,288 | |
United Therapeutics Corp. (a)(d) | 90,100 | 6,122,295 | |
| 42,980,699 | ||
Health Care Equipment & Supplies - 4.4% | |||
COLTENE Holding AG | 78,858 | 2,991,423 | |
DENTSPLY International, Inc. | 160,000 | 4,305,600 | |
Haemonetics Corp. (a) | 137,500 | 8,133,125 | |
Masimo Corp. (a) | 162,200 | 4,504,294 | |
Meridian Bioscience, Inc. | 271,900 | 5,780,594 | |
Orthofix International NV (a) | 239,200 | 3,817,632 | |
Quidel Corp. (a) | 443,983 | 5,460,991 | |
Zoll Medical Corp. (a) | 276,240 | 4,422,602 | |
| 39,416,261 | ||
Health Care Providers & Services - 3.5% | |||
Air Methods Corp. (a) | 225 | 4,388 | |
Amedisys, Inc. (a)(d) | 61,800 | 2,548,014 | |
Genoptix, Inc. (a) | 280,400 | 9,505,560 | |
Hanger Orthopedic Group, Inc. (a) | 150,000 | 2,047,500 | |
IPC The Hospitalist Co., Inc. | 77,982 | 1,492,575 | |
MEDNAX, Inc. (a) | 77,300 | 2,594,961 | |
PSS World Medical, Inc. (a) | 616,000 | 9,782,080 | |
ResCare, Inc. (a) | 198,901 | 2,695,109 | |
| 30,670,187 | ||
Life Sciences Tools & Services - 1.2% | |||
Illumina, Inc. (a) | 77,000 | 2,106,720 | |
Medtox Scientific, Inc. (a) | 116,500 | 738,610 | |
PAREXEL International Corp. (a) | 417,900 | 4,133,031 | |
QIAGEN NV (a) | 232,400 | 3,985,660 | |
| 10,964,021 | ||
Pharmaceuticals - 1.3% | |||
Perrigo Co. | 246,700 | 7,240,645 | |
Sepracor, Inc. (a) | 88,300 | 1,342,160 | |
XenoPort, Inc. (a) | 112,900 | 2,948,948 | |
| 11,531,753 | ||
TOTAL HEALTH CARE | 135,562,921 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 14.5% | |||
Aerospace & Defense - 1.7% | |||
Alliant Techsystems, Inc. (a) | 78,000 | $ 6,303,180 | |
Stanley, Inc. (a) | 190,200 | 5,755,452 | |
Teledyne Technologies, Inc. (a) | 110,700 | 3,085,209 | |
| 15,143,841 | ||
Air Freight & Logistics - 0.4% | |||
Hub Group, Inc. Class A (a) | 157,200 | 3,568,440 | |
Airlines - 0.4% | |||
Alaska Air Group, Inc. (a) | 83,800 | 2,208,968 | |
Delta Air Lines, Inc. (a) | 204,300 | 1,409,670 | |
| 3,618,638 | ||
Commercial Services & Supplies - 1.2% | |||
A.T. Cross Co. Class A (a) | 626,618 | 1,616,674 | |
United Stationers, Inc. (a) | 172,500 | 4,831,725 | |
Waste Connections, Inc. (a) | 133,500 | 3,874,170 | |
| 10,322,569 | ||
Construction & Engineering - 0.7% | |||
Granite Construction, Inc. | 130,600 | 4,599,732 | |
MasTec, Inc. (a) | 178,800 | 1,900,644 | |
| 6,500,376 | ||
Electrical Equipment - 3.8% | |||
Acuity Brands, Inc. | 166,400 | 4,471,168 | |
American Superconductor Corp. (a)(d) | 147,800 | 2,391,404 | |
AMETEK, Inc. | 187,100 | 5,979,716 | |
Brady Corp. Class A | 236,700 | 4,951,764 | |
First Solar, Inc. (a) | 16,700 | 2,384,760 | |
GrafTech International Ltd. (a) | 918,300 | 7,355,583 | |
Q-Cells SE (a)(d) | 86,800 | 2,133,697 | |
Regal-Beloit Corp. | 130,700 | 4,438,572 | |
| 34,106,664 | ||
Industrial Conglomerates - 0.7% | |||
Carlisle Companies, Inc. | 320,300 | 5,980,001 | |
Machinery - 2.8% | |||
Bucyrus International, Inc. Class A (d) | 312,819 | 4,848,695 | |
Cummins, Inc. | 239,300 | 5,738,414 | |
Graco, Inc. | 271,200 | 5,768,424 | |
John Bean Technologies Corp. | 377,300 | 3,659,810 | |
Toro Co. | 151,100 | 4,474,071 | |
| 24,489,414 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Professional Services - 2.1% | |||
Diamond Management & Technology Consultants, Inc. | 935,581 | $ 2,432,511 | |
Equifax, Inc. | 212,500 | 5,253,000 | |
Manpower, Inc. | 166,900 | 4,749,974 | |
Watson Wyatt Worldwide, Inc. Class A | 139,000 | 6,463,500 | |
| 18,898,985 | ||
Trading Companies & Distributors - 0.7% | |||
MSC Industrial Direct Co., Inc. Class A | 181,100 | 6,204,486 | |
TOTAL INDUSTRIALS | 128,833,414 | ||
INFORMATION TECHNOLOGY - 16.3% | |||
Communications Equipment - 2.4% | |||
Polycom, Inc. (a) | 515,700 | 7,245,585 | |
Powerwave Technologies, Inc. (a) | 6,394,892 | 2,877,701 | |
Starent Networks Corp. (a) | 274,889 | 4,040,868 | |
ViaSat, Inc. (a) | 324,500 | 7,190,920 | |
| 21,355,074 | ||
Computers & Peripherals - 1.1% | |||
Seagate Technology | 459,400 | 1,741,126 | |
STEC, Inc. (a)(d) | 681,788 | 3,054,410 | |
Super Micro Computer, Inc. (a) | 483,791 | 2,549,579 | |
Synaptics, Inc. (a) | 87,438 | 2,060,914 | |
| 9,406,029 | ||
Electronic Equipment & Components - 0.9% | |||
Insight Enterprises, Inc. (a) | 813,202 | 4,212,386 | |
Trimble Navigation Ltd. (a) | 247,400 | 3,666,468 | |
| 7,878,854 | ||
Internet Software & Services - 2.8% | |||
Ariba, Inc. (a) | 510,171 | 3,897,706 | |
Art Technology Group, Inc. (a) | 1,874,832 | 3,205,963 | |
Equinix, Inc. (a) | 131,800 | 7,031,530 | |
j2 Global Communications, Inc. (a) | 156,630 | 3,066,815 | |
Open Text Corp. (a) | 139,900 | 4,945,032 | |
The Knot, Inc. (a) | 376,300 | 2,588,944 | |
| 24,735,990 | ||
IT Services - 3.2% | |||
Alliance Data Systems Corp. (a) | 199,000 | 8,276,410 | |
CACI International, Inc. Class A (a) | 108,544 | 4,900,762 | |
CyberSource Corp. (a) | 326,200 | 3,891,566 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Lender Processing Services, Inc. | 196,698 | $ 5,098,412 | |
Perot Systems Corp. Class A (a) | 249,061 | 3,235,302 | |
VeriFone Holdings, Inc. (a) | 680,636 | 3,151,345 | |
| 28,553,797 | ||
Semiconductors & Semiconductor Equipment - 2.7% | |||
ARM Holdings PLC sponsored ADR | 776,900 | 3,115,369 | |
Cree, Inc. (a)(d) | 190,200 | 3,790,686 | |
Fairchild Semiconductor International, Inc. (a) | 572,651 | 2,605,562 | |
Marvell Technology Group Ltd. (a) | 430,714 | 3,139,905 | |
Monolithic Power Systems, Inc. (a) | 258,934 | 3,146,048 | |
PMC-Sierra, Inc. (a) | 849,772 | 4,138,390 | |
Power Integrations, Inc. | 215,000 | 4,186,050 | |
| 24,122,010 | ||
Software - 3.2% | |||
Amdocs Ltd. (a) | 293,400 | 4,964,328 | |
Check Point Software Technologies Ltd. (a) | 152,171 | 3,449,717 | |
Citrix Systems, Inc. (a) | 206,154 | 4,337,480 | |
Informatica Corp. (a) | 297,652 | 3,798,040 | |
Nuance Communications, Inc. (a) | 315,100 | 3,106,886 | |
Quest Software, Inc. (a) | 404,394 | 5,042,793 | |
Red Hat, Inc. (a) | 214,612 | 3,144,066 | |
| 27,843,310 | ||
TOTAL INFORMATION TECHNOLOGY | 143,895,064 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.5% | |||
Airgas, Inc. | 103,400 | 3,651,054 | |
FMC Corp. | 90,100 | 4,020,262 | |
Rockwood Holdings, Inc. (a) | 329,700 | 2,476,047 | |
Solutia, Inc. (a) | 412,300 | 1,612,093 | |
W.R. Grace & Co. (a) | 299,800 | 1,729,846 | |
| 13,489,302 | ||
Construction Materials - 0.5% | |||
Martin Marietta Materials, Inc. (d) | 49,100 | 3,953,532 | |
Containers & Packaging - 0.3% | |||
Sealed Air Corp. | 126,500 | 1,714,075 | |
Temple-Inland, Inc. | 162,100 | 919,107 | |
| 2,633,182 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 2.4% | |||
Carpenter Technology Corp. | 174,900 | $ 2,885,850 | |
Commercial Metals Co. | 398,600 | 4,583,900 | |
Compass Minerals International, Inc. | 94,700 | 5,698,099 | |
Randgold Resources Ltd. sponsored ADR | 104,200 | 4,632,732 | |
Steel Dynamics, Inc. | 351,400 | 3,731,868 | |
| 21,532,449 | ||
TOTAL MATERIALS | 41,608,465 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.7% | |||
Premiere Global Services, Inc. (a) | 358,300 | 3,471,927 | |
tw telecom, inc. (a) | 291,000 | 2,226,150 | |
| 5,698,077 | ||
Wireless Telecommunication Services - 0.3% | |||
SBA Communications Corp. Class A (a) | 93,030 | 1,851,297 | |
Sprint Nextel Corp. (a) | 450,300 | 1,094,229 | |
| 2,945,526 | ||
TOTAL TELECOMMUNICATION SERVICES | 8,643,603 | ||
UTILITIES - 4.2% | |||
Electric Utilities - 1.0% | |||
Cleco Corp. | 170,900 | 3,905,065 | |
Portland General Electric Co. | 60,700 | 1,180,615 | |
Westar Energy, Inc. | 191,200 | 3,839,296 | |
| 8,924,976 | ||
Gas Utilities - 1.5% | |||
Equitable Resources, Inc. | 53,600 | 1,834,728 | |
Northwest Natural Gas Co. | 108,200 | 4,646,108 | |
Piedmont Natural Gas Co., Inc. | 96,600 | 2,502,906 | |
Southwest Gas Corp. | 180,000 | 4,636,800 | |
| 13,620,542 | ||
Independent Power Producers & Energy Traders - 0.1% | |||
Nevada Geothermal Power, Inc. (a) | 1,132,000 | 373,994 | |
Multi-Utilities - 1.3% | |||
CMS Energy Corp. | 368,600 | 4,331,050 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Multi-Utilities - continued | |||
NorthWestern Energy Corp. | 159,600 | $ 3,863,916 | |
OGE Energy Corp. | 148,200 | 3,657,576 | |
| 11,852,542 | ||
Water Utilities - 0.3% | |||
SJW Corp. | 33,400 | 898,126 | |
Southwest Water Co. | 304,600 | 1,364,608 | |
| 2,262,734 | ||
TOTAL UTILITIES | 37,034,788 | ||
TOTAL COMMON STOCKS (Cost $1,027,284,159) | 839,410,387 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
|
|
|
|
FINANCIALS - 0.2% | |||
Real Estate Investment Trusts - 0.2% | |||
Developers Diversified Realty Corp. (depositary shares) Series G, 8.00% | 248,721 | 1,840,535 |
Convertible Bonds - 0.7% | ||||
| Principal Amount |
| ||
FINANCIALS - 0.7% | ||||
Real Estate Investment Trusts - 0.7% | ||||
SL Green Realty Corp. 3% 3/30/27 (f) | $ 9,800,000 | 5,944,665 | ||
U.S. Treasury Obligations - 0.1% | ||||
| ||||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 3/5/09 to 4/2/09 (g) | 700,000 | 699,811 |
Money Market Funds - 7.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.78% (b) | 39,603,965 | $ 39,603,965 | |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 24,501,070 | 24,501,070 | |
TOTAL MONEY MARKET FUNDS (Cost $64,105,035) | 64,105,035 | ||
Cash Equivalents - 0.0% | |||
Maturity Amount |
| ||
Investments in repurchase agreements in a joint trading account at 0.24%, dated 1/30/09 due 2/2/09 (Collateralized by U.S. Treasury Obligations) # | $ 28,001 | 28,000 | |
TOTAL INVESTMENT PORTFOLIO - 103.0% (Cost $1,100,368,656) | 912,028,433 | ||
NET OTHER ASSETS - (3.0)% | (26,787,345) | ||
NET ASSETS - 100% | $ 885,241,088 |
Futures Contracts | |||||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | ||
Purchased | |||||
Equity Index Contracts | |||||
120 NYFE Russell 2000 Mini Index Contracts | March 2009 | $ 5,311,200 | $ (325,392) |
|
The face value of futures purchased as a percentage of net assets - 0.6% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$28,000 due 2/02/09 at 0.24% | |
J.P. Morgan Securities, Inc. | $ 20,733 |
UBS Securities LLC | 7,267 |
| $ 28,000 |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,944,665 or 0.7% of net assets. |
(g) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $699,811. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 387,044 |
Fidelity Securities Lending Cash Central Fund | 924,288 |
Total | $ 1,311,332 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales | Dividend Income | Value, |
Diamond Management & Technology Consultants, Inc. | $ 6,569,238 | $ 896,904 | $ 1,746,710 | $ 510,728 | $ - |
Digital Ally, Inc. | - | 8,184,389 | 4,940,816 | - | - |
FCStone Group, Inc. | 6,182,460 | 4,176,331 | - | - | 5,391,540 |
Intervest Bancshares Corp. Class A | 2,981,758 | - | - | - | 1,444,650 |
Summer Infant, Inc. | 3,322,239 | 53,055 | 52,191 | - | 1,748,547 |
Total | $ 19,055,695 | $ 13,310,679 | $ 6,739,717 | $ 510,728 | $ 8,584,737 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 912,028,433 | $ 905,355,957 | $ 6,672,476 | $ - |
Other Financial Instruments* | $ (325,392) | $ (325,392) | $ - | $ - |
* Other financial instruments include Futures Contracts |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $23,527,827 of which $3,862,752 and $19,665,075 will expire on July 31, 2015 and 2016, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $222,965,245 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $23,150,181 and repurchase agreements of $28,000) - See accompanying schedule: Unaffiliated issuers (cost $1,013,056,043) | $ 839,338,661 |
|
Fidelity Central Funds (cost $64,105,035) | 64,105,035 |
|
Other affiliated issuers (cost $23,207,578) | 8,584,737 |
|
Total Investments (cost $1,100,368,656) |
| $ 912,028,433 |
Cash | 900,382 | |
Foreign currency held at value (cost $53,336) | 53,322 | |
Receivable for investments sold | 8,392,933 | |
Receivable for fund shares sold | 957,552 | |
Dividends receivable | 956,316 | |
Interest receivable | 131,682 | |
Distributions receivable from Fidelity Central Funds | 92,517 | |
Prepaid expenses | 10,875 | |
Other receivables | 7,873 | |
Total assets | 923,531,885 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,787,834 | |
Payable for fund shares redeemed | 107,457 | |
Distributions payable | 479 | |
Accrued management fee | 446,068 | |
Payable for daily variation on futures contracts | 145,200 | |
Other affiliated payables | 248,499 | |
Other payables and accrued expenses | 54,190 | |
Collateral on securities loaned, at value | 24,501,070 | |
Total liabilities | 38,290,797 | |
|
|
|
Net Assets | $ 885,241,088 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,674,715,659 | |
Distributions in excess of net investment income | (1,546,110) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (599,257,390) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (188,671,071) | |
Net Assets, for 174,726,028 shares outstanding | $ 885,241,088 | |
Net Asset Value, offering price and redemption price per share ($885,241,088 ÷ 174,726,028 shares) | $ 5.07 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2009 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $510,728 earned from other affiliated issuers) |
| $ 7,247,673 |
Interest |
| 210,825 |
Income from Fidelity Central Funds (including $924,288 from security lending) |
| 1,311,332 |
Total income |
| 8,769,830 |
|
|
|
Expenses | ||
Management fee | $ 3,799,563 | |
Performance adjustment | (921,075) | |
Transfer agent fees | 1,453,841 | |
Accounting and security lending fees | 183,102 | |
Custodian fees and expenses | 34,613 | |
Independent trustees' compensation | 3,128 | |
Audit | 29,306 | |
Legal | 3,927 | |
Miscellaneous | (52,208) | |
Total expenses before reductions | 4,534,197 | |
Expense reductions | (25,388) | 4,508,809 |
Net investment income (loss) | 4,261,021 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (331,688,486) | |
Other affiliated issuers | (7,135,420) |
|
Foreign currency transactions | 25,270 | |
Futures contracts | (3,488,806) | |
Total net realized gain (loss) |
| (342,287,442) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $36) | (145,886,316) | |
Assets and liabilities in foreign currencies | (896) | |
Futures contracts | (161,538) | |
Total change in net unrealized appreciation (depreciation) |
| (146,048,750) |
Net gain (loss) | (488,336,192) | |
Net increase (decrease) in net assets resulting from operations | $ (484,075,171) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 4,261,021 | $ 2,463,379 |
Net realized gain (loss) | (342,287,442) | (252,868,274) |
Change in net unrealized appreciation (depreciation) | (146,048,750) | 21,436,338 |
Net increase (decrease) in net assets resulting from operations | (484,075,171) | (228,968,557) |
Distributions to shareholders from net investment income | (5,991,692) | (1,830,941) |
Distributions to shareholders from net realized gain | - | (2,229,984) |
Total distributions | (5,991,692) | (4,060,925) |
Share transactions | 51,977,110 | 653,632,580 |
Reinvestment of distributions | 5,991,213 | 4,060,925 |
Cost of shares redeemed | (30,918,619) | (60,893,940) |
Net increase (decrease) in net assets resulting from share transactions | 27,049,704 | 596,799,565 |
Redemption fees | - | 17,795 |
Total increase (decrease) in net assets | (463,017,159) | 363,787,878 |
|
|
|
Net Assets | ||
Beginning of period | 1,348,258,247 | 984,470,369 |
End of period (including distributions in excess of net investment income of $1,546,110 and undistributed net investment income of $184,561, respectively) | $ 885,241,088 | $ 1,348,258,247 |
Other Information Shares | ||
Sold | 9,517,445 | 73,476,787 |
Issued in reinvestment of distributions | 1,140,271 | 436,164 |
Redeemed | (5,168,289) | (6,737,185) |
Net increase (decrease) | 5,489,427 | 67,175,766 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended | Years ended July 31, | |
(Unaudited) | 2008 | 2007 G | |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 7.97 | $ 9.65 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .03 | .02 | .01 |
Net realized and unrealized gain (loss) | (2.89) | (1.66) | (.36) |
Total from investment operations | (2.86) | (1.64) | (.35) |
Distributions from net investment income | (.04) | (.02) | - |
Distributions from net realized gain | - | (.02) | - |
Total distributions | (.04) | (.04) | - |
Redemption fees added to paid in capital D | - | - I | - I |
Net asset value, end of period | $ 5.07 | $ 7.97 | $ 9.65 |
Total Return B,C | (35.96)% | (17.10)% | (3.50)% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | .85% A | .93% | 1.00% A |
Expenses net of fee waivers, if any | .85% A | .93% | 1.00% A |
Expenses net of all reductions | .85% A | .92% | .98% A |
Net investment income (loss) | .80% A | .20% | .20% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 885,241 | $ 1,348,258 | $ 984,470 |
Portfolio turnover rate F | 195% A | 179% | 176% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period March 22, 2007 (commencement of operations) to July 31, 2007.
H Expense ratios reflect operating expenses of the Fund. 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 Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Opportunities Fund (the Fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by authorized intermediaries and mutual funds for which Fidelity Management and Research Company (FMR) or an affiliate serves as an investment manager and FMR investment professionals. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 32,743,897 |
Unrealized depreciation | (230,220,507) |
Net unrealized appreciation (depreciation) | $ (197,476,610) |
Cost for federal income tax purposes | $ 1,109,505,043 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. 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. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,070,913,454 and $1,030,786,293, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. The Fund's performance adjustment took effect in March 2008. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate, including the performance adjustment, was .54% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .27% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment advisor. The commissions paid to these affiliated firms were $65,814 for the period.
7. 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, which amounted to $1,349 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $10,939 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $1,947 and $12,502, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or an affiliate were the owners of record of substantially all the outstanding shares of the Fund.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
SMO-SANN-0309 1.839810.101
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Securities Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) for each Fund provide reasonable assurances that material information relating to such Fund 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 a Fund'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, a Fund's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Securities Fund
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 25, 2009 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 25, 2009 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 25, 2009 |