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, 2012 |
Item 1. Reports to Stockholders
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.40 | $ 4.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Class K | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.90 | $ 3.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.30 | $ 3.48 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.62 | $ 3.56 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 9.8 | 8.1 |
Google, Inc. Class A | 4.5 | 4.7 |
McDonald's Corp. | 2.2 | 1.7 |
Exxon Mobil Corp. | 2.1 | 2.0 |
QUALCOMM, Inc. | 2.1 | 2.3 |
The Coca-Cola Co. | 1.9 | 1.8 |
Amazon.com, Inc. | 1.7 | 2.4 |
Philip Morris International, Inc. | 1.4 | 1.8 |
Green Mountain Coffee Roasters, Inc. | 1.3 | 0.9 |
Schlumberger Ltd. | 1.2 | 1.6 |
| 28.2 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 33.3 | 33.8 |
Consumer Discretionary | 19.8 | 19.2 |
Consumer Staples | 11.6 | 10.6 |
Industrials | 10.8 | 9.4 |
Energy | 9.7 | 10.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 100.3% |
| ![]() | Stocks 99.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.4% |
| ** Foreign investments | 13.0% |
|
† Short-term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 19.1% | |||
Auto Components - 1.2% | |||
Autoliv, Inc. | 858,400 | $ 54,156 | |
Cooper Tire & Rubber Co. | 717,000 | 10,798 | |
Delphi Automotive PLC | 264,100 | 7,086 | |
Tenneco, Inc. (a) | 1,087,998 | 34,925 | |
TRW Automotive Holdings Corp. (a) | 1,372,200 | 51,485 | |
| 158,450 | ||
Automobiles - 0.7% | |||
Hyundai Motor Co. | 75,033 | 14,763 | |
Kia Motors Corp. | 152,660 | 9,174 | |
Tesla Motors, Inc. (a)(d) | 2,673,354 | 77,714 | |
| 101,651 | ||
Diversified Consumer Services - 0.2% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 1,217,400 | 28,998 | |
Hotels, Restaurants & Leisure - 5.8% | |||
Arcos Dorados Holdings, Inc. | 1,324,400 | 28,475 | |
Bravo Brio Restaurant Group, Inc. (a) | 750,800 | 14,453 | |
Brinker International, Inc. | 684,000 | 17,681 | |
Chipotle Mexican Grill, Inc. (a) | 137,400 | 50,466 | |
Dunkin' Brands Group, Inc. (a) | 1,022,600 | 28,275 | |
Jubilant Foodworks Ltd. (a) | 533,088 | 10,160 | |
Las Vegas Sands Corp. | 1,322,900 | 64,968 | |
McDonald's Corp. | 3,034,930 | 300,610 | |
Panera Bread Co. Class A (a) | 254,800 | 37,774 | |
Starbucks Corp. | 3,173,500 | 152,106 | |
Wyndham Worldwide Corp. | 736,885 | 29,299 | |
Yum! Brands, Inc. | 842,100 | 53,330 | |
| 787,597 | ||
Household Durables - 1.1% | |||
KB Home | 14,700 | 133 | |
Lennar Corp. Class A | 1,373,352 | 29,513 | |
Newell Rubbermaid, Inc. | 1,166,900 | 21,553 | |
PulteGroup, Inc. (a) | 3,706,900 | 27,616 | |
SodaStream International Ltd. (a) | 286,400 | 10,938 | |
Tempur-Pedic International, Inc. (a) | 451,700 | 30,133 | |
Toll Brothers, Inc. (a) | 1,238,800 | 27,018 | |
| 146,904 | ||
Internet & Catalog Retail - 2.3% | |||
Amazon.com, Inc. (a) | 1,183,300 | 230,081 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Groupon, Inc. Class A (a)(d) | 708,900 | $ 14,454 | |
Priceline.com, Inc. (a) | 135,500 | 71,745 | |
| 316,280 | ||
Media - 0.4% | |||
Comcast Corp. Class A | 1,018,500 | 27,082 | |
Lions Gate Entertainment Corp. (a) | 1,900,000 | 19,152 | |
Pandora Media, Inc. | 35,800 | 472 | |
Time Warner Cable, Inc. | 174,500 | 12,864 | |
| 59,570 | ||
Multiline Retail - 1.2% | |||
Dollar General Corp. (a) | 437,700 | 18,650 | |
Dollar Tree, Inc. (a) | 222,500 | 18,870 | |
Dollarama, Inc. | 322,234 | 13,898 | |
JCPenney Co., Inc. | 705,200 | 29,301 | |
Macy's, Inc. | 2,522,700 | 84,990 | |
| 165,709 | ||
Specialty Retail - 3.1% | |||
Bed Bath & Beyond, Inc. (a) | 550,600 | 33,421 | |
Cia.Hering SA | 254,600 | 6,120 | |
Foot Locker, Inc. | 901,700 | 23,661 | |
Francescas Holdings Corp. (a) | 290,500 | 6,440 | |
Home Depot, Inc. | 1,077,900 | 47,848 | |
Limited Brands, Inc. | 2,439,500 | 102,117 | |
Lowe's Companies, Inc. | 1,236,200 | 33,167 | |
Ross Stores, Inc. | 386,400 | 19,637 | |
TJX Companies, Inc. | 1,792,540 | 122,144 | |
Tractor Supply Co. | 71,000 | 5,735 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 390,800 | 29,787 | |
| 430,077 | ||
Textiles, Apparel & Luxury Goods - 3.1% | |||
Arezzo Industria e Comercio SA | 1,681,000 | 28,132 | |
Carter's, Inc. (a) | 262,600 | 11,008 | |
Deckers Outdoor Corp. (a) | 257,100 | 20,787 | |
Fossil, Inc. (a) | 479,200 | 45,548 | |
Gitanjali Gems Ltd. | 1,983,811 | 12,432 | |
Liz Claiborne, Inc. (a)(d) | 2,485,111 | 23,112 | |
Michael Kors Holdings Ltd. | 1,535,500 | 47,524 | |
Michael Kors Holdings Ltd. | 1,237,675 | 34,475 | |
NIKE, Inc. Class B | 735,700 | 76,505 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
PVH Corp. | 829,000 | $ 63,991 | |
Ralph Lauren Corp. | 157,200 | 23,894 | |
Steven Madden Ltd. (a) | 232,050 | 9,547 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 87,000 | 6,927 | |
VF Corp. | 140,500 | 18,474 | |
| 422,356 | ||
TOTAL CONSUMER DISCRETIONARY | 2,617,592 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 4.0% | |||
Anheuser-Busch InBev SA NV ADR | 285,600 | 17,364 | |
Beam, Inc. | 207,600 | 10,860 | |
Dr Pepper Snapple Group, Inc. | 772,300 | 29,981 | |
Monster Beverage Corp. (a) | 1,280,900 | 133,867 | |
PepsiCo, Inc. | 1,382,500 | 90,789 | |
The Coca-Cola Co. | 3,807,500 | 257,120 | |
| 539,981 | ||
Food & Staples Retailing - 2.2% | |||
Costco Wholesale Corp. | 157,700 | 12,974 | |
CVS Caremark Corp. | 2,564,200 | 107,055 | |
Drogasil SA | 1,456,285 | 12,086 | |
Sun Art Retail Group Ltd. (a) | 977,500 | 1,190 | |
Wal-Mart Stores, Inc. | 1,079,200 | 66,220 | |
Whole Foods Market, Inc. | 1,387,000 | 102,680 | |
| 302,205 | ||
Food Products - 2.0% | |||
Calbee, Inc. (d) | 408,300 | 19,925 | |
Danone | 396,900 | 24,495 | |
Diamond Foods, Inc. (d) | 920,300 | 33,444 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 3,368,965 | 179,701 | |
Kraft Foods, Inc. Class A | 105,900 | 4,056 | |
Mead Johnson Nutrition Co. Class A | 200,900 | 14,885 | |
Tata Global Beverages Ltd. | 1,377,900 | 2,998 | |
| 279,504 | ||
Household Products - 0.5% | |||
Colgate-Palmolive Co. | 404,200 | 36,669 | |
Procter & Gamble Co. | 570,700 | 35,977 | |
| 72,646 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Estee Lauder Companies, Inc. Class A | 726,200 | $ 42,069 | |
Herbalife Ltd. | 735,731 | 42,584 | |
| 84,653 | ||
Tobacco - 2.3% | |||
Altria Group, Inc. | 2,032,300 | 57,717 | |
Lorillard, Inc. | 564,400 | 60,611 | |
Philip Morris International, Inc. | 2,588,300 | 193,527 | |
| 311,855 | ||
TOTAL CONSUMER STAPLES | 1,590,844 | ||
ENERGY - 9.7% | |||
Energy Equipment & Services - 3.7% | |||
Baker Hughes, Inc. | 270,000 | 13,265 | |
Cameron International Corp. (a) | 153,600 | 8,172 | |
Dresser-Rand Group, Inc. (a) | 270,000 | 13,832 | |
Ensco International Ltd. ADR | 154,200 | 8,117 | |
Halliburton Co. | 3,896,700 | 143,321 | |
McDermott International, Inc. (a) | 1,482,100 | 18,022 | |
National Oilwell Varco, Inc. | 1,195,700 | 88,458 | |
Noble Corp. | 117,400 | 4,090 | |
Schlumberger Ltd. | 2,242,300 | 168,554 | |
Seadrill Ltd. | 956,200 | 35,475 | |
Transocean Ltd. (United States) | 91,100 | 4,309 | |
| 505,615 | ||
Oil, Gas & Consumable Fuels - 6.0% | |||
Alpha Natural Resources, Inc. (a) | 3,210,899 | 64,603 | |
Anadarko Petroleum Corp. | 977,200 | 78,880 | |
Apache Corp. | 309,200 | 30,574 | |
Approach Resources, Inc. (a)(d) | 400,000 | 14,052 | |
Cabot Oil & Gas Corp. | 977,000 | 31,166 | |
Chesapeake Energy Corp. | 365,500 | 7,723 | |
Chevron Corp. | 878,500 | 90,556 | |
EOG Resources, Inc. | 181,900 | 19,307 | |
EV Energy Partners LP | 216,100 | 14,418 | |
Exxon Mobil Corp. | 3,429,000 | 287,144 | |
Hess Corp. | 189,700 | 10,680 | |
HollyFrontier Corp. | 94,500 | 2,773 | |
Marathon Petroleum Corp. | 362,900 | 13,870 | |
Markwest Energy Partners LP | 94,300 | 5,466 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Occidental Petroleum Corp. | 1,140,900 | $ 113,828 | |
Range Resources Corp. | 193,600 | 11,136 | |
Valero Energy Corp. | 799,600 | 19,182 | |
| 815,358 | ||
TOTAL ENERGY | 1,320,973 | ||
FINANCIALS - 3.3% | |||
Capital Markets - 1.1% | |||
Morgan Stanley | 7,305,100 | 136,240 | |
Och-Ziff Capital Management Group LLC Class A | 1,445,800 | 14,357 | |
| 150,597 | ||
Commercial Banks - 0.2% | |||
ICICI Bank Ltd. | 666,777 | 12,097 | |
Punjab National Bank | 133,123 | 2,639 | |
Wells Fargo & Co. | 321,000 | 9,376 | |
| 24,112 | ||
Consumer Finance - 0.4% | |||
Discover Financial Services | 1,578,300 | 42,898 | |
Shriram Transport Finance Co. Ltd. | 1,042,803 | 12,277 | |
| 55,175 | ||
Diversified Financial Services - 1.4% | |||
Citigroup, Inc. | 5,160,520 | 158,531 | |
JPMorgan Chase & Co. | 1,070,800 | 39,941 | |
| 198,472 | ||
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 25,986 | |
TOTAL FINANCIALS | 454,342 | ||
HEALTH CARE - 9.4% | |||
Biotechnology - 2.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 699,400 | 53,686 | |
Alkermes PLC (a) | 917,100 | 17,251 | |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | 26,071 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,500,000 | 22,125 | |
Biogen Idec, Inc. (a) | 757,400 | 89,313 | |
Exelixis, Inc. (a) | 2,913,200 | 15,498 | |
Gilead Sciences, Inc. (a) | 426,900 | 20,850 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
InterMune, Inc. (a) | 262,900 | $ 3,944 | |
Medivation, Inc. (a) | 75,100 | 4,161 | |
ONYX Pharmaceuticals, Inc. (a) | 124,800 | 5,109 | |
Regeneron Pharmaceuticals, Inc. (a) | 197,900 | 17,981 | |
Spectrum Pharmaceuticals, Inc. (a)(d)(e) | 2,916,500 | 41,035 | |
Vertex Pharmaceuticals, Inc. (a) | 389,200 | 14,381 | |
ZIOPHARM Oncology, Inc. (a) | 526,800 | 2,797 | |
| 334,202 | ||
Health Care Equipment & Supplies - 1.4% | |||
Baxter International, Inc. | 49,300 | 2,735 | |
Covidien PLC | 709,000 | 36,514 | |
Edwards Lifesciences Corp. (a) | 165,100 | 13,649 | |
Hologic, Inc. (a) | 1,613,500 | 32,899 | |
Insulet Corp. (a) | 100,000 | 1,947 | |
Intuitive Surgical, Inc. (a) | 36,400 | 16,741 | |
Mako Surgical Corp. (a) | 114,700 | 4,104 | |
The Cooper Companies, Inc. | 767,572 | 55,373 | |
William Demant Holding A/S (a) | 126,000 | 10,435 | |
Zeltiq Aesthetics, Inc. (d) | 1,052,500 | 12,630 | |
| 187,027 | ||
Health Care Providers & Services - 2.8% | |||
Apollo Hospitals Enterprise Ltd. | 649,448 | 7,872 | |
Express Scripts, Inc. (a) | 2,236,780 | 114,434 | |
McKesson Corp. | 1,144,400 | 93,520 | |
Medco Health Solutions, Inc. (a) | 2,214,900 | 137,368 | |
UnitedHealth Group, Inc. | 510,200 | 26,423 | |
| 379,617 | ||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a)(d) | 154,575 | 8,993 | |
Cerner Corp. (a) | 453,100 | 27,589 | |
| 36,582 | ||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 414,400 | 21,449 | |
Pharmaceuticals - 2.4% | |||
Abbott Laboratories | 323,800 | 17,534 | |
Allergan, Inc. | 126,100 | 11,085 | |
AVANIR Pharmaceuticals Class A (a)(d) | 1,464,000 | 4,304 | |
Bristol-Myers Squibb Co. | 205,200 | 6,616 | |
Elan Corp. PLC sponsored ADR (a) | 2,231,100 | 30,365 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Jazz Pharmaceuticals PLC (a) | 143,300 | $ 6,663 | |
Johnson & Johnson | 1,554,600 | 102,464 | |
Pfizer, Inc. | 473,100 | 10,124 | |
Questcor Pharmaceuticals, Inc. (a) | 910,800 | 32,270 | |
Salix Pharmaceuticals Ltd. (a) | 684,800 | 33,007 | |
Sanofi-aventis sponsored ADR | 437,400 | 16,241 | |
Shire PLC sponsored ADR | 182,000 | 18,113 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 733,200 | 35,507 | |
| 324,293 | ||
TOTAL HEALTH CARE | 1,283,170 | ||
INDUSTRIALS - 10.8% | |||
Aerospace & Defense - 3.5% | |||
Honeywell International, Inc. | 841,900 | 48,864 | |
Precision Castparts Corp. | 647,300 | 105,950 | |
The Boeing Co. | 2,051,200 | 152,158 | |
United Technologies Corp. | 2,098,300 | 164,402 | |
| 471,374 | ||
Air Freight & Logistics - 1.1% | |||
United Parcel Service, Inc. Class B | 1,977,900 | 149,628 | |
Airlines - 0.3% | |||
United Continental Holdings, Inc. (a) | 1,378,700 | 31,848 | |
US Airways Group, Inc. (a) | 1,063,100 | 8,973 | |
| 40,821 | ||
Building Products - 0.3% | |||
Armstrong World Industries, Inc. (a) | 768,200 | 35,875 | |
Owens Corning (a) | 263,000 | 8,876 | |
| 44,751 | ||
Commercial Services & Supplies - 0.1% | |||
Swisher Hygiene, Inc. | 2,095,491 | 7,355 | |
Construction & Engineering - 0.3% | |||
Fluor Corp. | 761,900 | 42,849 | |
Electrical Equipment - 0.2% | |||
Polypore International, Inc. (a) | 822,700 | 31,328 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 259,000 | $ 12,362 | |
Danaher Corp. | 2,862,300 | 150,299 | |
| 162,661 | ||
Machinery - 3.2% | |||
Caterpillar, Inc. | 1,017,200 | 110,997 | |
Cummins, Inc. | 956,700 | 99,497 | |
Deere & Co. | 47,200 | 4,066 | |
Eaton Corp. | 319,300 | 15,655 | |
Ingersoll-Rand PLC | 588,300 | 20,555 | |
Jain Irrigation Systems Ltd. DVR (a) | 39,000 | 29 | |
Joy Global, Inc. | 1,016,700 | 92,205 | |
Manitowoc Co., Inc. | 1,076,900 | 14,474 | |
PACCAR, Inc. | 1,168,900 | 51,665 | |
WABCO Holdings, Inc. (a) | 642,400 | 33,308 | |
| 442,451 | ||
Professional Services - 0.0% | |||
Manpower, Inc. | 98,200 | 3,939 | |
Road & Rail - 0.5% | |||
Union Pacific Corp. | 591,100 | 67,569 | |
Trading Companies & Distributors - 0.1% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 10,267 | |
TOTAL INDUSTRIALS | 1,474,993 | ||
INFORMATION TECHNOLOGY - 33.3% | |||
Communications Equipment - 2.3% | |||
Aruba Networks, Inc. (a) | 250,000 | 5,545 | |
Juniper Networks, Inc. (a) | 651,000 | 13,625 | |
Polycom, Inc. (a) | 746,800 | 14,899 | |
QUALCOMM, Inc. | 4,787,000 | 281,571 | |
Riverbed Technology, Inc. (a) | 200,600 | 4,802 | |
| 320,442 | ||
Computers & Peripherals - 10.7% | |||
Apple, Inc. (a) | 2,929,600 | 1,337,298 | |
EMC Corp. (a) | 2,083,700 | 53,676 | |
Fusion-io, Inc. | 100,600 | 2,325 | |
NetApp, Inc. (a) | 383,500 | 14,473 | |
SanDisk Corp. (a) | 1,125,800 | 51,652 | |
| 1,459,424 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.1% | |||
Aeroflex Holding Corp. (a) | 507,700 | $ 6,433 | |
Vishay Intertechnology, Inc. (a) | 791,900 | 9,725 | |
| 16,158 | ||
Internet Software & Services - 6.8% | |||
Akamai Technologies, Inc. (a) | 1,433,700 | 46,237 | |
Baidu.com, Inc. sponsored ADR (a) | 334,600 | 42,668 | |
Bankrate, Inc. (d) | 600,500 | 14,046 | |
eBay, Inc. (a) | 2,021,440 | 63,878 | |
Facebook, Inc. Class B (f) | 636,167 | 15,904 | |
Google, Inc. Class A (a) | 1,049,467 | 608,806 | |
IAC/InterActiveCorp | 463,500 | 19,963 | |
INFO Edge India Ltd. | 293,110 | 3,699 | |
Rackspace Hosting, Inc. (a) | 1,616,200 | 70,159 | |
SINA Corp. (a)(d) | 478,900 | 33,652 | |
Velti PLC (a) | 1,398,000 | 12,233 | |
| 931,245 | ||
IT Services - 2.3% | |||
Accenture PLC Class A | 477,700 | 27,391 | |
Cognizant Technology Solutions Corp. Class A (a) | 1,688,700 | 121,164 | |
International Business Machines Corp. | 36,100 | 6,953 | |
MasterCard, Inc. Class A | 413,400 | 146,993 | |
Teradata Corp. (a) | 216,600 | 11,601 | |
Visa, Inc. Class A | 26,400 | 2,657 | |
| 316,759 | ||
Semiconductors & Semiconductor Equipment - 5.0% | |||
Applied Micro Circuits Corp. (a) | 377,944 | 2,959 | |
ASML Holding NV | 1,134,600 | 48,776 | |
Avago Technologies Ltd. | 2,001,400 | 67,928 | |
Broadcom Corp. Class A | 3,851,300 | 132,254 | |
Cirrus Logic, Inc. (a) | 827,128 | 16,898 | |
Cree, Inc. (a) | 473,200 | 12,033 | |
Cymer, Inc. (a) | 125,800 | 6,264 | |
Fairchild Semiconductor International, Inc. (a) | 514,500 | 7,193 | |
Freescale Semiconductor Holdings I Ltd. | 3,216,458 | 51,367 | |
Lam Research Corp. (a) | 263,900 | 11,240 | |
LSI Corp. (a) | 2,118,000 | 16,033 | |
Marvell Technology Group Ltd. (a) | 4,263,186 | 66,207 | |
Mellanox Technologies Ltd. (a) | 380,700 | 13,960 | |
NVIDIA Corp. (a) | 3,650,973 | 53,925 | |
NXP Semiconductors NV (a) | 6,216,400 | 131,974 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
ON Semiconductor Corp. (a) | 497,100 | $ 4,325 | |
Samsung Electronics Co. Ltd. | 7,550 | 7,441 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 1,041,444 | 5,884 | |
Xilinx, Inc. | 563,200 | 20,191 | |
| 676,852 | ||
Software - 6.1% | |||
BroadSoft, Inc. (a) | 644,600 | 17,971 | |
Check Point Software Technologies Ltd. (a) | 1,317,800 | 74,179 | |
Citrix Systems, Inc. (a) | 1,526,700 | 99,556 | |
Guidewire Software, Inc. | 28,500 | 514 | |
Informatica Corp. (a) | 655,700 | 27,736 | |
Jive Software, Inc. | 276,724 | 4,109 | |
Microsoft Corp. | 5,266,200 | 155,511 | |
Oracle Corp. | 5,461,300 | 154,009 | |
QLIK Technologies, Inc. (a) | 621,163 | 17,517 | |
Red Hat, Inc. (a) | 1,138,500 | 52,792 | |
salesforce.com, Inc. (a) | 1,283,165 | 149,874 | |
VMware, Inc. Class A (a) | 891,800 | 81,395 | |
Zynga, Inc. (d) | 344,300 | 3,615 | |
| 838,778 | ||
TOTAL INFORMATION TECHNOLOGY | 4,559,658 | ||
MATERIALS - 2.4% | |||
Chemicals - 1.5% | |||
CF Industries Holdings, Inc. | 178,900 | 31,733 | |
E.I. du Pont de Nemours & Co. | 751,800 | 38,259 | |
Eastman Chemical Co. | 58,200 | 2,929 | |
Kronos Worldwide, Inc. | 59,600 | 1,372 | |
LyondellBasell Industries NV Class A | 1,092,600 | 47,091 | |
Monsanto Co. | 357,500 | 29,333 | |
Rentech Nitrogen Partners LP | 347,300 | 7,943 | |
Sigma Aldrich Corp. | 41,000 | 2,790 | |
The Mosaic Co. | 715,200 | 40,030 | |
| 201,480 | ||
Containers & Packaging - 0.2% | |||
Rock-Tenn Co. Class A | 526,000 | 32,538 | |
Metals & Mining - 0.7% | |||
Allegheny Technologies, Inc. | 280,700 | 12,741 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
First Quantum Minerals Ltd. | 144,300 | $ 3,160 | |
Freeport-McMoRan Copper & Gold, Inc. | 1,694,800 | 78,317 | |
| 94,218 | ||
TOTAL MATERIALS | 328,236 | ||
TOTAL COMMON STOCKS (Cost $10,289,970) |
| ||
Preferred Stocks - 0.8% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Merrimack Pharmaceuticals, Inc. Series G (f) | 2,142,858 | 15,429 | |
Nonconvertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Automobiles - 0.7% | |||
Volkswagen AG | 512,800 | 90,782 | |
TOTAL PREFERRED STOCKS (Cost $73,958) |
| ||
Money Market Funds - 1.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 24,583,592 | 24,584 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 174,210,828 | 174,211 | |
TOTAL MONEY MARKET FUNDS (Cost $198,795) |
| ||
Cash Equivalents - 0.0% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 7,306 | $ 7,306 | |
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $10,570,029) | 13,942,120 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (252,683) | ||
NET ASSETS - 100% | $ 13,689,437 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $31,333,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 15,909 |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 15,000 |
Repurchase Agreement / Counterparty | Value |
$7,306,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 3,854 |
Barclays Capital, Inc. | 2,050 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,402 |
| $ 7,306 |
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 |
Fidelity Securities Lending Cash Central Fund | 1,207 |
Total | $ 1,227 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Parsvnath Developers Ltd. | $ 22,924 | $ - | $ - | $ - | $ 25,986 |
Spectrum Pharmaceuticals, Inc. | - | 42,886 | - | - | 41,035 |
Total | $ 22,924 | $ 42,886 | $ - | $ - | $ 67,021 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 2,708,374 | $ 2,673,899 | $ 34,475 | $ - |
Consumer Staples | 1,590,844 | 1,590,844 | - | - |
Energy | 1,320,973 | 1,320,973 | - | - |
Financials | 454,342 | 439,606 | 14,736 | - |
Health Care | 1,298,599 | 1,283,170 | - | 15,429 |
Industrials | 1,474,993 | 1,474,993 | - | - |
Information Technology | 4,559,658 | 4,543,754 | - | 15,904 |
Materials | 328,236 | 328,236 | - | - |
Money Market Funds | 198,795 | 198,795 | - | - |
Cash Equivalents | 7,306 | - | 7,306 | - |
Total Investments in Securities: | $ 13,942,120 | $ 13,854,270 | $ 56,517 | $ 31,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 45,904 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 429 |
Cost of Purchases | - |
Proceeds of Sales | (15,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 31,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 429 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.6% |
Netherlands | 1.8% |
Curacao | 1.2% |
Bermuda | 1.2% |
Ireland | 1.1% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 5.1% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $169,658 and repurchase agreements of $7,306) - See accompanying schedule: Unaffiliated issuers (cost $10,297,496) | $ 13,676,304 |
|
Fidelity Central Funds (cost $198,795) | 198,795 |
|
Other affiliated issuers (cost $73,738) | 67,021 |
|
Total Investments (cost $10,570,029) |
| $ 13,942,120 |
Receivable for investments sold | 194,706 | |
Receivable for fund shares sold | 9,592 | |
Dividends receivable | 4,244 | |
Distributions receivable from Fidelity Central Funds | 378 | |
Prepaid expenses | 34 | |
Other receivables | 689 | |
Total assets | 14,151,763 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 267 | |
Payable for investments purchased | 211,859 | |
Payable for fund shares redeemed | 65,123 | |
Accrued management fee | 8,291 | |
Other affiliated payables | 2,058 | |
Other payables and accrued expenses | 517 | |
Collateral on securities loaned, at value | 174,211 | |
Total liabilities | 462,326 | |
|
|
|
Net Assets | $ 13,689,437 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,655,223 | |
Accumulated net investment loss | (10,745) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (327,145) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,372,104 | |
Net Assets | $ 13,689,437 |
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, 2012 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 45.28 | |
|
|
|
Class K: | $ 45.31 | |
|
|
|
Class F: | $ 45.35 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 69,082 |
Income from Fidelity Central Funds |
| 1,227 |
Total income |
| 70,309 |
|
|
|
Expenses | ||
Management fee | $ 36,841 | |
Performance adjustment | 7,741 | |
Transfer agent fees | 11,888 | |
Accounting and security lending fees | 721 | |
Custodian fees and expenses | 414 | |
Independent trustees' compensation | 45 | |
Registration fees | 108 | |
Audit | 60 | |
Legal | 34 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,916 | |
Expense reductions | (195) | 57,721 |
Net investment income (loss) | 12,588 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (279,753) | |
Foreign currency transactions | 164 | |
Total net realized gain (loss) |
| (279,589) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (80,602) | |
Assets and liabilities in foreign currencies | 12 | |
Total change in net unrealized appreciation (depreciation) |
| (80,590) |
Net gain (loss) | (360,179) | |
Net increase (decrease) in net assets resulting from operations | $ (347,591) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,588 | $ (4,517) |
Net realized gain (loss) | (279,589) | 1,562,158 |
Change in net unrealized appreciation (depreciation) | (80,590) | 1,651,657 |
Net increase (decrease) in net assets resulting | (347,591) | 3,209,298 |
Distributions to shareholders from net investment income | (15,666) | (2,405) |
Distributions to shareholders from net realized gain | (480,840) | (12,451) |
Total distributions | (496,506) | (14,856) |
Share transactions - net increase (decrease) | 143,086 | (352,214) |
Total increase (decrease) in net assets | (701,011) | 2,842,228 |
|
|
|
Net Assets | ||
Beginning of period | 14,390,448 | 11,548,220 |
End of period (including accumulated net investment loss of $10,745 and accumulated net investment loss of $7,667, respectively) | $ 13,689,437 | $ 14,390,448 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | (.03) | .04 | .27 | .35 | .32 |
Net realized and unrealized gain (loss) | (1.28) | 10.61 | 5.80 | (6.36) | (2.89) | 6.19 |
Total from investment operations | (1.25) | 10.58 | 5.84 | (6.09) | (2.54) | 6.51 |
Distributions from net investment income | (.04) | (.00) H, I | (.18) | (.29) | (.33) | (.24) |
Distributions from net realized gain | (1.60) | (.04) I | - | (.71) | (4.95) | (.93) |
Total distributions | (1.64) | (.04) | (.18) | (1.00) | (5.28) | (1.17) |
Net asset value, end of period | $ 45.28 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Total Return B, C | (2.26)% | 28.12% | 18.29% | (15.85)% | (6.30)% | 16.02% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of fee waivers, if any | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of all reductions | .91% A | .92% | .93% | .76% | .57% | .59% |
Net investment income (loss) | .16% A | (.06)% | .10% | .93% | .81% | .72% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,562 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% | 87% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2012 | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .07 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | (1.30) | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | (1.23) | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 45.31 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | (2.21)% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .75% A | .76% | .74% | .52% | .41% A |
Net investment income (loss) | .32% A | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,856,005 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.67 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $1.598 per share.
J The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .08 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | (1.29) | 10.61 | 5.80 | 2.82 |
Total from investment operations | (1.21) | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (1.60) | (.08) K | - | - |
Total distributions | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 45.35 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | (2.17)% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .70% A | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .70% A | .72% | .70% | .51% A |
Expenses net of all reductions | .70% A | .71% | .68% | .51% A |
Net investment income (loss) | .37% A | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,271,851 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
J Total distributions of $.13 per share is comprised of distributions from net investment income of $.058 and distributions from net realized gain of $.076 per share.
K The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth, Class K and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,603,984 |
Gross unrealized depreciation | (282,015) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,321,969 |
|
|
Tax cost | $ 10,620,151 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $7,175 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Operating Policies - continued
Restricted Securities - continued
these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,661,058 and $6,910,054, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .68% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Blue Chip Growth | $ 11,490 | .22 |
Class K | 398 | .05 |
| $ 11,888 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $200 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 Loan | Weighted Average Interest Rate | Interest |
Borrower | $ 9,128 | .34% | $ 4 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,075. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,207, including $38 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $195 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 10,644 | $ 670 |
Class K | 2,860 | 1,165 |
Class F | 2,162 | 570 |
Total | $ 15,666 | $ 2,405 |
From net realized gain |
|
|
Blue Chip Growth | $ 397,249 | $ 9,690 |
Class K | 51,295 | 1,750 |
Class F | 32,296 | 1,011 |
Total | $ 480,840 | $ 12,451 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 19,730 | 42,281 | $ 854,739 | $ 1,904,203 |
Reinvestment of distributions | 9,668 | 232 | 399,688 | 10,166 |
Shares redeemed | (45,734) | (66,514) | (1,960,580) | (2,974,498) |
Net increase (decrease) | (16,336) | (24,001) | $ (706,153) | $ (1,060,129) |
Class K |
|
|
|
|
Shares sold | 14,396 | 13,902 | $ 619,145 | $ 625,856 |
Reinvestment of distributions | 1,309 | 70 | 54,155 | 2,916 |
Shares redeemed | (4,924) | (8,528) | (214,700) | (379,087) |
Net increase (decrease) | 10,781 | 5,444 | $ 458,600 | $ 249,685 |
Class F |
|
|
|
|
Shares sold | 9,544 | 12,501 | $ 409,652 | $ 558,704 |
Reinvestment of distributions | 832 | 38 | 34,458 | 1,580 |
Shares redeemed | (1,226) | (2,171) | (53,471) | (102,054) |
Net increase (decrease) | 9,150 | 10,368 | $ 390,639 | $ 458,230 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K® Funds were the owners of record, in the aggregate, of approximately 23% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
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551 Boston Turnpike
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280 N. Old Woodward Ave.
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3480 28th Street
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2425 S. Linden Road STE E
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150 Essex Street
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3518 Route 1 North
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530 Broad Street
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
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BCF-USAN-0312 1.789282.109
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Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Blue Chip Growth
Fund -
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.40 | $ 4.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Class K | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.90 | $ 3.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.30 | $ 3.48 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.62 | $ 3.56 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 9.8 | 8.1 |
Google, Inc. Class A | 4.5 | 4.7 |
McDonald's Corp. | 2.2 | 1.7 |
Exxon Mobil Corp. | 2.1 | 2.0 |
QUALCOMM, Inc. | 2.1 | 2.3 |
The Coca-Cola Co. | 1.9 | 1.8 |
Amazon.com, Inc. | 1.7 | 2.4 |
Philip Morris International, Inc. | 1.4 | 1.8 |
Green Mountain Coffee Roasters, Inc. | 1.3 | 0.9 |
Schlumberger Ltd. | 1.2 | 1.6 |
| 28.2 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 33.3 | 33.8 |
Consumer Discretionary | 19.8 | 19.2 |
Consumer Staples | 11.6 | 10.6 |
Industrials | 10.8 | 9.4 |
Energy | 9.7 | 10.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 100.3% |
| ![]() | Stocks 99.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.4% |
| ** Foreign investments | 13.0% |
|
† Short-term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 19.1% | |||
Auto Components - 1.2% | |||
Autoliv, Inc. | 858,400 | $ 54,156 | |
Cooper Tire & Rubber Co. | 717,000 | 10,798 | |
Delphi Automotive PLC | 264,100 | 7,086 | |
Tenneco, Inc. (a) | 1,087,998 | 34,925 | |
TRW Automotive Holdings Corp. (a) | 1,372,200 | 51,485 | |
| 158,450 | ||
Automobiles - 0.7% | |||
Hyundai Motor Co. | 75,033 | 14,763 | |
Kia Motors Corp. | 152,660 | 9,174 | |
Tesla Motors, Inc. (a)(d) | 2,673,354 | 77,714 | |
| 101,651 | ||
Diversified Consumer Services - 0.2% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 1,217,400 | 28,998 | |
Hotels, Restaurants & Leisure - 5.8% | |||
Arcos Dorados Holdings, Inc. | 1,324,400 | 28,475 | |
Bravo Brio Restaurant Group, Inc. (a) | 750,800 | 14,453 | |
Brinker International, Inc. | 684,000 | 17,681 | |
Chipotle Mexican Grill, Inc. (a) | 137,400 | 50,466 | |
Dunkin' Brands Group, Inc. (a) | 1,022,600 | 28,275 | |
Jubilant Foodworks Ltd. (a) | 533,088 | 10,160 | |
Las Vegas Sands Corp. | 1,322,900 | 64,968 | |
McDonald's Corp. | 3,034,930 | 300,610 | |
Panera Bread Co. Class A (a) | 254,800 | 37,774 | |
Starbucks Corp. | 3,173,500 | 152,106 | |
Wyndham Worldwide Corp. | 736,885 | 29,299 | |
Yum! Brands, Inc. | 842,100 | 53,330 | |
| 787,597 | ||
Household Durables - 1.1% | |||
KB Home | 14,700 | 133 | |
Lennar Corp. Class A | 1,373,352 | 29,513 | |
Newell Rubbermaid, Inc. | 1,166,900 | 21,553 | |
PulteGroup, Inc. (a) | 3,706,900 | 27,616 | |
SodaStream International Ltd. (a) | 286,400 | 10,938 | |
Tempur-Pedic International, Inc. (a) | 451,700 | 30,133 | |
Toll Brothers, Inc. (a) | 1,238,800 | 27,018 | |
| 146,904 | ||
Internet & Catalog Retail - 2.3% | |||
Amazon.com, Inc. (a) | 1,183,300 | 230,081 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Groupon, Inc. Class A (a)(d) | 708,900 | $ 14,454 | |
Priceline.com, Inc. (a) | 135,500 | 71,745 | |
| 316,280 | ||
Media - 0.4% | |||
Comcast Corp. Class A | 1,018,500 | 27,082 | |
Lions Gate Entertainment Corp. (a) | 1,900,000 | 19,152 | |
Pandora Media, Inc. | 35,800 | 472 | |
Time Warner Cable, Inc. | 174,500 | 12,864 | |
| 59,570 | ||
Multiline Retail - 1.2% | |||
Dollar General Corp. (a) | 437,700 | 18,650 | |
Dollar Tree, Inc. (a) | 222,500 | 18,870 | |
Dollarama, Inc. | 322,234 | 13,898 | |
JCPenney Co., Inc. | 705,200 | 29,301 | |
Macy's, Inc. | 2,522,700 | 84,990 | |
| 165,709 | ||
Specialty Retail - 3.1% | |||
Bed Bath & Beyond, Inc. (a) | 550,600 | 33,421 | |
Cia.Hering SA | 254,600 | 6,120 | |
Foot Locker, Inc. | 901,700 | 23,661 | |
Francescas Holdings Corp. (a) | 290,500 | 6,440 | |
Home Depot, Inc. | 1,077,900 | 47,848 | |
Limited Brands, Inc. | 2,439,500 | 102,117 | |
Lowe's Companies, Inc. | 1,236,200 | 33,167 | |
Ross Stores, Inc. | 386,400 | 19,637 | |
TJX Companies, Inc. | 1,792,540 | 122,144 | |
Tractor Supply Co. | 71,000 | 5,735 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 390,800 | 29,787 | |
| 430,077 | ||
Textiles, Apparel & Luxury Goods - 3.1% | |||
Arezzo Industria e Comercio SA | 1,681,000 | 28,132 | |
Carter's, Inc. (a) | 262,600 | 11,008 | |
Deckers Outdoor Corp. (a) | 257,100 | 20,787 | |
Fossil, Inc. (a) | 479,200 | 45,548 | |
Gitanjali Gems Ltd. | 1,983,811 | 12,432 | |
Liz Claiborne, Inc. (a)(d) | 2,485,111 | 23,112 | |
Michael Kors Holdings Ltd. | 1,535,500 | 47,524 | |
Michael Kors Holdings Ltd. | 1,237,675 | 34,475 | |
NIKE, Inc. Class B | 735,700 | 76,505 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
PVH Corp. | 829,000 | $ 63,991 | |
Ralph Lauren Corp. | 157,200 | 23,894 | |
Steven Madden Ltd. (a) | 232,050 | 9,547 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 87,000 | 6,927 | |
VF Corp. | 140,500 | 18,474 | |
| 422,356 | ||
TOTAL CONSUMER DISCRETIONARY | 2,617,592 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 4.0% | |||
Anheuser-Busch InBev SA NV ADR | 285,600 | 17,364 | |
Beam, Inc. | 207,600 | 10,860 | |
Dr Pepper Snapple Group, Inc. | 772,300 | 29,981 | |
Monster Beverage Corp. (a) | 1,280,900 | 133,867 | |
PepsiCo, Inc. | 1,382,500 | 90,789 | |
The Coca-Cola Co. | 3,807,500 | 257,120 | |
| 539,981 | ||
Food & Staples Retailing - 2.2% | |||
Costco Wholesale Corp. | 157,700 | 12,974 | |
CVS Caremark Corp. | 2,564,200 | 107,055 | |
Drogasil SA | 1,456,285 | 12,086 | |
Sun Art Retail Group Ltd. (a) | 977,500 | 1,190 | |
Wal-Mart Stores, Inc. | 1,079,200 | 66,220 | |
Whole Foods Market, Inc. | 1,387,000 | 102,680 | |
| 302,205 | ||
Food Products - 2.0% | |||
Calbee, Inc. (d) | 408,300 | 19,925 | |
Danone | 396,900 | 24,495 | |
Diamond Foods, Inc. (d) | 920,300 | 33,444 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 3,368,965 | 179,701 | |
Kraft Foods, Inc. Class A | 105,900 | 4,056 | |
Mead Johnson Nutrition Co. Class A | 200,900 | 14,885 | |
Tata Global Beverages Ltd. | 1,377,900 | 2,998 | |
| 279,504 | ||
Household Products - 0.5% | |||
Colgate-Palmolive Co. | 404,200 | 36,669 | |
Procter & Gamble Co. | 570,700 | 35,977 | |
| 72,646 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Estee Lauder Companies, Inc. Class A | 726,200 | $ 42,069 | |
Herbalife Ltd. | 735,731 | 42,584 | |
| 84,653 | ||
Tobacco - 2.3% | |||
Altria Group, Inc. | 2,032,300 | 57,717 | |
Lorillard, Inc. | 564,400 | 60,611 | |
Philip Morris International, Inc. | 2,588,300 | 193,527 | |
| 311,855 | ||
TOTAL CONSUMER STAPLES | 1,590,844 | ||
ENERGY - 9.7% | |||
Energy Equipment & Services - 3.7% | |||
Baker Hughes, Inc. | 270,000 | 13,265 | |
Cameron International Corp. (a) | 153,600 | 8,172 | |
Dresser-Rand Group, Inc. (a) | 270,000 | 13,832 | |
Ensco International Ltd. ADR | 154,200 | 8,117 | |
Halliburton Co. | 3,896,700 | 143,321 | |
McDermott International, Inc. (a) | 1,482,100 | 18,022 | |
National Oilwell Varco, Inc. | 1,195,700 | 88,458 | |
Noble Corp. | 117,400 | 4,090 | |
Schlumberger Ltd. | 2,242,300 | 168,554 | |
Seadrill Ltd. | 956,200 | 35,475 | |
Transocean Ltd. (United States) | 91,100 | 4,309 | |
| 505,615 | ||
Oil, Gas & Consumable Fuels - 6.0% | |||
Alpha Natural Resources, Inc. (a) | 3,210,899 | 64,603 | |
Anadarko Petroleum Corp. | 977,200 | 78,880 | |
Apache Corp. | 309,200 | 30,574 | |
Approach Resources, Inc. (a)(d) | 400,000 | 14,052 | |
Cabot Oil & Gas Corp. | 977,000 | 31,166 | |
Chesapeake Energy Corp. | 365,500 | 7,723 | |
Chevron Corp. | 878,500 | 90,556 | |
EOG Resources, Inc. | 181,900 | 19,307 | |
EV Energy Partners LP | 216,100 | 14,418 | |
Exxon Mobil Corp. | 3,429,000 | 287,144 | |
Hess Corp. | 189,700 | 10,680 | |
HollyFrontier Corp. | 94,500 | 2,773 | |
Marathon Petroleum Corp. | 362,900 | 13,870 | |
Markwest Energy Partners LP | 94,300 | 5,466 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Occidental Petroleum Corp. | 1,140,900 | $ 113,828 | |
Range Resources Corp. | 193,600 | 11,136 | |
Valero Energy Corp. | 799,600 | 19,182 | |
| 815,358 | ||
TOTAL ENERGY | 1,320,973 | ||
FINANCIALS - 3.3% | |||
Capital Markets - 1.1% | |||
Morgan Stanley | 7,305,100 | 136,240 | |
Och-Ziff Capital Management Group LLC Class A | 1,445,800 | 14,357 | |
| 150,597 | ||
Commercial Banks - 0.2% | |||
ICICI Bank Ltd. | 666,777 | 12,097 | |
Punjab National Bank | 133,123 | 2,639 | |
Wells Fargo & Co. | 321,000 | 9,376 | |
| 24,112 | ||
Consumer Finance - 0.4% | |||
Discover Financial Services | 1,578,300 | 42,898 | |
Shriram Transport Finance Co. Ltd. | 1,042,803 | 12,277 | |
| 55,175 | ||
Diversified Financial Services - 1.4% | |||
Citigroup, Inc. | 5,160,520 | 158,531 | |
JPMorgan Chase & Co. | 1,070,800 | 39,941 | |
| 198,472 | ||
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 25,986 | |
TOTAL FINANCIALS | 454,342 | ||
HEALTH CARE - 9.4% | |||
Biotechnology - 2.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 699,400 | 53,686 | |
Alkermes PLC (a) | 917,100 | 17,251 | |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | 26,071 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,500,000 | 22,125 | |
Biogen Idec, Inc. (a) | 757,400 | 89,313 | |
Exelixis, Inc. (a) | 2,913,200 | 15,498 | |
Gilead Sciences, Inc. (a) | 426,900 | 20,850 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
InterMune, Inc. (a) | 262,900 | $ 3,944 | |
Medivation, Inc. (a) | 75,100 | 4,161 | |
ONYX Pharmaceuticals, Inc. (a) | 124,800 | 5,109 | |
Regeneron Pharmaceuticals, Inc. (a) | 197,900 | 17,981 | |
Spectrum Pharmaceuticals, Inc. (a)(d)(e) | 2,916,500 | 41,035 | |
Vertex Pharmaceuticals, Inc. (a) | 389,200 | 14,381 | |
ZIOPHARM Oncology, Inc. (a) | 526,800 | 2,797 | |
| 334,202 | ||
Health Care Equipment & Supplies - 1.4% | |||
Baxter International, Inc. | 49,300 | 2,735 | |
Covidien PLC | 709,000 | 36,514 | |
Edwards Lifesciences Corp. (a) | 165,100 | 13,649 | |
Hologic, Inc. (a) | 1,613,500 | 32,899 | |
Insulet Corp. (a) | 100,000 | 1,947 | |
Intuitive Surgical, Inc. (a) | 36,400 | 16,741 | |
Mako Surgical Corp. (a) | 114,700 | 4,104 | |
The Cooper Companies, Inc. | 767,572 | 55,373 | |
William Demant Holding A/S (a) | 126,000 | 10,435 | |
Zeltiq Aesthetics, Inc. (d) | 1,052,500 | 12,630 | |
| 187,027 | ||
Health Care Providers & Services - 2.8% | |||
Apollo Hospitals Enterprise Ltd. | 649,448 | 7,872 | |
Express Scripts, Inc. (a) | 2,236,780 | 114,434 | |
McKesson Corp. | 1,144,400 | 93,520 | |
Medco Health Solutions, Inc. (a) | 2,214,900 | 137,368 | |
UnitedHealth Group, Inc. | 510,200 | 26,423 | |
| 379,617 | ||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a)(d) | 154,575 | 8,993 | |
Cerner Corp. (a) | 453,100 | 27,589 | |
| 36,582 | ||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 414,400 | 21,449 | |
Pharmaceuticals - 2.4% | |||
Abbott Laboratories | 323,800 | 17,534 | |
Allergan, Inc. | 126,100 | 11,085 | |
AVANIR Pharmaceuticals Class A (a)(d) | 1,464,000 | 4,304 | |
Bristol-Myers Squibb Co. | 205,200 | 6,616 | |
Elan Corp. PLC sponsored ADR (a) | 2,231,100 | 30,365 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Jazz Pharmaceuticals PLC (a) | 143,300 | $ 6,663 | |
Johnson & Johnson | 1,554,600 | 102,464 | |
Pfizer, Inc. | 473,100 | 10,124 | |
Questcor Pharmaceuticals, Inc. (a) | 910,800 | 32,270 | |
Salix Pharmaceuticals Ltd. (a) | 684,800 | 33,007 | |
Sanofi-aventis sponsored ADR | 437,400 | 16,241 | |
Shire PLC sponsored ADR | 182,000 | 18,113 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 733,200 | 35,507 | |
| 324,293 | ||
TOTAL HEALTH CARE | 1,283,170 | ||
INDUSTRIALS - 10.8% | |||
Aerospace & Defense - 3.5% | |||
Honeywell International, Inc. | 841,900 | 48,864 | |
Precision Castparts Corp. | 647,300 | 105,950 | |
The Boeing Co. | 2,051,200 | 152,158 | |
United Technologies Corp. | 2,098,300 | 164,402 | |
| 471,374 | ||
Air Freight & Logistics - 1.1% | |||
United Parcel Service, Inc. Class B | 1,977,900 | 149,628 | |
Airlines - 0.3% | |||
United Continental Holdings, Inc. (a) | 1,378,700 | 31,848 | |
US Airways Group, Inc. (a) | 1,063,100 | 8,973 | |
| 40,821 | ||
Building Products - 0.3% | |||
Armstrong World Industries, Inc. (a) | 768,200 | 35,875 | |
Owens Corning (a) | 263,000 | 8,876 | |
| 44,751 | ||
Commercial Services & Supplies - 0.1% | |||
Swisher Hygiene, Inc. | 2,095,491 | 7,355 | |
Construction & Engineering - 0.3% | |||
Fluor Corp. | 761,900 | 42,849 | |
Electrical Equipment - 0.2% | |||
Polypore International, Inc. (a) | 822,700 | 31,328 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 259,000 | $ 12,362 | |
Danaher Corp. | 2,862,300 | 150,299 | |
| 162,661 | ||
Machinery - 3.2% | |||
Caterpillar, Inc. | 1,017,200 | 110,997 | |
Cummins, Inc. | 956,700 | 99,497 | |
Deere & Co. | 47,200 | 4,066 | |
Eaton Corp. | 319,300 | 15,655 | |
Ingersoll-Rand PLC | 588,300 | 20,555 | |
Jain Irrigation Systems Ltd. DVR (a) | 39,000 | 29 | |
Joy Global, Inc. | 1,016,700 | 92,205 | |
Manitowoc Co., Inc. | 1,076,900 | 14,474 | |
PACCAR, Inc. | 1,168,900 | 51,665 | |
WABCO Holdings, Inc. (a) | 642,400 | 33,308 | |
| 442,451 | ||
Professional Services - 0.0% | |||
Manpower, Inc. | 98,200 | 3,939 | |
Road & Rail - 0.5% | |||
Union Pacific Corp. | 591,100 | 67,569 | |
Trading Companies & Distributors - 0.1% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 10,267 | |
TOTAL INDUSTRIALS | 1,474,993 | ||
INFORMATION TECHNOLOGY - 33.3% | |||
Communications Equipment - 2.3% | |||
Aruba Networks, Inc. (a) | 250,000 | 5,545 | |
Juniper Networks, Inc. (a) | 651,000 | 13,625 | |
Polycom, Inc. (a) | 746,800 | 14,899 | |
QUALCOMM, Inc. | 4,787,000 | 281,571 | |
Riverbed Technology, Inc. (a) | 200,600 | 4,802 | |
| 320,442 | ||
Computers & Peripherals - 10.7% | |||
Apple, Inc. (a) | 2,929,600 | 1,337,298 | |
EMC Corp. (a) | 2,083,700 | 53,676 | |
Fusion-io, Inc. | 100,600 | 2,325 | |
NetApp, Inc. (a) | 383,500 | 14,473 | |
SanDisk Corp. (a) | 1,125,800 | 51,652 | |
| 1,459,424 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.1% | |||
Aeroflex Holding Corp. (a) | 507,700 | $ 6,433 | |
Vishay Intertechnology, Inc. (a) | 791,900 | 9,725 | |
| 16,158 | ||
Internet Software & Services - 6.8% | |||
Akamai Technologies, Inc. (a) | 1,433,700 | 46,237 | |
Baidu.com, Inc. sponsored ADR (a) | 334,600 | 42,668 | |
Bankrate, Inc. (d) | 600,500 | 14,046 | |
eBay, Inc. (a) | 2,021,440 | 63,878 | |
Facebook, Inc. Class B (f) | 636,167 | 15,904 | |
Google, Inc. Class A (a) | 1,049,467 | 608,806 | |
IAC/InterActiveCorp | 463,500 | 19,963 | |
INFO Edge India Ltd. | 293,110 | 3,699 | |
Rackspace Hosting, Inc. (a) | 1,616,200 | 70,159 | |
SINA Corp. (a)(d) | 478,900 | 33,652 | |
Velti PLC (a) | 1,398,000 | 12,233 | |
| 931,245 | ||
IT Services - 2.3% | |||
Accenture PLC Class A | 477,700 | 27,391 | |
Cognizant Technology Solutions Corp. Class A (a) | 1,688,700 | 121,164 | |
International Business Machines Corp. | 36,100 | 6,953 | |
MasterCard, Inc. Class A | 413,400 | 146,993 | |
Teradata Corp. (a) | 216,600 | 11,601 | |
Visa, Inc. Class A | 26,400 | 2,657 | |
| 316,759 | ||
Semiconductors & Semiconductor Equipment - 5.0% | |||
Applied Micro Circuits Corp. (a) | 377,944 | 2,959 | |
ASML Holding NV | 1,134,600 | 48,776 | |
Avago Technologies Ltd. | 2,001,400 | 67,928 | |
Broadcom Corp. Class A | 3,851,300 | 132,254 | |
Cirrus Logic, Inc. (a) | 827,128 | 16,898 | |
Cree, Inc. (a) | 473,200 | 12,033 | |
Cymer, Inc. (a) | 125,800 | 6,264 | |
Fairchild Semiconductor International, Inc. (a) | 514,500 | 7,193 | |
Freescale Semiconductor Holdings I Ltd. | 3,216,458 | 51,367 | |
Lam Research Corp. (a) | 263,900 | 11,240 | |
LSI Corp. (a) | 2,118,000 | 16,033 | |
Marvell Technology Group Ltd. (a) | 4,263,186 | 66,207 | |
Mellanox Technologies Ltd. (a) | 380,700 | 13,960 | |
NVIDIA Corp. (a) | 3,650,973 | 53,925 | |
NXP Semiconductors NV (a) | 6,216,400 | 131,974 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
ON Semiconductor Corp. (a) | 497,100 | $ 4,325 | |
Samsung Electronics Co. Ltd. | 7,550 | 7,441 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 1,041,444 | 5,884 | |
Xilinx, Inc. | 563,200 | 20,191 | |
| 676,852 | ||
Software - 6.1% | |||
BroadSoft, Inc. (a) | 644,600 | 17,971 | |
Check Point Software Technologies Ltd. (a) | 1,317,800 | 74,179 | |
Citrix Systems, Inc. (a) | 1,526,700 | 99,556 | |
Guidewire Software, Inc. | 28,500 | 514 | |
Informatica Corp. (a) | 655,700 | 27,736 | |
Jive Software, Inc. | 276,724 | 4,109 | |
Microsoft Corp. | 5,266,200 | 155,511 | |
Oracle Corp. | 5,461,300 | 154,009 | |
QLIK Technologies, Inc. (a) | 621,163 | 17,517 | |
Red Hat, Inc. (a) | 1,138,500 | 52,792 | |
salesforce.com, Inc. (a) | 1,283,165 | 149,874 | |
VMware, Inc. Class A (a) | 891,800 | 81,395 | |
Zynga, Inc. (d) | 344,300 | 3,615 | |
| 838,778 | ||
TOTAL INFORMATION TECHNOLOGY | 4,559,658 | ||
MATERIALS - 2.4% | |||
Chemicals - 1.5% | |||
CF Industries Holdings, Inc. | 178,900 | 31,733 | |
E.I. du Pont de Nemours & Co. | 751,800 | 38,259 | |
Eastman Chemical Co. | 58,200 | 2,929 | |
Kronos Worldwide, Inc. | 59,600 | 1,372 | |
LyondellBasell Industries NV Class A | 1,092,600 | 47,091 | |
Monsanto Co. | 357,500 | 29,333 | |
Rentech Nitrogen Partners LP | 347,300 | 7,943 | |
Sigma Aldrich Corp. | 41,000 | 2,790 | |
The Mosaic Co. | 715,200 | 40,030 | |
| 201,480 | ||
Containers & Packaging - 0.2% | |||
Rock-Tenn Co. Class A | 526,000 | 32,538 | |
Metals & Mining - 0.7% | |||
Allegheny Technologies, Inc. | 280,700 | 12,741 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
First Quantum Minerals Ltd. | 144,300 | $ 3,160 | |
Freeport-McMoRan Copper & Gold, Inc. | 1,694,800 | 78,317 | |
| 94,218 | ||
TOTAL MATERIALS | 328,236 | ||
TOTAL COMMON STOCKS (Cost $10,289,970) |
| ||
Preferred Stocks - 0.8% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Merrimack Pharmaceuticals, Inc. Series G (f) | 2,142,858 | 15,429 | |
Nonconvertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Automobiles - 0.7% | |||
Volkswagen AG | 512,800 | 90,782 | |
TOTAL PREFERRED STOCKS (Cost $73,958) |
| ||
Money Market Funds - 1.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 24,583,592 | 24,584 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 174,210,828 | 174,211 | |
TOTAL MONEY MARKET FUNDS (Cost $198,795) |
| ||
Cash Equivalents - 0.0% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 7,306 | $ 7,306 | |
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $10,570,029) | 13,942,120 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (252,683) | ||
NET ASSETS - 100% | $ 13,689,437 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $31,333,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 15,909 |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 15,000 |
Repurchase Agreement / Counterparty | Value |
$7,306,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 3,854 |
Barclays Capital, Inc. | 2,050 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,402 |
| $ 7,306 |
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 |
Fidelity Securities Lending Cash Central Fund | 1,207 |
Total | $ 1,227 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Parsvnath Developers Ltd. | $ 22,924 | $ - | $ - | $ - | $ 25,986 |
Spectrum Pharmaceuticals, Inc. | - | 42,886 | - | - | 41,035 |
Total | $ 22,924 | $ 42,886 | $ - | $ - | $ 67,021 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 2,708,374 | $ 2,673,899 | $ 34,475 | $ - |
Consumer Staples | 1,590,844 | 1,590,844 | - | - |
Energy | 1,320,973 | 1,320,973 | - | - |
Financials | 454,342 | 439,606 | 14,736 | - |
Health Care | 1,298,599 | 1,283,170 | - | 15,429 |
Industrials | 1,474,993 | 1,474,993 | - | - |
Information Technology | 4,559,658 | 4,543,754 | - | 15,904 |
Materials | 328,236 | 328,236 | - | - |
Money Market Funds | 198,795 | 198,795 | - | - |
Cash Equivalents | 7,306 | - | 7,306 | - |
Total Investments in Securities: | $ 13,942,120 | $ 13,854,270 | $ 56,517 | $ 31,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 45,904 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 429 |
Cost of Purchases | - |
Proceeds of Sales | (15,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 31,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 429 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.6% |
Netherlands | 1.8% |
Curacao | 1.2% |
Bermuda | 1.2% |
Ireland | 1.1% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 5.1% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $169,658 and repurchase agreements of $7,306) - See accompanying schedule: Unaffiliated issuers (cost $10,297,496) | $ 13,676,304 |
|
Fidelity Central Funds (cost $198,795) | 198,795 |
|
Other affiliated issuers (cost $73,738) | 67,021 |
|
Total Investments (cost $10,570,029) |
| $ 13,942,120 |
Receivable for investments sold | 194,706 | |
Receivable for fund shares sold | 9,592 | |
Dividends receivable | 4,244 | |
Distributions receivable from Fidelity Central Funds | 378 | |
Prepaid expenses | 34 | |
Other receivables | 689 | |
Total assets | 14,151,763 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 267 | |
Payable for investments purchased | 211,859 | |
Payable for fund shares redeemed | 65,123 | |
Accrued management fee | 8,291 | |
Other affiliated payables | 2,058 | |
Other payables and accrued expenses | 517 | |
Collateral on securities loaned, at value | 174,211 | |
Total liabilities | 462,326 | |
|
|
|
Net Assets | $ 13,689,437 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,655,223 | |
Accumulated net investment loss | (10,745) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (327,145) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,372,104 | |
Net Assets | $ 13,689,437 |
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, 2012 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 45.28 | |
|
|
|
Class K: | $ 45.31 | |
|
|
|
Class F: | $ 45.35 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 69,082 |
Income from Fidelity Central Funds |
| 1,227 |
Total income |
| 70,309 |
|
|
|
Expenses | ||
Management fee | $ 36,841 | |
Performance adjustment | 7,741 | |
Transfer agent fees | 11,888 | |
Accounting and security lending fees | 721 | |
Custodian fees and expenses | 414 | |
Independent trustees' compensation | 45 | |
Registration fees | 108 | |
Audit | 60 | |
Legal | 34 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,916 | |
Expense reductions | (195) | 57,721 |
Net investment income (loss) | 12,588 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (279,753) | |
Foreign currency transactions | 164 | |
Total net realized gain (loss) |
| (279,589) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (80,602) | |
Assets and liabilities in foreign currencies | 12 | |
Total change in net unrealized appreciation (depreciation) |
| (80,590) |
Net gain (loss) | (360,179) | |
Net increase (decrease) in net assets resulting from operations | $ (347,591) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,588 | $ (4,517) |
Net realized gain (loss) | (279,589) | 1,562,158 |
Change in net unrealized appreciation (depreciation) | (80,590) | 1,651,657 |
Net increase (decrease) in net assets resulting | (347,591) | 3,209,298 |
Distributions to shareholders from net investment income | (15,666) | (2,405) |
Distributions to shareholders from net realized gain | (480,840) | (12,451) |
Total distributions | (496,506) | (14,856) |
Share transactions - net increase (decrease) | 143,086 | (352,214) |
Total increase (decrease) in net assets | (701,011) | 2,842,228 |
|
|
|
Net Assets | ||
Beginning of period | 14,390,448 | 11,548,220 |
End of period (including accumulated net investment loss of $10,745 and accumulated net investment loss of $7,667, respectively) | $ 13,689,437 | $ 14,390,448 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | (.03) | .04 | .27 | .35 | .32 |
Net realized and unrealized gain (loss) | (1.28) | 10.61 | 5.80 | (6.36) | (2.89) | 6.19 |
Total from investment operations | (1.25) | 10.58 | 5.84 | (6.09) | (2.54) | 6.51 |
Distributions from net investment income | (.04) | (.00) H, I | (.18) | (.29) | (.33) | (.24) |
Distributions from net realized gain | (1.60) | (.04) I | - | (.71) | (4.95) | (.93) |
Total distributions | (1.64) | (.04) | (.18) | (1.00) | (5.28) | (1.17) |
Net asset value, end of period | $ 45.28 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Total Return B, C | (2.26)% | 28.12% | 18.29% | (15.85)% | (6.30)% | 16.02% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of fee waivers, if any | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of all reductions | .91% A | .92% | .93% | .76% | .57% | .59% |
Net investment income (loss) | .16% A | (.06)% | .10% | .93% | .81% | .72% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,562 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% | 87% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2012 | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .07 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | (1.30) | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | (1.23) | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 45.31 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | (2.21)% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .75% A | .76% | .74% | .52% | .41% A |
Net investment income (loss) | .32% A | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,856,005 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.67 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $1.598 per share.
J The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .08 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | (1.29) | 10.61 | 5.80 | 2.82 |
Total from investment operations | (1.21) | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (1.60) | (.08) K | - | - |
Total distributions | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 45.35 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | (2.17)% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .70% A | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .70% A | .72% | .70% | .51% A |
Expenses net of all reductions | .70% A | .71% | .68% | .51% A |
Net investment income (loss) | .37% A | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,271,851 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
J Total distributions of $.13 per share is comprised of distributions from net investment income of $.058 and distributions from net realized gain of $.076 per share.
K The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth, Class K and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,603,984 |
Gross unrealized depreciation | (282,015) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,321,969 |
|
|
Tax cost | $ 10,620,151 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $7,175 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Operating Policies - continued
Restricted Securities - continued
these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,661,058 and $6,910,054, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .68% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Blue Chip Growth | $ 11,490 | .22 |
Class K | 398 | .05 |
| $ 11,888 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $200 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 Loan | Weighted Average Interest Rate | Interest |
Borrower | $ 9,128 | .34% | $ 4 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,075. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,207, including $38 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $195 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 10,644 | $ 670 |
Class K | 2,860 | 1,165 |
Class F | 2,162 | 570 |
Total | $ 15,666 | $ 2,405 |
From net realized gain |
|
|
Blue Chip Growth | $ 397,249 | $ 9,690 |
Class K | 51,295 | 1,750 |
Class F | 32,296 | 1,011 |
Total | $ 480,840 | $ 12,451 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 19,730 | 42,281 | $ 854,739 | $ 1,904,203 |
Reinvestment of distributions | 9,668 | 232 | 399,688 | 10,166 |
Shares redeemed | (45,734) | (66,514) | (1,960,580) | (2,974,498) |
Net increase (decrease) | (16,336) | (24,001) | $ (706,153) | $ (1,060,129) |
Class K |
|
|
|
|
Shares sold | 14,396 | 13,902 | $ 619,145 | $ 625,856 |
Reinvestment of distributions | 1,309 | 70 | 54,155 | 2,916 |
Shares redeemed | (4,924) | (8,528) | (214,700) | (379,087) |
Net increase (decrease) | 10,781 | 5,444 | $ 458,600 | $ 249,685 |
Class F |
|
|
|
|
Shares sold | 9,544 | 12,501 | $ 409,652 | $ 558,704 |
Reinvestment of distributions | 832 | 38 | 34,458 | 1,580 |
Shares redeemed | (1,226) | (2,171) | (53,471) | (102,054) |
Net increase (decrease) | 9,150 | 10,368 | $ 390,639 | $ 458,230 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K® Funds were the owners of record, in the aggregate, of approximately 23% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-F-SANN-0312 1.891666.102
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Blue Chip Growth | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.40 | $ 4.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Class K | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.90 | $ 3.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.37 | $ 3.81 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.30 | $ 3.48 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.62 | $ 3.56 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 9.8 | 8.1 |
Google, Inc. Class A | 4.5 | 4.7 |
McDonald's Corp. | 2.2 | 1.7 |
Exxon Mobil Corp. | 2.1 | 2.0 |
QUALCOMM, Inc. | 2.1 | 2.3 |
The Coca-Cola Co. | 1.9 | 1.8 |
Amazon.com, Inc. | 1.7 | 2.4 |
Philip Morris International, Inc. | 1.4 | 1.8 |
Green Mountain Coffee Roasters, Inc. | 1.3 | 0.9 |
Schlumberger Ltd. | 1.2 | 1.6 |
| 28.2 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 33.3 | 33.8 |
Consumer Discretionary | 19.8 | 19.2 |
Consumer Staples | 11.6 | 10.6 |
Industrials | 10.8 | 9.4 |
Energy | 9.7 | 10.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 100.3% |
| ![]() | Stocks 99.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.4% |
| ** Foreign investments | 13.0% |
|
† Short-term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 19.1% | |||
Auto Components - 1.2% | |||
Autoliv, Inc. | 858,400 | $ 54,156 | |
Cooper Tire & Rubber Co. | 717,000 | 10,798 | |
Delphi Automotive PLC | 264,100 | 7,086 | |
Tenneco, Inc. (a) | 1,087,998 | 34,925 | |
TRW Automotive Holdings Corp. (a) | 1,372,200 | 51,485 | |
| 158,450 | ||
Automobiles - 0.7% | |||
Hyundai Motor Co. | 75,033 | 14,763 | |
Kia Motors Corp. | 152,660 | 9,174 | |
Tesla Motors, Inc. (a)(d) | 2,673,354 | 77,714 | |
| 101,651 | ||
Diversified Consumer Services - 0.2% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 1,217,400 | 28,998 | |
Hotels, Restaurants & Leisure - 5.8% | |||
Arcos Dorados Holdings, Inc. | 1,324,400 | 28,475 | |
Bravo Brio Restaurant Group, Inc. (a) | 750,800 | 14,453 | |
Brinker International, Inc. | 684,000 | 17,681 | |
Chipotle Mexican Grill, Inc. (a) | 137,400 | 50,466 | |
Dunkin' Brands Group, Inc. (a) | 1,022,600 | 28,275 | |
Jubilant Foodworks Ltd. (a) | 533,088 | 10,160 | |
Las Vegas Sands Corp. | 1,322,900 | 64,968 | |
McDonald's Corp. | 3,034,930 | 300,610 | |
Panera Bread Co. Class A (a) | 254,800 | 37,774 | |
Starbucks Corp. | 3,173,500 | 152,106 | |
Wyndham Worldwide Corp. | 736,885 | 29,299 | |
Yum! Brands, Inc. | 842,100 | 53,330 | |
| 787,597 | ||
Household Durables - 1.1% | |||
KB Home | 14,700 | 133 | |
Lennar Corp. Class A | 1,373,352 | 29,513 | |
Newell Rubbermaid, Inc. | 1,166,900 | 21,553 | |
PulteGroup, Inc. (a) | 3,706,900 | 27,616 | |
SodaStream International Ltd. (a) | 286,400 | 10,938 | |
Tempur-Pedic International, Inc. (a) | 451,700 | 30,133 | |
Toll Brothers, Inc. (a) | 1,238,800 | 27,018 | |
| 146,904 | ||
Internet & Catalog Retail - 2.3% | |||
Amazon.com, Inc. (a) | 1,183,300 | 230,081 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Groupon, Inc. Class A (a)(d) | 708,900 | $ 14,454 | |
Priceline.com, Inc. (a) | 135,500 | 71,745 | |
| 316,280 | ||
Media - 0.4% | |||
Comcast Corp. Class A | 1,018,500 | 27,082 | |
Lions Gate Entertainment Corp. (a) | 1,900,000 | 19,152 | |
Pandora Media, Inc. | 35,800 | 472 | |
Time Warner Cable, Inc. | 174,500 | 12,864 | |
| 59,570 | ||
Multiline Retail - 1.2% | |||
Dollar General Corp. (a) | 437,700 | 18,650 | |
Dollar Tree, Inc. (a) | 222,500 | 18,870 | |
Dollarama, Inc. | 322,234 | 13,898 | |
JCPenney Co., Inc. | 705,200 | 29,301 | |
Macy's, Inc. | 2,522,700 | 84,990 | |
| 165,709 | ||
Specialty Retail - 3.1% | |||
Bed Bath & Beyond, Inc. (a) | 550,600 | 33,421 | |
Cia.Hering SA | 254,600 | 6,120 | |
Foot Locker, Inc. | 901,700 | 23,661 | |
Francescas Holdings Corp. (a) | 290,500 | 6,440 | |
Home Depot, Inc. | 1,077,900 | 47,848 | |
Limited Brands, Inc. | 2,439,500 | 102,117 | |
Lowe's Companies, Inc. | 1,236,200 | 33,167 | |
Ross Stores, Inc. | 386,400 | 19,637 | |
TJX Companies, Inc. | 1,792,540 | 122,144 | |
Tractor Supply Co. | 71,000 | 5,735 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 390,800 | 29,787 | |
| 430,077 | ||
Textiles, Apparel & Luxury Goods - 3.1% | |||
Arezzo Industria e Comercio SA | 1,681,000 | 28,132 | |
Carter's, Inc. (a) | 262,600 | 11,008 | |
Deckers Outdoor Corp. (a) | 257,100 | 20,787 | |
Fossil, Inc. (a) | 479,200 | 45,548 | |
Gitanjali Gems Ltd. | 1,983,811 | 12,432 | |
Liz Claiborne, Inc. (a)(d) | 2,485,111 | 23,112 | |
Michael Kors Holdings Ltd. | 1,535,500 | 47,524 | |
Michael Kors Holdings Ltd. | 1,237,675 | 34,475 | |
NIKE, Inc. Class B | 735,700 | 76,505 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
PVH Corp. | 829,000 | $ 63,991 | |
Ralph Lauren Corp. | 157,200 | 23,894 | |
Steven Madden Ltd. (a) | 232,050 | 9,547 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 87,000 | 6,927 | |
VF Corp. | 140,500 | 18,474 | |
| 422,356 | ||
TOTAL CONSUMER DISCRETIONARY | 2,617,592 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 4.0% | |||
Anheuser-Busch InBev SA NV ADR | 285,600 | 17,364 | |
Beam, Inc. | 207,600 | 10,860 | |
Dr Pepper Snapple Group, Inc. | 772,300 | 29,981 | |
Monster Beverage Corp. (a) | 1,280,900 | 133,867 | |
PepsiCo, Inc. | 1,382,500 | 90,789 | |
The Coca-Cola Co. | 3,807,500 | 257,120 | |
| 539,981 | ||
Food & Staples Retailing - 2.2% | |||
Costco Wholesale Corp. | 157,700 | 12,974 | |
CVS Caremark Corp. | 2,564,200 | 107,055 | |
Drogasil SA | 1,456,285 | 12,086 | |
Sun Art Retail Group Ltd. (a) | 977,500 | 1,190 | |
Wal-Mart Stores, Inc. | 1,079,200 | 66,220 | |
Whole Foods Market, Inc. | 1,387,000 | 102,680 | |
| 302,205 | ||
Food Products - 2.0% | |||
Calbee, Inc. (d) | 408,300 | 19,925 | |
Danone | 396,900 | 24,495 | |
Diamond Foods, Inc. (d) | 920,300 | 33,444 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 3,368,965 | 179,701 | |
Kraft Foods, Inc. Class A | 105,900 | 4,056 | |
Mead Johnson Nutrition Co. Class A | 200,900 | 14,885 | |
Tata Global Beverages Ltd. | 1,377,900 | 2,998 | |
| 279,504 | ||
Household Products - 0.5% | |||
Colgate-Palmolive Co. | 404,200 | 36,669 | |
Procter & Gamble Co. | 570,700 | 35,977 | |
| 72,646 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.6% | |||
Estee Lauder Companies, Inc. Class A | 726,200 | $ 42,069 | |
Herbalife Ltd. | 735,731 | 42,584 | |
| 84,653 | ||
Tobacco - 2.3% | |||
Altria Group, Inc. | 2,032,300 | 57,717 | |
Lorillard, Inc. | 564,400 | 60,611 | |
Philip Morris International, Inc. | 2,588,300 | 193,527 | |
| 311,855 | ||
TOTAL CONSUMER STAPLES | 1,590,844 | ||
ENERGY - 9.7% | |||
Energy Equipment & Services - 3.7% | |||
Baker Hughes, Inc. | 270,000 | 13,265 | |
Cameron International Corp. (a) | 153,600 | 8,172 | |
Dresser-Rand Group, Inc. (a) | 270,000 | 13,832 | |
Ensco International Ltd. ADR | 154,200 | 8,117 | |
Halliburton Co. | 3,896,700 | 143,321 | |
McDermott International, Inc. (a) | 1,482,100 | 18,022 | |
National Oilwell Varco, Inc. | 1,195,700 | 88,458 | |
Noble Corp. | 117,400 | 4,090 | |
Schlumberger Ltd. | 2,242,300 | 168,554 | |
Seadrill Ltd. | 956,200 | 35,475 | |
Transocean Ltd. (United States) | 91,100 | 4,309 | |
| 505,615 | ||
Oil, Gas & Consumable Fuels - 6.0% | |||
Alpha Natural Resources, Inc. (a) | 3,210,899 | 64,603 | |
Anadarko Petroleum Corp. | 977,200 | 78,880 | |
Apache Corp. | 309,200 | 30,574 | |
Approach Resources, Inc. (a)(d) | 400,000 | 14,052 | |
Cabot Oil & Gas Corp. | 977,000 | 31,166 | |
Chesapeake Energy Corp. | 365,500 | 7,723 | |
Chevron Corp. | 878,500 | 90,556 | |
EOG Resources, Inc. | 181,900 | 19,307 | |
EV Energy Partners LP | 216,100 | 14,418 | |
Exxon Mobil Corp. | 3,429,000 | 287,144 | |
Hess Corp. | 189,700 | 10,680 | |
HollyFrontier Corp. | 94,500 | 2,773 | |
Marathon Petroleum Corp. | 362,900 | 13,870 | |
Markwest Energy Partners LP | 94,300 | 5,466 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Occidental Petroleum Corp. | 1,140,900 | $ 113,828 | |
Range Resources Corp. | 193,600 | 11,136 | |
Valero Energy Corp. | 799,600 | 19,182 | |
| 815,358 | ||
TOTAL ENERGY | 1,320,973 | ||
FINANCIALS - 3.3% | |||
Capital Markets - 1.1% | |||
Morgan Stanley | 7,305,100 | 136,240 | |
Och-Ziff Capital Management Group LLC Class A | 1,445,800 | 14,357 | |
| 150,597 | ||
Commercial Banks - 0.2% | |||
ICICI Bank Ltd. | 666,777 | 12,097 | |
Punjab National Bank | 133,123 | 2,639 | |
Wells Fargo & Co. | 321,000 | 9,376 | |
| 24,112 | ||
Consumer Finance - 0.4% | |||
Discover Financial Services | 1,578,300 | 42,898 | |
Shriram Transport Finance Co. Ltd. | 1,042,803 | 12,277 | |
| 55,175 | ||
Diversified Financial Services - 1.4% | |||
Citigroup, Inc. | 5,160,520 | 158,531 | |
JPMorgan Chase & Co. | 1,070,800 | 39,941 | |
| 198,472 | ||
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 25,986 | |
TOTAL FINANCIALS | 454,342 | ||
HEALTH CARE - 9.4% | |||
Biotechnology - 2.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 699,400 | 53,686 | |
Alkermes PLC (a) | 917,100 | 17,251 | |
Amylin Pharmaceuticals, Inc. (a) | 1,832,100 | 26,071 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,500,000 | 22,125 | |
Biogen Idec, Inc. (a) | 757,400 | 89,313 | |
Exelixis, Inc. (a) | 2,913,200 | 15,498 | |
Gilead Sciences, Inc. (a) | 426,900 | 20,850 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
InterMune, Inc. (a) | 262,900 | $ 3,944 | |
Medivation, Inc. (a) | 75,100 | 4,161 | |
ONYX Pharmaceuticals, Inc. (a) | 124,800 | 5,109 | |
Regeneron Pharmaceuticals, Inc. (a) | 197,900 | 17,981 | |
Spectrum Pharmaceuticals, Inc. (a)(d)(e) | 2,916,500 | 41,035 | |
Vertex Pharmaceuticals, Inc. (a) | 389,200 | 14,381 | |
ZIOPHARM Oncology, Inc. (a) | 526,800 | 2,797 | |
| 334,202 | ||
Health Care Equipment & Supplies - 1.4% | |||
Baxter International, Inc. | 49,300 | 2,735 | |
Covidien PLC | 709,000 | 36,514 | |
Edwards Lifesciences Corp. (a) | 165,100 | 13,649 | |
Hologic, Inc. (a) | 1,613,500 | 32,899 | |
Insulet Corp. (a) | 100,000 | 1,947 | |
Intuitive Surgical, Inc. (a) | 36,400 | 16,741 | |
Mako Surgical Corp. (a) | 114,700 | 4,104 | |
The Cooper Companies, Inc. | 767,572 | 55,373 | |
William Demant Holding A/S (a) | 126,000 | 10,435 | |
Zeltiq Aesthetics, Inc. (d) | 1,052,500 | 12,630 | |
| 187,027 | ||
Health Care Providers & Services - 2.8% | |||
Apollo Hospitals Enterprise Ltd. | 649,448 | 7,872 | |
Express Scripts, Inc. (a) | 2,236,780 | 114,434 | |
McKesson Corp. | 1,144,400 | 93,520 | |
Medco Health Solutions, Inc. (a) | 2,214,900 | 137,368 | |
UnitedHealth Group, Inc. | 510,200 | 26,423 | |
| 379,617 | ||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a)(d) | 154,575 | 8,993 | |
Cerner Corp. (a) | 453,100 | 27,589 | |
| 36,582 | ||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 414,400 | 21,449 | |
Pharmaceuticals - 2.4% | |||
Abbott Laboratories | 323,800 | 17,534 | |
Allergan, Inc. | 126,100 | 11,085 | |
AVANIR Pharmaceuticals Class A (a)(d) | 1,464,000 | 4,304 | |
Bristol-Myers Squibb Co. | 205,200 | 6,616 | |
Elan Corp. PLC sponsored ADR (a) | 2,231,100 | 30,365 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Jazz Pharmaceuticals PLC (a) | 143,300 | $ 6,663 | |
Johnson & Johnson | 1,554,600 | 102,464 | |
Pfizer, Inc. | 473,100 | 10,124 | |
Questcor Pharmaceuticals, Inc. (a) | 910,800 | 32,270 | |
Salix Pharmaceuticals Ltd. (a) | 684,800 | 33,007 | |
Sanofi-aventis sponsored ADR | 437,400 | 16,241 | |
Shire PLC sponsored ADR | 182,000 | 18,113 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 733,200 | 35,507 | |
| 324,293 | ||
TOTAL HEALTH CARE | 1,283,170 | ||
INDUSTRIALS - 10.8% | |||
Aerospace & Defense - 3.5% | |||
Honeywell International, Inc. | 841,900 | 48,864 | |
Precision Castparts Corp. | 647,300 | 105,950 | |
The Boeing Co. | 2,051,200 | 152,158 | |
United Technologies Corp. | 2,098,300 | 164,402 | |
| 471,374 | ||
Air Freight & Logistics - 1.1% | |||
United Parcel Service, Inc. Class B | 1,977,900 | 149,628 | |
Airlines - 0.3% | |||
United Continental Holdings, Inc. (a) | 1,378,700 | 31,848 | |
US Airways Group, Inc. (a) | 1,063,100 | 8,973 | |
| 40,821 | ||
Building Products - 0.3% | |||
Armstrong World Industries, Inc. (a) | 768,200 | 35,875 | |
Owens Corning (a) | 263,000 | 8,876 | |
| 44,751 | ||
Commercial Services & Supplies - 0.1% | |||
Swisher Hygiene, Inc. | 2,095,491 | 7,355 | |
Construction & Engineering - 0.3% | |||
Fluor Corp. | 761,900 | 42,849 | |
Electrical Equipment - 0.2% | |||
Polypore International, Inc. (a) | 822,700 | 31,328 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 259,000 | $ 12,362 | |
Danaher Corp. | 2,862,300 | 150,299 | |
| 162,661 | ||
Machinery - 3.2% | |||
Caterpillar, Inc. | 1,017,200 | 110,997 | |
Cummins, Inc. | 956,700 | 99,497 | |
Deere & Co. | 47,200 | 4,066 | |
Eaton Corp. | 319,300 | 15,655 | |
Ingersoll-Rand PLC | 588,300 | 20,555 | |
Jain Irrigation Systems Ltd. DVR (a) | 39,000 | 29 | |
Joy Global, Inc. | 1,016,700 | 92,205 | |
Manitowoc Co., Inc. | 1,076,900 | 14,474 | |
PACCAR, Inc. | 1,168,900 | 51,665 | |
WABCO Holdings, Inc. (a) | 642,400 | 33,308 | |
| 442,451 | ||
Professional Services - 0.0% | |||
Manpower, Inc. | 98,200 | 3,939 | |
Road & Rail - 0.5% | |||
Union Pacific Corp. | 591,100 | 67,569 | |
Trading Companies & Distributors - 0.1% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 10,267 | |
TOTAL INDUSTRIALS | 1,474,993 | ||
INFORMATION TECHNOLOGY - 33.3% | |||
Communications Equipment - 2.3% | |||
Aruba Networks, Inc. (a) | 250,000 | 5,545 | |
Juniper Networks, Inc. (a) | 651,000 | 13,625 | |
Polycom, Inc. (a) | 746,800 | 14,899 | |
QUALCOMM, Inc. | 4,787,000 | 281,571 | |
Riverbed Technology, Inc. (a) | 200,600 | 4,802 | |
| 320,442 | ||
Computers & Peripherals - 10.7% | |||
Apple, Inc. (a) | 2,929,600 | 1,337,298 | |
EMC Corp. (a) | 2,083,700 | 53,676 | |
Fusion-io, Inc. | 100,600 | 2,325 | |
NetApp, Inc. (a) | 383,500 | 14,473 | |
SanDisk Corp. (a) | 1,125,800 | 51,652 | |
| 1,459,424 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 0.1% | |||
Aeroflex Holding Corp. (a) | 507,700 | $ 6,433 | |
Vishay Intertechnology, Inc. (a) | 791,900 | 9,725 | |
| 16,158 | ||
Internet Software & Services - 6.8% | |||
Akamai Technologies, Inc. (a) | 1,433,700 | 46,237 | |
Baidu.com, Inc. sponsored ADR (a) | 334,600 | 42,668 | |
Bankrate, Inc. (d) | 600,500 | 14,046 | |
eBay, Inc. (a) | 2,021,440 | 63,878 | |
Facebook, Inc. Class B (f) | 636,167 | 15,904 | |
Google, Inc. Class A (a) | 1,049,467 | 608,806 | |
IAC/InterActiveCorp | 463,500 | 19,963 | |
INFO Edge India Ltd. | 293,110 | 3,699 | |
Rackspace Hosting, Inc. (a) | 1,616,200 | 70,159 | |
SINA Corp. (a)(d) | 478,900 | 33,652 | |
Velti PLC (a) | 1,398,000 | 12,233 | |
| 931,245 | ||
IT Services - 2.3% | |||
Accenture PLC Class A | 477,700 | 27,391 | |
Cognizant Technology Solutions Corp. Class A (a) | 1,688,700 | 121,164 | |
International Business Machines Corp. | 36,100 | 6,953 | |
MasterCard, Inc. Class A | 413,400 | 146,993 | |
Teradata Corp. (a) | 216,600 | 11,601 | |
Visa, Inc. Class A | 26,400 | 2,657 | |
| 316,759 | ||
Semiconductors & Semiconductor Equipment - 5.0% | |||
Applied Micro Circuits Corp. (a) | 377,944 | 2,959 | |
ASML Holding NV | 1,134,600 | 48,776 | |
Avago Technologies Ltd. | 2,001,400 | 67,928 | |
Broadcom Corp. Class A | 3,851,300 | 132,254 | |
Cirrus Logic, Inc. (a) | 827,128 | 16,898 | |
Cree, Inc. (a) | 473,200 | 12,033 | |
Cymer, Inc. (a) | 125,800 | 6,264 | |
Fairchild Semiconductor International, Inc. (a) | 514,500 | 7,193 | |
Freescale Semiconductor Holdings I Ltd. | 3,216,458 | 51,367 | |
Lam Research Corp. (a) | 263,900 | 11,240 | |
LSI Corp. (a) | 2,118,000 | 16,033 | |
Marvell Technology Group Ltd. (a) | 4,263,186 | 66,207 | |
Mellanox Technologies Ltd. (a) | 380,700 | 13,960 | |
NVIDIA Corp. (a) | 3,650,973 | 53,925 | |
NXP Semiconductors NV (a) | 6,216,400 | 131,974 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
ON Semiconductor Corp. (a) | 497,100 | $ 4,325 | |
Samsung Electronics Co. Ltd. | 7,550 | 7,441 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 1,041,444 | 5,884 | |
Xilinx, Inc. | 563,200 | 20,191 | |
| 676,852 | ||
Software - 6.1% | |||
BroadSoft, Inc. (a) | 644,600 | 17,971 | |
Check Point Software Technologies Ltd. (a) | 1,317,800 | 74,179 | |
Citrix Systems, Inc. (a) | 1,526,700 | 99,556 | |
Guidewire Software, Inc. | 28,500 | 514 | |
Informatica Corp. (a) | 655,700 | 27,736 | |
Jive Software, Inc. | 276,724 | 4,109 | |
Microsoft Corp. | 5,266,200 | 155,511 | |
Oracle Corp. | 5,461,300 | 154,009 | |
QLIK Technologies, Inc. (a) | 621,163 | 17,517 | |
Red Hat, Inc. (a) | 1,138,500 | 52,792 | |
salesforce.com, Inc. (a) | 1,283,165 | 149,874 | |
VMware, Inc. Class A (a) | 891,800 | 81,395 | |
Zynga, Inc. (d) | 344,300 | 3,615 | |
| 838,778 | ||
TOTAL INFORMATION TECHNOLOGY | 4,559,658 | ||
MATERIALS - 2.4% | |||
Chemicals - 1.5% | |||
CF Industries Holdings, Inc. | 178,900 | 31,733 | |
E.I. du Pont de Nemours & Co. | 751,800 | 38,259 | |
Eastman Chemical Co. | 58,200 | 2,929 | |
Kronos Worldwide, Inc. | 59,600 | 1,372 | |
LyondellBasell Industries NV Class A | 1,092,600 | 47,091 | |
Monsanto Co. | 357,500 | 29,333 | |
Rentech Nitrogen Partners LP | 347,300 | 7,943 | |
Sigma Aldrich Corp. | 41,000 | 2,790 | |
The Mosaic Co. | 715,200 | 40,030 | |
| 201,480 | ||
Containers & Packaging - 0.2% | |||
Rock-Tenn Co. Class A | 526,000 | 32,538 | |
Metals & Mining - 0.7% | |||
Allegheny Technologies, Inc. | 280,700 | 12,741 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
First Quantum Minerals Ltd. | 144,300 | $ 3,160 | |
Freeport-McMoRan Copper & Gold, Inc. | 1,694,800 | 78,317 | |
| 94,218 | ||
TOTAL MATERIALS | 328,236 | ||
TOTAL COMMON STOCKS (Cost $10,289,970) |
| ||
Preferred Stocks - 0.8% | |||
|
|
|
|
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Merrimack Pharmaceuticals, Inc. Series G (f) | 2,142,858 | 15,429 | |
Nonconvertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Automobiles - 0.7% | |||
Volkswagen AG | 512,800 | 90,782 | |
TOTAL PREFERRED STOCKS (Cost $73,958) |
| ||
Money Market Funds - 1.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 24,583,592 | 24,584 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 174,210,828 | 174,211 | |
TOTAL MONEY MARKET FUNDS (Cost $198,795) |
| ||
Cash Equivalents - 0.0% | |||
Maturity Amount (000s) | Value (000s) | ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 7,306 | $ 7,306 | |
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $10,570,029) | 13,942,120 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (252,683) | ||
NET ASSETS - 100% | $ 13,689,437 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $31,333,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 15,909 |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 15,000 |
Repurchase Agreement / Counterparty | Value |
$7,306,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 3,854 |
Barclays Capital, Inc. | 2,050 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,402 |
| $ 7,306 |
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 |
Fidelity Securities Lending Cash Central Fund | 1,207 |
Total | $ 1,227 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Parsvnath Developers Ltd. | $ 22,924 | $ - | $ - | $ - | $ 25,986 |
Spectrum Pharmaceuticals, Inc. | - | 42,886 | - | - | 41,035 |
Total | $ 22,924 | $ 42,886 | $ - | $ - | $ 67,021 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 2,708,374 | $ 2,673,899 | $ 34,475 | $ - |
Consumer Staples | 1,590,844 | 1,590,844 | - | - |
Energy | 1,320,973 | 1,320,973 | - | - |
Financials | 454,342 | 439,606 | 14,736 | - |
Health Care | 1,298,599 | 1,283,170 | - | 15,429 |
Industrials | 1,474,993 | 1,474,993 | - | - |
Information Technology | 4,559,658 | 4,543,754 | - | 15,904 |
Materials | 328,236 | 328,236 | - | - |
Money Market Funds | 198,795 | 198,795 | - | - |
Cash Equivalents | 7,306 | - | 7,306 | - |
Total Investments in Securities: | $ 13,942,120 | $ 13,854,270 | $ 56,517 | $ 31,333 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 45,904 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 429 |
Cost of Purchases | - |
Proceeds of Sales | (15,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 31,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 429 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.6% |
Netherlands | 1.8% |
Curacao | 1.2% |
Bermuda | 1.2% |
Ireland | 1.1% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 5.1% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $169,658 and repurchase agreements of $7,306) - See accompanying schedule: Unaffiliated issuers (cost $10,297,496) | $ 13,676,304 |
|
Fidelity Central Funds (cost $198,795) | 198,795 |
|
Other affiliated issuers (cost $73,738) | 67,021 |
|
Total Investments (cost $10,570,029) |
| $ 13,942,120 |
Receivable for investments sold | 194,706 | |
Receivable for fund shares sold | 9,592 | |
Dividends receivable | 4,244 | |
Distributions receivable from Fidelity Central Funds | 378 | |
Prepaid expenses | 34 | |
Other receivables | 689 | |
Total assets | 14,151,763 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 267 | |
Payable for investments purchased | 211,859 | |
Payable for fund shares redeemed | 65,123 | |
Accrued management fee | 8,291 | |
Other affiliated payables | 2,058 | |
Other payables and accrued expenses | 517 | |
Collateral on securities loaned, at value | 174,211 | |
Total liabilities | 462,326 | |
|
|
|
Net Assets | $ 13,689,437 | |
Net Assets consist of: |
| |
Paid in capital | $ 10,655,223 | |
Accumulated net investment loss | (10,745) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (327,145) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,372,104 | |
Net Assets | $ 13,689,437 |
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, 2012 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 45.28 | |
|
|
|
Class K: | $ 45.31 | |
|
|
|
Class F: | $ 45.35 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 69,082 |
Income from Fidelity Central Funds |
| 1,227 |
Total income |
| 70,309 |
|
|
|
Expenses | ||
Management fee | $ 36,841 | |
Performance adjustment | 7,741 | |
Transfer agent fees | 11,888 | |
Accounting and security lending fees | 721 | |
Custodian fees and expenses | 414 | |
Independent trustees' compensation | 45 | |
Registration fees | 108 | |
Audit | 60 | |
Legal | 34 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,916 | |
Expense reductions | (195) | 57,721 |
Net investment income (loss) | 12,588 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (279,753) | |
Foreign currency transactions | 164 | |
Total net realized gain (loss) |
| (279,589) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (80,602) | |
Assets and liabilities in foreign currencies | 12 | |
Total change in net unrealized appreciation (depreciation) |
| (80,590) |
Net gain (loss) | (360,179) | |
Net increase (decrease) in net assets resulting from operations | $ (347,591) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,588 | $ (4,517) |
Net realized gain (loss) | (279,589) | 1,562,158 |
Change in net unrealized appreciation (depreciation) | (80,590) | 1,651,657 |
Net increase (decrease) in net assets resulting | (347,591) | 3,209,298 |
Distributions to shareholders from net investment income | (15,666) | (2,405) |
Distributions to shareholders from net realized gain | (480,840) | (12,451) |
Total distributions | (496,506) | (14,856) |
Share transactions - net increase (decrease) | 143,086 | (352,214) |
Total increase (decrease) in net assets | (701,011) | 2,842,228 |
|
|
|
Net Assets | ||
Beginning of period | 14,390,448 | 11,548,220 |
End of period (including accumulated net investment loss of $10,745 and accumulated net investment loss of $7,667, respectively) | $ 13,689,437 | $ 14,390,448 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 | $ 41.54 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | (.03) | .04 | .27 | .35 | .32 |
Net realized and unrealized gain (loss) | (1.28) | 10.61 | 5.80 | (6.36) | (2.89) | 6.19 |
Total from investment operations | (1.25) | 10.58 | 5.84 | (6.09) | (2.54) | 6.51 |
Distributions from net investment income | (.04) | (.00) H, I | (.18) | (.29) | (.33) | (.24) |
Distributions from net realized gain | (1.60) | (.04) I | - | (.71) | (4.95) | (.93) |
Total distributions | (1.64) | (.04) | (.18) | (1.00) | (5.28) | (1.17) |
Net asset value, end of period | $ 45.28 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Total Return B, C | (2.26)% | 28.12% | 18.29% | (15.85)% | (6.30)% | 16.02% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of fee waivers, if any | .91% A | .94% | .94% | .76% | .58% | .60% |
Expenses net of all reductions | .91% A | .92% | .93% | .76% | .57% | .59% |
Net investment income (loss) | .16% A | (.06)% | .10% | .93% | .81% | .72% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 10,562 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 | $ 18,616 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% | 87% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2012 | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .07 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | (1.30) | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | (1.23) | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 45.31 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | (2.21)% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .75% A | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .75% A | .76% | .74% | .52% | .41% A |
Net investment income (loss) | .32% A | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,856,005 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% | 82% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.67 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $1.598 per share.
J The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .08 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | (1.29) | 10.61 | 5.80 | 2.82 |
Total from investment operations | (1.21) | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (1.60) | (.08) K | - | - |
Total distributions | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 45.35 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | (2.17)% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .70% A | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .70% A | .72% | .70% | .51% A |
Expenses net of all reductions | .70% A | .71% | .68% | .51% A |
Net investment income (loss) | .37% A | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,271,851 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 100% A | 132% | 135% | 134% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
J Total distributions of $.13 per share is comprised of distributions from net investment income of $.058 and distributions from net realized gain of $.076 per share.
K The amount shown reflects certain reclassifications related to book to tax differences.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth, Class K and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,603,984 |
Gross unrealized depreciation | (282,015) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 3,321,969 |
|
|
Tax cost | $ 10,620,151 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $7,175 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Operating Policies - continued
Restricted Securities - continued
these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,661,058 and $6,910,054, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Blue Chip Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .68% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Blue Chip Growth | $ 11,490 | .22 |
Class K | 398 | .05 |
| $ 11,888 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $200 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 Loan | Weighted Average Interest Rate | Interest |
Borrower | $ 9,128 | .34% | $ 4 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending - continued
borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,075. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $1,207, including $38 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $195 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 10,644 | $ 670 |
Class K | 2,860 | 1,165 |
Class F | 2,162 | 570 |
Total | $ 15,666 | $ 2,405 |
From net realized gain |
|
|
Blue Chip Growth | $ 397,249 | $ 9,690 |
Class K | 51,295 | 1,750 |
Class F | 32,296 | 1,011 |
Total | $ 480,840 | $ 12,451 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 19,730 | 42,281 | $ 854,739 | $ 1,904,203 |
Reinvestment of distributions | 9,668 | 232 | 399,688 | 10,166 |
Shares redeemed | (45,734) | (66,514) | (1,960,580) | (2,974,498) |
Net increase (decrease) | (16,336) | (24,001) | $ (706,153) | $ (1,060,129) |
Class K |
|
|
|
|
Shares sold | 14,396 | 13,902 | $ 619,145 | $ 625,856 |
Reinvestment of distributions | 1,309 | 70 | 54,155 | 2,916 |
Shares redeemed | (4,924) | (8,528) | (214,700) | (379,087) |
Net increase (decrease) | 10,781 | 5,444 | $ 458,600 | $ 249,685 |
Class F |
|
|
|
|
Shares sold | 9,544 | 12,501 | $ 409,652 | $ 558,704 |
Reinvestment of distributions | 832 | 38 | 34,458 | 1,580 |
Shares redeemed | (1,226) | (2,171) | (53,471) | (102,054) |
Net increase (decrease) | 9,150 | 10,368 | $ 390,639 | $ 458,230 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K® Funds were the owners of record, in the aggregate, of approximately 23% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
BCF-K-USAN-0312 1.863115.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past 6 months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .80% | $ 1,000.00 | $ 954.80 | $ 3.93 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,021.11 | $ 4.06 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Grupo Modelo SAB de CV Series C | 5.0 | 4.9 |
Citigroup, Inc. | 4.4 | 4.6 |
Pfizer, Inc. | 4.0 | 3.8 |
Johnson & Johnson | 3.8 | 3.3 |
Merck & Co., Inc. | 3.5 | 3.0 |
Garmin Ltd. | 3.5 | 4.3 |
General Electric Co. | 3.1 | 3.2 |
Procter & Gamble Co. | 3.0 | 0.0 |
Chevron Corp. | 3.0 | 3.0 |
Alcatel-Lucent SA sponsored ADR | 2.8 | 4.2 |
| 36.1 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 24.8 | 25.8 |
Health Care | 15.8 | 14.1 |
Consumer Staples | 11.9 | 9.6 |
Information Technology | 11.5 | 14.5 |
Energy | 9.0 | 12.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 94.8% |
| ![]() | Stocks 98.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.7% |
| ** Foreign investments | 24.1% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.9% | |||
Automobiles - 0.7% | |||
Honda Motor Co. Ltd. | 73,600 | $ 2,539,721 | |
Household Durables - 4.1% | |||
D.R. Horton, Inc. | 141,256 | 1,966,284 | |
Garmin Ltd. (d) | 283,721 | 11,831,166 | |
| 13,797,450 | ||
Media - 1.4% | |||
Time Warner, Inc. | 49,632 | 1,839,362 | |
Washington Post Co. Class B (d) | 7,778 | 2,945,606 | |
| 4,784,968 | ||
Multiline Retail - 2.7% | |||
JCPenney Co., Inc. (d) | 203,363 | 8,449,733 | |
Target Corp. | 16,867 | 857,012 | |
| 9,306,745 | ||
TOTAL CONSUMER DISCRETIONARY | 30,428,884 | ||
CONSUMER STAPLES - 11.9% | |||
Beverages - 5.0% | |||
Grupo Modelo SAB de CV Series C | 2,753,168 | 17,062,300 | |
Food & Staples Retailing - 1.6% | |||
CVS Caremark Corp. | 20,361 | 850,072 | |
Wal-Mart Stores, Inc. | 72,700 | 4,460,872 | |
| 5,310,944 | ||
Food Products - 2.1% | |||
Kraft Foods, Inc. Class A | 189,461 | 7,256,356 | |
Household Products - 3.0% | |||
Procter & Gamble Co. | 162,631 | 10,252,258 | |
Tobacco - 0.2% | |||
Lorillard, Inc. | 6,851 | 735,729 | |
TOTAL CONSUMER STAPLES | 40,617,587 | ||
ENERGY - 9.0% | |||
Energy Equipment & Services - 1.2% | |||
Cameron International Corp. (a) | 15,500 | 824,600 | |
Weatherford International Ltd. (a) | 194,691 | 3,259,127 | |
| 4,083,727 | ||
Oil, Gas & Consumable Fuels - 7.8% | |||
Alpha Natural Resources, Inc. (a) | 29,590 | 595,351 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Anadarko Petroleum Corp. | 51,487 | $ 4,156,031 | |
Apache Corp. | 14,300 | 1,413,984 | |
Chevron Corp. | 97,200 | 10,019,376 | |
Marathon Petroleum Corp. | 18,927 | 723,390 | |
Nexen, Inc. | 148,700 | 2,664,811 | |
Occidental Petroleum Corp. | 69,582 | 6,942,196 | |
| 26,515,139 | ||
TOTAL ENERGY | 30,598,866 | ||
FINANCIALS - 24.8% | |||
Capital Markets - 4.4% | |||
Bank of New York Mellon Corp. | 110,700 | 2,228,391 | |
E*TRADE Financial Corp. (a) | 701,512 | 5,745,383 | |
Goldman Sachs Group, Inc. | 15,247 | 1,699,583 | |
Lazard Ltd. Class A | 32,002 | 919,097 | |
Morgan Stanley | 77,153 | 1,438,903 | |
State Street Corp. | 74,070 | 2,902,063 | |
| 14,933,420 | ||
Commercial Banks - 7.8% | |||
Aozora Bank Ltd. | 2,908,000 | 8,087,315 | |
Fifth Third Bancorp | 173,500 | 2,257,235 | |
KeyCorp | 612,475 | 4,758,931 | |
U.S. Bancorp | 116,698 | 3,293,218 | |
Wells Fargo & Co. | 277,898 | 8,117,401 | |
| 26,514,100 | ||
Consumer Finance - 0.3% | |||
Capital One Financial Corp. | 24,900 | 1,139,175 | |
Diversified Financial Services - 7.6% | |||
Bank of America Corp. | 453,835 | 3,235,844 | |
Citigroup, Inc. | 487,379 | 14,972,283 | |
JPMorgan Chase & Co. | 208,716 | 7,785,107 | |
| 25,993,234 | ||
Insurance - 3.8% | |||
Assurant, Inc. | 26,900 | 1,065,240 | |
Berkshire Hathaway, Inc. Class B (a) | 11,721 | 918,575 | |
MetLife, Inc. | 78,955 | 2,789,480 | |
RenaissanceRe Holdings Ltd. | 18,300 | 1,337,913 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
The Chubb Corp. | 45,016 | $ 3,034,529 | |
XL Group PLC Class A | 188,224 | 3,815,300 | |
| 12,961,037 | ||
Real Estate Investment Trusts - 0.7% | |||
Weyerhaeuser Co. | 110,396 | 2,210,128 | |
Thrifts & Mortgage Finance - 0.2% | |||
Radian Group, Inc. | 259,699 | 714,172 | |
TOTAL FINANCIALS | 84,465,266 | ||
HEALTH CARE - 15.8% | |||
Biotechnology - 1.0% | |||
Amgen, Inc. | 48,300 | 3,280,053 | |
Health Care Equipment & Supplies - 0.6% | |||
CareFusion Corp. (a) | 79,819 | 1,911,665 | |
Pharmaceuticals - 14.2% | |||
Eli Lilly & Co. | 34,849 | 1,384,899 | |
Johnson & Johnson | 195,379 | 12,877,430 | |
Merck & Co., Inc. | 315,295 | 12,063,187 | |
Pfizer, Inc. | 645,694 | 13,817,852 | |
Sanofi-aventis sponsored ADR | 226,985 | 8,427,953 | |
| 48,571,321 | ||
TOTAL HEALTH CARE | 53,763,039 | ||
INDUSTRIALS - 4.6% | |||
Aerospace & Defense - 0.9% | |||
Textron, Inc. | 116,943 | 2,979,708 | |
Construction & Engineering - 0.6% | |||
Jacobs Engineering Group, Inc. (a) | 46,650 | 2,088,054 | |
Industrial Conglomerates - 3.1% | |||
General Electric Co. | 572,775 | 10,716,620 | |
TOTAL INDUSTRIALS | 15,784,382 | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 6.5% | |||
Alcatel-Lucent SA sponsored ADR (a)(d) | 5,463,835 | 9,507,073 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Communications Equipment - continued | |||
Cisco Systems, Inc. | 302,175 | $ 5,931,695 | |
Comverse Technology, Inc. (a) | 1,083,150 | 6,823,845 | |
| 22,262,613 | ||
Electronic Equipment & Components - 1.4% | |||
Corning, Inc. | 370,258 | 4,765,220 | |
Office Electronics - 0.4% | |||
Xerox Corp. | 187,654 | 1,454,319 | |
Semiconductors & Semiconductor Equipment - 2.4% | |||
Advanced Micro Devices, Inc. (a) | 1,215,404 | 8,155,361 | |
Software - 0.8% | |||
Microsoft Corp. | 89,893 | 2,654,540 | |
TOTAL INFORMATION TECHNOLOGY | 39,292,053 | ||
MATERIALS - 3.1% | |||
Chemicals - 1.7% | |||
Clariant AG (Reg.) (a) | 469,076 | 5,698,745 | |
Metals & Mining - 1.4% | |||
Newmont Mining Corp. | 77,036 | 4,736,173 | |
TOTAL MATERIALS | 10,434,918 | ||
TELECOMMUNICATION SERVICES - 1.6% | |||
Diversified Telecommunication Services - 1.1% | |||
AT&T, Inc. | 80,600 | 2,370,446 | |
CenturyLink, Inc. | 35,400 | 1,310,862 | |
| 3,681,308 | ||
Wireless Telecommunication Services - 0.5% | |||
Vodafone Group PLC sponsored ADR | 61,700 | 1,671,453 | |
TOTAL TELECOMMUNICATION SERVICES | 5,352,761 | ||
UTILITIES - 3.6% | |||
Electric Utilities - 3.6% | |||
Exelon Corp. | 91,391 | 3,635,534 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
FirstEnergy Corp. | 95,257 | $ 4,021,751 | |
NextEra Energy, Inc. | 77,065 | 4,612,340 | |
| 12,269,625 | ||
TOTAL COMMON STOCKS (Cost $359,777,820) |
| ||
Money Market Funds - 10.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 17,717,412 | 17,717,412 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 18,843,429 | 18,843,429 | |
TOTAL MONEY MARKET FUNDS (Cost $36,560,841) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.5% (Cost $396,338,661) | 359,568,222 | ||
NET OTHER ASSETS (LIABILITIES) - (5.5)% | (18,802,596) | ||
NET ASSETS - 100% | $ 340,765,626 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 7,585 |
Fidelity Securities Lending Cash Central Fund | 136,947 |
Total | $ 144,532 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 30,428,884 | $ 27,889,163 | $ 2,539,721 | $ - |
Consumer Staples | 40,617,587 | 40,617,587 | - | - |
Energy | 30,598,866 | 30,598,866 | - | - |
Financials | 84,465,266 | 84,465,266 | - | - |
Health Care | 53,763,039 | 53,763,039 | - | - |
Industrials | 15,784,382 | 15,784,382 | - | - |
Information Technology | 39,292,053 | 39,292,053 | - | - |
Materials | 10,434,918 | 10,434,918 | - | - |
Telecommunication Services | 5,352,761 | 5,352,761 | - | - |
Utilities | 12,269,625 | 12,269,625 | - | - |
Money Market Funds | 36,560,841 | 36,560,841 | - | - |
Total Investments in Securities: | $ 359,568,222 | $ 357,028,501 | $ 2,539,721 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.3% |
Switzerland | 6.2% |
France | 5.3% |
Mexico | 5.0% |
Japan | 3.1% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 2.0% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $18,431,467) - See accompanying schedule: Unaffiliated issuers (cost $359,777,820) | $ 323,007,381 |
|
Fidelity Central Funds (cost $36,560,841) | 36,560,841 |
|
Total Investments (cost $396,338,661) |
| $ 359,568,222 |
Cash |
| 2,954 |
Receivable for investments sold | 3,214,243 | |
Receivable for fund shares sold | 285,505 | |
Dividends receivable | 265,606 | |
Distributions receivable from Fidelity Central Funds | 6,708 | |
Prepaid expenses | 1,083 | |
Other receivables | 9,134 | |
Total assets | 363,353,455 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,050,261 | |
Payable for fund shares redeemed | 457,158 | |
Accrued management fee | 102,774 | |
Other affiliated payables | 103,170 | |
Other payables and accrued expenses | 31,037 | |
Collateral on securities loaned, at value | 18,843,429 | |
Total liabilities | 22,587,829 | |
|
|
|
Net Assets | $ 340,765,626 | |
Net Assets consist of: |
| |
Paid in capital | $ 534,268,676 | |
Undistributed net investment income | 14,544 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (156,747,212) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (36,770,382) | |
Net Assets, for 33,416,608 shares outstanding | $ 340,765,626 | |
Net Asset Value, offering price and redemption price per share ($340,765,626 ÷ 33,416,608 shares) | $ 10.20 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 4,269,224 |
Income from Fidelity Central Funds |
| 144,532 |
Total income |
| 4,413,756 |
|
|
|
Expenses | ||
Management fee | $ 1,044,465 | |
Performance adjustment | (307,340) | |
Transfer agent fees | 565,402 | |
Accounting and security lending fees | 75,725 | |
Custodian fees and expenses | 67,000 | |
Independent trustees' compensation | 1,289 | |
Registration fees | 9,596 | |
Audit | 29,645 | |
Legal | 1,927 | |
Interest | 245 | |
Miscellaneous | 1,777 | |
Total expenses before reductions | 1,489,731 | |
Expense reductions | (6,632) | 1,483,099 |
Net investment income (loss) | 2,930,657 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (16,931,247) | |
Foreign currency transactions | (13,865) | |
Total net realized gain (loss) |
| (16,945,112) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,604,534) | |
Assets and liabilities in foreign currencies | 1,668 | |
Total change in net unrealized appreciation (depreciation) |
| (8,602,866) |
Net gain (loss) | (25,547,978) | |
Net increase (decrease) in net assets resulting from operations | $ (22,617,321) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,930,657 | $ 5,151,642 |
Net realized gain (loss) | (16,945,112) | 39,541,706 |
Change in net unrealized appreciation (depreciation) | (8,602,866) | (11,263,482) |
Net increase (decrease) in net assets resulting | (22,617,321) | 33,429,866 |
Distributions to shareholders from net investment income | (6,210,896) | (4,255,614) |
Distributions to shareholders from net realized gain | - | (151,971) |
Total distributions | (6,210,896) | (4,407,585) |
Share transactions | 33,234,864 | 201,830,415 |
Reinvestment of distributions | 6,061,422 | 4,272,411 |
Cost of shares redeemed | (102,749,136) | (126,991,551) |
Net increase (decrease) in net assets resulting from share transactions | (63,452,850) | 79,111,275 |
Total increase (decrease) in net assets | (92,281,067) | 108,133,556 |
|
|
|
Net Assets | ||
Beginning of period | 433,046,693 | 324,913,137 |
End of period (including undistributed net investment income of $14,544 and undistributed net investment income of $3,294,783, respectively) | $ 340,765,626 | $ 433,046,693 |
Other Information Shares | ||
Sold | 3,429,700 | 18,133,138 |
Issued in reinvestment of distributions | 639,450 | 426,327 |
Redeemed | (10,545,923) | (11,763,946) |
Net increase (decrease) | (6,476,773) | 6,795,519 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.86 | $ 9.82 | $ 8.95 | $ 12.15 | $ 15.46 | $ 13.95 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .14 | .10 | .16 | .21 | .19 |
Net realized and unrealized gain (loss) | (.58) | 1.04 | .90 | (3.17) | (2.68) | 2.05 |
Total from investment operations | (.50) | 1.18 | 1.00 | (3.01) | (2.47) | 2.24 |
Distributions from net investment income | (.16) | (.14) | (.13) | (.18) | (.16) | (.13) |
Distributions from net realized gain | - | (.01) | - | (.01) | (.68) | (.60) |
Total distributions | (.16) | (.14) H | (.13) | (.19) | (.84) | (.73) |
Net asset value, end of period | $ 10.20 | $ 10.86 | $ 9.82 | $ 8.95 | $ 12.15 | $ 15.46 |
Total Return B, C | (4.52)% | 12.14% | 11.20% | (24.89)% | (16.86)% | 16.60% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .80% A | .75% | .87% | .77% | .92% | .87% |
Expenses net of fee waivers, if any | .80% A | .75% | .87% | .77% | .92% | .87% |
Expenses net of all reductions | .79% A | .74% | .86% | .77% | .91% | .87% |
Net investment income (loss) | 1.57% A | 1.31% | 1.05% | 1.87% | 1.46% | 1.25% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 340,766 | $ 433,047 | $ 324,913 | $ 332,765 | $ 517,730 | $ 731,351 |
Portfolio turnover rate F | 101% A | 141% | 59% | 69% | 61% | 92% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Total distributions of $.14 per share is comprised of distributions from net investment income of $.135 and distributions from net realized gain of $.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity Blue Chip Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
New Accounting Pronouncements - continued
annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 18,524,692 |
Gross unrealized depreciation | (62,590,593) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (44,065,901) |
|
|
Tax cost | $ 403,634,123 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (76,906,749) |
2018 | (55,500,128) |
Total capital loss carryforward | $ (132,406,877) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $185,168,719 and $261,373,232, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
performance 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 Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .30% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $12,945 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 Loan | Weighted Average | Interest |
Borrower | $ 7,009,000 | .32% | $ 245 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $545 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $136,947. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $6,627 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
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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www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .97% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.30 | $ 4.80 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.26 | $ 4.93 |
Class K | .80% |
|
|
|
Actual |
| $ 1,000.00 | $ 970.10 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.11 | $ 4.06 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 3.9 | 3.1 |
Wells Fargo & Co. | 1.6 | 1.5 |
Citigroup, Inc. | 1.5 | 1.4 |
General Electric Co. | 1.4 | 1.3 |
Procter & Gamble Co. | 1.4 | 1.1 |
JPMorgan Chase & Co. | 1.2 | 1.4 |
The Coca-Cola Co. | 1.2 | 1.4 |
Philip Morris International, Inc. | 0.9 | 1.1 |
Oracle Corp. | 0.9 | 1.0 |
CVS Caremark Corp. | 0.9 | 0.7 |
| 14.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 18.5 | 16.4 |
Industrials | 13.7 | 14.5 |
Financials | 13.7 | 14.0 |
Energy | 13.0 | 13.7 |
Consumer Discretionary | 11.9 | 11.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.6% |
| ** Foreign investments | 20.8% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.7% | |||
Auto Components - 0.8% | |||
Autoliv, Inc. | 193,858 | $ 12,231 | |
Modine Manufacturing Co. (a) | 828,607 | 9,065 | |
Nokian Tyres PLC | 259,708 | 9,277 | |
Stoneridge, Inc. (a) | 522,355 | 4,894 | |
Tenneco, Inc. (a) | 518,812 | 16,654 | |
TRW Automotive Holdings Corp. (a) | 250,187 | 9,387 | |
| 61,508 | ||
Automobiles - 0.2% | |||
Honda Motor Co. Ltd. | 138,600 | 4,783 | |
Winnebago Industries, Inc. (a)(d)(e) | 1,574,636 | 14,392 | |
| 19,175 | ||
Distributors - 0.1% | |||
Silver Base Group Holdings Ltd. | 8,201,000 | 6,652 | |
Diversified Consumer Services - 0.6% | |||
Anhanguera Educacional Participacoes SA | 839,000 | 11,285 | |
DeVry, Inc. | 220,885 | 8,341 | |
Service Corp. International | 704,240 | 7,817 | |
Stewart Enterprises, Inc. Class A | 1,437,524 | 8,841 | |
Weight Watchers International, Inc. | 142,600 | 10,856 | |
| 47,140 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
Accor SA | 351,961 | 10,694 | |
Bravo Brio Restaurant Group, Inc. (a) | 320,815 | 6,176 | |
Brinker International, Inc. | 1,016,263 | 26,270 | |
Club Mediterranee SA (a) | 594,847 | 11,900 | |
Darden Restaurants, Inc. | 91,990 | 4,220 | |
Denny's Corp. (a) | 3,348,641 | 14,366 | |
DineEquity, Inc. (a) | 324,815 | 15,435 | |
Dunkin' Brands Group, Inc. (a) | 94,700 | 2,618 | |
O'Charleys, Inc. (a)(e) | 1,468,092 | 9,528 | |
Sands China Ltd. | 2,820,000 | 9,545 | |
Spur Corp. Ltd. | 1,972,550 | 3,898 | |
Starbucks Corp. | 327,577 | 15,701 | |
Texas Roadhouse, Inc. Class A | 632,098 | 9,583 | |
WMS Industries, Inc. (a) | 737,051 | 16,134 | |
Wyndham Worldwide Corp. | 33,124 | 1,317 | |
| 157,385 | ||
Household Durables - 0.5% | |||
Lennar Corp. Class A | 100,200 | 2,153 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Newell Rubbermaid, Inc. | 690,467 | $ 12,753 | |
PulteGroup, Inc. (a) | 887,107 | 6,609 | |
Standard Pacific Corp. (a) | 3,173,586 | 11,552 | |
Techtronic Industries Co. Ltd. | 7,023,500 | 7,807 | |
| 40,874 | ||
Internet & Catalog Retail - 0.5% | |||
Amazon.com, Inc. (a) | 165,545 | 32,189 | |
Liberty Media Corp. Interactive Series A (a) | 519,224 | 8,889 | |
| 41,078 | ||
Leisure Equipment & Products - 0.2% | |||
Hasbro, Inc. | 463,373 | 16,176 | |
Summer Infant, Inc. (a) | 442,574 | 2,372 | |
| 18,548 | ||
Media - 2.2% | |||
Aegis Group PLC | 1,982,800 | 4,931 | |
Antena 3 de Television SA (d) | 1,359,739 | 8,572 | |
Comcast Corp. Class A | 1,741,770 | 46,314 | |
DISH Network Corp. Class A | 452,836 | 12,643 | |
Lions Gate Entertainment Corp. (a) | 415,000 | 4,183 | |
MDC Partners, Inc. Class A (sub. vtg.) | 950,939 | 12,438 | |
Mood Media Corp. (a) | 991,500 | 2,848 | |
Mood Media Corp. (h) | 2,002,900 | 5,753 | |
The Walt Disney Co. | 1,302,725 | 50,676 | |
Time Warner, Inc. | 777,229 | 28,804 | |
| 177,162 | ||
Multiline Retail - 0.8% | |||
Dollar General Corp. (a) | 92,300 | 3,933 | |
Maoye International Holdings Ltd. (a) | 2,186,000 | 530 | |
Marisa Lojas SA | 758,500 | 8,682 | |
PPR SA | 79,700 | 12,541 | |
Target Corp. | 732,221 | 37,204 | |
| 62,890 | ||
Specialty Retail - 3.1% | |||
Advance Auto Parts, Inc. | 392,200 | 30,058 | |
American Eagle Outfitters, Inc. | 676,063 | 9,526 | |
Ascena Retail Group, Inc. (a) | 184,877 | 6,539 | |
Best Buy Co., Inc. | 534,542 | 12,802 | |
Big 5 Sporting Goods Corp. | 416,900 | 3,310 | |
Carphone Warehouse Group PLC | 873,249 | 2,285 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Casual Male Retail Group, Inc. (a) | 1,142,998 | $ 3,612 | |
Charming Shoppes, Inc. (a) | 301,159 | 1,494 | |
Citi Trends, Inc. (a) | 299,600 | 2,702 | |
Collective Brands, Inc. (a) | 686,990 | 11,445 | |
Destination Maternity Corp. | 189,434 | 3,162 | |
Express, Inc. (a) | 621,463 | 13,448 | |
Fast Retailing Co. Ltd. | 32,700 | 6,499 | |
Foot Locker, Inc. | 477,925 | 12,541 | |
Foschini Ltd. | 552,108 | 7,672 | |
GameStop Corp. Class A (a) | 125,778 | 2,938 | |
GOME Electrical Appliances Holdings Ltd. | 4,462,000 | 1,064 | |
Guess?, Inc. | 267,109 | 8,013 | |
Hengdeli Holdings Ltd. | 16,186,000 | 6,220 | |
Home Depot, Inc. | 126,668 | 5,623 | |
Limited Brands, Inc. | 190,662 | 7,981 | |
Lowe's Companies, Inc. | 1,624,912 | 43,596 | |
Lumber Liquidators Holdings, Inc. (a) | 369,319 | 7,889 | |
MarineMax, Inc. (a) | 710,968 | 5,844 | |
OfficeMax, Inc. (a) | 1,301,322 | 7,196 | |
rue21, Inc. (a)(d) | 279,534 | 6,768 | |
SuperGroup PLC (a)(d) | 1,536,287 | 15,738 | |
| 245,965 | ||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Bosideng International Holdings Ltd. | 19,954,000 | 5,738 | |
Deckers Outdoor Corp. (a) | 113,800 | 9,201 | |
G-III Apparel Group Ltd. (a) | 595,931 | 13,605 | |
Peak Sport Products Co. Ltd. | 448,000 | 98 | |
PVH Corp. | 276,356 | 21,332 | |
VF Corp. | 61,664 | 8,108 | |
| 58,082 | ||
TOTAL CONSUMER DISCRETIONARY | 936,459 | ||
CONSUMER STAPLES - 7.9% | |||
Beverages - 1.8% | |||
Carlsberg A/S Series B | 247,500 | 18,795 | |
Dr Pepper Snapple Group, Inc. | 440,760 | 17,110 | |
Grupo Modelo SAB de CV Series C | 2,408,800 | 14,928 | |
The Coca-Cola Co. | 1,431,616 | 96,677 | |
| 147,510 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - 1.4% | |||
CVS Caremark Corp. | 1,674,438 | $ 69,908 | |
Drogasil SA | 912,813 | 7,575 | |
Eurocash SA | 637,795 | 5,928 | |
The Pantry, Inc. (a) | 495,279 | 5,963 | |
Walgreen Co. | 589,111 | 19,653 | |
| 109,027 | ||
Food Products - 1.4% | |||
Biostime International Holdings Ltd. | 1,273,500 | 2,411 | |
Calavo Growers, Inc. | 167,853 | 4,566 | |
Calbee, Inc. | 52,300 | 2,552 | |
Danone | 208,600 | 12,874 | |
Flowers Foods, Inc. | 183,966 | 3,560 | |
Green Mountain Coffee Roasters, Inc. (a) | 276,700 | 14,759 | |
Kraft Foods, Inc. Class A | 1,197,297 | 45,856 | |
Orion Corp. | 2,040 | 1,242 | |
Sara Lee Corp. | 766,446 | 14,677 | |
Shenguan Holdings Group Ltd. | 15,782,000 | 8,974 | |
| 111,471 | ||
Household Products - 1.7% | |||
Procter & Gamble Co. | 1,712,091 | 107,930 | |
Spectrum Brands Holdings, Inc. (a) | 376,959 | 10,913 | |
Unicharm Corp. | 280,400 | 14,732 | |
| 133,575 | ||
Personal Products - 0.1% | |||
Estee Lauder Companies, Inc. Class A | 69,150 | 4,006 | |
Hengan International Group Co. Ltd. | 755,000 | 6,751 | |
| 10,757 | ||
Tobacco - 1.5% | |||
British American Tobacco PLC (United Kingdom) | 276,900 | 12,752 | |
Imperial Tobacco Group PLC | 346,608 | 12,400 | |
Japan Tobacco, Inc. | 4,028 | 19,815 | |
Philip Morris International, Inc. | 958,931 | 71,699 | |
Swedish Match Co. | 70,000 | 2,438 | |
| 119,104 | ||
TOTAL CONSUMER STAPLES | 631,444 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - 13.0% | |||
Energy Equipment & Services - 4.8% | |||
Aker Solutions ASA | 1,479,071 | $ 18,137 | |
Baker Hughes, Inc. | 642,010 | 31,542 | |
BW Offshore Ltd. | 2,119,272 | 3,200 | |
Cal Dive International, Inc. (a) | 1,572,883 | 4,734 | |
Cameron International Corp. (a) | 378,311 | 20,126 | |
Cathedral Energy Services Ltd. | 1,287,000 | 9,177 | |
Ensco International Ltd. ADR | 144,200 | 7,591 | |
Essential Energy Services Ltd. (a) | 4,438,900 | 9,075 | |
Exterran Holdings, Inc. (a) | 92,000 | 854 | |
Halliburton Co. | 839,564 | 30,879 | |
Hornbeck Offshore Services, Inc. (a)(d) | 564,550 | 18,455 | |
ION Geophysical Corp. (a) | 2,005,278 | 14,899 | |
McDermott International, Inc. (a) | 888,984 | 10,810 | |
Nabors Industries Ltd. (a) | 55,200 | 1,028 | |
National Oilwell Varco, Inc. | 832,123 | 61,560 | |
Noble Corp. | 312,208 | 10,877 | |
Saipem SpA | 328,341 | 15,366 | |
Schlumberger Ltd. | 898,512 | 67,541 | |
TETRA Technologies, Inc. (a) | 574,784 | 5,368 | |
Transocean Ltd. (United States) | 370,570 | 17,528 | |
Trinidad Drilling Ltd. | 228,100 | 1,526 | |
Tuscany International Drilling, Inc. (a) | 846,400 | 591 | |
Unit Corp. (a) | 168,478 | 7,624 | |
Vantage Drilling Co. (a) | 5,614,516 | 6,962 | |
Xtreme Coil Drilling Corp. (a) | 1,727,100 | 5,529 | |
| 380,979 | ||
Oil, Gas & Consumable Fuels - 8.2% | |||
Alpha Natural Resources, Inc. (a) | 437,439 | 8,801 | |
Americas Petrogas, Inc. (a) | 2,343,600 | 8,531 | |
Americas Petrogas, Inc. (f) | 2,250,000 | 8,190 | |
Amyris, Inc. (a) | 514,800 | 4,618 | |
Anadarko Petroleum Corp. | 416,209 | 33,596 | |
Apache Corp. | 215,121 | 21,271 | |
Bonavista Energy Corp. | 14,800 | 334 | |
Bonavista Energy Corp. (f) | 152,100 | 3,434 | |
BPZ Energy, Inc. (a)(d) | 2,290,627 | 7,467 | |
C&C Energia Ltd. (a) | 118,600 | 1,025 | |
Cabot Oil & Gas Corp. | 118,400 | 3,777 | |
Chevron Corp. | 605,824 | 62,448 | |
Concho Resources, Inc. (a) | 100 | 11 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Crown Point Ventures Ltd. (a)(e) | 942,800 | $ 1,138 | |
Crown Point Ventures Ltd. (e)(f) | 4,157,416 | 5,017 | |
CVR Energy, Inc. (a) | 1,095,516 | 27,322 | |
Denbury Resources, Inc. (a) | 574,421 | 10,834 | |
Double Eagle Petroleum Co. (a)(e) | 950,503 | 6,302 | |
EOG Resources, Inc. | 127,245 | 13,506 | |
EV Energy Partners LP | 138,790 | 9,260 | |
EXCO Resources, Inc. | 246,783 | 1,940 | |
Gran Tierra Energy, Inc. (Canada) (a) | 687,100 | 3,919 | |
Gulfport Energy Corp. (a) | 360,796 | 11,859 | |
HollyFrontier Corp. | 999,984 | 29,340 | |
Inergy Midstream LP | 363,100 | 7,400 | |
InterOil Corp. (a)(d) | 308,755 | 20,717 | |
Kodiak Oil & Gas Corp. (a)(d) | 398,300 | 3,613 | |
Kosmos Energy Ltd. | 448,667 | 5,635 | |
Marathon Oil Corp. | 523,498 | 16,433 | |
Marathon Petroleum Corp. | 542,188 | 20,722 | |
Nexen, Inc. | 436,600 | 7,824 | |
Niko Resources Ltd. | 163,400 | 7,983 | |
Northern Oil & Gas, Inc. (a)(d) | 1,529,451 | 38,236 | |
Occidental Petroleum Corp. | 590,037 | 58,868 | |
OGX Petroleo e Gas Participacoes SA (a) | 549,500 | 5,205 | |
Painted Pony Petroleum Ltd. (a)(f) | 178,000 | 1,484 | |
Painted Pony Petroleum Ltd. Class A (a) | 220,200 | 1,836 | |
Paladin Energy Ltd. (Australia) (a) | 6,505,358 | 12,707 | |
Pan Orient Energy Corp. (a) | 858,900 | 2,938 | |
Pioneer Natural Resources Co. | 7,700 | 765 | |
Resolute Energy Corp. (a)(d) | 1,180,774 | 13,284 | |
Royal Dutch Shell PLC Class A sponsored ADR | 168,998 | 12,060 | |
SM Energy Co. | 103,000 | 7,476 | |
Southwestern Energy Co. (a) | 255,082 | 7,943 | |
Suncor Energy, Inc. | 248,400 | 8,556 | |
TAG Oil Ltd. (a) | 1,121,600 | 9,172 | |
Talisman Energy, Inc. | 335,000 | 4,002 | |
Targa Resources Corp. | 146,600 | 6,075 | |
Tesoro Corp. (a) | 789,016 | 19,749 | |
Valero Energy Corp. | 889,142 | 21,331 | |
Voyager Oil & Gas, Inc. (a)(d)(e) | 3,286,844 | 8,677 | |
Voyager Oil & Gas, Inc. warrants 2/4/16 (a)(e) | 1,198,388 | 1,128 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Whiting Petroleum Corp. (a) | 505,834 | $ 25,337 | |
Williams Companies, Inc. | 603,212 | 17,385 | |
| 658,481 | ||
TOTAL ENERGY | 1,039,460 | ||
FINANCIALS - 13.4% | |||
Capital Markets - 2.2% | |||
American Capital Ltd. (a) | 358,580 | 2,948 | |
Ashmore Group PLC | 1,274,700 | 7,461 | |
BlackRock, Inc. Class A | 66,632 | 12,127 | |
Goldman Sachs Group, Inc. | 248,677 | 27,720 | |
GP Investments Ltd. (depositary receipt) (a) | 3,455,779 | 7,951 | |
ICAP PLC | 1,293,400 | 6,849 | |
ICG Group, Inc. (a) | 512,336 | 4,596 | |
Invesco Ltd. | 625,487 | 14,117 | |
Knight Capital Group, Inc. Class A (a) | 1,126,297 | 14,631 | |
Morgan Stanley | 2,111,424 | 39,378 | |
State Street Corp. | 522,473 | 20,470 | |
TD Ameritrade Holding Corp. | 474,677 | 7,647 | |
UBS AG (NY Shares) (a) | 883,500 | 12,007 | |
| 177,902 | ||
Commercial Banks - 3.1% | |||
Banco Pine SA | 1,016,700 | 7,652 | |
Bank of Ireland (a) | 156,819,609 | 23,419 | |
CapitalSource, Inc. | 2,717,649 | 18,779 | |
CIT Group, Inc. (a) | 524,508 | 20,005 | |
Comerica, Inc. | 148,300 | 4,103 | |
Commercial Bank of Qatar GDR (Reg. S) | 933,275 | 4,244 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 752,992 | 3,539 | |
Huntington Bancshares, Inc. | 624,859 | 3,568 | |
Itau Unibanco Banco Multiplo SA sponsored ADR | 263,100 | 5,251 | |
KeyCorp | 890,100 | 6,916 | |
Regions Financial Corp. | 2,849,437 | 14,874 | |
SunTrust Banks, Inc. | 476,857 | 9,809 | |
Wells Fargo & Co. | 4,286,391 | 125,205 | |
| 247,364 | ||
Consumer Finance - 0.8% | |||
Capital One Financial Corp. | 541,030 | 24,752 | |
Discover Financial Services | 751,674 | 20,430 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Consumer Finance - continued | |||
International Personal Finance PLC | 3,010,900 | $ 9,030 | |
SLM Corp. | 710,432 | 10,621 | |
| 64,833 | ||
Diversified Financial Services - 3.2% | |||
Citigroup, Inc. | 3,826,623 | 117,554 | |
CME Group, Inc. | 60,227 | 14,425 | |
JPMorgan Chase & Co. | 2,610,854 | 97,385 | |
PICO Holdings, Inc. (a)(e) | 1,161,766 | 25,640 | |
| 255,004 | ||
Insurance - 1.8% | |||
AEGON NV (a) | 1,735,227 | 8,429 | |
AFLAC, Inc. | 427,298 | 20,609 | |
Allied World Assurance Co. Holdings Ltd. | 117,500 | 7,230 | |
Assured Guaranty Ltd. | 1,932,814 | 29,978 | |
Berkshire Hathaway, Inc. Class B (a) | 102,652 | 8,045 | |
Genworth Financial, Inc. Class A (a) | 1,581,515 | 12,193 | |
Hartford Financial Services Group, Inc. | 330,700 | 5,794 | |
MetLife, Inc. | 1,015,017 | 35,861 | |
Prudential Financial, Inc. | 292,816 | 16,761 | |
| 144,900 | ||
Real Estate Investment Trusts - 1.7% | |||
American Tower Corp. | 227,613 | 14,456 | |
Beni Stabili SpA SIIQ | 10,284,000 | 5,093 | |
Campus Crest Communities, Inc. | 312,003 | 3,335 | |
CBL & Associates Properties, Inc. | 1,408,840 | 24,472 | |
Douglas Emmett, Inc. | 522,959 | 10,935 | |
Education Realty Trust, Inc. | 933,600 | 9,990 | |
Excel Trust, Inc. | 125,100 | 1,589 | |
Franklin Street Properties Corp. | 554,900 | 5,654 | |
Klepierre SA | 121,500 | 3,648 | |
Pennsylvania Real Estate Investment Trust (SBI) | 359,843 | 4,419 | |
Prologis, Inc. | 716,386 | 22,717 | |
SL Green Realty Corp. | 226,170 | 16,630 | |
Weyerhaeuser Co. | 711,067 | 14,236 | |
| 137,174 | ||
Real Estate Management & Development - 0.6% | |||
CBRE Group, Inc. (a) | 1,720,126 | 33,198 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Management & Development - continued | |||
Forest City Enterprises, Inc. Class A (a) | 486,182 | $ 6,384 | |
Iguatemi Empresa de Shopping Centers SA | 357,900 | 7,622 | |
| 47,204 | ||
TOTAL FINANCIALS | 1,074,381 | ||
HEALTH CARE - 10.8% | |||
Biotechnology - 3.6% | |||
Acorda Therapeutics, Inc. (a) | 193,500 | 4,940 | |
Alexion Pharmaceuticals, Inc. (a) | 198,400 | 15,229 | |
Alnylam Pharmaceuticals, Inc. (a) | 471,100 | 5,446 | |
Amgen, Inc. | 576,109 | 39,124 | |
Amylin Pharmaceuticals, Inc. (a) | 547,570 | 7,792 | |
Ardea Biosciences, Inc. (a) | 689,232 | 12,537 | |
ARIAD Pharmaceuticals, Inc. (a) | 2,205,230 | 32,527 | |
ArQule, Inc. (a) | 1,185,472 | 9,365 | |
AVEO Pharmaceuticals, Inc. (a)(d) | 1,054,509 | 13,898 | |
Biogen Idec, Inc. (a) | 156,622 | 18,469 | |
Dynavax Technologies Corp. (a) | 3,309,870 | 11,518 | |
Gentium SpA sponsored ADR (a) | 18,994 | 147 | |
Gilead Sciences, Inc. (a) | 319,654 | 15,612 | |
Horizon Pharma, Inc. | 410,700 | 1,630 | |
Human Genome Sciences, Inc. (a) | 589,750 | 5,803 | |
Infinity Pharmaceuticals, Inc. (a) | 138,119 | 840 | |
Inhibitex, Inc. (a) | 486,000 | 12,408 | |
InterMune, Inc. (a) | 258,049 | 3,871 | |
Isis Pharmaceuticals, Inc. (a) | 318,000 | 2,595 | |
NPS Pharmaceuticals, Inc. (a) | 506,635 | 3,891 | |
PDL BioPharma, Inc. (d) | 926,800 | 5,922 | |
SIGA Technologies, Inc. (a)(d) | 1,528,074 | 5,058 | |
Synageva BioPharma Corp. (a) | 105,486 | 3,748 | |
Theravance, Inc. (a) | 1,066,961 | 18,928 | |
Thrombogenics NV (a)(d) | 359,197 | 8,339 | |
United Therapeutics Corp. (a) | 206,482 | 10,155 | |
Vertex Pharmaceuticals, Inc. (a) | 169,882 | 6,277 | |
ZIOPHARM Oncology, Inc. (a)(d) | 2,189,550 | 11,627 | |
| 287,696 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 431,853 | 23,959 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Boston Scientific Corp. (a) | 1,706,500 | $ 10,171 | |
Conceptus, Inc. (a) | 559,901 | 6,932 | |
Covidien PLC | 553,984 | 28,530 | |
DENTSPLY International, Inc. | 214,854 | 8,109 | |
Genmark Diagnostics, Inc. (a) | 492,600 | 2,266 | |
GN Store Nordic A/S | 770,674 | 7,817 | |
Hologic, Inc. (a) | 40,500 | 826 | |
Integra LifeSciences Holdings Corp. (a) | 418,936 | 12,367 | |
Nakanishi, Inc. | 24,500 | 2,407 | |
Natus Medical, Inc. (a) | 90,922 | 1,028 | |
Opto Circuits India Ltd. | 874,884 | 4,195 | |
Orthofix International NV (a) | 396,188 | 15,907 | |
Sirona Dental Systems, Inc. (a) | 264,922 | 12,809 | |
| 137,323 | ||
Health Care Providers & Services - 3.1% | |||
Apollo Hospitals Enterprise Ltd. | 317,153 | 3,844 | |
Brookdale Senior Living, Inc. (a) | 2,247,700 | 39,560 | |
Catalyst Health Solutions, Inc. (a) | 284,690 | 15,590 | |
CIGNA Corp. | 628,981 | 28,197 | |
DaVita, Inc. (a) | 163,098 | 13,343 | |
Emeritus Corp. (a) | 549,933 | 9,602 | |
Express Scripts, Inc. (a) | 793,100 | 40,575 | |
McKesson Corp. | 285,092 | 23,298 | |
Medco Health Solutions, Inc. (a) | 428,687 | 26,587 | |
Omnicare, Inc. | 33,000 | 1,083 | |
Sunrise Senior Living, Inc. (a) | 89,228 | 634 | |
UnitedHealth Group, Inc. | 250,827 | 12,990 | |
Universal Health Services, Inc. Class B | 300,987 | 12,428 | |
WellPoint, Inc. | 366,059 | 23,545 | |
| 251,276 | ||
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 637,668 | 27,082 | |
Charles River Laboratories International, Inc. (a) | 88,233 | 2,980 | |
Covance, Inc. (a) | 22,061 | 966 | |
Thermo Fisher Scientific, Inc. (a) | 259,217 | 13,713 | |
| 44,741 | ||
Pharmaceuticals - 1.8% | |||
AVANIR Pharmaceuticals Class A (a)(d) | 991,631 | 2,915 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 3,962,620 | 16,524 | |
Cardiome Pharma Corp. (a) | 658,200 | 1,560 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Columbia Laboratories, Inc. (a) | 729,700 | $ 614 | |
Elan Corp. PLC sponsored ADR (a) | 465,800 | 6,340 | |
Jazz Pharmaceuticals PLC (a) | 161,600 | 7,514 | |
Merck & Co., Inc. | 844,399 | 32,307 | |
Novo Nordisk A/S Series B | 161,337 | 19,171 | |
Sanofi-aventis | 198,685 | 14,730 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 304,019 | 13,720 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 512,800 | 24,833 | |
Watson Pharmaceuticals, Inc. (a) | 83,592 | 4,901 | |
| 145,129 | ||
TOTAL HEALTH CARE | 866,165 | ||
INDUSTRIALS - 13.7% | |||
Aerospace & Defense - 3.0% | |||
DigitalGlobe, Inc. (a) | 638,974 | 10,026 | |
Esterline Technologies Corp. (a) | 142,921 | 8,740 | |
GeoEye, Inc. (a)(e) | 1,267,184 | 27,764 | |
Honeywell International, Inc. | 475,230 | 27,582 | |
Meggitt PLC | 3,253,841 | 18,615 | |
Precision Castparts Corp. | 121,005 | 19,806 | |
Raytheon Co. | 419,426 | 20,128 | |
Rockwell Collins, Inc. | 133,499 | 7,728 | |
Safran SA | 126,700 | 3,947 | |
Textron, Inc. | 1,307,878 | 33,325 | |
Ultra Electronics Holdings PLC | 208,389 | 5,031 | |
United Technologies Corp. | 694,196 | 54,390 | |
| 237,082 | ||
Air Freight & Logistics - 0.1% | |||
United Parcel Service, Inc. Class B | 114,900 | 8,692 | |
Airlines - 0.2% | |||
Copa Holdings SA Class A | 235,702 | 16,061 | |
Building Products - 0.6% | |||
Armstrong World Industries, Inc. (a) | 361,940 | 16,903 | |
Lennox International, Inc. | 126,886 | 4,593 | |
Owens Corning (a) | 886,007 | 29,903 | |
| 51,399 | ||
Commercial Services & Supplies - 0.8% | |||
Knoll, Inc. | 518,888 | 8,281 | |
Multiplus SA | 500,900 | 8,807 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Pitney Bowes, Inc. (d) | 56,862 | $ 1,079 | |
Quad/Graphics, Inc. (d) | 25,900 | 304 | |
Republic Services, Inc. | 630,647 | 18,465 | |
Steelcase, Inc. Class A | 1,302,163 | 11,342 | |
Swisher Hygiene, Inc. | 2,081,064 | 7,305 | |
Swisher Hygiene, Inc. (Canada) (a) | 1,396,762 | 4,903 | |
| 60,486 | ||
Construction & Engineering - 1.2% | |||
AECOM Technology Corp. (a) | 318,351 | 7,287 | |
Fluor Corp. | 343,807 | 19,336 | |
Foster Wheeler AG (a) | 1,270,595 | 28,538 | |
Great Lakes Dredge & Dock Corp. | 583,173 | 3,732 | |
Jacobs Engineering Group, Inc. (a) | 112,216 | 5,023 | |
Shaw Group, Inc. (a) | 1,141,255 | 30,974 | |
| 94,890 | ||
Electrical Equipment - 1.7% | |||
Alstom SA | 303,472 | 11,566 | |
AMETEK, Inc. | 245,232 | 11,526 | |
Cooper Industries PLC Class A | 152,612 | 9,022 | |
Emerson Electric Co. | 585,605 | 30,088 | |
Fushi Copperweld, Inc. (a) | 530,888 | 4,412 | |
GrafTech International Ltd. (a) | 1,181,463 | 19,400 | |
Hubbell, Inc. Class B | 79,022 | 5,686 | |
Prysmian SpA | 805,400 | 12,093 | |
Regal-Beloit Corp. | 378,868 | 21,508 | |
Roper Industries, Inc. | 81,439 | 7,606 | |
Zumtobel AG | 220,330 | 4,004 | |
| 136,911 | ||
Industrial Conglomerates - 1.9% | |||
Carlisle Companies, Inc. | 203,975 | 9,736 | |
Cookson Group PLC | 957,853 | 8,710 | |
General Electric Co. | 5,789,386 | 108,319 | |
Koninklijke Philips Electronics NV | 520,100 | 10,534 | |
Reunert Ltd. | 76,100 | 634 | |
Rheinmetall AG | 185,700 | 9,957 | |
Siemens AG sponsored ADR | 44,050 | 4,153 | |
| 152,043 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 2.2% | |||
Actuant Corp. Class A | 559,902 | $ 14,194 | |
Colfax Corp. (a) | 70,742 | 2,148 | |
Cummins, Inc. | 177,484 | 18,458 | |
Dover Corp. | 170,648 | 10,821 | |
Fiat Industrial SpA (a) | 1,893,967 | 18,554 | |
Haitian International Holdings Ltd. | 2,160,000 | 2,264 | |
Illinois Tool Works, Inc. | 146,900 | 7,790 | |
Ingersoll-Rand PLC | 1,237,225 | 43,229 | |
Jain Irrigation Systems Ltd. | 481,396 | 927 | |
Manitowoc Co., Inc. | 407,687 | 5,479 | |
Navistar International Corp. (a) | 681,015 | 29,481 | |
Pall Corp. | 153,113 | 9,138 | |
Stanley Black & Decker, Inc. | 245,539 | 17,232 | |
| 179,715 | ||
Professional Services - 0.3% | |||
Michael Page International PLC | 424,579 | 2,604 | |
Robert Half International, Inc. | 445,315 | 12,331 | |
SR Teleperformance SA | 452,688 | 11,342 | |
| 26,277 | ||
Road & Rail - 1.1% | |||
Con-way, Inc. | 484,681 | 15,384 | |
Saia, Inc. (a)(e) | 804,075 | 12,109 | |
Tegma Gestao Logistica | 114,400 | 1,734 | |
Union Pacific Corp. | 477,266 | 54,556 | |
Universal Truckload Services, Inc. | 400,734 | 7,125 | |
| 90,908 | ||
Trading Companies & Distributors - 0.6% | |||
Barloworld Ltd. | 534,800 | 5,989 | |
Beacon Roofing Supply, Inc. (a) | 473,400 | 10,822 | |
Houston Wire & Cable Co. | 102,822 | 1,467 | |
Mills Estruturas e Servicos de Engenharia SA | 290,000 | 3,598 | |
Rush Enterprises, Inc. Class A (a) | 433,350 | 9,971 | |
Watsco, Inc. | 192,380 | 13,268 | |
| 45,115 | ||
TOTAL INDUSTRIALS | 1,099,579 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Communications Equipment - 2.3% | |||
Brocade Communications Systems, Inc. (a) | 3,099,604 | $ 17,389 | |
Calix Networks, Inc. (a) | 1,937,656 | 14,668 | |
Cisco Systems, Inc. | 3,419,427 | 67,123 | |
Comverse Technology, Inc. (a) | 4,840,500 | 30,495 | |
Juniper Networks, Inc. (a) | 360,303 | 7,541 | |
Polycom, Inc. (a) | 699,318 | 13,951 | |
QUALCOMM, Inc. | 325,135 | 19,124 | |
ViaSat, Inc. (a) | 319,310 | 15,180 | |
| 185,471 | ||
Computers & Peripherals - 4.4% | |||
Apple, Inc. (a) | 682,776 | 311,680 | |
Hewlett-Packard Co. | 1,371,953 | 38,387 | |
| 350,067 | ||
Electronic Equipment & Components - 1.5% | |||
Arrow Electronics, Inc. (a) | 448,667 | 18,525 | |
Avnet, Inc. (a) | 798,888 | 27,857 | |
Corning, Inc. | 2,256,466 | 29,041 | |
Jabil Circuit, Inc. | 321,452 | 7,284 | |
Molex, Inc. (d) | 560,880 | 14,830 | |
TE Connectivity Ltd. | 540,556 | 18,433 | |
Vishay Intertechnology, Inc. (a) | 73,498 | 903 | |
| 116,873 | ||
Internet Software & Services - 0.5% | |||
DeNA Co. Ltd. | 82,100 | 2,078 | |
eAccess Ltd. (d) | 17,285 | 3,932 | |
eBay, Inc. (a) | 436,273 | 13,786 | |
Facebook, Inc. Class B (h) | 488,526 | 12,213 | |
Yahoo!, Inc. (a) | 514,500 | 7,959 | |
| 39,968 | ||
IT Services - 1.9% | |||
Acxiom Corp. (a) | 235,612 | 3,233 | |
Alliance Data Systems Corp. (a)(d) | 154,887 | 17,161 | |
Amdocs Ltd. (a) | 216,954 | 6,387 | |
Cognizant Technology Solutions Corp. Class A (a) | 314,980 | 22,600 | |
Fidelity National Information Services, Inc. | 566,135 | 16,169 | |
Fiserv, Inc. (a) | 153,381 | 9,646 | |
Heartland Payment Systems, Inc. | 377,900 | 9,070 | |
MasterCard, Inc. Class A | 115,410 | 41,036 | |
ServiceSource International, Inc. | 220,325 | 3,728 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Unisys Corp. (a) | 995,393 | $ 20,873 | |
Virtusa Corp. (a) | 321,942 | 5,148 | |
| 155,051 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 3,055,481 | 23,680 | |
Semiconductors & Semiconductor Equipment - 5.0% | |||
Analog Devices, Inc. | 490,840 | 19,207 | |
Applied Micro Circuits Corp. (a) | 364,735 | 2,856 | |
ASML Holding NV | 1,108,806 | 47,668 | |
Avago Technologies Ltd. | 444,589 | 15,089 | |
Cree, Inc. (a) | 183,645 | 4,670 | |
Cymer, Inc. (a) | 942,660 | 46,935 | |
Entropic Communications, Inc. (a)(d) | 2,063,559 | 12,051 | |
Fairchild Semiconductor International, Inc. (a) | 354,172 | 4,951 | |
Freescale Semiconductor Holdings I Ltd. | 1,661,479 | 26,534 | |
Himax Technologies, Inc. sponsored ADR | 776,463 | 1,079 | |
Intersil Corp. Class A | 1,210,620 | 13,632 | |
KLA-Tencor Corp. | 136,658 | 6,987 | |
LTX-Credence Corp. (a)(e) | 3,245,937 | 21,650 | |
Marvell Technology Group Ltd. (a) | 2,890,672 | 44,892 | |
Maxim Integrated Products, Inc. | 697,451 | 18,720 | |
Micron Technology, Inc. (a) | 2,915,522 | 22,129 | |
Novellus Systems, Inc. (a) | 91,800 | 4,328 | |
NVIDIA Corp. (a) | 704,996 | 10,413 | |
NXP Semiconductors NV (a) | 991,842 | 21,057 | |
ON Semiconductor Corp. (a) | 2,506,894 | 21,810 | |
RF Micro Devices, Inc. (a) | 3,699,857 | 18,462 | |
Skyworks Solutions, Inc. (a) | 668,470 | 14,426 | |
Spansion, Inc. Class A (a) | 489,130 | 4,906 | |
| 404,452 | ||
Software - 2.5% | |||
Autodesk, Inc. (a) | 175,400 | 6,314 | |
Citrix Systems, Inc. (a) | 499,213 | 32,554 | |
Informatica Corp. (a) | 134,339 | 5,683 | |
JDA Software Group, Inc. (a) | 381,623 | 11,246 | |
Micro Focus International PLC | 1,452,526 | 9,676 | |
Microsoft Corp. | 1,722,472 | 50,865 | |
Oracle Corp. | 2,508,728 | 70,746 | |
Royalblue Group PLC | 220,308 | 5,760 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Synopsys, Inc. (a) | 51,431 | $ 1,501 | |
Take-Two Interactive Software, Inc. (a) | 331,800 | 5,176 | |
| 199,521 | ||
TOTAL INFORMATION TECHNOLOGY | 1,475,083 | ||
MATERIALS - 6.1% | |||
Chemicals - 2.7% | |||
Air Products & Chemicals, Inc. | 50,749 | 4,467 | |
Ashland, Inc. | 205,660 | 12,969 | |
CF Industries Holdings, Inc. | 37,289 | 6,614 | |
Clariant AG (Reg.) (a) | 2,677,020 | 32,523 | |
Ecolab, Inc. | 202,833 | 12,259 | |
Ferro Corp. (a) | 718,050 | 4,854 | |
Huabao International Holdings Ltd. | 7,708,461 | 5,238 | |
Israel Chemicals Ltd. | 442,300 | 4,631 | |
Kraton Performance Polymers, Inc. (a) | 311,523 | 8,860 | |
Lanxess AG | 85,351 | 5,559 | |
LyondellBasell Industries NV Class A | 485,757 | 20,936 | |
Rentech Nitrogen Partners LP | 148,300 | 3,392 | |
Spartech Corp. (a) | 1,485,153 | 7,975 | |
The Mosaic Co. | 378,802 | 21,202 | |
W.R. Grace & Co. (a) | 974,376 | 52,168 | |
Yara International ASA | 206,300 | 8,301 | |
| 211,948 | ||
Construction Materials - 0.2% | |||
Cemex SA de CV sponsored ADR | 312,148 | 2,126 | |
HeidelbergCement Finance AG | 236,344 | 11,615 | |
| 13,741 | ||
Containers & Packaging - 0.2% | |||
Rock-Tenn Co. Class A | 226,386 | 14,004 | |
Sealed Air Corp. | 165,300 | 3,294 | |
Youyuan International Holdings Ltd. (a) | 6,944,000 | 1,728 | |
| 19,026 | ||
Metals & Mining - 3.0% | |||
Anglo American PLC (United Kingdom) | 206,400 | 8,536 | |
AngloGold Ashanti Ltd. sponsored ADR | 153,800 | 7,044 | |
Avion Gold Corp. (a) | 3,113,900 | 4,751 | |
Avion Gold Corp. (f) | 289,800 | 442 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Commercial Metals Co. | 1,376,244 | $ 19,735 | |
Copper Mountain Mining Corp. (a) | 301,100 | 1,567 | |
Eldorado Gold Corp. | 604,478 | 9,157 | |
First Quantum Minerals Ltd. | 334,140 | 7,318 | |
Freeport-McMoRan Copper & Gold, Inc. | 631,295 | 29,172 | |
Goldcorp, Inc. | 651,300 | 31,501 | |
Ivanhoe Mines Ltd. (a) | 1,785,565 | 28,793 | |
Kinross Gold Corp. | 748,045 | 8,452 | |
Mirabela Nickel Ltd. (a) | 2,125,753 | 2,076 | |
Newcrest Mining Ltd. | 624,525 | 22,356 | |
Pan American Silver Corp. | 199,700 | 4,569 | |
Randgold Resources Ltd. sponsored ADR | 295,123 | 33,765 | |
Reliance Steel & Aluminum Co. | 77,133 | 4,103 | |
Silver Wheaton Corp. | 155,300 | 5,540 | |
Ternium SA sponsored ADR (d) | 78,295 | 1,775 | |
Yamana Gold, Inc. | 613,100 | 10,608 | |
| 241,260 | ||
TOTAL MATERIALS | 485,975 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.5% | |||
CenturyLink, Inc. | 420,866 | 15,585 | |
China Telecom Corp. Ltd. (H Shares) | 6,428,000 | 3,606 | |
China Unicom Ltd. | 4,564,000 | 8,400 | |
Koninklijke KPN NV | 672,179 | 7,367 | |
| 34,958 | ||
Wireless Telecommunication Services - 0.5% | |||
NII Holdings, Inc. (a) | 354,000 | 7,119 | |
SBA Communications Corp. Class A (a) | 339,110 | 15,504 | |
TIM Participacoes SA | 1,943,220 | 10,788 | |
Turkcell Iletisim Hizmet A/S | 1,553,000 | 7,990 | |
| 41,401 | ||
TOTAL TELECOMMUNICATION SERVICES | 76,359 | ||
UTILITIES - 2.4% | |||
Electric Utilities - 1.0% | |||
American Electric Power Co., Inc. | 50,995 | 2,017 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR (d) | 459,600 | $ 6,729 | |
Ceske Energeticke Zavody A/S | 90,000 | 3,633 | |
Edison International | 586,515 | 24,071 | |
El Paso Electric Co. | 221,777 | 7,718 | |
Fortum Corp. | 111,986 | 2,461 | |
NextEra Energy, Inc. | 352,756 | 21,112 | |
NV Energy, Inc. | 433,128 | 7,017 | |
PPL Corp. | 255,592 | 7,103 | |
| 81,861 | ||
Gas Utilities - 0.2% | |||
Aygaz A/S | 74,860 | 379 | |
China Gas Holdings Ltd. | 10,152,000 | 4,726 | |
ONEOK, Inc. | 132,933 | 11,055 | |
| 16,160 | ||
Independent Power Producers & Energy Traders - 0.8% | |||
The AES Corp. (a) | 4,856,156 | 61,965 | |
Multi-Utilities - 0.4% | |||
CenterPoint Energy, Inc. | 540,185 | 9,977 | |
CMS Energy Corp. | 127,240 | 2,778 | |
National Grid PLC | 1,189,518 | 11,846 | |
Sempra Energy | 177,822 | 10,118 | |
| 34,719 | ||
TOTAL UTILITIES | 194,705 | ||
TOTAL COMMON STOCKS (Cost $7,166,162) |
| ||
Preferred Stocks - 0.6% | |||
|
|
|
|
Convertible Preferred Stocks - 0.4% | |||
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Citigroup, Inc. 7.50% | 143,900 | 13,334 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 92,200 | 5,958 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 9.50% | 171,200 | $ 9,279 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 28,571 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Volkswagen AG | 93,300 | 16,517 | |
TOTAL PREFERRED STOCKS (Cost $40,397) |
| ||
Investment Companies - 0.2% | |||
|
|
|
|
Ares Capital Corp. | 963,580 |
|
Convertible Bonds - 0.4% | ||||
| Principal |
| ||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (f) | $ 16,623 | 8,228 | ||
INDUSTRIALS - 0.0% | ||||
Building Products - 0.0% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (h) | 4,085 | 4,085 | ||
MATERIALS - 0.3% | ||||
Metals & Mining - 0.3% | ||||
Ivanplats Ltd. 8% 11/10/14 pay-in-kind (g)(h) | 20,255 | 20,255 | ||
TELECOMMUNICATION SERVICES - 0.0% | ||||
Diversified Telecommunication Services - 0.0% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (f) | 3,730 | 2,327 | ||
TOTAL CONVERTIBLE BONDS (Cost $36,104) |
|
Money Market Funds - 1.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 24,645,560 | $ 24,646 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 131,128,986 | 131,129 | |
TOTAL MONEY MARKET FUNDS (Cost $155,775) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $7,410,678) | 8,130,641 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (120,928) | ||
NET ASSETS - 100% | $ 8,009,713 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $29,122,000 or 0.4% of net assets. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $42,306,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 | $ 4,085 |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 12,217 |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind | 11/10/11 | $ 20,255 |
Mood Media Corp. | 2/2/11 | $ 4,054 |
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 |
Fidelity Securities Lending Cash Central Fund | 2,787 |
Total | $ 2,807 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cadence Pharmaceuticals, Inc. | $ 28,450 | $ 4,838 | $ 1,997 | $ - | $ - |
Crown Point Ventures Ltd. | 1,096 | 417 | 119 | - | 1,138 |
Crown Point Ventures Ltd. (144A) | 2,491 | 2,462 | - | - | 5,017 |
Double Eagle Petroleum Co. | 10,542 | 643 | 634 | - | 6,302 |
GeoEye, Inc. | 53,351 | 3,382 | 4,421 | - | 27,764 |
LTX-Credence Corp. | 24,118 | 1,636 | 2,680 | - | 21,650 |
O'Charleys, Inc. | 9,150 | 871 | 1,237 | - | 9,528 |
PICO Holdings, Inc. | 32,970 | 3,231 | 4,356 | - | 25,640 |
Saia, Inc. | 13,037 | 446 | 1,402 | - | 12,109 |
Spartech Corp. | 9,331 | - | 744 | - | - |
Voyager Oil & Gas, Inc. | 11,252 | 138 | 814 | - | 8,677 |
Voyager Oil & Gas, Inc. warrants 2/4/16 | 1,539 | - | - | - | 1,128 |
Winnebago Industries, Inc. | 15,684 | - | 2,496 | - | 14,392 |
Total | $ 213,011 | $ 18,064 | $ 20,900 | $ - | $ 133,345 |
* Includes the value of securities delivered through in-kind transactions.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 952,976 | $ 948,193 | $ 4,783 | $ - |
Consumer Staples | 631,444 | 618,692 | 12,752 | - |
Energy | 1,039,460 | 1,038,332 | 1,128 | - |
Financials | 1,087,715 | 1,055,867 | 31,848 | - |
Health Care | 866,165 | 832,264 | 33,901 | - |
Industrials | 1,099,579 | 1,089,045 | 10,534 | - |
Information Technology | 1,481,041 | 1,468,828 | - | 12,213 |
Materials | 485,975 | 485,975 | - | - |
Telecommunication Services | 76,359 | 56,363 | 19,996 | - |
Utilities | 203,984 | 192,138 | 11,846 | - |
Investment Companies | 15,273 | 15,273 | - | - |
Corporate Bonds | 34,895 | - | 10,555 | 24,340 |
Money Market Funds | 155,775 | 155,775 | - | - |
Total Investments in Securities: | $ 8,130,641 | $ 7,956,745 | $ 137,343 | $ 36,553 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 18,002 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 20,255 |
Proceeds of Sales | (5,789) |
Amortization/Accretion | - |
Transfers in to Level 3 | 4,085 |
Transfers out of Level 3 | - |
Ending Balance | $ 36,553 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.4% |
Canada | 3.7% |
United Kingdom | 2.2% |
Bermuda | 1.9% |
Ireland | 1.6% |
Switzerland | 1.5% |
Netherlands | 1.5% |
France | 1.2% |
Brazil | 1.2% |
Curacao | 1.1% |
Others (Individually Less Than 1%) | 6.7% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $126,091) - See accompanying schedule: Unaffiliated issuers (cost $7,081,910) | $ 7,841,521 |
|
Fidelity Central Funds (cost $155,775) | 155,775 |
|
Other affiliated issuers (cost $172,993) | 133,345 |
|
Total Investments (cost $7,410,678) |
| $ 8,130,641 |
Cash |
| 236 |
Foreign currency held at value (cost $7,887) | 7,893 | |
Receivable for investments sold | 58,868 | |
Receivable for fund shares sold | 5,059 | |
Dividends receivable | 7,376 | |
Interest receivable | 1,126 | |
Distributions receivable from Fidelity Central Funds | 250 | |
Prepaid expenses | 24 | |
Other receivables | 338 | |
Total assets | 8,211,811 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 53,428 | |
Payable for fund shares redeemed | 10,323 | |
Accrued management fee | 5,370 | |
Other affiliated payables | 1,498 | |
Other payables and accrued expenses | 350 | |
Collateral on securities loaned, at value | 131,129 | |
Total liabilities | 202,098 | |
|
|
|
Net Assets | $ 8,009,713 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,237,686 | |
Undistributed net investment income | 9,399 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 42,652 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 719,976 | |
Net Assets | $ 8,009,713 |
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, 2012 (Unaudited) | |
|
|
|
Dividend Growth: | $ 27.92 | |
|
|
|
Class K: | $ 27.91 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 64,829 |
Interest |
| 1,516 |
Income from Fidelity Central Funds |
| 2,807 |
Total income |
| 69,152 |
|
|
|
Expenses | ||
Management fee | $ 23,887 | |
Performance adjustment | 7,271 | |
Transfer agent fees | 8,600 | |
Accounting and security lending fees | 630 | |
Custodian fees and expenses | 79 | |
Independent trustees' compensation | 30 | |
Registration fees | 82 | |
Audit | 52 | |
Legal | 29 | |
Miscellaneous | 43 | |
Total expenses before reductions | 40,703 | |
Expense reductions | (121) | 40,582 |
Net investment income (loss) | 28,570 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (24,323) | |
Other affiliated issuers | (3,205) |
|
Redemption in-kind with affiliated entities (including gain from Other affiliated issuers of $1,089) | 188,389 | |
Foreign currency transactions | (1,004) | |
Futures contracts | 1,226 | |
Total net realized gain (loss) |
| 161,083 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (554,941) | |
Assets and liabilities in foreign currencies | (61) | |
Total change in net unrealized appreciation (depreciation) |
| (555,002) |
Net gain (loss) | (393,919) | |
Net increase (decrease) in net assets resulting from operations | $ (365,349) |
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) | $ 28,570 | $ 43,819 |
Net realized gain (loss) | 161,083 | 802,201 |
Change in net unrealized appreciation (depreciation) | (555,002) | 997,707 |
Net increase (decrease) in net assets resulting | (365,349) | 1,843,727 |
Distributions to shareholders from net investment income | (42,120) | (51,737) |
Distributions to shareholders from net realized gain | (5,141) | (26,364) |
Total distributions | (47,261) | (78,101) |
Share transactions - net increase (decrease) | (1,520,392) | 91,677 |
Total increase (decrease) in net assets | (1,933,002) | 1,857,303 |
|
|
|
Net Assets | ||
Beginning of period | 9,942,715 | 8,085,412 |
End of period (including undistributed net investment income of $9,399 and undistributed net investment income of $22,949, respectively) | $ 8,009,713 | $ 9,942,715 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .12 | .13 G | .24 | .43 | .52 H |
Net realized and unrealized gain (loss) | (.98) | 5.23 | 3.63 | (4.01) | (5.08) | 3.98 |
Total from investment operations | (.90) | 5.35 | 3.76 | (3.77) | (4.65) | 4.50 |
Distributions from net investment income | (.12) | (.15) | (.12) | (.37) | (.45) | (.45) |
Distributions from net realized gain | (.02) | (.08) | (.05) | (1.01) | (2.23) | (.82) |
Total distributions | (.14) | (.23) | (.17) | (1.38) K | (2.68) | (1.27) |
Net asset value, end of period | $ 27.92 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 |
Total Return B, C | (3.07)% | 22.57% | 18.59% | (15.33)% | (15.45)% | 15.62% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .97% A | .93% | .93% | .62% | .64% | .61% |
Expenses net of fee waivers, if any | .97% A | .93% | .93% | .62% | .64% | .61% |
Expenses net of all reductions | .96% A | .93% | .92% | .62% | .63% | .60% |
Net investment income (loss) | .66% A | .44% | .56% G | 1.34% | 1.47% | 1.62% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 7,097 | $ 9,309 | $ 7,730 | $ 6,603 | $ 9,502 | $ 16,265 |
Portfolio turnover rate F | 50% A, J | 67% | 85% | 177% | 52% | 36% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .11 | .17 | .18 G | .26 | .10 |
Net realized and unrealized gain (loss) | (1.00) | 5.22 | 3.63 | (4.00) | (2.41) |
Total from investment operations | (.89) | 5.39 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.17) | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.02) | (.08) | (.05) | (1.01) | - |
Total distributions | (.18) M | (.27) L | (.21) | (1.41) K | - |
Net asset value, end of period | $ 27.91 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B, C | (2.99)% | 22.79% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, I |
|
|
|
| |
Expenses before reductions | .80% A | .78% | .72% | .40% | .47% A |
Expenses net of fee waivers, if any | .80% A | .78% | .72% | .40% | .47% A |
Expenses net of all reductions | .80% A | .77% | .71% | .39% | .47% A |
Net investment income (loss) | .82% A | .60% | .76% G | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 912,630 | $ 633,935 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 50% A, J | 67% | 85% | 177% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K 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.
L Total distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 per share.
M Total distributions of $.18 per share is comprised of distributions from net investment income of $.169 and distributions from net realized gain of $.015 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Dividend Growth and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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), market discount, equity-debt classifications, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,261,766 |
Gross unrealized depreciation | (581,626) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 680,140 |
|
|
Tax cost | $ 7,450,501 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2018 | $ (41,875) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end.
During the period the Fund recognized net realized gain (loss) of $1,226 related to its investment in futures contracts. This amount is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $2,134,679 and $2,938,229, respectively.
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Dividend Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Dividend Growth | $ 8,417 | .21 |
Class K | 183 | .05 |
| $ 8,600 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $37 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The interest expense amounted to three hundred twenty-five dollars under the interfund lending program. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average |
Borrower | $ 11,847 | .33% |
Redemptions In-Kind. During the period, 26,569 shares of the Fund held by affiliated entities were redeemed for cash and securities, including accrued interest, with a value of $746,864. The net realized gain of $188,389 on securities delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 12: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Semiannual Report
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $3. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component income from Fidelity Central Funds. Total security lending income during the period amounted to $2,787, including $80 from securities loaned to FCM.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $121 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by one hundred forty-one dollars.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 37,592 | $ 48,547 |
Class K | 4,528 | 3,190 |
Total | $ 42,120 | $ 51,737 |
From net realized gain |
|
|
Dividend Growth | $ 4,761 | $ 25,105 |
Class K | 380 | 1,259 |
Total | $ 5,141 | $ 26,364 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 17,462 | 76,617 | $ 448,018 | $ 2,092,410 |
Reinvestment of distributions | 1,596 | 2,707 | 40,357 | 68,380 |
Shares redeemed | (86,338) A | (82,166) | (2,286,596) A | (2,266,445) |
Net increase (decrease) | (67,280) | (2,842) | $ (1,798,221) | $ (105,655) |
Class K |
|
|
|
|
Shares sold | 14,321 | 11,524 | $ 368,714 | $ 323,383 |
Reinvestment of distributions | 194 | 175 | 4,908 | 4,449 |
Shares redeemed | (3,694) | (4,720) | (95,793) | (130,500) |
Net increase (decrease) | 10,821 | 6,979 | $ 277,829 | $ 197,332 |
A Amount includes in-kind redemptions (see Note 7: Redemptions in-kind).
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(envelope 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
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General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
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Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Dividend Growth | .97% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.30 | $ 4.80 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.26 | $ 4.93 |
Class K | .80% |
|
|
|
Actual |
| $ 1,000.00 | $ 970.10 | $ 3.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.11 | $ 4.06 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 3.9 | 3.1 |
Wells Fargo & Co. | 1.6 | 1.5 |
Citigroup, Inc. | 1.5 | 1.4 |
General Electric Co. | 1.4 | 1.3 |
Procter & Gamble Co. | 1.4 | 1.1 |
JPMorgan Chase & Co. | 1.2 | 1.4 |
The Coca-Cola Co. | 1.2 | 1.4 |
Philip Morris International, Inc. | 0.9 | 1.1 |
Oracle Corp. | 0.9 | 1.0 |
CVS Caremark Corp. | 0.9 | 0.7 |
| 14.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 18.5 | 16.4 |
Industrials | 13.7 | 14.5 |
Financials | 13.7 | 14.0 |
Energy | 13.0 | 13.7 |
Consumer Discretionary | 11.9 | 11.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.6% |
| ** Foreign investments | 20.8% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 11.7% | |||
Auto Components - 0.8% | |||
Autoliv, Inc. | 193,858 | $ 12,231 | |
Modine Manufacturing Co. (a) | 828,607 | 9,065 | |
Nokian Tyres PLC | 259,708 | 9,277 | |
Stoneridge, Inc. (a) | 522,355 | 4,894 | |
Tenneco, Inc. (a) | 518,812 | 16,654 | |
TRW Automotive Holdings Corp. (a) | 250,187 | 9,387 | |
| 61,508 | ||
Automobiles - 0.2% | |||
Honda Motor Co. Ltd. | 138,600 | 4,783 | |
Winnebago Industries, Inc. (a)(d)(e) | 1,574,636 | 14,392 | |
| 19,175 | ||
Distributors - 0.1% | |||
Silver Base Group Holdings Ltd. | 8,201,000 | 6,652 | |
Diversified Consumer Services - 0.6% | |||
Anhanguera Educacional Participacoes SA | 839,000 | 11,285 | |
DeVry, Inc. | 220,885 | 8,341 | |
Service Corp. International | 704,240 | 7,817 | |
Stewart Enterprises, Inc. Class A | 1,437,524 | 8,841 | |
Weight Watchers International, Inc. | 142,600 | 10,856 | |
| 47,140 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
Accor SA | 351,961 | 10,694 | |
Bravo Brio Restaurant Group, Inc. (a) | 320,815 | 6,176 | |
Brinker International, Inc. | 1,016,263 | 26,270 | |
Club Mediterranee SA (a) | 594,847 | 11,900 | |
Darden Restaurants, Inc. | 91,990 | 4,220 | |
Denny's Corp. (a) | 3,348,641 | 14,366 | |
DineEquity, Inc. (a) | 324,815 | 15,435 | |
Dunkin' Brands Group, Inc. (a) | 94,700 | 2,618 | |
O'Charleys, Inc. (a)(e) | 1,468,092 | 9,528 | |
Sands China Ltd. | 2,820,000 | 9,545 | |
Spur Corp. Ltd. | 1,972,550 | 3,898 | |
Starbucks Corp. | 327,577 | 15,701 | |
Texas Roadhouse, Inc. Class A | 632,098 | 9,583 | |
WMS Industries, Inc. (a) | 737,051 | 16,134 | |
Wyndham Worldwide Corp. | 33,124 | 1,317 | |
| 157,385 | ||
Household Durables - 0.5% | |||
Lennar Corp. Class A | 100,200 | 2,153 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Newell Rubbermaid, Inc. | 690,467 | $ 12,753 | |
PulteGroup, Inc. (a) | 887,107 | 6,609 | |
Standard Pacific Corp. (a) | 3,173,586 | 11,552 | |
Techtronic Industries Co. Ltd. | 7,023,500 | 7,807 | |
| 40,874 | ||
Internet & Catalog Retail - 0.5% | |||
Amazon.com, Inc. (a) | 165,545 | 32,189 | |
Liberty Media Corp. Interactive Series A (a) | 519,224 | 8,889 | |
| 41,078 | ||
Leisure Equipment & Products - 0.2% | |||
Hasbro, Inc. | 463,373 | 16,176 | |
Summer Infant, Inc. (a) | 442,574 | 2,372 | |
| 18,548 | ||
Media - 2.2% | |||
Aegis Group PLC | 1,982,800 | 4,931 | |
Antena 3 de Television SA (d) | 1,359,739 | 8,572 | |
Comcast Corp. Class A | 1,741,770 | 46,314 | |
DISH Network Corp. Class A | 452,836 | 12,643 | |
Lions Gate Entertainment Corp. (a) | 415,000 | 4,183 | |
MDC Partners, Inc. Class A (sub. vtg.) | 950,939 | 12,438 | |
Mood Media Corp. (a) | 991,500 | 2,848 | |
Mood Media Corp. (h) | 2,002,900 | 5,753 | |
The Walt Disney Co. | 1,302,725 | 50,676 | |
Time Warner, Inc. | 777,229 | 28,804 | |
| 177,162 | ||
Multiline Retail - 0.8% | |||
Dollar General Corp. (a) | 92,300 | 3,933 | |
Maoye International Holdings Ltd. (a) | 2,186,000 | 530 | |
Marisa Lojas SA | 758,500 | 8,682 | |
PPR SA | 79,700 | 12,541 | |
Target Corp. | 732,221 | 37,204 | |
| 62,890 | ||
Specialty Retail - 3.1% | |||
Advance Auto Parts, Inc. | 392,200 | 30,058 | |
American Eagle Outfitters, Inc. | 676,063 | 9,526 | |
Ascena Retail Group, Inc. (a) | 184,877 | 6,539 | |
Best Buy Co., Inc. | 534,542 | 12,802 | |
Big 5 Sporting Goods Corp. | 416,900 | 3,310 | |
Carphone Warehouse Group PLC | 873,249 | 2,285 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Casual Male Retail Group, Inc. (a) | 1,142,998 | $ 3,612 | |
Charming Shoppes, Inc. (a) | 301,159 | 1,494 | |
Citi Trends, Inc. (a) | 299,600 | 2,702 | |
Collective Brands, Inc. (a) | 686,990 | 11,445 | |
Destination Maternity Corp. | 189,434 | 3,162 | |
Express, Inc. (a) | 621,463 | 13,448 | |
Fast Retailing Co. Ltd. | 32,700 | 6,499 | |
Foot Locker, Inc. | 477,925 | 12,541 | |
Foschini Ltd. | 552,108 | 7,672 | |
GameStop Corp. Class A (a) | 125,778 | 2,938 | |
GOME Electrical Appliances Holdings Ltd. | 4,462,000 | 1,064 | |
Guess?, Inc. | 267,109 | 8,013 | |
Hengdeli Holdings Ltd. | 16,186,000 | 6,220 | |
Home Depot, Inc. | 126,668 | 5,623 | |
Limited Brands, Inc. | 190,662 | 7,981 | |
Lowe's Companies, Inc. | 1,624,912 | 43,596 | |
Lumber Liquidators Holdings, Inc. (a) | 369,319 | 7,889 | |
MarineMax, Inc. (a) | 710,968 | 5,844 | |
OfficeMax, Inc. (a) | 1,301,322 | 7,196 | |
rue21, Inc. (a)(d) | 279,534 | 6,768 | |
SuperGroup PLC (a)(d) | 1,536,287 | 15,738 | |
| 245,965 | ||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Bosideng International Holdings Ltd. | 19,954,000 | 5,738 | |
Deckers Outdoor Corp. (a) | 113,800 | 9,201 | |
G-III Apparel Group Ltd. (a) | 595,931 | 13,605 | |
Peak Sport Products Co. Ltd. | 448,000 | 98 | |
PVH Corp. | 276,356 | 21,332 | |
VF Corp. | 61,664 | 8,108 | |
| 58,082 | ||
TOTAL CONSUMER DISCRETIONARY | 936,459 | ||
CONSUMER STAPLES - 7.9% | |||
Beverages - 1.8% | |||
Carlsberg A/S Series B | 247,500 | 18,795 | |
Dr Pepper Snapple Group, Inc. | 440,760 | 17,110 | |
Grupo Modelo SAB de CV Series C | 2,408,800 | 14,928 | |
The Coca-Cola Co. | 1,431,616 | 96,677 | |
| 147,510 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - 1.4% | |||
CVS Caremark Corp. | 1,674,438 | $ 69,908 | |
Drogasil SA | 912,813 | 7,575 | |
Eurocash SA | 637,795 | 5,928 | |
The Pantry, Inc. (a) | 495,279 | 5,963 | |
Walgreen Co. | 589,111 | 19,653 | |
| 109,027 | ||
Food Products - 1.4% | |||
Biostime International Holdings Ltd. | 1,273,500 | 2,411 | |
Calavo Growers, Inc. | 167,853 | 4,566 | |
Calbee, Inc. | 52,300 | 2,552 | |
Danone | 208,600 | 12,874 | |
Flowers Foods, Inc. | 183,966 | 3,560 | |
Green Mountain Coffee Roasters, Inc. (a) | 276,700 | 14,759 | |
Kraft Foods, Inc. Class A | 1,197,297 | 45,856 | |
Orion Corp. | 2,040 | 1,242 | |
Sara Lee Corp. | 766,446 | 14,677 | |
Shenguan Holdings Group Ltd. | 15,782,000 | 8,974 | |
| 111,471 | ||
Household Products - 1.7% | |||
Procter & Gamble Co. | 1,712,091 | 107,930 | |
Spectrum Brands Holdings, Inc. (a) | 376,959 | 10,913 | |
Unicharm Corp. | 280,400 | 14,732 | |
| 133,575 | ||
Personal Products - 0.1% | |||
Estee Lauder Companies, Inc. Class A | 69,150 | 4,006 | |
Hengan International Group Co. Ltd. | 755,000 | 6,751 | |
| 10,757 | ||
Tobacco - 1.5% | |||
British American Tobacco PLC (United Kingdom) | 276,900 | 12,752 | |
Imperial Tobacco Group PLC | 346,608 | 12,400 | |
Japan Tobacco, Inc. | 4,028 | 19,815 | |
Philip Morris International, Inc. | 958,931 | 71,699 | |
Swedish Match Co. | 70,000 | 2,438 | |
| 119,104 | ||
TOTAL CONSUMER STAPLES | 631,444 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - 13.0% | |||
Energy Equipment & Services - 4.8% | |||
Aker Solutions ASA | 1,479,071 | $ 18,137 | |
Baker Hughes, Inc. | 642,010 | 31,542 | |
BW Offshore Ltd. | 2,119,272 | 3,200 | |
Cal Dive International, Inc. (a) | 1,572,883 | 4,734 | |
Cameron International Corp. (a) | 378,311 | 20,126 | |
Cathedral Energy Services Ltd. | 1,287,000 | 9,177 | |
Ensco International Ltd. ADR | 144,200 | 7,591 | |
Essential Energy Services Ltd. (a) | 4,438,900 | 9,075 | |
Exterran Holdings, Inc. (a) | 92,000 | 854 | |
Halliburton Co. | 839,564 | 30,879 | |
Hornbeck Offshore Services, Inc. (a)(d) | 564,550 | 18,455 | |
ION Geophysical Corp. (a) | 2,005,278 | 14,899 | |
McDermott International, Inc. (a) | 888,984 | 10,810 | |
Nabors Industries Ltd. (a) | 55,200 | 1,028 | |
National Oilwell Varco, Inc. | 832,123 | 61,560 | |
Noble Corp. | 312,208 | 10,877 | |
Saipem SpA | 328,341 | 15,366 | |
Schlumberger Ltd. | 898,512 | 67,541 | |
TETRA Technologies, Inc. (a) | 574,784 | 5,368 | |
Transocean Ltd. (United States) | 370,570 | 17,528 | |
Trinidad Drilling Ltd. | 228,100 | 1,526 | |
Tuscany International Drilling, Inc. (a) | 846,400 | 591 | |
Unit Corp. (a) | 168,478 | 7,624 | |
Vantage Drilling Co. (a) | 5,614,516 | 6,962 | |
Xtreme Coil Drilling Corp. (a) | 1,727,100 | 5,529 | |
| 380,979 | ||
Oil, Gas & Consumable Fuels - 8.2% | |||
Alpha Natural Resources, Inc. (a) | 437,439 | 8,801 | |
Americas Petrogas, Inc. (a) | 2,343,600 | 8,531 | |
Americas Petrogas, Inc. (f) | 2,250,000 | 8,190 | |
Amyris, Inc. (a) | 514,800 | 4,618 | |
Anadarko Petroleum Corp. | 416,209 | 33,596 | |
Apache Corp. | 215,121 | 21,271 | |
Bonavista Energy Corp. | 14,800 | 334 | |
Bonavista Energy Corp. (f) | 152,100 | 3,434 | |
BPZ Energy, Inc. (a)(d) | 2,290,627 | 7,467 | |
C&C Energia Ltd. (a) | 118,600 | 1,025 | |
Cabot Oil & Gas Corp. | 118,400 | 3,777 | |
Chevron Corp. | 605,824 | 62,448 | |
Concho Resources, Inc. (a) | 100 | 11 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Crown Point Ventures Ltd. (a)(e) | 942,800 | $ 1,138 | |
Crown Point Ventures Ltd. (e)(f) | 4,157,416 | 5,017 | |
CVR Energy, Inc. (a) | 1,095,516 | 27,322 | |
Denbury Resources, Inc. (a) | 574,421 | 10,834 | |
Double Eagle Petroleum Co. (a)(e) | 950,503 | 6,302 | |
EOG Resources, Inc. | 127,245 | 13,506 | |
EV Energy Partners LP | 138,790 | 9,260 | |
EXCO Resources, Inc. | 246,783 | 1,940 | |
Gran Tierra Energy, Inc. (Canada) (a) | 687,100 | 3,919 | |
Gulfport Energy Corp. (a) | 360,796 | 11,859 | |
HollyFrontier Corp. | 999,984 | 29,340 | |
Inergy Midstream LP | 363,100 | 7,400 | |
InterOil Corp. (a)(d) | 308,755 | 20,717 | |
Kodiak Oil & Gas Corp. (a)(d) | 398,300 | 3,613 | |
Kosmos Energy Ltd. | 448,667 | 5,635 | |
Marathon Oil Corp. | 523,498 | 16,433 | |
Marathon Petroleum Corp. | 542,188 | 20,722 | |
Nexen, Inc. | 436,600 | 7,824 | |
Niko Resources Ltd. | 163,400 | 7,983 | |
Northern Oil & Gas, Inc. (a)(d) | 1,529,451 | 38,236 | |
Occidental Petroleum Corp. | 590,037 | 58,868 | |
OGX Petroleo e Gas Participacoes SA (a) | 549,500 | 5,205 | |
Painted Pony Petroleum Ltd. (a)(f) | 178,000 | 1,484 | |
Painted Pony Petroleum Ltd. Class A (a) | 220,200 | 1,836 | |
Paladin Energy Ltd. (Australia) (a) | 6,505,358 | 12,707 | |
Pan Orient Energy Corp. (a) | 858,900 | 2,938 | |
Pioneer Natural Resources Co. | 7,700 | 765 | |
Resolute Energy Corp. (a)(d) | 1,180,774 | 13,284 | |
Royal Dutch Shell PLC Class A sponsored ADR | 168,998 | 12,060 | |
SM Energy Co. | 103,000 | 7,476 | |
Southwestern Energy Co. (a) | 255,082 | 7,943 | |
Suncor Energy, Inc. | 248,400 | 8,556 | |
TAG Oil Ltd. (a) | 1,121,600 | 9,172 | |
Talisman Energy, Inc. | 335,000 | 4,002 | |
Targa Resources Corp. | 146,600 | 6,075 | |
Tesoro Corp. (a) | 789,016 | 19,749 | |
Valero Energy Corp. | 889,142 | 21,331 | |
Voyager Oil & Gas, Inc. (a)(d)(e) | 3,286,844 | 8,677 | |
Voyager Oil & Gas, Inc. warrants 2/4/16 (a)(e) | 1,198,388 | 1,128 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Whiting Petroleum Corp. (a) | 505,834 | $ 25,337 | |
Williams Companies, Inc. | 603,212 | 17,385 | |
| 658,481 | ||
TOTAL ENERGY | 1,039,460 | ||
FINANCIALS - 13.4% | |||
Capital Markets - 2.2% | |||
American Capital Ltd. (a) | 358,580 | 2,948 | |
Ashmore Group PLC | 1,274,700 | 7,461 | |
BlackRock, Inc. Class A | 66,632 | 12,127 | |
Goldman Sachs Group, Inc. | 248,677 | 27,720 | |
GP Investments Ltd. (depositary receipt) (a) | 3,455,779 | 7,951 | |
ICAP PLC | 1,293,400 | 6,849 | |
ICG Group, Inc. (a) | 512,336 | 4,596 | |
Invesco Ltd. | 625,487 | 14,117 | |
Knight Capital Group, Inc. Class A (a) | 1,126,297 | 14,631 | |
Morgan Stanley | 2,111,424 | 39,378 | |
State Street Corp. | 522,473 | 20,470 | |
TD Ameritrade Holding Corp. | 474,677 | 7,647 | |
UBS AG (NY Shares) (a) | 883,500 | 12,007 | |
| 177,902 | ||
Commercial Banks - 3.1% | |||
Banco Pine SA | 1,016,700 | 7,652 | |
Bank of Ireland (a) | 156,819,609 | 23,419 | |
CapitalSource, Inc. | 2,717,649 | 18,779 | |
CIT Group, Inc. (a) | 524,508 | 20,005 | |
Comerica, Inc. | 148,300 | 4,103 | |
Commercial Bank of Qatar GDR (Reg. S) | 933,275 | 4,244 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 752,992 | 3,539 | |
Huntington Bancshares, Inc. | 624,859 | 3,568 | |
Itau Unibanco Banco Multiplo SA sponsored ADR | 263,100 | 5,251 | |
KeyCorp | 890,100 | 6,916 | |
Regions Financial Corp. | 2,849,437 | 14,874 | |
SunTrust Banks, Inc. | 476,857 | 9,809 | |
Wells Fargo & Co. | 4,286,391 | 125,205 | |
| 247,364 | ||
Consumer Finance - 0.8% | |||
Capital One Financial Corp. | 541,030 | 24,752 | |
Discover Financial Services | 751,674 | 20,430 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Consumer Finance - continued | |||
International Personal Finance PLC | 3,010,900 | $ 9,030 | |
SLM Corp. | 710,432 | 10,621 | |
| 64,833 | ||
Diversified Financial Services - 3.2% | |||
Citigroup, Inc. | 3,826,623 | 117,554 | |
CME Group, Inc. | 60,227 | 14,425 | |
JPMorgan Chase & Co. | 2,610,854 | 97,385 | |
PICO Holdings, Inc. (a)(e) | 1,161,766 | 25,640 | |
| 255,004 | ||
Insurance - 1.8% | |||
AEGON NV (a) | 1,735,227 | 8,429 | |
AFLAC, Inc. | 427,298 | 20,609 | |
Allied World Assurance Co. Holdings Ltd. | 117,500 | 7,230 | |
Assured Guaranty Ltd. | 1,932,814 | 29,978 | |
Berkshire Hathaway, Inc. Class B (a) | 102,652 | 8,045 | |
Genworth Financial, Inc. Class A (a) | 1,581,515 | 12,193 | |
Hartford Financial Services Group, Inc. | 330,700 | 5,794 | |
MetLife, Inc. | 1,015,017 | 35,861 | |
Prudential Financial, Inc. | 292,816 | 16,761 | |
| 144,900 | ||
Real Estate Investment Trusts - 1.7% | |||
American Tower Corp. | 227,613 | 14,456 | |
Beni Stabili SpA SIIQ | 10,284,000 | 5,093 | |
Campus Crest Communities, Inc. | 312,003 | 3,335 | |
CBL & Associates Properties, Inc. | 1,408,840 | 24,472 | |
Douglas Emmett, Inc. | 522,959 | 10,935 | |
Education Realty Trust, Inc. | 933,600 | 9,990 | |
Excel Trust, Inc. | 125,100 | 1,589 | |
Franklin Street Properties Corp. | 554,900 | 5,654 | |
Klepierre SA | 121,500 | 3,648 | |
Pennsylvania Real Estate Investment Trust (SBI) | 359,843 | 4,419 | |
Prologis, Inc. | 716,386 | 22,717 | |
SL Green Realty Corp. | 226,170 | 16,630 | |
Weyerhaeuser Co. | 711,067 | 14,236 | |
| 137,174 | ||
Real Estate Management & Development - 0.6% | |||
CBRE Group, Inc. (a) | 1,720,126 | 33,198 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Management & Development - continued | |||
Forest City Enterprises, Inc. Class A (a) | 486,182 | $ 6,384 | |
Iguatemi Empresa de Shopping Centers SA | 357,900 | 7,622 | |
| 47,204 | ||
TOTAL FINANCIALS | 1,074,381 | ||
HEALTH CARE - 10.8% | |||
Biotechnology - 3.6% | |||
Acorda Therapeutics, Inc. (a) | 193,500 | 4,940 | |
Alexion Pharmaceuticals, Inc. (a) | 198,400 | 15,229 | |
Alnylam Pharmaceuticals, Inc. (a) | 471,100 | 5,446 | |
Amgen, Inc. | 576,109 | 39,124 | |
Amylin Pharmaceuticals, Inc. (a) | 547,570 | 7,792 | |
Ardea Biosciences, Inc. (a) | 689,232 | 12,537 | |
ARIAD Pharmaceuticals, Inc. (a) | 2,205,230 | 32,527 | |
ArQule, Inc. (a) | 1,185,472 | 9,365 | |
AVEO Pharmaceuticals, Inc. (a)(d) | 1,054,509 | 13,898 | |
Biogen Idec, Inc. (a) | 156,622 | 18,469 | |
Dynavax Technologies Corp. (a) | 3,309,870 | 11,518 | |
Gentium SpA sponsored ADR (a) | 18,994 | 147 | |
Gilead Sciences, Inc. (a) | 319,654 | 15,612 | |
Horizon Pharma, Inc. | 410,700 | 1,630 | |
Human Genome Sciences, Inc. (a) | 589,750 | 5,803 | |
Infinity Pharmaceuticals, Inc. (a) | 138,119 | 840 | |
Inhibitex, Inc. (a) | 486,000 | 12,408 | |
InterMune, Inc. (a) | 258,049 | 3,871 | |
Isis Pharmaceuticals, Inc. (a) | 318,000 | 2,595 | |
NPS Pharmaceuticals, Inc. (a) | 506,635 | 3,891 | |
PDL BioPharma, Inc. (d) | 926,800 | 5,922 | |
SIGA Technologies, Inc. (a)(d) | 1,528,074 | 5,058 | |
Synageva BioPharma Corp. (a) | 105,486 | 3,748 | |
Theravance, Inc. (a) | 1,066,961 | 18,928 | |
Thrombogenics NV (a)(d) | 359,197 | 8,339 | |
United Therapeutics Corp. (a) | 206,482 | 10,155 | |
Vertex Pharmaceuticals, Inc. (a) | 169,882 | 6,277 | |
ZIOPHARM Oncology, Inc. (a)(d) | 2,189,550 | 11,627 | |
| 287,696 | ||
Health Care Equipment & Supplies - 1.7% | |||
Baxter International, Inc. | 431,853 | 23,959 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Boston Scientific Corp. (a) | 1,706,500 | $ 10,171 | |
Conceptus, Inc. (a) | 559,901 | 6,932 | |
Covidien PLC | 553,984 | 28,530 | |
DENTSPLY International, Inc. | 214,854 | 8,109 | |
Genmark Diagnostics, Inc. (a) | 492,600 | 2,266 | |
GN Store Nordic A/S | 770,674 | 7,817 | |
Hologic, Inc. (a) | 40,500 | 826 | |
Integra LifeSciences Holdings Corp. (a) | 418,936 | 12,367 | |
Nakanishi, Inc. | 24,500 | 2,407 | |
Natus Medical, Inc. (a) | 90,922 | 1,028 | |
Opto Circuits India Ltd. | 874,884 | 4,195 | |
Orthofix International NV (a) | 396,188 | 15,907 | |
Sirona Dental Systems, Inc. (a) | 264,922 | 12,809 | |
| 137,323 | ||
Health Care Providers & Services - 3.1% | |||
Apollo Hospitals Enterprise Ltd. | 317,153 | 3,844 | |
Brookdale Senior Living, Inc. (a) | 2,247,700 | 39,560 | |
Catalyst Health Solutions, Inc. (a) | 284,690 | 15,590 | |
CIGNA Corp. | 628,981 | 28,197 | |
DaVita, Inc. (a) | 163,098 | 13,343 | |
Emeritus Corp. (a) | 549,933 | 9,602 | |
Express Scripts, Inc. (a) | 793,100 | 40,575 | |
McKesson Corp. | 285,092 | 23,298 | |
Medco Health Solutions, Inc. (a) | 428,687 | 26,587 | |
Omnicare, Inc. | 33,000 | 1,083 | |
Sunrise Senior Living, Inc. (a) | 89,228 | 634 | |
UnitedHealth Group, Inc. | 250,827 | 12,990 | |
Universal Health Services, Inc. Class B | 300,987 | 12,428 | |
WellPoint, Inc. | 366,059 | 23,545 | |
| 251,276 | ||
Life Sciences Tools & Services - 0.6% | |||
Agilent Technologies, Inc. | 637,668 | 27,082 | |
Charles River Laboratories International, Inc. (a) | 88,233 | 2,980 | |
Covance, Inc. (a) | 22,061 | 966 | |
Thermo Fisher Scientific, Inc. (a) | 259,217 | 13,713 | |
| 44,741 | ||
Pharmaceuticals - 1.8% | |||
AVANIR Pharmaceuticals Class A (a)(d) | 991,631 | 2,915 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 3,962,620 | 16,524 | |
Cardiome Pharma Corp. (a) | 658,200 | 1,560 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Columbia Laboratories, Inc. (a) | 729,700 | $ 614 | |
Elan Corp. PLC sponsored ADR (a) | 465,800 | 6,340 | |
Jazz Pharmaceuticals PLC (a) | 161,600 | 7,514 | |
Merck & Co., Inc. | 844,399 | 32,307 | |
Novo Nordisk A/S Series B | 161,337 | 19,171 | |
Sanofi-aventis | 198,685 | 14,730 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 304,019 | 13,720 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 512,800 | 24,833 | |
Watson Pharmaceuticals, Inc. (a) | 83,592 | 4,901 | |
| 145,129 | ||
TOTAL HEALTH CARE | 866,165 | ||
INDUSTRIALS - 13.7% | |||
Aerospace & Defense - 3.0% | |||
DigitalGlobe, Inc. (a) | 638,974 | 10,026 | |
Esterline Technologies Corp. (a) | 142,921 | 8,740 | |
GeoEye, Inc. (a)(e) | 1,267,184 | 27,764 | |
Honeywell International, Inc. | 475,230 | 27,582 | |
Meggitt PLC | 3,253,841 | 18,615 | |
Precision Castparts Corp. | 121,005 | 19,806 | |
Raytheon Co. | 419,426 | 20,128 | |
Rockwell Collins, Inc. | 133,499 | 7,728 | |
Safran SA | 126,700 | 3,947 | |
Textron, Inc. | 1,307,878 | 33,325 | |
Ultra Electronics Holdings PLC | 208,389 | 5,031 | |
United Technologies Corp. | 694,196 | 54,390 | |
| 237,082 | ||
Air Freight & Logistics - 0.1% | |||
United Parcel Service, Inc. Class B | 114,900 | 8,692 | |
Airlines - 0.2% | |||
Copa Holdings SA Class A | 235,702 | 16,061 | |
Building Products - 0.6% | |||
Armstrong World Industries, Inc. (a) | 361,940 | 16,903 | |
Lennox International, Inc. | 126,886 | 4,593 | |
Owens Corning (a) | 886,007 | 29,903 | |
| 51,399 | ||
Commercial Services & Supplies - 0.8% | |||
Knoll, Inc. | 518,888 | 8,281 | |
Multiplus SA | 500,900 | 8,807 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Pitney Bowes, Inc. (d) | 56,862 | $ 1,079 | |
Quad/Graphics, Inc. (d) | 25,900 | 304 | |
Republic Services, Inc. | 630,647 | 18,465 | |
Steelcase, Inc. Class A | 1,302,163 | 11,342 | |
Swisher Hygiene, Inc. | 2,081,064 | 7,305 | |
Swisher Hygiene, Inc. (Canada) (a) | 1,396,762 | 4,903 | |
| 60,486 | ||
Construction & Engineering - 1.2% | |||
AECOM Technology Corp. (a) | 318,351 | 7,287 | |
Fluor Corp. | 343,807 | 19,336 | |
Foster Wheeler AG (a) | 1,270,595 | 28,538 | |
Great Lakes Dredge & Dock Corp. | 583,173 | 3,732 | |
Jacobs Engineering Group, Inc. (a) | 112,216 | 5,023 | |
Shaw Group, Inc. (a) | 1,141,255 | 30,974 | |
| 94,890 | ||
Electrical Equipment - 1.7% | |||
Alstom SA | 303,472 | 11,566 | |
AMETEK, Inc. | 245,232 | 11,526 | |
Cooper Industries PLC Class A | 152,612 | 9,022 | |
Emerson Electric Co. | 585,605 | 30,088 | |
Fushi Copperweld, Inc. (a) | 530,888 | 4,412 | |
GrafTech International Ltd. (a) | 1,181,463 | 19,400 | |
Hubbell, Inc. Class B | 79,022 | 5,686 | |
Prysmian SpA | 805,400 | 12,093 | |
Regal-Beloit Corp. | 378,868 | 21,508 | |
Roper Industries, Inc. | 81,439 | 7,606 | |
Zumtobel AG | 220,330 | 4,004 | |
| 136,911 | ||
Industrial Conglomerates - 1.9% | |||
Carlisle Companies, Inc. | 203,975 | 9,736 | |
Cookson Group PLC | 957,853 | 8,710 | |
General Electric Co. | 5,789,386 | 108,319 | |
Koninklijke Philips Electronics NV | 520,100 | 10,534 | |
Reunert Ltd. | 76,100 | 634 | |
Rheinmetall AG | 185,700 | 9,957 | |
Siemens AG sponsored ADR | 44,050 | 4,153 | |
| 152,043 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 2.2% | |||
Actuant Corp. Class A | 559,902 | $ 14,194 | |
Colfax Corp. (a) | 70,742 | 2,148 | |
Cummins, Inc. | 177,484 | 18,458 | |
Dover Corp. | 170,648 | 10,821 | |
Fiat Industrial SpA (a) | 1,893,967 | 18,554 | |
Haitian International Holdings Ltd. | 2,160,000 | 2,264 | |
Illinois Tool Works, Inc. | 146,900 | 7,790 | |
Ingersoll-Rand PLC | 1,237,225 | 43,229 | |
Jain Irrigation Systems Ltd. | 481,396 | 927 | |
Manitowoc Co., Inc. | 407,687 | 5,479 | |
Navistar International Corp. (a) | 681,015 | 29,481 | |
Pall Corp. | 153,113 | 9,138 | |
Stanley Black & Decker, Inc. | 245,539 | 17,232 | |
| 179,715 | ||
Professional Services - 0.3% | |||
Michael Page International PLC | 424,579 | 2,604 | |
Robert Half International, Inc. | 445,315 | 12,331 | |
SR Teleperformance SA | 452,688 | 11,342 | |
| 26,277 | ||
Road & Rail - 1.1% | |||
Con-way, Inc. | 484,681 | 15,384 | |
Saia, Inc. (a)(e) | 804,075 | 12,109 | |
Tegma Gestao Logistica | 114,400 | 1,734 | |
Union Pacific Corp. | 477,266 | 54,556 | |
Universal Truckload Services, Inc. | 400,734 | 7,125 | |
| 90,908 | ||
Trading Companies & Distributors - 0.6% | |||
Barloworld Ltd. | 534,800 | 5,989 | |
Beacon Roofing Supply, Inc. (a) | 473,400 | 10,822 | |
Houston Wire & Cable Co. | 102,822 | 1,467 | |
Mills Estruturas e Servicos de Engenharia SA | 290,000 | 3,598 | |
Rush Enterprises, Inc. Class A (a) | 433,350 | 9,971 | |
Watsco, Inc. | 192,380 | 13,268 | |
| 45,115 | ||
TOTAL INDUSTRIALS | 1,099,579 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Communications Equipment - 2.3% | |||
Brocade Communications Systems, Inc. (a) | 3,099,604 | $ 17,389 | |
Calix Networks, Inc. (a) | 1,937,656 | 14,668 | |
Cisco Systems, Inc. | 3,419,427 | 67,123 | |
Comverse Technology, Inc. (a) | 4,840,500 | 30,495 | |
Juniper Networks, Inc. (a) | 360,303 | 7,541 | |
Polycom, Inc. (a) | 699,318 | 13,951 | |
QUALCOMM, Inc. | 325,135 | 19,124 | |
ViaSat, Inc. (a) | 319,310 | 15,180 | |
| 185,471 | ||
Computers & Peripherals - 4.4% | |||
Apple, Inc. (a) | 682,776 | 311,680 | |
Hewlett-Packard Co. | 1,371,953 | 38,387 | |
| 350,067 | ||
Electronic Equipment & Components - 1.5% | |||
Arrow Electronics, Inc. (a) | 448,667 | 18,525 | |
Avnet, Inc. (a) | 798,888 | 27,857 | |
Corning, Inc. | 2,256,466 | 29,041 | |
Jabil Circuit, Inc. | 321,452 | 7,284 | |
Molex, Inc. (d) | 560,880 | 14,830 | |
TE Connectivity Ltd. | 540,556 | 18,433 | |
Vishay Intertechnology, Inc. (a) | 73,498 | 903 | |
| 116,873 | ||
Internet Software & Services - 0.5% | |||
DeNA Co. Ltd. | 82,100 | 2,078 | |
eAccess Ltd. (d) | 17,285 | 3,932 | |
eBay, Inc. (a) | 436,273 | 13,786 | |
Facebook, Inc. Class B (h) | 488,526 | 12,213 | |
Yahoo!, Inc. (a) | 514,500 | 7,959 | |
| 39,968 | ||
IT Services - 1.9% | |||
Acxiom Corp. (a) | 235,612 | 3,233 | |
Alliance Data Systems Corp. (a)(d) | 154,887 | 17,161 | |
Amdocs Ltd. (a) | 216,954 | 6,387 | |
Cognizant Technology Solutions Corp. Class A (a) | 314,980 | 22,600 | |
Fidelity National Information Services, Inc. | 566,135 | 16,169 | |
Fiserv, Inc. (a) | 153,381 | 9,646 | |
Heartland Payment Systems, Inc. | 377,900 | 9,070 | |
MasterCard, Inc. Class A | 115,410 | 41,036 | |
ServiceSource International, Inc. | 220,325 | 3,728 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Unisys Corp. (a) | 995,393 | $ 20,873 | |
Virtusa Corp. (a) | 321,942 | 5,148 | |
| 155,051 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 3,055,481 | 23,680 | |
Semiconductors & Semiconductor Equipment - 5.0% | |||
Analog Devices, Inc. | 490,840 | 19,207 | |
Applied Micro Circuits Corp. (a) | 364,735 | 2,856 | |
ASML Holding NV | 1,108,806 | 47,668 | |
Avago Technologies Ltd. | 444,589 | 15,089 | |
Cree, Inc. (a) | 183,645 | 4,670 | |
Cymer, Inc. (a) | 942,660 | 46,935 | |
Entropic Communications, Inc. (a)(d) | 2,063,559 | 12,051 | |
Fairchild Semiconductor International, Inc. (a) | 354,172 | 4,951 | |
Freescale Semiconductor Holdings I Ltd. | 1,661,479 | 26,534 | |
Himax Technologies, Inc. sponsored ADR | 776,463 | 1,079 | |
Intersil Corp. Class A | 1,210,620 | 13,632 | |
KLA-Tencor Corp. | 136,658 | 6,987 | |
LTX-Credence Corp. (a)(e) | 3,245,937 | 21,650 | |
Marvell Technology Group Ltd. (a) | 2,890,672 | 44,892 | |
Maxim Integrated Products, Inc. | 697,451 | 18,720 | |
Micron Technology, Inc. (a) | 2,915,522 | 22,129 | |
Novellus Systems, Inc. (a) | 91,800 | 4,328 | |
NVIDIA Corp. (a) | 704,996 | 10,413 | |
NXP Semiconductors NV (a) | 991,842 | 21,057 | |
ON Semiconductor Corp. (a) | 2,506,894 | 21,810 | |
RF Micro Devices, Inc. (a) | 3,699,857 | 18,462 | |
Skyworks Solutions, Inc. (a) | 668,470 | 14,426 | |
Spansion, Inc. Class A (a) | 489,130 | 4,906 | |
| 404,452 | ||
Software - 2.5% | |||
Autodesk, Inc. (a) | 175,400 | 6,314 | |
Citrix Systems, Inc. (a) | 499,213 | 32,554 | |
Informatica Corp. (a) | 134,339 | 5,683 | |
JDA Software Group, Inc. (a) | 381,623 | 11,246 | |
Micro Focus International PLC | 1,452,526 | 9,676 | |
Microsoft Corp. | 1,722,472 | 50,865 | |
Oracle Corp. | 2,508,728 | 70,746 | |
Royalblue Group PLC | 220,308 | 5,760 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Synopsys, Inc. (a) | 51,431 | $ 1,501 | |
Take-Two Interactive Software, Inc. (a) | 331,800 | 5,176 | |
| 199,521 | ||
TOTAL INFORMATION TECHNOLOGY | 1,475,083 | ||
MATERIALS - 6.1% | |||
Chemicals - 2.7% | |||
Air Products & Chemicals, Inc. | 50,749 | 4,467 | |
Ashland, Inc. | 205,660 | 12,969 | |
CF Industries Holdings, Inc. | 37,289 | 6,614 | |
Clariant AG (Reg.) (a) | 2,677,020 | 32,523 | |
Ecolab, Inc. | 202,833 | 12,259 | |
Ferro Corp. (a) | 718,050 | 4,854 | |
Huabao International Holdings Ltd. | 7,708,461 | 5,238 | |
Israel Chemicals Ltd. | 442,300 | 4,631 | |
Kraton Performance Polymers, Inc. (a) | 311,523 | 8,860 | |
Lanxess AG | 85,351 | 5,559 | |
LyondellBasell Industries NV Class A | 485,757 | 20,936 | |
Rentech Nitrogen Partners LP | 148,300 | 3,392 | |
Spartech Corp. (a) | 1,485,153 | 7,975 | |
The Mosaic Co. | 378,802 | 21,202 | |
W.R. Grace & Co. (a) | 974,376 | 52,168 | |
Yara International ASA | 206,300 | 8,301 | |
| 211,948 | ||
Construction Materials - 0.2% | |||
Cemex SA de CV sponsored ADR | 312,148 | 2,126 | |
HeidelbergCement Finance AG | 236,344 | 11,615 | |
| 13,741 | ||
Containers & Packaging - 0.2% | |||
Rock-Tenn Co. Class A | 226,386 | 14,004 | |
Sealed Air Corp. | 165,300 | 3,294 | |
Youyuan International Holdings Ltd. (a) | 6,944,000 | 1,728 | |
| 19,026 | ||
Metals & Mining - 3.0% | |||
Anglo American PLC (United Kingdom) | 206,400 | 8,536 | |
AngloGold Ashanti Ltd. sponsored ADR | 153,800 | 7,044 | |
Avion Gold Corp. (a) | 3,113,900 | 4,751 | |
Avion Gold Corp. (f) | 289,800 | 442 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Commercial Metals Co. | 1,376,244 | $ 19,735 | |
Copper Mountain Mining Corp. (a) | 301,100 | 1,567 | |
Eldorado Gold Corp. | 604,478 | 9,157 | |
First Quantum Minerals Ltd. | 334,140 | 7,318 | |
Freeport-McMoRan Copper & Gold, Inc. | 631,295 | 29,172 | |
Goldcorp, Inc. | 651,300 | 31,501 | |
Ivanhoe Mines Ltd. (a) | 1,785,565 | 28,793 | |
Kinross Gold Corp. | 748,045 | 8,452 | |
Mirabela Nickel Ltd. (a) | 2,125,753 | 2,076 | |
Newcrest Mining Ltd. | 624,525 | 22,356 | |
Pan American Silver Corp. | 199,700 | 4,569 | |
Randgold Resources Ltd. sponsored ADR | 295,123 | 33,765 | |
Reliance Steel & Aluminum Co. | 77,133 | 4,103 | |
Silver Wheaton Corp. | 155,300 | 5,540 | |
Ternium SA sponsored ADR (d) | 78,295 | 1,775 | |
Yamana Gold, Inc. | 613,100 | 10,608 | |
| 241,260 | ||
TOTAL MATERIALS | 485,975 | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.5% | |||
CenturyLink, Inc. | 420,866 | 15,585 | |
China Telecom Corp. Ltd. (H Shares) | 6,428,000 | 3,606 | |
China Unicom Ltd. | 4,564,000 | 8,400 | |
Koninklijke KPN NV | 672,179 | 7,367 | |
| 34,958 | ||
Wireless Telecommunication Services - 0.5% | |||
NII Holdings, Inc. (a) | 354,000 | 7,119 | |
SBA Communications Corp. Class A (a) | 339,110 | 15,504 | |
TIM Participacoes SA | 1,943,220 | 10,788 | |
Turkcell Iletisim Hizmet A/S | 1,553,000 | 7,990 | |
| 41,401 | ||
TOTAL TELECOMMUNICATION SERVICES | 76,359 | ||
UTILITIES - 2.4% | |||
Electric Utilities - 1.0% | |||
American Electric Power Co., Inc. | 50,995 | 2,017 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
Centrais Eletricas Brasileiras SA (Electrobras) (PN-B) sponsored ADR (d) | 459,600 | $ 6,729 | |
Ceske Energeticke Zavody A/S | 90,000 | 3,633 | |
Edison International | 586,515 | 24,071 | |
El Paso Electric Co. | 221,777 | 7,718 | |
Fortum Corp. | 111,986 | 2,461 | |
NextEra Energy, Inc. | 352,756 | 21,112 | |
NV Energy, Inc. | 433,128 | 7,017 | |
PPL Corp. | 255,592 | 7,103 | |
| 81,861 | ||
Gas Utilities - 0.2% | |||
Aygaz A/S | 74,860 | 379 | |
China Gas Holdings Ltd. | 10,152,000 | 4,726 | |
ONEOK, Inc. | 132,933 | 11,055 | |
| 16,160 | ||
Independent Power Producers & Energy Traders - 0.8% | |||
The AES Corp. (a) | 4,856,156 | 61,965 | |
Multi-Utilities - 0.4% | |||
CenterPoint Energy, Inc. | 540,185 | 9,977 | |
CMS Energy Corp. | 127,240 | 2,778 | |
National Grid PLC | 1,189,518 | 11,846 | |
Sempra Energy | 177,822 | 10,118 | |
| 34,719 | ||
TOTAL UTILITIES | 194,705 | ||
TOTAL COMMON STOCKS (Cost $7,166,162) |
| ||
Preferred Stocks - 0.6% | |||
|
|
|
|
Convertible Preferred Stocks - 0.4% | |||
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Citigroup, Inc. 7.50% | 143,900 | 13,334 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 92,200 | 5,958 | |
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - continued | |||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 9.50% | 171,200 | $ 9,279 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 28,571 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Volkswagen AG | 93,300 | 16,517 | |
TOTAL PREFERRED STOCKS (Cost $40,397) |
| ||
Investment Companies - 0.2% | |||
|
|
|
|
Ares Capital Corp. | 963,580 |
|
Convertible Bonds - 0.4% | ||||
| Principal |
| ||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (f) | $ 16,623 | 8,228 | ||
INDUSTRIALS - 0.0% | ||||
Building Products - 0.0% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (h) | 4,085 | 4,085 | ||
MATERIALS - 0.3% | ||||
Metals & Mining - 0.3% | ||||
Ivanplats Ltd. 8% 11/10/14 pay-in-kind (g)(h) | 20,255 | 20,255 | ||
TELECOMMUNICATION SERVICES - 0.0% | ||||
Diversified Telecommunication Services - 0.0% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (f) | 3,730 | 2,327 | ||
TOTAL CONVERTIBLE BONDS (Cost $36,104) |
|
Money Market Funds - 1.9% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.12% (b) | 24,645,560 | $ 24,646 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 131,128,986 | 131,129 | |
TOTAL MONEY MARKET FUNDS (Cost $155,775) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $7,410,678) | 8,130,641 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (120,928) | ||
NET ASSETS - 100% | $ 8,009,713 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $29,122,000 or 0.4% of net assets. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $42,306,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 | $ 4,085 |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 12,217 |
Ivanplats Ltd. 8% 11/10/14 pay-in-kind | 11/10/11 | $ 20,255 |
Mood Media Corp. | 2/2/11 | $ 4,054 |
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 |
Fidelity Securities Lending Cash Central Fund | 2,787 |
Total | $ 2,807 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Cadence Pharmaceuticals, Inc. | $ 28,450 | $ 4,838 | $ 1,997 | $ - | $ - |
Crown Point Ventures Ltd. | 1,096 | 417 | 119 | - | 1,138 |
Crown Point Ventures Ltd. (144A) | 2,491 | 2,462 | - | - | 5,017 |
Double Eagle Petroleum Co. | 10,542 | 643 | 634 | - | 6,302 |
GeoEye, Inc. | 53,351 | 3,382 | 4,421 | - | 27,764 |
LTX-Credence Corp. | 24,118 | 1,636 | 2,680 | - | 21,650 |
O'Charleys, Inc. | 9,150 | 871 | 1,237 | - | 9,528 |
PICO Holdings, Inc. | 32,970 | 3,231 | 4,356 | - | 25,640 |
Saia, Inc. | 13,037 | 446 | 1,402 | - | 12,109 |
Spartech Corp. | 9,331 | - | 744 | - | - |
Voyager Oil & Gas, Inc. | 11,252 | 138 | 814 | - | 8,677 |
Voyager Oil & Gas, Inc. warrants 2/4/16 | 1,539 | - | - | - | 1,128 |
Winnebago Industries, Inc. | 15,684 | - | 2,496 | - | 14,392 |
Total | $ 213,011 | $ 18,064 | $ 20,900 | $ - | $ 133,345 |
* Includes the value of securities delivered through in-kind transactions.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 952,976 | $ 948,193 | $ 4,783 | $ - |
Consumer Staples | 631,444 | 618,692 | 12,752 | - |
Energy | 1,039,460 | 1,038,332 | 1,128 | - |
Financials | 1,087,715 | 1,055,867 | 31,848 | - |
Health Care | 866,165 | 832,264 | 33,901 | - |
Industrials | 1,099,579 | 1,089,045 | 10,534 | - |
Information Technology | 1,481,041 | 1,468,828 | - | 12,213 |
Materials | 485,975 | 485,975 | - | - |
Telecommunication Services | 76,359 | 56,363 | 19,996 | - |
Utilities | 203,984 | 192,138 | 11,846 | - |
Investment Companies | 15,273 | 15,273 | - | - |
Corporate Bonds | 34,895 | - | 10,555 | 24,340 |
Money Market Funds | 155,775 | 155,775 | - | - |
Total Investments in Securities: | $ 8,130,641 | $ 7,956,745 | $ 137,343 | $ 36,553 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 18,002 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 20,255 |
Proceeds of Sales | (5,789) |
Amortization/Accretion | - |
Transfers in to Level 3 | 4,085 |
Transfers out of Level 3 | - |
Ending Balance | $ 36,553 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.4% |
Canada | 3.7% |
United Kingdom | 2.2% |
Bermuda | 1.9% |
Ireland | 1.6% |
Switzerland | 1.5% |
Netherlands | 1.5% |
France | 1.2% |
Brazil | 1.2% |
Curacao | 1.1% |
Others (Individually Less Than 1%) | 6.7% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $126,091) - See accompanying schedule: Unaffiliated issuers (cost $7,081,910) | $ 7,841,521 |
|
Fidelity Central Funds (cost $155,775) | 155,775 |
|
Other affiliated issuers (cost $172,993) | 133,345 |
|
Total Investments (cost $7,410,678) |
| $ 8,130,641 |
Cash |
| 236 |
Foreign currency held at value (cost $7,887) | 7,893 | |
Receivable for investments sold | 58,868 | |
Receivable for fund shares sold | 5,059 | |
Dividends receivable | 7,376 | |
Interest receivable | 1,126 | |
Distributions receivable from Fidelity Central Funds | 250 | |
Prepaid expenses | 24 | |
Other receivables | 338 | |
Total assets | 8,211,811 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 53,428 | |
Payable for fund shares redeemed | 10,323 | |
Accrued management fee | 5,370 | |
Other affiliated payables | 1,498 | |
Other payables and accrued expenses | 350 | |
Collateral on securities loaned, at value | 131,129 | |
Total liabilities | 202,098 | |
|
|
|
Net Assets | $ 8,009,713 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,237,686 | |
Undistributed net investment income | 9,399 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 42,652 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 719,976 | |
Net Assets | $ 8,009,713 |
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, 2012 (Unaudited) | |
|
|
|
Dividend Growth: | $ 27.92 | |
|
|
|
Class K: | $ 27.91 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 64,829 |
Interest |
| 1,516 |
Income from Fidelity Central Funds |
| 2,807 |
Total income |
| 69,152 |
|
|
|
Expenses | ||
Management fee | $ 23,887 | |
Performance adjustment | 7,271 | |
Transfer agent fees | 8,600 | |
Accounting and security lending fees | 630 | |
Custodian fees and expenses | 79 | |
Independent trustees' compensation | 30 | |
Registration fees | 82 | |
Audit | 52 | |
Legal | 29 | |
Miscellaneous | 43 | |
Total expenses before reductions | 40,703 | |
Expense reductions | (121) | 40,582 |
Net investment income (loss) | 28,570 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (24,323) | |
Other affiliated issuers | (3,205) |
|
Redemption in-kind with affiliated entities (including gain from Other affiliated issuers of $1,089) | 188,389 | |
Foreign currency transactions | (1,004) | |
Futures contracts | 1,226 | |
Total net realized gain (loss) |
| 161,083 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (554,941) | |
Assets and liabilities in foreign currencies | (61) | |
Total change in net unrealized appreciation (depreciation) |
| (555,002) |
Net gain (loss) | (393,919) | |
Net increase (decrease) in net assets resulting from operations | $ (365,349) |
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) | $ 28,570 | $ 43,819 |
Net realized gain (loss) | 161,083 | 802,201 |
Change in net unrealized appreciation (depreciation) | (555,002) | 997,707 |
Net increase (decrease) in net assets resulting | (365,349) | 1,843,727 |
Distributions to shareholders from net investment income | (42,120) | (51,737) |
Distributions to shareholders from net realized gain | (5,141) | (26,364) |
Total distributions | (47,261) | (78,101) |
Share transactions - net increase (decrease) | (1,520,392) | 91,677 |
Total increase (decrease) in net assets | (1,933,002) | 1,857,303 |
|
|
|
Net Assets | ||
Beginning of period | 9,942,715 | 8,085,412 |
End of period (including undistributed net investment income of $9,399 and undistributed net investment income of $22,949, respectively) | $ 8,009,713 | $ 9,942,715 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 | $ 29.50 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .12 | .13 G | .24 | .43 | .52 H |
Net realized and unrealized gain (loss) | (.98) | 5.23 | 3.63 | (4.01) | (5.08) | 3.98 |
Total from investment operations | (.90) | 5.35 | 3.76 | (3.77) | (4.65) | 4.50 |
Distributions from net investment income | (.12) | (.15) | (.12) | (.37) | (.45) | (.45) |
Distributions from net realized gain | (.02) | (.08) | (.05) | (1.01) | (2.23) | (.82) |
Total distributions | (.14) | (.23) | (.17) | (1.38) K | (2.68) | (1.27) |
Net asset value, end of period | $ 27.92 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 |
Total Return B, C | (3.07)% | 22.57% | 18.59% | (15.33)% | (15.45)% | 15.62% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .97% A | .93% | .93% | .62% | .64% | .61% |
Expenses net of fee waivers, if any | .97% A | .93% | .93% | .62% | .64% | .61% |
Expenses net of all reductions | .96% A | .93% | .92% | .62% | .63% | .60% |
Net investment income (loss) | .66% A | .44% | .56% G | 1.34% | 1.47% | 1.62% H |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 7,097 | $ 9,309 | $ 7,730 | $ 6,603 | $ 9,502 | $ 16,265 |
Portfolio turnover rate F | 50% A, J | 67% | 85% | 177% | 52% | 36% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .11 | .17 | .18 G | .26 | .10 |
Net realized and unrealized gain (loss) | (1.00) | 5.22 | 3.63 | (4.00) | (2.41) |
Total from investment operations | (.89) | 5.39 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.17) | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.02) | (.08) | (.05) | (1.01) | - |
Total distributions | (.18) M | (.27) L | (.21) | (1.41) K | - |
Net asset value, end of period | $ 27.91 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B, C | (2.99)% | 22.79% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E, I |
|
|
|
| |
Expenses before reductions | .80% A | .78% | .72% | .40% | .47% A |
Expenses net of fee waivers, if any | .80% A | .78% | .72% | .40% | .47% A |
Expenses net of all reductions | .80% A | .77% | .71% | .39% | .47% A |
Net investment income (loss) | .82% A | .60% | .76% G | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 912,630 | $ 633,935 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 50% A, J | 67% | 85% | 177% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K 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.
L Total distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 per share.
M Total distributions of $.18 per share is comprised of distributions from net investment income of $.169 and distributions from net realized gain of $.015 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Dividend Growth and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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), market discount, equity-debt classifications, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,261,766 |
Gross unrealized depreciation | (581,626) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 680,140 |
|
|
Tax cost | $ 7,450,501 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2018 | $ (41,875) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily
Semiannual Report
5. Derivative Instruments - continued
Futures Contracts - continued
variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end, if any, is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end.
During the period the Fund recognized net realized gain (loss) of $1,226 related to its investment in futures contracts. This amount is included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $2,134,679 and $2,938,229, respectively.
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Dividend Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Dividend Growth | $ 8,417 | .21 |
Class K | 183 | .05 |
| $ 8,600 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $37 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The interest expense amounted to three hundred twenty-five dollars under the interfund lending program. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average |
Borrower | $ 11,847 | .33% |
Redemptions In-Kind. During the period, 26,569 shares of the Fund held by affiliated entities were redeemed for cash and securities, including accrued interest, with a value of $746,864. The net realized gain of $188,389 on securities delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 12: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Semiannual Report
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $3. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component income from Fidelity Central Funds. Total security lending income during the period amounted to $2,787, including $80 from securities loaned to FCM.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $121 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by one hundred forty-one dollars.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 37,592 | $ 48,547 |
Class K | 4,528 | 3,190 |
Total | $ 42,120 | $ 51,737 |
From net realized gain |
|
|
Dividend Growth | $ 4,761 | $ 25,105 |
Class K | 380 | 1,259 |
Total | $ 5,141 | $ 26,364 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Dividend Growth |
|
|
|
|
Shares sold | 17,462 | 76,617 | $ 448,018 | $ 2,092,410 |
Reinvestment of distributions | 1,596 | 2,707 | 40,357 | 68,380 |
Shares redeemed | (86,338) A | (82,166) | (2,286,596) A | (2,266,445) |
Net increase (decrease) | (67,280) | (2,842) | $ (1,798,221) | $ (105,655) |
Class K |
|
|
|
|
Shares sold | 14,321 | 11,524 | $ 368,714 | $ 323,383 |
Reinvestment of distributions | 194 | 175 | 4,908 | 4,449 |
Shares redeemed | (3,694) | (4,720) | (95,793) | (130,500) |
Net increase (decrease) | 10,821 | 6,979 | $ 277,829 | $ 197,332 |
A Amount includes in-kind redemptions (see Note 7: Redemptions in-kind).
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
DGF-K-USAN-0312 1.863067.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.fidelity.advisor.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Growth & Income | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,033.50 | $ 3.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.47 | $ 3.71 |
Class K | .55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.40 | $ 2.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.37 | $ 2.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.1 | 3.6 |
JPMorgan Chase & Co. | 3.6 | 3.3 |
Chevron Corp. | 3.5 | 3.8 |
Wells Fargo & Co. | 3.5 | 3.9 |
Exxon Mobil Corp. | 3.2 | 3.6 |
General Electric Co. | 2.2 | 1.3 |
Merck & Co., Inc. | 1.8 | 1.8 |
Procter & Gamble Co. | 1.7 | 1.4 |
Google, Inc. Class A | 1.7 | 1.7 |
Microsoft Corp. | 1.7 | 1.2 |
| 27.0 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 18.5 | 17.6 |
Information Technology | 17.6 | 18.1 |
Consumer Discretionary | 13.7 | 13.2 |
Industrials | 13.6 | 12.6 |
Energy | 11.6 | 11.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 98.7% |
| ![]() | Stocks 98.7% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 13.4% |
| ** Foreign investments | 18.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 13.0% | |||
Auto Components - 0.2% | |||
Johnson Controls, Inc. | 411,467 | $ 13,072 | |
Automobiles - 0.2% | |||
Bayerische Motoren Werke AG (BMW) | 125,627 | 10,744 | |
Distributors - 0.4% | |||
Li & Fung Ltd. | 7,814,000 | 17,088 | |
LKQ Corp. (a) | 162,100 | 5,284 | |
| 22,372 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
Darden Restaurants, Inc. | 155,300 | 7,124 | |
McDonald's Corp. | 688,736 | 68,219 | |
Yum! Brands, Inc. | 518,796 | 32,855 | |
| 108,198 | ||
Household Durables - 1.6% | |||
D.R. Horton, Inc. | 1,447,471 | 20,149 | |
Lennar Corp. Class A | 141,100 | 3,032 | |
Newell Rubbermaid, Inc. | 374,248 | 6,912 | |
Ryland Group, Inc. | 1,300,205 | 23,664 | |
Toll Brothers, Inc. (a) | 1,380,026 | 30,098 | |
| 83,855 | ||
Leisure Equipment & Products - 0.4% | |||
Hasbro, Inc. | 548,489 | 19,148 | |
Media - 4.4% | |||
Comcast Corp. Class A | 3,077,400 | 81,828 | |
Informa PLC | 259,508 | 1,599 | |
Kabel Deutschland Holding AG (a) | 50,400 | 2,628 | |
Regal Entertainment Group Class A | 312,464 | 3,890 | |
The Walt Disney Co. | 596,573 | 23,207 | |
Time Warner Cable, Inc. | 313,924 | 23,142 | |
Time Warner, Inc. | 2,131,228 | 78,983 | |
Viacom, Inc. Class B (non-vtg.) | 377,518 | 17,758 | |
| 233,035 | ||
Multiline Retail - 1.5% | |||
Target Corp. | 1,562,390 | 79,385 | |
Specialty Retail - 2.2% | |||
Destination Maternity Corp. | 187,601 | 3,131 | |
Limited Brands, Inc. | 150,300 | 6,292 | |
Lowe's Companies, Inc. | 3,119,283 | 83,690 | |
Staples, Inc. | 1,472,928 | 21,549 | |
| 114,662 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
VF Corp. | 29,700 | $ 3,905 | |
TOTAL CONSUMER DISCRETIONARY | 688,376 | ||
CONSUMER STAPLES - 11.0% | |||
Beverages - 3.6% | |||
Dr Pepper Snapple Group, Inc. | 858,825 | 33,340 | |
Molson Coors Brewing Co. Class B | 119,997 | 5,147 | |
PepsiCo, Inc. | 1,193,319 | 78,365 | |
The Coca-Cola Co. | 1,071,954 | 72,389 | |
| 189,241 | ||
Food & Staples Retailing - 1.2% | |||
CVS Caremark Corp. | 632,404 | 26,403 | |
Sysco Corp. | 607,047 | 18,278 | |
Walgreen Co. | 635,250 | 21,192 | |
| 65,873 | ||
Food Products - 0.7% | |||
Danone | 568,877 | 35,109 | |
Household Products - 3.6% | |||
Colgate-Palmolive Co. | 352,556 | 31,984 | |
Kimberly-Clark Corp. | 949,744 | 67,964 | |
Procter & Gamble Co. | 1,464,771 | 92,339 | |
WD-40 Co. | 37,154 | 1,625 | |
| 193,912 | ||
Tobacco - 1.9% | |||
British American Tobacco PLC sponsored ADR | 687,832 | 63,425 | |
Lorillard, Inc. | 367,859 | 39,504 | |
| 102,929 | ||
TOTAL CONSUMER STAPLES | 587,064 | ||
ENERGY - 11.6% | |||
Energy Equipment & Services - 1.2% | |||
BW Offshore Ltd. | 717,255 | 1,083 | |
Exterran Partners LP | 443,457 | 10,359 | |
Halliburton Co. | 971,102 | 35,717 | |
Helmerich & Payne, Inc. | 97,434 | 6,013 | |
Schlumberger Ltd. | 144,700 | 10,877 | |
| 64,049 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - 10.4% | |||
ARC Resources Ltd. | 425,700 | $ 10,320 | |
Atlas Pipeline Partners, LP | 293,700 | 11,017 | |
Bonavista Energy Corp. (e) | 220,600 | 4,981 | |
Chevron Corp. | 1,825,816 | 188,205 | |
EXCO Resources, Inc. | 558,600 | 4,391 | |
Exxon Mobil Corp. | 2,029,376 | 169,940 | |
Inergy LP | 192,100 | 3,621 | |
Inergy Midstream LP | 276,157 | 5,628 | |
Legacy Reserves LP | 219,830 | 6,232 | |
Occidental Petroleum Corp. | 130,300 | 13,000 | |
Penn West Petroleum Ltd. | 434,900 | 9,477 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 1,975,700 | 70,100 | |
Suncor Energy, Inc. | 1,120,700 | 38,603 | |
Talisman Energy, Inc. | 354,700 | 4,238 | |
Williams Companies, Inc. | 468,129 | 13,491 | |
| 553,244 | ||
TOTAL ENERGY | 617,293 | ||
FINANCIALS - 18.4% | |||
Capital Markets - 3.9% | |||
Apollo Global Management LLC Class A | 455,303 | 6,775 | |
Ashmore Group PLC | 3,569,978 | 20,896 | |
BlackRock, Inc. Class A | 49,995 | 9,099 | |
Charles Schwab Corp. | 2,211,639 | 25,766 | |
Goldman Sachs Group, Inc. | 129,048 | 14,385 | |
Greenhill & Co., Inc. | 75,500 | 3,515 | |
KKR & Co. LP | 1,577,184 | 22,049 | |
Morgan Stanley | 1,785,103 | 33,292 | |
Northern Trust Corp. | 570,705 | 23,519 | |
State Street Corp. | 267,347 | 10,475 | |
T. Rowe Price Group, Inc. | 281,178 | 16,263 | |
The Blackstone Group LP | 1,101,217 | 17,410 | |
UBS AG (NY Shares) (a) | 449,500 | 6,109 | |
| 209,553 | ||
Commercial Banks - 7.3% | |||
Bank of Montreal | 60,400 | 3,511 | |
BB&T Corp. | 1,988,098 | 54,056 | |
City National Corp. | 132,933 | 6,099 | |
Comerica, Inc. | 146,971 | 4,067 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
DBS Group Holdings Ltd. | 258,164 | $ 2,781 | |
First Niagara Financial Group, Inc. | 899,563 | 8,609 | |
HSBC Holdings PLC sponsored ADR | 98,600 | 4,124 | |
Regions Financial Corp. | 821,652 | 4,289 | |
Standard Chartered PLC (United Kingdom) | 658,646 | 15,923 | |
SunTrust Banks, Inc. | 1,506,418 | 30,987 | |
U.S. Bancorp | 2,414,012 | 68,123 | |
Wells Fargo & Co. | 6,343,420 | 185,291 | |
| 387,860 | ||
Diversified Financial Services - 5.2% | |||
Citigroup, Inc. | 1,648,164 | 50,632 | |
CME Group, Inc. | 25,404 | 6,085 | |
JPMorgan Chase & Co. | 5,070,495 | 189,129 | |
KKR Financial Holdings LLC | 3,533,118 | 31,268 | |
| 277,114 | ||
Insurance - 0.8% | |||
Euler Hermes SA | 79,649 | 5,267 | |
Lincoln National Corp. | 215,300 | 4,638 | |
MetLife, Inc. | 303,600 | 10,726 | |
MetLife, Inc. unit | 278,800 | 19,059 | |
| 39,690 | ||
Real Estate Investment Trusts - 1.2% | |||
American Capital Agency Corp. | 226,000 | 6,626 | |
CBL & Associates Properties, Inc. | 1,212,196 | 21,056 | |
Education Realty Trust, Inc. | 264,400 | 2,829 | |
Public Storage | 122,566 | 17,020 | |
Rayonier, Inc. | 69,700 | 3,187 | |
Sun Communities, Inc. | 176,859 | 7,094 | |
Ventas, Inc. | 77,300 | 4,507 | |
| 62,319 | ||
Thrifts & Mortgage Finance - 0.0% | |||
MGIC Investment Corp. (a) | 23,678 | 90 | |
Radian Group, Inc. | 680,837 | 1,872 | |
| 1,962 | ||
TOTAL FINANCIALS | 978,498 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 10.1% | |||
Biotechnology - 1.2% | |||
Amgen, Inc. | 866,216 | $ 58,825 | |
ARIAD Pharmaceuticals, Inc. (a) | 463,781 | 6,841 | |
| 65,666 | ||
Health Care Equipment & Supplies - 0.2% | |||
Baxter International, Inc. | 38,300 | 2,125 | |
Meridian Bioscience, Inc. | 258,122 | 4,502 | |
St. Jude Medical, Inc. | 152,200 | 6,348 | |
| 12,975 | ||
Health Care Providers & Services - 2.1% | |||
Aetna, Inc. | 297,573 | 13,004 | |
Brookdale Senior Living, Inc. (a) | 768,800 | 13,531 | |
Express Scripts, Inc. (a) | 86,014 | 4,400 | |
McKesson Corp. | 562,754 | 45,988 | |
Medco Health Solutions, Inc. (a) | 161,475 | 10,015 | |
Quest Diagnostics, Inc. | 8,900 | 517 | |
WellPoint, Inc. | 407,490 | 26,210 | |
| 113,665 | ||
Life Sciences Tools & Services - 0.2% | |||
QIAGEN NV (a) | 488,108 | 7,898 | |
Pharmaceuticals - 6.4% | |||
Abbott Laboratories | 682,427 | 36,953 | |
Cardiome Pharma Corp. (a) | 806,400 | 1,911 | |
Eli Lilly & Co. | 108,300 | 4,304 | |
GlaxoSmithKline PLC sponsored ADR | 1,035,654 | 46,128 | |
Johnson & Johnson | 791,208 | 52,149 | |
Merck & Co., Inc. | 2,550,779 | 97,593 | |
Pfizer, Inc. | 3,319,900 | 71,046 | |
Roche Holding AG (participation certificate) | 107,573 | 18,212 | |
Sanofi-aventis | 137,828 | 10,218 | |
| 338,514 | ||
TOTAL HEALTH CARE | 538,718 | ||
INDUSTRIALS - 13.6% | |||
Aerospace & Defense - 3.7% | |||
Honeywell International, Inc. | 678,732 | 39,394 | |
MTU Aero Engines Holdings AG | 65,087 | 4,538 | |
Raytheon Co. | 398,837 | 19,140 | |
Rockwell Collins, Inc. | 676,896 | 39,186 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
The Boeing Co. | 565,900 | $ 41,978 | |
United Technologies Corp. | 661,400 | 51,821 | |
| 196,057 | ||
Air Freight & Logistics - 0.9% | |||
C.H. Robinson Worldwide, Inc. | 133,726 | 9,206 | |
United Parcel Service, Inc. Class B | 495,882 | 37,513 | |
| 46,719 | ||
Building Products - 0.9% | |||
Lennox International, Inc. | 447,134 | 16,186 | |
Owens Corning (a) | 915,361 | 30,893 | |
| 47,079 | ||
Commercial Services & Supplies - 0.6% | |||
Healthcare Services Group, Inc. | 284,215 | 5,312 | |
Interface, Inc. Class A | 277,200 | 3,684 | |
Intrum Justitia AB | 109,000 | 1,719 | |
Republic Services, Inc. | 569,036 | 16,661 | |
Ritchie Brothers Auctioneers, Inc. (d) | 213,400 | 5,026 | |
US Ecology, Inc. | 84,935 | 1,590 | |
| 33,992 | ||
Electrical Equipment - 0.8% | |||
Acuity Brands, Inc. | 38,000 | 2,213 | |
Emerson Electric Co. | 736,055 | 37,819 | |
Zumtobel AG | 127,357 | 2,315 | |
| 42,347 | ||
Industrial Conglomerates - 4.2% | |||
3M Co. | 71,076 | 6,163 | |
Danaher Corp. | 718,400 | 37,723 | |
General Electric Co. | 6,244,904 | 116,842 | |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 2,874,421 | 58,236 | |
Siemens AG (d) | 59,292 | 5,599 | |
| 224,563 | ||
Machinery - 1.3% | |||
Douglas Dynamics, Inc. | 713,320 | 9,708 | |
Graco, Inc. | 152,143 | 6,996 | |
Illinois Tool Works, Inc. | 168,850 | 8,954 | |
Ingersoll-Rand PLC | 805,375 | 28,140 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
PACCAR, Inc. | 187,894 | $ 8,305 | |
Pfeiffer Vacuum Technology AG | 39,466 | 4,059 | |
| 66,162 | ||
Professional Services - 0.9% | |||
Bureau Veritas SA | 251,895 | 18,473 | |
Michael Page International PLC | 3,408,548 | 20,902 | |
Robert Half International, Inc. | 345,438 | 9,565 | |
| 48,940 | ||
Road & Rail - 0.0% | |||
J.B. Hunt Transport Services, Inc. | 21,900 | 1,118 | |
Trading Companies & Distributors - 0.3% | |||
Watsco, Inc. | 206,606 | 14,250 | |
TOTAL INDUSTRIALS | 721,227 | ||
INFORMATION TECHNOLOGY - 17.6% | |||
Communications Equipment - 2.0% | |||
Cisco Systems, Inc. | 3,576,794 | 70,212 | |
Juniper Networks, Inc. (a) | 836,977 | 17,518 | |
QUALCOMM, Inc. | 360,102 | 21,181 | |
| 108,911 | ||
Computers & Peripherals - 5.5% | |||
Apple, Inc. (a) | 478,290 | 218,325 | |
EMC Corp. (a) | 1,427,700 | 36,778 | |
Hewlett-Packard Co. | 1,284,120 | 35,930 | |
| 291,033 | ||
Electronic Equipment & Components - 0.3% | |||
Coretronic Corp. | 7,654,000 | 6,466 | |
Everlight Electronics Co. Ltd. | 3,600,000 | 6,885 | |
Premier Farnell PLC | 1,244,679 | 4,057 | |
| 17,408 | ||
Internet Software & Services - 1.7% | |||
Google, Inc. Class A (a) | 156,293 | 90,667 | |
IT Services - 5.2% | |||
Accenture PLC Class A | 203,010 | 11,641 | |
Cognizant Technology Solutions Corp. Class A (a) | 293,150 | 21,034 | |
Fidelity National Information Services, Inc. | 898,157 | 25,651 | |
International Business Machines Corp. | 209,300 | 40,311 | |
MasterCard, Inc. Class A | 148,450 | 52,784 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Paychex, Inc. | 2,294,871 | $ 72,288 | |
The Western Union Co. | 234,691 | 4,483 | |
Visa, Inc. Class A | 466,113 | 46,910 | |
| 275,102 | ||
Semiconductors & Semiconductor Equipment - 0.4% | |||
Siliconware Precision Industries Co. Ltd. sponsored ADR | 2,478,921 | 14,006 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 522,938 | 7,363 | |
| 21,369 | ||
Software - 2.5% | |||
ANSYS, Inc. (a) | 86,600 | 5,238 | |
Microsoft Corp. | 3,010,196 | 88,891 | |
Oracle Corp. | 836,190 | 23,581 | |
Royalblue Group PLC | 130,986 | 3,425 | |
Solera Holdings, Inc. | 230,953 | 11,033 | |
| 132,168 | ||
TOTAL INFORMATION TECHNOLOGY | 936,658 | ||
MATERIALS - 0.5% | |||
Chemicals - 0.3% | |||
Air Products & Chemicals, Inc. | 96,056 | 8,456 | |
E.I. du Pont de Nemours & Co. | 164,960 | 8,395 | |
Rentech Nitrogen Partners LP | 26,231 | 600 | |
| 17,451 | ||
Metals & Mining - 0.2% | |||
Nucor Corp. | 217,800 | 9,690 | |
TOTAL MATERIALS | 27,141 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.4% | |||
CenturyLink, Inc. | 310,520 | 11,499 | |
Koninklijke KPN NV | 1,053,918 | 11,552 | |
| 23,051 | ||
Wireless Telecommunication Services - 0.1% | |||
NTELOS Holdings Corp. | 118,789 | 2,712 | |
TOTAL TELECOMMUNICATION SERVICES | 25,763 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 1.8% | |||
Electric Utilities - 0.7% | |||
American Electric Power Co., Inc. | 207,862 | $ 8,223 | |
Exelon Corp. | 65,100 | 2,590 | |
FirstEnergy Corp. | 85,261 | 3,600 | |
NextEra Energy, Inc. | 156,768 | 9,383 | |
PPL Corp. | 450,453 | 12,518 | |
| 36,314 | ||
Gas Utilities - 0.2% | |||
National Fuel Gas Co. | 175,515 | 8,825 | |
ONEOK, Inc. | 60,195 | 5,006 | |
| 13,831 | ||
Multi-Utilities - 0.9% | |||
National Grid PLC | 3,685,874 | 36,708 | |
TECO Energy, Inc. | 525,548 | 9,486 | |
| 46,194 | ||
TOTAL UTILITIES | 96,339 | ||
TOTAL COMMON STOCKS (Cost $4,995,332) |
| ||
Preferred Stocks - 1.3% | |||
|
|
|
|
Convertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
General Motors Co. 4.75% | 91,700 | 3,674 | |
HEALTH CARE - 0.5% | |||
Health Care Equipment & Supplies - 0.5% | |||
Alere, Inc. 3.00% | 124,041 | 27,485 | |
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 8.75% | 111,300 | 5,840 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 36,999 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.6% | |||
CONSUMER DISCRETIONARY - 0.6% | |||
Automobiles - 0.6% | |||
Volkswagen AG | 174,975 | $ 30,976 | |
TOTAL PREFERRED STOCKS (Cost $71,118) |
|
Corporate Bonds - 0.4% | ||||
| Principal |
| ||
Convertible Bonds - 0.3% | ||||
HEALTH CARE - 0.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
HeartWare International, Inc. 3.5% 12/15/17 | $ 3,980 | 4,139 | ||
Integra LifeSciences Holdings Corp. 1.625% 12/15/16 (e) | 11,790 | 10,132 | ||
| 14,271 | |||
Life Sciences Tools & Services - 0.0% | ||||
Illumina, Inc. 0.25% 3/15/16 (e) | 3,790 | 3,610 | ||
TOTAL HEALTH CARE | 17,881 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
Radian Group, Inc. 5.625% 2/15/13 | 4,900 | 3,602 | ||
TOTAL CORPORATE BONDS (Cost $20,275) |
|
Money Market Funds - 0.0% | |||
Shares | Value (000s) | ||
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,597,500 | $ 3,598 | |
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $5,090,323) | 5,310,133 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 8,122 | ||
NET ASSETS - 100% | $ 5,318,255 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $18,723,000 or 0.4% 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 | $ 9 |
Fidelity Securities Lending Cash Central Fund | 90 |
Total | $ 99 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 723,026 | $ 723,026 | $ - | $ - |
Consumer Staples | 587,064 | 587,064 | - | - |
Energy | 617,293 | 547,193 | 70,100 | - |
Financials | 978,498 | 959,439 | 19,059 | - |
Health Care | 566,203 | 555,985 | 10,218 | - |
Industrials | 721,227 | 715,628 | 5,599 | - |
Information Technology | 936,658 | 936,658 | - | - |
Materials | 27,141 | 27,141 | - | - |
Telecommunication Services | 25,763 | 25,763 | - | - |
Utilities | 102,179 | 59,631 | 42,548 | - |
Corporate Bonds | 21,483 | - | 21,483 | - |
Money Market Funds | 3,598 | 3,598 | - | - |
Total Investments in Securities: | $ 5,310,133 | $ 5,141,126 | $ 169,007 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.6% |
United Kingdom | 5.5% |
Canada | 1.5% |
Netherlands | 1.5% |
France | 1.3% |
Germany | 1.2% |
Others (Individually Less Than 1%) | 2.4% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,408) - See accompanying schedule: Unaffiliated issuers (cost $5,086,725) | $ 5,306,535 |
|
Fidelity Central Funds (cost $3,598) | 3,598 |
|
Total Investments (cost $5,090,323) |
| $ 5,310,133 |
Receivable for investments sold | 54,100 | |
Receivable for fund shares sold | 26,845 | |
Dividends receivable | 4,772 | |
Interest receivable | 171 | |
Distributions receivable from Fidelity Central Funds | 16 | |
Prepaid expenses | 12 | |
Other receivables | 610 | |
Total assets | 5,396,659 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 1,516 | |
Payable for investments purchased | 63,754 | |
Payable for fund shares redeemed | 5,874 | |
Accrued management fee | 2,016 | |
Other affiliated payables | 1,009 | |
Other payables and accrued expenses | 637 | |
Collateral on securities loaned, at value | 3,598 | |
Total liabilities | 78,404 | |
|
|
|
Net Assets | $ 5,318,255 | |
Net Assets consist of: |
| |
Paid in capital | $ 9,985,470 | |
Undistributed net investment income | 1,236 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,888,308) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 219,857 | |
Net Assets | $ 5,318,255 |
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, 2012 (Unaudited) | |
|
|
|
Growth & Income: | $ 19.01 | |
|
|
|
Class K: | $ 19.00 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 61,422 |
Interest |
| 447 |
Income from Fidelity Central Funds |
| 99 |
Total income |
| 61,968 |
|
|
|
Expenses | ||
Management fee | $ 11,503 | |
Transfer agent fees | 5,469 | |
Accounting and security lending fees | 544 | |
Custodian fees and expenses | 111 | |
Independent trustees' compensation | 18 | |
Registration fees | 31 | |
Audit | 43 | |
Legal | 42 | |
Interest | 1 | |
Miscellaneous | 95 | |
Total expenses before reductions | 17,857 | |
Net investment income (loss) | 44,111 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (22,699) | |
Foreign currency transactions | (161) | |
Total net realized gain (loss) |
| (22,860) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 134,371 | |
Assets and liabilities in foreign currencies | (77) | |
Total change in net unrealized appreciation (depreciation) |
| 134,294 |
Net gain (loss) | 111,434 | |
Net increase (decrease) in net assets resulting from operations | $ 155,545 |
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) | $ 44,111 | $ 66,618 |
Net realized gain (loss) | (22,860) | 1,411,621 |
Change in net unrealized appreciation (depreciation) | 134,294 | (422,767) |
Net increase (decrease) in net assets resulting | 155,545 | 1,055,472 |
Distributions to shareholders from net investment income | (46,735) | (61,849) |
Distributions to shareholders from net realized gain | (2,799) | - |
Total distributions | (49,534) | (61,849) |
Share transactions - net increase (decrease) | (243,266) | (1,247,529) |
Total increase (decrease) in net assets | (137,255) | (253,906) |
|
|
|
Net Assets | ||
Beginning of period | 5,455,510 | 5,709,416 |
End of period (including undistributed net investment income of $1,236 and undistributed net investment income of $3,860, respectively) | $ 5,318,255 | $ 5,455,510 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .15 | .20 | .10 | .15 | .35 | .27 |
Net realized and unrealized gain (loss) | .45 | 2.82 | 1.37 | (7.43) | (6.25) | 3.84 |
Total from investment operations | .60 | 3.02 | 1.47 | (7.28) | (5.90) | 4.11 |
Distributions from net investment income | (.16) | (.19) | (.10) | (.19) | (.33) | (.27) |
Distributions from net realized gain | (.01) | - | (.01) | (.03) | (3.81) | (6.08) |
Total distributions | (.17) | (.19) | (.10) H | (.22) | (4.14) | (6.35) |
Net asset value, end of period | $ 19.01 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 |
Total Return B, C | 3.35% | 19.16% | 10.25% | (33.32)% | (20.91)% | 14.28% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .73% A | .72% | .75% | .78% | .68% | .68% |
Expenses net of fee waivers, if any | .73% A | .72% | .75% | .78% | .68% | .68% |
Expenses net of all reductions | .73% A | .71% | .74% | .78% | .67% | .67% |
Net investment income (loss) | 1.75% A | 1.09% | .63% | 1.07% | 1.29% | .84% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 4,834 | $ 5,052 | $ 5,417 | $ 5,993 | $ 12,552 | $ 22,693 |
Portfolio turnover rate F | 62% A | 129% | 98% | 122% | 52% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.10 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.008 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .17 | .23 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | .45 | 2.82 | 1.37 | (7.40) | (3.45) |
Total from investment operations | .62 | 3.05 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.18) | (.22) | (.13) | (.23) | (.10) |
Distributions from net realized gain | (.01) | - | (.01) | (.03) | - |
Total distributions | (.19) | (.22) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 19.00 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B, C | 3.44% | 19.40% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .55% A | .54% | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .55% A | .54% | .54% | .56% | .55% A |
Expenses net of all reductions | .55% A | .53% | .53% | .55% | .55% A |
Net investment income (loss) | 1.93% A | 1.27% | .84% | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 484,063 | $ 403,452 | $ 292,021 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 62% A | 129% | 98% | 122% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.14 per share is comprised of distributions from net investment income of $.129 and distributions from net realized gain of $.008 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth & Income and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 483,543 |
Gross unrealized depreciation | (296,902) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 186,641 |
|
|
Tax cost | $ 5,123,492 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
|
|
2017 | $ (1,660,464) |
2018 | (3,168,341) |
Total capital loss carryforward | $ (4,828,805) |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,589,897 and $1,816,955, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Growth & Income | $ 5,430 | .23 |
Class K | 111 | .05 |
| $ 5,541 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $61 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 Loan | Weighted Average | Interest |
Borrower | $ 6,984 | .36% | $ 1 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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
Semiannual Report
7. Committed Line of Credit - continued
amounted to $7 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $90. During the period, there were no securities loaned to FCM.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth & Income | $ 42,571 | $ 54,597 |
Class K | 4,164 | 7,252 |
Total | $ 46,735 | $ 61,849 |
From net realized gain |
|
|
Growth & Income | $ 2,563 | $ - |
Class K | 236 | - |
Total | $ 2,799 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Growth & Income |
|
|
|
|
Shares sold | 9,181 | 10,892 | $ 165,445 | $ 196,623 |
Reinvestment of distributions | 2,505 | 2,827 | 43,354 | 52,490 |
Shares redeemed | (29,293) | (85,823) | (519,531) | (1,509,810) |
Net increase (decrease) | (17,607) | (72,104) | $ (310,732) | $ (1,260,697) |
Class K |
|
|
|
|
Shares sold | 6,081 | 26,831 | $ 109,341 | $ 447,073 |
Reinvestment of distributions | 254 | 390 | 4,400 | 7,252 |
Shares redeemed | (2,583) | (24,047) | (46,275) | (441,157) |
Net increase (decrease) | 3,752 | 3,174 | $ 67,466 | $ 13,168 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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15445 N. Scottsdale Road
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17550 North 75th Avenue
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5330 E. Broadway Blvd
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Colorado
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Semiannual Report
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Semiannual Report
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Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.fidelity.advisor.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Growth & Income | .73% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,033.50 | $ 3.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.47 | $ 3.71 |
Class K | .55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.40 | $ 2.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.37 | $ 2.80 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 4.1 | 3.6 |
JPMorgan Chase & Co. | 3.6 | 3.3 |
Chevron Corp. | 3.5 | 3.8 |
Wells Fargo & Co. | 3.5 | 3.9 |
Exxon Mobil Corp. | 3.2 | 3.6 |
General Electric Co. | 2.2 | 1.3 |
Merck & Co., Inc. | 1.8 | 1.8 |
Procter & Gamble Co. | 1.7 | 1.4 |
Google, Inc. Class A | 1.7 | 1.7 |
Microsoft Corp. | 1.7 | 1.2 |
| 27.0 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 18.5 | 17.6 |
Information Technology | 17.6 | 18.1 |
Consumer Discretionary | 13.7 | 13.2 |
Industrials | 13.6 | 12.6 |
Energy | 11.6 | 11.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 98.7% |
| ![]() | Stocks 98.7% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 13.4% |
| ** Foreign investments | 18.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 13.0% | |||
Auto Components - 0.2% | |||
Johnson Controls, Inc. | 411,467 | $ 13,072 | |
Automobiles - 0.2% | |||
Bayerische Motoren Werke AG (BMW) | 125,627 | 10,744 | |
Distributors - 0.4% | |||
Li & Fung Ltd. | 7,814,000 | 17,088 | |
LKQ Corp. (a) | 162,100 | 5,284 | |
| 22,372 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
Darden Restaurants, Inc. | 155,300 | 7,124 | |
McDonald's Corp. | 688,736 | 68,219 | |
Yum! Brands, Inc. | 518,796 | 32,855 | |
| 108,198 | ||
Household Durables - 1.6% | |||
D.R. Horton, Inc. | 1,447,471 | 20,149 | |
Lennar Corp. Class A | 141,100 | 3,032 | |
Newell Rubbermaid, Inc. | 374,248 | 6,912 | |
Ryland Group, Inc. | 1,300,205 | 23,664 | |
Toll Brothers, Inc. (a) | 1,380,026 | 30,098 | |
| 83,855 | ||
Leisure Equipment & Products - 0.4% | |||
Hasbro, Inc. | 548,489 | 19,148 | |
Media - 4.4% | |||
Comcast Corp. Class A | 3,077,400 | 81,828 | |
Informa PLC | 259,508 | 1,599 | |
Kabel Deutschland Holding AG (a) | 50,400 | 2,628 | |
Regal Entertainment Group Class A | 312,464 | 3,890 | |
The Walt Disney Co. | 596,573 | 23,207 | |
Time Warner Cable, Inc. | 313,924 | 23,142 | |
Time Warner, Inc. | 2,131,228 | 78,983 | |
Viacom, Inc. Class B (non-vtg.) | 377,518 | 17,758 | |
| 233,035 | ||
Multiline Retail - 1.5% | |||
Target Corp. | 1,562,390 | 79,385 | |
Specialty Retail - 2.2% | |||
Destination Maternity Corp. | 187,601 | 3,131 | |
Limited Brands, Inc. | 150,300 | 6,292 | |
Lowe's Companies, Inc. | 3,119,283 | 83,690 | |
Staples, Inc. | 1,472,928 | 21,549 | |
| 114,662 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
VF Corp. | 29,700 | $ 3,905 | |
TOTAL CONSUMER DISCRETIONARY | 688,376 | ||
CONSUMER STAPLES - 11.0% | |||
Beverages - 3.6% | |||
Dr Pepper Snapple Group, Inc. | 858,825 | 33,340 | |
Molson Coors Brewing Co. Class B | 119,997 | 5,147 | |
PepsiCo, Inc. | 1,193,319 | 78,365 | |
The Coca-Cola Co. | 1,071,954 | 72,389 | |
| 189,241 | ||
Food & Staples Retailing - 1.2% | |||
CVS Caremark Corp. | 632,404 | 26,403 | |
Sysco Corp. | 607,047 | 18,278 | |
Walgreen Co. | 635,250 | 21,192 | |
| 65,873 | ||
Food Products - 0.7% | |||
Danone | 568,877 | 35,109 | |
Household Products - 3.6% | |||
Colgate-Palmolive Co. | 352,556 | 31,984 | |
Kimberly-Clark Corp. | 949,744 | 67,964 | |
Procter & Gamble Co. | 1,464,771 | 92,339 | |
WD-40 Co. | 37,154 | 1,625 | |
| 193,912 | ||
Tobacco - 1.9% | |||
British American Tobacco PLC sponsored ADR | 687,832 | 63,425 | |
Lorillard, Inc. | 367,859 | 39,504 | |
| 102,929 | ||
TOTAL CONSUMER STAPLES | 587,064 | ||
ENERGY - 11.6% | |||
Energy Equipment & Services - 1.2% | |||
BW Offshore Ltd. | 717,255 | 1,083 | |
Exterran Partners LP | 443,457 | 10,359 | |
Halliburton Co. | 971,102 | 35,717 | |
Helmerich & Payne, Inc. | 97,434 | 6,013 | |
Schlumberger Ltd. | 144,700 | 10,877 | |
| 64,049 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - 10.4% | |||
ARC Resources Ltd. | 425,700 | $ 10,320 | |
Atlas Pipeline Partners, LP | 293,700 | 11,017 | |
Bonavista Energy Corp. (e) | 220,600 | 4,981 | |
Chevron Corp. | 1,825,816 | 188,205 | |
EXCO Resources, Inc. | 558,600 | 4,391 | |
Exxon Mobil Corp. | 2,029,376 | 169,940 | |
Inergy LP | 192,100 | 3,621 | |
Inergy Midstream LP | 276,157 | 5,628 | |
Legacy Reserves LP | 219,830 | 6,232 | |
Occidental Petroleum Corp. | 130,300 | 13,000 | |
Penn West Petroleum Ltd. | 434,900 | 9,477 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 1,975,700 | 70,100 | |
Suncor Energy, Inc. | 1,120,700 | 38,603 | |
Talisman Energy, Inc. | 354,700 | 4,238 | |
Williams Companies, Inc. | 468,129 | 13,491 | |
| 553,244 | ||
TOTAL ENERGY | 617,293 | ||
FINANCIALS - 18.4% | |||
Capital Markets - 3.9% | |||
Apollo Global Management LLC Class A | 455,303 | 6,775 | |
Ashmore Group PLC | 3,569,978 | 20,896 | |
BlackRock, Inc. Class A | 49,995 | 9,099 | |
Charles Schwab Corp. | 2,211,639 | 25,766 | |
Goldman Sachs Group, Inc. | 129,048 | 14,385 | |
Greenhill & Co., Inc. | 75,500 | 3,515 | |
KKR & Co. LP | 1,577,184 | 22,049 | |
Morgan Stanley | 1,785,103 | 33,292 | |
Northern Trust Corp. | 570,705 | 23,519 | |
State Street Corp. | 267,347 | 10,475 | |
T. Rowe Price Group, Inc. | 281,178 | 16,263 | |
The Blackstone Group LP | 1,101,217 | 17,410 | |
UBS AG (NY Shares) (a) | 449,500 | 6,109 | |
| 209,553 | ||
Commercial Banks - 7.3% | |||
Bank of Montreal | 60,400 | 3,511 | |
BB&T Corp. | 1,988,098 | 54,056 | |
City National Corp. | 132,933 | 6,099 | |
Comerica, Inc. | 146,971 | 4,067 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
DBS Group Holdings Ltd. | 258,164 | $ 2,781 | |
First Niagara Financial Group, Inc. | 899,563 | 8,609 | |
HSBC Holdings PLC sponsored ADR | 98,600 | 4,124 | |
Regions Financial Corp. | 821,652 | 4,289 | |
Standard Chartered PLC (United Kingdom) | 658,646 | 15,923 | |
SunTrust Banks, Inc. | 1,506,418 | 30,987 | |
U.S. Bancorp | 2,414,012 | 68,123 | |
Wells Fargo & Co. | 6,343,420 | 185,291 | |
| 387,860 | ||
Diversified Financial Services - 5.2% | |||
Citigroup, Inc. | 1,648,164 | 50,632 | |
CME Group, Inc. | 25,404 | 6,085 | |
JPMorgan Chase & Co. | 5,070,495 | 189,129 | |
KKR Financial Holdings LLC | 3,533,118 | 31,268 | |
| 277,114 | ||
Insurance - 0.8% | |||
Euler Hermes SA | 79,649 | 5,267 | |
Lincoln National Corp. | 215,300 | 4,638 | |
MetLife, Inc. | 303,600 | 10,726 | |
MetLife, Inc. unit | 278,800 | 19,059 | |
| 39,690 | ||
Real Estate Investment Trusts - 1.2% | |||
American Capital Agency Corp. | 226,000 | 6,626 | |
CBL & Associates Properties, Inc. | 1,212,196 | 21,056 | |
Education Realty Trust, Inc. | 264,400 | 2,829 | |
Public Storage | 122,566 | 17,020 | |
Rayonier, Inc. | 69,700 | 3,187 | |
Sun Communities, Inc. | 176,859 | 7,094 | |
Ventas, Inc. | 77,300 | 4,507 | |
| 62,319 | ||
Thrifts & Mortgage Finance - 0.0% | |||
MGIC Investment Corp. (a) | 23,678 | 90 | |
Radian Group, Inc. | 680,837 | 1,872 | |
| 1,962 | ||
TOTAL FINANCIALS | 978,498 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 10.1% | |||
Biotechnology - 1.2% | |||
Amgen, Inc. | 866,216 | $ 58,825 | |
ARIAD Pharmaceuticals, Inc. (a) | 463,781 | 6,841 | |
| 65,666 | ||
Health Care Equipment & Supplies - 0.2% | |||
Baxter International, Inc. | 38,300 | 2,125 | |
Meridian Bioscience, Inc. | 258,122 | 4,502 | |
St. Jude Medical, Inc. | 152,200 | 6,348 | |
| 12,975 | ||
Health Care Providers & Services - 2.1% | |||
Aetna, Inc. | 297,573 | 13,004 | |
Brookdale Senior Living, Inc. (a) | 768,800 | 13,531 | |
Express Scripts, Inc. (a) | 86,014 | 4,400 | |
McKesson Corp. | 562,754 | 45,988 | |
Medco Health Solutions, Inc. (a) | 161,475 | 10,015 | |
Quest Diagnostics, Inc. | 8,900 | 517 | |
WellPoint, Inc. | 407,490 | 26,210 | |
| 113,665 | ||
Life Sciences Tools & Services - 0.2% | |||
QIAGEN NV (a) | 488,108 | 7,898 | |
Pharmaceuticals - 6.4% | |||
Abbott Laboratories | 682,427 | 36,953 | |
Cardiome Pharma Corp. (a) | 806,400 | 1,911 | |
Eli Lilly & Co. | 108,300 | 4,304 | |
GlaxoSmithKline PLC sponsored ADR | 1,035,654 | 46,128 | |
Johnson & Johnson | 791,208 | 52,149 | |
Merck & Co., Inc. | 2,550,779 | 97,593 | |
Pfizer, Inc. | 3,319,900 | 71,046 | |
Roche Holding AG (participation certificate) | 107,573 | 18,212 | |
Sanofi-aventis | 137,828 | 10,218 | |
| 338,514 | ||
TOTAL HEALTH CARE | 538,718 | ||
INDUSTRIALS - 13.6% | |||
Aerospace & Defense - 3.7% | |||
Honeywell International, Inc. | 678,732 | 39,394 | |
MTU Aero Engines Holdings AG | 65,087 | 4,538 | |
Raytheon Co. | 398,837 | 19,140 | |
Rockwell Collins, Inc. | 676,896 | 39,186 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
The Boeing Co. | 565,900 | $ 41,978 | |
United Technologies Corp. | 661,400 | 51,821 | |
| 196,057 | ||
Air Freight & Logistics - 0.9% | |||
C.H. Robinson Worldwide, Inc. | 133,726 | 9,206 | |
United Parcel Service, Inc. Class B | 495,882 | 37,513 | |
| 46,719 | ||
Building Products - 0.9% | |||
Lennox International, Inc. | 447,134 | 16,186 | |
Owens Corning (a) | 915,361 | 30,893 | |
| 47,079 | ||
Commercial Services & Supplies - 0.6% | |||
Healthcare Services Group, Inc. | 284,215 | 5,312 | |
Interface, Inc. Class A | 277,200 | 3,684 | |
Intrum Justitia AB | 109,000 | 1,719 | |
Republic Services, Inc. | 569,036 | 16,661 | |
Ritchie Brothers Auctioneers, Inc. (d) | 213,400 | 5,026 | |
US Ecology, Inc. | 84,935 | 1,590 | |
| 33,992 | ||
Electrical Equipment - 0.8% | |||
Acuity Brands, Inc. | 38,000 | 2,213 | |
Emerson Electric Co. | 736,055 | 37,819 | |
Zumtobel AG | 127,357 | 2,315 | |
| 42,347 | ||
Industrial Conglomerates - 4.2% | |||
3M Co. | 71,076 | 6,163 | |
Danaher Corp. | 718,400 | 37,723 | |
General Electric Co. | 6,244,904 | 116,842 | |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 2,874,421 | 58,236 | |
Siemens AG (d) | 59,292 | 5,599 | |
| 224,563 | ||
Machinery - 1.3% | |||
Douglas Dynamics, Inc. | 713,320 | 9,708 | |
Graco, Inc. | 152,143 | 6,996 | |
Illinois Tool Works, Inc. | 168,850 | 8,954 | |
Ingersoll-Rand PLC | 805,375 | 28,140 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
PACCAR, Inc. | 187,894 | $ 8,305 | |
Pfeiffer Vacuum Technology AG | 39,466 | 4,059 | |
| 66,162 | ||
Professional Services - 0.9% | |||
Bureau Veritas SA | 251,895 | 18,473 | |
Michael Page International PLC | 3,408,548 | 20,902 | |
Robert Half International, Inc. | 345,438 | 9,565 | |
| 48,940 | ||
Road & Rail - 0.0% | |||
J.B. Hunt Transport Services, Inc. | 21,900 | 1,118 | |
Trading Companies & Distributors - 0.3% | |||
Watsco, Inc. | 206,606 | 14,250 | |
TOTAL INDUSTRIALS | 721,227 | ||
INFORMATION TECHNOLOGY - 17.6% | |||
Communications Equipment - 2.0% | |||
Cisco Systems, Inc. | 3,576,794 | 70,212 | |
Juniper Networks, Inc. (a) | 836,977 | 17,518 | |
QUALCOMM, Inc. | 360,102 | 21,181 | |
| 108,911 | ||
Computers & Peripherals - 5.5% | |||
Apple, Inc. (a) | 478,290 | 218,325 | |
EMC Corp. (a) | 1,427,700 | 36,778 | |
Hewlett-Packard Co. | 1,284,120 | 35,930 | |
| 291,033 | ||
Electronic Equipment & Components - 0.3% | |||
Coretronic Corp. | 7,654,000 | 6,466 | |
Everlight Electronics Co. Ltd. | 3,600,000 | 6,885 | |
Premier Farnell PLC | 1,244,679 | 4,057 | |
| 17,408 | ||
Internet Software & Services - 1.7% | |||
Google, Inc. Class A (a) | 156,293 | 90,667 | |
IT Services - 5.2% | |||
Accenture PLC Class A | 203,010 | 11,641 | |
Cognizant Technology Solutions Corp. Class A (a) | 293,150 | 21,034 | |
Fidelity National Information Services, Inc. | 898,157 | 25,651 | |
International Business Machines Corp. | 209,300 | 40,311 | |
MasterCard, Inc. Class A | 148,450 | 52,784 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Paychex, Inc. | 2,294,871 | $ 72,288 | |
The Western Union Co. | 234,691 | 4,483 | |
Visa, Inc. Class A | 466,113 | 46,910 | |
| 275,102 | ||
Semiconductors & Semiconductor Equipment - 0.4% | |||
Siliconware Precision Industries Co. Ltd. sponsored ADR | 2,478,921 | 14,006 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 522,938 | 7,363 | |
| 21,369 | ||
Software - 2.5% | |||
ANSYS, Inc. (a) | 86,600 | 5,238 | |
Microsoft Corp. | 3,010,196 | 88,891 | |
Oracle Corp. | 836,190 | 23,581 | |
Royalblue Group PLC | 130,986 | 3,425 | |
Solera Holdings, Inc. | 230,953 | 11,033 | |
| 132,168 | ||
TOTAL INFORMATION TECHNOLOGY | 936,658 | ||
MATERIALS - 0.5% | |||
Chemicals - 0.3% | |||
Air Products & Chemicals, Inc. | 96,056 | 8,456 | |
E.I. du Pont de Nemours & Co. | 164,960 | 8,395 | |
Rentech Nitrogen Partners LP | 26,231 | 600 | |
| 17,451 | ||
Metals & Mining - 0.2% | |||
Nucor Corp. | 217,800 | 9,690 | |
TOTAL MATERIALS | 27,141 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.4% | |||
CenturyLink, Inc. | 310,520 | 11,499 | |
Koninklijke KPN NV | 1,053,918 | 11,552 | |
| 23,051 | ||
Wireless Telecommunication Services - 0.1% | |||
NTELOS Holdings Corp. | 118,789 | 2,712 | |
TOTAL TELECOMMUNICATION SERVICES | 25,763 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 1.8% | |||
Electric Utilities - 0.7% | |||
American Electric Power Co., Inc. | 207,862 | $ 8,223 | |
Exelon Corp. | 65,100 | 2,590 | |
FirstEnergy Corp. | 85,261 | 3,600 | |
NextEra Energy, Inc. | 156,768 | 9,383 | |
PPL Corp. | 450,453 | 12,518 | |
| 36,314 | ||
Gas Utilities - 0.2% | |||
National Fuel Gas Co. | 175,515 | 8,825 | |
ONEOK, Inc. | 60,195 | 5,006 | |
| 13,831 | ||
Multi-Utilities - 0.9% | |||
National Grid PLC | 3,685,874 | 36,708 | |
TECO Energy, Inc. | 525,548 | 9,486 | |
| 46,194 | ||
TOTAL UTILITIES | 96,339 | ||
TOTAL COMMON STOCKS (Cost $4,995,332) |
| ||
Preferred Stocks - 1.3% | |||
|
|
|
|
Convertible Preferred Stocks - 0.7% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
General Motors Co. 4.75% | 91,700 | 3,674 | |
HEALTH CARE - 0.5% | |||
Health Care Equipment & Supplies - 0.5% | |||
Alere, Inc. 3.00% | 124,041 | 27,485 | |
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 8.75% | 111,300 | 5,840 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 36,999 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.6% | |||
CONSUMER DISCRETIONARY - 0.6% | |||
Automobiles - 0.6% | |||
Volkswagen AG | 174,975 | $ 30,976 | |
TOTAL PREFERRED STOCKS (Cost $71,118) |
|
Corporate Bonds - 0.4% | ||||
| Principal |
| ||
Convertible Bonds - 0.3% | ||||
HEALTH CARE - 0.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
HeartWare International, Inc. 3.5% 12/15/17 | $ 3,980 | 4,139 | ||
Integra LifeSciences Holdings Corp. 1.625% 12/15/16 (e) | 11,790 | 10,132 | ||
| 14,271 | |||
Life Sciences Tools & Services - 0.0% | ||||
Illumina, Inc. 0.25% 3/15/16 (e) | 3,790 | 3,610 | ||
TOTAL HEALTH CARE | 17,881 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
Radian Group, Inc. 5.625% 2/15/13 | 4,900 | 3,602 | ||
TOTAL CORPORATE BONDS (Cost $20,275) |
|
Money Market Funds - 0.0% | |||
Shares | Value (000s) | ||
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 3,597,500 | $ 3,598 | |
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $5,090,323) | 5,310,133 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 8,122 | ||
NET ASSETS - 100% | $ 5,318,255 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $18,723,000 or 0.4% 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 | $ 9 |
Fidelity Securities Lending Cash Central Fund | 90 |
Total | $ 99 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 723,026 | $ 723,026 | $ - | $ - |
Consumer Staples | 587,064 | 587,064 | - | - |
Energy | 617,293 | 547,193 | 70,100 | - |
Financials | 978,498 | 959,439 | 19,059 | - |
Health Care | 566,203 | 555,985 | 10,218 | - |
Industrials | 721,227 | 715,628 | 5,599 | - |
Information Technology | 936,658 | 936,658 | - | - |
Materials | 27,141 | 27,141 | - | - |
Telecommunication Services | 25,763 | 25,763 | - | - |
Utilities | 102,179 | 59,631 | 42,548 | - |
Corporate Bonds | 21,483 | - | 21,483 | - |
Money Market Funds | 3,598 | 3,598 | - | - |
Total Investments in Securities: | $ 5,310,133 | $ 5,141,126 | $ 169,007 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.6% |
United Kingdom | 5.5% |
Canada | 1.5% |
Netherlands | 1.5% |
France | 1.3% |
Germany | 1.2% |
Others (Individually Less Than 1%) | 2.4% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,408) - See accompanying schedule: Unaffiliated issuers (cost $5,086,725) | $ 5,306,535 |
|
Fidelity Central Funds (cost $3,598) | 3,598 |
|
Total Investments (cost $5,090,323) |
| $ 5,310,133 |
Receivable for investments sold | 54,100 | |
Receivable for fund shares sold | 26,845 | |
Dividends receivable | 4,772 | |
Interest receivable | 171 | |
Distributions receivable from Fidelity Central Funds | 16 | |
Prepaid expenses | 12 | |
Other receivables | 610 | |
Total assets | 5,396,659 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 1,516 | |
Payable for investments purchased | 63,754 | |
Payable for fund shares redeemed | 5,874 | |
Accrued management fee | 2,016 | |
Other affiliated payables | 1,009 | |
Other payables and accrued expenses | 637 | |
Collateral on securities loaned, at value | 3,598 | |
Total liabilities | 78,404 | |
|
|
|
Net Assets | $ 5,318,255 | |
Net Assets consist of: |
| |
Paid in capital | $ 9,985,470 | |
Undistributed net investment income | 1,236 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,888,308) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 219,857 | |
Net Assets | $ 5,318,255 |
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, 2012 (Unaudited) | |
|
|
|
Growth & Income: | $ 19.01 | |
|
|
|
Class K: | $ 19.00 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 61,422 |
Interest |
| 447 |
Income from Fidelity Central Funds |
| 99 |
Total income |
| 61,968 |
|
|
|
Expenses | ||
Management fee | $ 11,503 | |
Transfer agent fees | 5,469 | |
Accounting and security lending fees | 544 | |
Custodian fees and expenses | 111 | |
Independent trustees' compensation | 18 | |
Registration fees | 31 | |
Audit | 43 | |
Legal | 42 | |
Interest | 1 | |
Miscellaneous | 95 | |
Total expenses before reductions | 17,857 | |
Net investment income (loss) | 44,111 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (22,699) | |
Foreign currency transactions | (161) | |
Total net realized gain (loss) |
| (22,860) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 134,371 | |
Assets and liabilities in foreign currencies | (77) | |
Total change in net unrealized appreciation (depreciation) |
| 134,294 |
Net gain (loss) | 111,434 | |
Net increase (decrease) in net assets resulting from operations | $ 155,545 |
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) | $ 44,111 | $ 66,618 |
Net realized gain (loss) | (22,860) | 1,411,621 |
Change in net unrealized appreciation (depreciation) | 134,294 | (422,767) |
Net increase (decrease) in net assets resulting | 155,545 | 1,055,472 |
Distributions to shareholders from net investment income | (46,735) | (61,849) |
Distributions to shareholders from net realized gain | (2,799) | - |
Total distributions | (49,534) | (61,849) |
Share transactions - net increase (decrease) | (243,266) | (1,247,529) |
Total increase (decrease) in net assets | (137,255) | (253,906) |
|
|
|
Net Assets | ||
Beginning of period | 5,455,510 | 5,709,416 |
End of period (including undistributed net investment income of $1,236 and undistributed net investment income of $3,860, respectively) | $ 5,318,255 | $ 5,455,510 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 | $ 34.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .15 | .20 | .10 | .15 | .35 | .27 |
Net realized and unrealized gain (loss) | .45 | 2.82 | 1.37 | (7.43) | (6.25) | 3.84 |
Total from investment operations | .60 | 3.02 | 1.47 | (7.28) | (5.90) | 4.11 |
Distributions from net investment income | (.16) | (.19) | (.10) | (.19) | (.33) | (.27) |
Distributions from net realized gain | (.01) | - | (.01) | (.03) | (3.81) | (6.08) |
Total distributions | (.17) | (.19) | (.10) H | (.22) | (4.14) | (6.35) |
Net asset value, end of period | $ 19.01 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 |
Total Return B, C | 3.35% | 19.16% | 10.25% | (33.32)% | (20.91)% | 14.28% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .73% A | .72% | .75% | .78% | .68% | .68% |
Expenses net of fee waivers, if any | .73% A | .72% | .75% | .78% | .68% | .68% |
Expenses net of all reductions | .73% A | .71% | .74% | .78% | .67% | .67% |
Net investment income (loss) | 1.75% A | 1.09% | .63% | 1.07% | 1.29% | .84% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 4,834 | $ 5,052 | $ 5,417 | $ 5,993 | $ 12,552 | $ 22,693 |
Portfolio turnover rate F | 62% A | 129% | 98% | 122% | 52% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.10 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.008 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .17 | .23 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | .45 | 2.82 | 1.37 | (7.40) | (3.45) |
Total from investment operations | .62 | 3.05 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.18) | (.22) | (.13) | (.23) | (.10) |
Distributions from net realized gain | (.01) | - | (.01) | (.03) | - |
Total distributions | (.19) | (.22) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 19.00 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B, C | 3.44% | 19.40% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .55% A | .54% | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .55% A | .54% | .54% | .56% | .55% A |
Expenses net of all reductions | .55% A | .53% | .53% | .55% | .55% A |
Net investment income (loss) | 1.93% A | 1.27% | .84% | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 484,063 | $ 403,452 | $ 292,021 | $ 349,324 | $ 87 |
Portfolio turnover rate F | 62% A | 129% | 98% | 122% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.14 per share is comprised of distributions from net investment income of $.129 and distributions from net realized gain of $.008 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth & Income and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 483,543 |
Gross unrealized depreciation | (296,902) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 186,641 |
|
|
Tax cost | $ 5,123,492 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
|
|
2017 | $ (1,660,464) |
2018 | (3,168,341) |
Total capital loss carryforward | $ (4,828,805) |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,589,897 and $1,816,955, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .46% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Growth & Income | $ 5,430 | .23 |
Class K | 111 | .05 |
| $ 5,541 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $61 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 Loan | Weighted Average | Interest |
Borrower | $ 6,984 | .36% | $ 1 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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
Semiannual Report
7. Committed Line of Credit - continued
amounted to $7 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $90. During the period, there were no securities loaned to FCM.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth & Income | $ 42,571 | $ 54,597 |
Class K | 4,164 | 7,252 |
Total | $ 46,735 | $ 61,849 |
From net realized gain |
|
|
Growth & Income | $ 2,563 | $ - |
Class K | 236 | - |
Total | $ 2,799 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Growth & Income |
|
|
|
|
Shares sold | 9,181 | 10,892 | $ 165,445 | $ 196,623 |
Reinvestment of distributions | 2,505 | 2,827 | 43,354 | 52,490 |
Shares redeemed | (29,293) | (85,823) | (519,531) | (1,509,810) |
Net increase (decrease) | (17,607) | (72,104) | $ (310,732) | $ (1,260,697) |
Class K |
|
|
|
|
Shares sold | 6,081 | 26,831 | $ 109,341 | $ 447,073 |
Reinvestment of distributions | 254 | 390 | 4,400 | 7,252 |
Shares redeemed | (2,583) | (24,047) | (46,275) | (441,157) |
Net increase (decrease) | 3,752 | 3,174 | $ 67,466 | $ 13,168 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Northern Trust Company
Chicago, IL
GAI-K-USAN-0312 1.863232.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
International Real Estate
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.00 | $ 6.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.90 | $ 7.30 |
Class T | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 856.60 | $ 7.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.59 | $ 8.62 |
Class B | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 855.70 | $ 10.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
Class C | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 854.70 | $ 10.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
International Real Estate | 1.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.15 | $ 6.04 |
Institutional Class | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 6.09 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 8.3 | 6.0 |
Westfield Group unit | 7.8 | 5.9 |
Mitsui Fudosan Co. Ltd. | 5.7 | 6.3 |
Sumitomo Realty & Development Co. Ltd. | 4.4 | 3.9 |
Unibail-Rodamco | 3.9 | 5.6 |
Hang Lung Properties Ltd. | 2.8 | 3.6 |
British Land Co. PLC | 2.7 | 2.3 |
The GPT Group unit | 2.6 | 2.5 |
Global Logistic Properties Ltd. | 2.6 | 2.2 |
Big Yellow Group PLC | 2.5 | 1.6 |
| 43.3 | |
Top Five Countries as of January 31, 2012 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Japan | 16.1 | 18.6 |
Australia | 16.0 | 13.0 |
Hong Kong | 15.0 | 21.4 |
United Kingdom | 12.8 | 10.3 |
Singapore | 7.5 | 8.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 25.7 | 21.2 |
REITs - Office Buildings | 6.9 | 5.9 |
REITs - Shopping Centers | 3.3 | 2.3 |
REITs - Industrial Buildings | 3.1 | 3.5 |
REITs - Hotels | 0.8 | 0.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 94.1% |
| ![]() | Stocks 97.5% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 94.1% |
| ** Foreign investments | 97.5% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value | ||
Australia - 16.0% | |||
Abacus Property Group unit | 895,037 | $ 1,738,813 | |
Charter Hall Group unit | 1,084,477 | 2,463,741 | |
Goodman Group unit | 6,841,681 | 4,648,402 | |
Mirvac Group unit | 4,570,384 | 5,992,121 | |
The GPT Group unit | 2,145,735 | 7,038,749 | |
Westfield Group unit | 2,298,560 | 20,741,286 | |
TOTAL AUSTRALIA | 42,623,112 | ||
Bailiwick of Jersey - 1.0% | |||
Atrium European Real Estate Ltd. | 575,646 | 2,642,736 | |
Belgium - 0.6% | |||
Warehouses de Pauw | 32,185 | 1,579,035 | |
Bermuda - 6.4% | |||
Asia Standard International Group | 2,218,000 | 337,480 | |
C C Land Holdings Ltd. | 5,345,000 | 1,164,766 | |
Csi Properties Ltd. | 38,680,000 | 1,187,046 | |
Great Eagle Holdings Ltd. | 1,148,088 | 2,827,566 | |
Hongkong Land Holdings Ltd. | 1,178,000 | 6,066,700 | |
Kerry Properties Ltd. | 1,186,500 | 4,551,546 | |
Soundwill Holdings Ltd. | 728,000 | 877,702 | |
TOTAL BERMUDA | 17,012,806 | ||
Brazil - 2.5% | |||
BR Malls Participacoes SA | 58,300 | 636,322 | |
Companhia Brasileira de Desenvolvimento Imobiliario Turistico SA (a) | 126,600 | 1,159,341 | |
Even Construtora e Incorporadora SA | 225,700 | 930,082 | |
Iguatemi Empresa de Shopping Centers SA | 63,300 | 1,348,096 | |
Multiplan Empreendimentos Imobiliarios SA | 116,800 | 2,673,993 | |
TOTAL BRAZIL | 6,747,834 | ||
Cayman Islands - 2.2% | |||
Country Garden Holdings Co. Ltd. | 4,513,000 | 1,937,821 | |
Longfor Properties Co. Ltd. | 883,500 | 1,162,013 | |
SOHO China Ltd. | 3,789,000 | 2,486,833 | |
SPG Land (Holdings) Ltd. | 929,000 | 170,102 | |
TOTAL CAYMAN ISLANDS | 5,756,769 | ||
Chile - 0.5% | |||
Parque Arauco SA | 732,471 | 1,300,762 | |
China - 0.7% | |||
Guangzhou R F Properties Co. Ltd. (H Shares) | 1,910,400 | 1,872,156 | |
Common Stocks - continued | |||
Shares | Value | ||
France - 7.3% | |||
Altarea | 14,581 | $ 2,267,568 | |
Gecina SA | 19,450 | 1,856,838 | |
Klepierre SA | 63,500 | 1,906,524 | |
Societe de la Tour Eiffel | 30,900 | 1,596,418 | |
Societe Fonciere Lyonnaise SA | 28,400 | 1,300,102 | |
Unibail-Rodamco | 54,307 | 10,427,327 | |
TOTAL FRANCE | 19,354,777 | ||
Germany - 1.9% | |||
alstria office REIT-AG | 126,965 | 1,516,661 | |
GSW Immobilien AG | 116,300 | 3,603,594 | |
TOTAL GERMANY | 5,120,255 | ||
Hong Kong - 15.0% | |||
Hang Lung Properties Ltd. | 2,161,000 | 7,426,021 | |
Hysan Development Co. Ltd. | 1,176,500 | 4,626,962 | |
Link (REIT) | 425,000 | 1,548,145 | |
Magnificent Estates Ltd. | 27,344,000 | 951,985 | |
Sino Land Ltd. | 1,960,000 | 3,265,298 | |
Sun Hung Kai Properties Ltd. | 1,587,226 | 21,980,992 | |
TOTAL HONG KONG | 39,799,403 | ||
Italy - 0.6% | |||
Beni Stabili SpA SIIQ | 3,466,900 | 1,716,774 | |
Japan - 16.1% | |||
BLife Investment Corp. | 531 | 3,395,809 | |
Goldcrest Co. Ltd. | 76,060 | 1,317,056 | |
Hulic Co. Ltd. | 101,400 | 1,210,468 | |
Japan Retail Fund Investment Corp. | 2,665 | 3,863,079 | |
Kenedix, Inc. (a)(d) | 13,803 | 1,825,190 | |
Mitsui Fudosan Co. Ltd. | 916,000 | 15,056,382 | |
Nomura Real Estate Holdings, Inc. | 284,900 | 4,421,313 | |
Sumitomo Realty & Development Co. Ltd. | 611,000 | 11,606,034 | |
TOTAL JAPAN | 42,695,331 | ||
Russia - 0.5% | |||
LSR Group OJSC GDR (Reg. S) | 291,700 | 1,390,534 | |
Singapore - 7.5% | |||
CapitaLand Ltd. | 2,796,870 | 5,847,890 | |
CDL Hospitality Trusts unit | 1,445,000 | 2,039,094 | |
Global Logistic Properties Ltd. (a) | 4,344,000 | 6,872,489 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - continued | |||
Parkway Life REIT | 951,000 | $ 1,341,992 | |
Wing Tai Holdings Ltd. | 3,887,000 | 3,800,938 | |
TOTAL SINGAPORE | 19,902,403 | ||
Sweden - 2.5% | |||
Castellum AB (d) | 268,600 | 3,415,745 | |
Wihlborgs Fastigheter AB | 237,400 | 3,245,839 | |
TOTAL SWEDEN | 6,661,584 | ||
United Kingdom - 12.8% | |||
Big Yellow Group PLC | 1,479,900 | 6,525,838 | |
British Land Co. PLC | 935,689 | 7,205,120 | |
Capital Shopping Centres Group PLC | 684,800 | 3,488,119 | |
Derwent London PLC | 242,800 | 6,401,781 | |
Helical Bar PLC | 838,000 | 2,446,575 | |
Land Securities Group PLC | 412,500 | 4,384,924 | |
Quintain Estates & Development PLC (a) | 1,737,100 | 1,081,379 | |
St. Modwen Properties PLC | 1,259,600 | 2,471,486 | |
TOTAL UNITED KINGDOM | 34,005,222 | ||
TOTAL COMMON STOCKS (Cost $302,828,811) |
| ||
Money Market Funds - 5.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 14,567,298 | 14,567,298 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 165,868 | 165,868 | |
TOTAL MONEY MARKET FUNDS (Cost $14,733,166) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $317,561,977) | 264,914,659 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 865,909 | ||
NET ASSETS - 100% | $ 265,780,568 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,348 |
Fidelity Securities Lending Cash Central Fund | 6,433 |
Total | $ 12,781 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $158,059) - See accompanying schedule: Unaffiliated issuers (cost $302,828,811) | $ 250,181,493 |
|
Fidelity Central Funds (cost $14,733,166) | 14,733,166 |
|
Total Investments (cost $317,561,977) |
| $ 264,914,659 |
Foreign currency held at value (cost $232,362) | 230,478 | |
Receivable for investments sold | 9,535,670 | |
Receivable for fund shares sold | 353,586 | |
Dividends receivable | 537,786 | |
Distributions receivable from Fidelity Central Funds | 1,506 | |
Prepaid expenses | 699 | |
Other receivables | 65,781 | |
Total assets | 275,640,165 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 8,910,906 | |
Payable for fund shares redeemed | 446,737 | |
Accrued management fee | 160,006 | |
Distribution and service plan fees payable | 4,343 | |
Other affiliated payables | 73,437 | |
Other payables and accrued expenses | 98,300 | |
Collateral on securities loaned, at value | 165,868 | |
Total liabilities | 9,859,597 | |
|
|
|
Net Assets | $ 265,780,568 | |
Net Assets consist of: |
| |
Paid in capital | $ 637,935,077 | |
Undistributed net investment income | 472,768 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (319,961,150) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (52,666,127) | |
Net Assets | $ 265,780,568 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.55 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.55) | $ 8.01 | |
Class T: | $ 7.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.52) | $ 7.79 | |
Class B: | $ 7.47 | |
|
|
|
Class C: | $ 7.44 | |
|
|
|
International Real Estate: | $ 7.61 | |
|
|
|
Institutional Class: | $ 7.59 |
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, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,954,638 |
Interest |
| 64 |
Income from Fidelity Central Funds |
| 12,781 |
Income before foreign taxes withheld |
| 3,967,483 |
Less foreign taxes withheld |
| (173,459) |
Total income |
| 3,794,024 |
|
|
|
Expenses | ||
Management fee | $ 949,177 | |
Transfer agent fees | 400,607 | |
Distribution and service plan fees | 27,224 | |
Accounting and security lending fees | 69,602 | |
Custodian fees and expenses | 101,842 | |
Independent trustees' compensation | 928 | |
Registration fees | 36,844 | |
Audit | 41,189 | |
Legal | 728 | |
Miscellaneous | 1,396 | |
Total expenses before reductions | 1,629,537 | |
Expense reductions | (136,716) | 1,492,821 |
Net investment income (loss) | 2,301,203 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (24,913,335) | |
Foreign currency transactions | (232,341) | |
Total net realized gain (loss) |
| (25,145,676) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (25,389,224) | |
Assets and liabilities in foreign currencies | (7,886) | |
Total change in net unrealized appreciation (depreciation) |
| (25,397,110) |
Net gain (loss) | (50,542,786) | |
Net increase (decrease) in net assets resulting from operations | $ (48,241,583) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,301,203 | $ 14,085,086 |
Net realized gain (loss) | (25,145,676) | 37,430,925 |
Change in net unrealized appreciation (depreciation) | (25,397,110) | 3,876,295 |
Net increase (decrease) in net assets resulting | (48,241,583) | 55,392,306 |
Distributions to shareholders from net investment income | (6,740,519) | (13,892,744) |
Distributions to shareholders from net realized gain | (6,329,734) | (11,440,782) |
Total distributions | (13,070,253) | (25,333,526) |
Share transactions - net increase (decrease) | (10,082,043) | (26,030,265) |
Redemption fees | 23,279 | 74,922 |
Total increase (decrease) in net assets | (71,370,600) | 4,103,437 |
|
|
|
Net Assets | ||
Beginning of period | 337,151,168 | 333,047,731 |
End of period (including undistributed net investment income of $472,768 and undistributed net investment income of $4,912,084, respectively) | $ 265,780,568 | $ 337,151,168 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .34 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.38 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.17) | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.35) | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.55 | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | (14.20)% | 16.76% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.34% A | 1.36% | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.49% A | 3.67% H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 6,479 | $ 7,047 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.64%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .05 | .31 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | (1.32) | 1.35 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.14) | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.32) | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.52 | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | (14.34)% | 16.54% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 1.72% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.70% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.60% A | 1.63% | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.23% A | 3.41% H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,031 | $ 2,496 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.38%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.03 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.29 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.09) | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.27) | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | -K | -K | -K | .01 | .01 |
Net asset value, end of period | $ 7.47 | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | (14.43)% | 15.90% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .74% A | 2.92% H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 427 | $ 570 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .90%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.04 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.30 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.10) | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.28) | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.44 | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | (14.53)% | 16.07% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .74% A | 2.92% H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,451 | $ 3,208 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .89%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .25 | .31 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .25 | (2.59) | (3.50) | 2.35 |
Total from investment operations | (1.32) | 1.42 | .44 | (2.39) | (3.25) | 2.66 |
Distributions from net investment income | (.19) | (.35) | (.08) | - | (.31) | (.22) |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | (1.42) |
Total distributions | (.37) | (.65) J | (.20) | - | (1.81) | (1.64) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .02 |
Net asset value, end of period | $ 7.61 | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 |
Total Return B,C | (14.12)% | 17.15% | 5.29% | (22.38)% | (22.97)% | 19.01% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | 1.19% A | 1.17% | 1.19% | 1.19% | 1.11% | 1.07% |
Expenses net of fee waivers, if any | 1.19% A | 1.17% | 1.19% | 1.19% | 1.10% | 1.06% |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.16% | 1.07% | .96% |
Net investment income (loss) | 1.74% A | 3.92% G | 2.27% | 2.81% | 1.86% | 1.86% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 252,643 | $ 322,045 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | (1.32) | 1.42 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.20) | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.37) K | (.65) L | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 7.59 | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | (14.12)% | 17.18% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.73% A | 3.92% G | 2.27% | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,750 | $ 1,785 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share. L Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
3. Significant Accounting Policies - continued
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,758,168 |
Gross unrealized depreciation | (59,985,698) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (56,227,530) |
|
|
Tax cost | $ 321,142,189 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (153,317,175) |
2018 | (136,599,532) |
Total capital loss carryforward | $ (289,916,707) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $175,505,459 and $203,923,586, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 7,381 | $ - |
Class T | .25% | .25% | 5,036 | - |
Class B | .75% | .25% | 2,142 | 1,607 |
Class C | .75% | .25% | 12,665 | 1,861 |
|
|
| $ 27,224 | $ 3,468 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,913 |
Class T | 63 |
Class B* | 729 |
Class C* | 29 |
| $ 4,734 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 8,824 | .30 |
Class T | 3,306 | .33 |
Class B | 638 | .30 |
Class C | 3,744 | .29 |
International Real Estate | 381,723 | .30 |
Institutional Class | 2,372 | .30 |
| $ 400,607 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $393 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $6,433. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class T | 1.70% | $ 225 |
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 $136,491 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 129,790 | $ 287,564 |
Class T | 38,723 | 96,278 |
Class B | 5,465 | 19,520 |
Class C | 34,224 | 109,655 |
International Real Estate | 6,491,807 | 13,319,427 |
Institutional Class | 40,510 | 60,300 |
Total | $ 6,740,519 | $ 13,892,744 |
From net realized gain |
|
|
Class A | $ 132,606 | $ 250,090 |
Class T | 47,658 | 89,657 |
Class B | 10,422 | 21,506 |
Class C | 62,457 | 114,914 |
International Real Estate | 6,040,035 | 10,916,536 |
Institutional Class | 36,556 | 48,079 |
Total | $ 6,329,734 | $ 11,440,782 |
10. 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 | |
Class A |
|
|
|
|
Shares sold | 306,688 | 213,763 | $ 2,298,400 | $ 1,964,473 |
Reinvestment of distributions | 30,139 | 50,966 | 225,090 | 451,020 |
Shares redeemed | (243,888) | (357,321) | (1,833,164) | (3,278,956) |
Net increase (decrease) | 92,939 | (92,592) | $ 690,326 | $ (863,463) |
Class T |
|
|
|
|
Shares sold | 25,883 | 73,470 | $ 192,599 | $ 668,265 |
Reinvestment of distributions | 11,086 | 20,063 | 82,612 | 176,852 |
Shares redeemed | (39,607) | (119,466) | (291,019) | (1,082,947) |
Net increase (decrease) | (2,638) | (25,933) | $ (15,808) | $ (237,830) |
Class B |
|
|
|
|
Shares sold | 1,538 | 4,563 | $ 11,023 | $ 41,321 |
Reinvestment of distributions | 2,053 | 4,289 | 15,253 | 37,454 |
Shares redeemed | (9,361) | (21,555) | (69,851) | (195,000) |
Net increase (decrease) | (5,770) | (12,703) | $ (43,575) | $ (116,225) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class C |
|
|
|
|
Shares sold | 23,513 | 111,487 | $ 176,971 | $ 1,002,010 |
Reinvestment of distributions | 11,099 | 21,061 | 82,243 | 183,176 |
Shares redeemed | (60,514) | (162,778) | (436,957) | (1,467,063) |
Net increase (decrease) | (25,902) | (30,230) | $ (177,743) | $ (281,877) |
International Real Estate |
|
|
|
|
Shares sold | 3,060,182 | 7,219,780 | $ 22,805,880 | $ 67,747,351 |
Reinvestment of distributions | 1,561,125 | 2,559,870 | 11,751,117 | 22,802,021 |
Shares redeemed | (6,067,543) | (12,440,980) | (45,381,822) | (115,315,484) |
Net increase (decrease) | (1,446,236) | (2,661,330) | $ (10,824,825) | $ (24,766,112) |
Institutional Class |
|
|
|
|
Shares sold | 68,817 | 99,324 | $ 522,330 | $ 925,861 |
Reinvestment of distributions | 8,633 | 10,892 | 64,775 | 96,908 |
Shares redeemed | (39,347) | (85,350) | (297,523) | (787,527) |
Net increase (decrease) | 38,103 | 24,866 | $ 289,582 | $ 235,242 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, FMR or its affiliates were the owners of record of approximately 15% of the outstanding shares of the fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (UK) 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
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Fidelity Advisor®
International Real Estate
Fund - Class A, Class T,
Class B, and Class C
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® International
Real Estate Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.00 | $ 6.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.90 | $ 7.30 |
Class T | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 856.60 | $ 7.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.59 | $ 8.62 |
Class B | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 855.70 | $ 10.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
Class C | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 854.70 | $ 10.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
International Real Estate | 1.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.15 | $ 6.04 |
Institutional Class | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 6.09 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 8.3 | 6.0 |
Westfield Group unit | 7.8 | 5.9 |
Mitsui Fudosan Co. Ltd. | 5.7 | 6.3 |
Sumitomo Realty & Development Co. Ltd. | 4.4 | 3.9 |
Unibail-Rodamco | 3.9 | 5.6 |
Hang Lung Properties Ltd. | 2.8 | 3.6 |
British Land Co. PLC | 2.7 | 2.3 |
The GPT Group unit | 2.6 | 2.5 |
Global Logistic Properties Ltd. | 2.6 | 2.2 |
Big Yellow Group PLC | 2.5 | 1.6 |
| 43.3 | |
Top Five Countries as of January 31, 2012 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Japan | 16.1 | 18.6 |
Australia | 16.0 | 13.0 |
Hong Kong | 15.0 | 21.4 |
United Kingdom | 12.8 | 10.3 |
Singapore | 7.5 | 8.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 25.7 | 21.2 |
REITs - Office Buildings | 6.9 | 5.9 |
REITs - Shopping Centers | 3.3 | 2.3 |
REITs - Industrial Buildings | 3.1 | 3.5 |
REITs - Hotels | 0.8 | 0.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 94.1% |
| ![]() | Stocks 97.5% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 94.1% |
| ** Foreign investments | 97.5% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value | ||
Australia - 16.0% | |||
Abacus Property Group unit | 895,037 | $ 1,738,813 | |
Charter Hall Group unit | 1,084,477 | 2,463,741 | |
Goodman Group unit | 6,841,681 | 4,648,402 | |
Mirvac Group unit | 4,570,384 | 5,992,121 | |
The GPT Group unit | 2,145,735 | 7,038,749 | |
Westfield Group unit | 2,298,560 | 20,741,286 | |
TOTAL AUSTRALIA | 42,623,112 | ||
Bailiwick of Jersey - 1.0% | |||
Atrium European Real Estate Ltd. | 575,646 | 2,642,736 | |
Belgium - 0.6% | |||
Warehouses de Pauw | 32,185 | 1,579,035 | |
Bermuda - 6.4% | |||
Asia Standard International Group | 2,218,000 | 337,480 | |
C C Land Holdings Ltd. | 5,345,000 | 1,164,766 | |
Csi Properties Ltd. | 38,680,000 | 1,187,046 | |
Great Eagle Holdings Ltd. | 1,148,088 | 2,827,566 | |
Hongkong Land Holdings Ltd. | 1,178,000 | 6,066,700 | |
Kerry Properties Ltd. | 1,186,500 | 4,551,546 | |
Soundwill Holdings Ltd. | 728,000 | 877,702 | |
TOTAL BERMUDA | 17,012,806 | ||
Brazil - 2.5% | |||
BR Malls Participacoes SA | 58,300 | 636,322 | |
Companhia Brasileira de Desenvolvimento Imobiliario Turistico SA (a) | 126,600 | 1,159,341 | |
Even Construtora e Incorporadora SA | 225,700 | 930,082 | |
Iguatemi Empresa de Shopping Centers SA | 63,300 | 1,348,096 | |
Multiplan Empreendimentos Imobiliarios SA | 116,800 | 2,673,993 | |
TOTAL BRAZIL | 6,747,834 | ||
Cayman Islands - 2.2% | |||
Country Garden Holdings Co. Ltd. | 4,513,000 | 1,937,821 | |
Longfor Properties Co. Ltd. | 883,500 | 1,162,013 | |
SOHO China Ltd. | 3,789,000 | 2,486,833 | |
SPG Land (Holdings) Ltd. | 929,000 | 170,102 | |
TOTAL CAYMAN ISLANDS | 5,756,769 | ||
Chile - 0.5% | |||
Parque Arauco SA | 732,471 | 1,300,762 | |
China - 0.7% | |||
Guangzhou R F Properties Co. Ltd. (H Shares) | 1,910,400 | 1,872,156 | |
Common Stocks - continued | |||
Shares | Value | ||
France - 7.3% | |||
Altarea | 14,581 | $ 2,267,568 | |
Gecina SA | 19,450 | 1,856,838 | |
Klepierre SA | 63,500 | 1,906,524 | |
Societe de la Tour Eiffel | 30,900 | 1,596,418 | |
Societe Fonciere Lyonnaise SA | 28,400 | 1,300,102 | |
Unibail-Rodamco | 54,307 | 10,427,327 | |
TOTAL FRANCE | 19,354,777 | ||
Germany - 1.9% | |||
alstria office REIT-AG | 126,965 | 1,516,661 | |
GSW Immobilien AG | 116,300 | 3,603,594 | |
TOTAL GERMANY | 5,120,255 | ||
Hong Kong - 15.0% | |||
Hang Lung Properties Ltd. | 2,161,000 | 7,426,021 | |
Hysan Development Co. Ltd. | 1,176,500 | 4,626,962 | |
Link (REIT) | 425,000 | 1,548,145 | |
Magnificent Estates Ltd. | 27,344,000 | 951,985 | |
Sino Land Ltd. | 1,960,000 | 3,265,298 | |
Sun Hung Kai Properties Ltd. | 1,587,226 | 21,980,992 | |
TOTAL HONG KONG | 39,799,403 | ||
Italy - 0.6% | |||
Beni Stabili SpA SIIQ | 3,466,900 | 1,716,774 | |
Japan - 16.1% | |||
BLife Investment Corp. | 531 | 3,395,809 | |
Goldcrest Co. Ltd. | 76,060 | 1,317,056 | |
Hulic Co. Ltd. | 101,400 | 1,210,468 | |
Japan Retail Fund Investment Corp. | 2,665 | 3,863,079 | |
Kenedix, Inc. (a)(d) | 13,803 | 1,825,190 | |
Mitsui Fudosan Co. Ltd. | 916,000 | 15,056,382 | |
Nomura Real Estate Holdings, Inc. | 284,900 | 4,421,313 | |
Sumitomo Realty & Development Co. Ltd. | 611,000 | 11,606,034 | |
TOTAL JAPAN | 42,695,331 | ||
Russia - 0.5% | |||
LSR Group OJSC GDR (Reg. S) | 291,700 | 1,390,534 | |
Singapore - 7.5% | |||
CapitaLand Ltd. | 2,796,870 | 5,847,890 | |
CDL Hospitality Trusts unit | 1,445,000 | 2,039,094 | |
Global Logistic Properties Ltd. (a) | 4,344,000 | 6,872,489 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - continued | |||
Parkway Life REIT | 951,000 | $ 1,341,992 | |
Wing Tai Holdings Ltd. | 3,887,000 | 3,800,938 | |
TOTAL SINGAPORE | 19,902,403 | ||
Sweden - 2.5% | |||
Castellum AB (d) | 268,600 | 3,415,745 | |
Wihlborgs Fastigheter AB | 237,400 | 3,245,839 | |
TOTAL SWEDEN | 6,661,584 | ||
United Kingdom - 12.8% | |||
Big Yellow Group PLC | 1,479,900 | 6,525,838 | |
British Land Co. PLC | 935,689 | 7,205,120 | |
Capital Shopping Centres Group PLC | 684,800 | 3,488,119 | |
Derwent London PLC | 242,800 | 6,401,781 | |
Helical Bar PLC | 838,000 | 2,446,575 | |
Land Securities Group PLC | 412,500 | 4,384,924 | |
Quintain Estates & Development PLC (a) | 1,737,100 | 1,081,379 | |
St. Modwen Properties PLC | 1,259,600 | 2,471,486 | |
TOTAL UNITED KINGDOM | 34,005,222 | ||
TOTAL COMMON STOCKS (Cost $302,828,811) |
| ||
Money Market Funds - 5.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 14,567,298 | 14,567,298 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 165,868 | 165,868 | |
TOTAL MONEY MARKET FUNDS (Cost $14,733,166) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $317,561,977) | 264,914,659 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 865,909 | ||
NET ASSETS - 100% | $ 265,780,568 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,348 |
Fidelity Securities Lending Cash Central Fund | 6,433 |
Total | $ 12,781 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $158,059) - See accompanying schedule: Unaffiliated issuers (cost $302,828,811) | $ 250,181,493 |
|
Fidelity Central Funds (cost $14,733,166) | 14,733,166 |
|
Total Investments (cost $317,561,977) |
| $ 264,914,659 |
Foreign currency held at value (cost $232,362) | 230,478 | |
Receivable for investments sold | 9,535,670 | |
Receivable for fund shares sold | 353,586 | |
Dividends receivable | 537,786 | |
Distributions receivable from Fidelity Central Funds | 1,506 | |
Prepaid expenses | 699 | |
Other receivables | 65,781 | |
Total assets | 275,640,165 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 8,910,906 | |
Payable for fund shares redeemed | 446,737 | |
Accrued management fee | 160,006 | |
Distribution and service plan fees payable | 4,343 | |
Other affiliated payables | 73,437 | |
Other payables and accrued expenses | 98,300 | |
Collateral on securities loaned, at value | 165,868 | |
Total liabilities | 9,859,597 | |
|
|
|
Net Assets | $ 265,780,568 | |
Net Assets consist of: |
| |
Paid in capital | $ 637,935,077 | |
Undistributed net investment income | 472,768 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (319,961,150) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (52,666,127) | |
Net Assets | $ 265,780,568 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.55 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.55) | $ 8.01 | |
Class T: | $ 7.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.52) | $ 7.79 | |
Class B: | $ 7.47 | |
|
|
|
Class C: | $ 7.44 | |
|
|
|
International Real Estate: | $ 7.61 | |
|
|
|
Institutional Class: | $ 7.59 |
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, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,954,638 |
Interest |
| 64 |
Income from Fidelity Central Funds |
| 12,781 |
Income before foreign taxes withheld |
| 3,967,483 |
Less foreign taxes withheld |
| (173,459) |
Total income |
| 3,794,024 |
|
|
|
Expenses | ||
Management fee | $ 949,177 | |
Transfer agent fees | 400,607 | |
Distribution and service plan fees | 27,224 | |
Accounting and security lending fees | 69,602 | |
Custodian fees and expenses | 101,842 | |
Independent trustees' compensation | 928 | |
Registration fees | 36,844 | |
Audit | 41,189 | |
Legal | 728 | |
Miscellaneous | 1,396 | |
Total expenses before reductions | 1,629,537 | |
Expense reductions | (136,716) | 1,492,821 |
Net investment income (loss) | 2,301,203 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (24,913,335) | |
Foreign currency transactions | (232,341) | |
Total net realized gain (loss) |
| (25,145,676) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (25,389,224) | |
Assets and liabilities in foreign currencies | (7,886) | |
Total change in net unrealized appreciation (depreciation) |
| (25,397,110) |
Net gain (loss) | (50,542,786) | |
Net increase (decrease) in net assets resulting from operations | $ (48,241,583) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,301,203 | $ 14,085,086 |
Net realized gain (loss) | (25,145,676) | 37,430,925 |
Change in net unrealized appreciation (depreciation) | (25,397,110) | 3,876,295 |
Net increase (decrease) in net assets resulting | (48,241,583) | 55,392,306 |
Distributions to shareholders from net investment income | (6,740,519) | (13,892,744) |
Distributions to shareholders from net realized gain | (6,329,734) | (11,440,782) |
Total distributions | (13,070,253) | (25,333,526) |
Share transactions - net increase (decrease) | (10,082,043) | (26,030,265) |
Redemption fees | 23,279 | 74,922 |
Total increase (decrease) in net assets | (71,370,600) | 4,103,437 |
|
|
|
Net Assets | ||
Beginning of period | 337,151,168 | 333,047,731 |
End of period (including undistributed net investment income of $472,768 and undistributed net investment income of $4,912,084, respectively) | $ 265,780,568 | $ 337,151,168 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .34 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.38 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.17) | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.35) | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.55 | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | (14.20)% | 16.76% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.34% A | 1.36% | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.49% A | 3.67% H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
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|
| |
Net assets, end of period (000 omitted) | $ 6,479 | $ 7,047 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.64%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
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|
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|
|
Net investment income (loss) E | .05 | .31 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | (1.32) | 1.35 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.14) | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.32) | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.52 | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | (14.34)% | 16.54% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J |
|
|
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|
| |
Expenses before reductions | 1.72% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.70% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.60% A | 1.63% | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.23% A | 3.41% H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
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|
| |
Net assets, end of period (000 omitted) | $ 2,031 | $ 2,496 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.38%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.03 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.29 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.09) | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.27) | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | -K | -K | -K | .01 | .01 |
Net asset value, end of period | $ 7.47 | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | (14.43)% | 15.90% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
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| |
Expenses before reductions | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .74% A | 2.92% H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data |
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| |
Net assets, end of period (000 omitted) | $ 427 | $ 570 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .90%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.04 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.30 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.10) | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.28) | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.44 | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | (14.53)% | 16.07% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
|
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|
| |
Expenses before reductions | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .74% A | 2.92% H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data |
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|
|
| |
Net assets, end of period (000 omitted) | $ 2,451 | $ 3,208 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .89%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .25 | .31 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .25 | (2.59) | (3.50) | 2.35 |
Total from investment operations | (1.32) | 1.42 | .44 | (2.39) | (3.25) | 2.66 |
Distributions from net investment income | (.19) | (.35) | (.08) | - | (.31) | (.22) |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | (1.42) |
Total distributions | (.37) | (.65) J | (.20) | - | (1.81) | (1.64) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .02 |
Net asset value, end of period | $ 7.61 | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 |
Total Return B,C | (14.12)% | 17.15% | 5.29% | (22.38)% | (22.97)% | 19.01% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | 1.19% A | 1.17% | 1.19% | 1.19% | 1.11% | 1.07% |
Expenses net of fee waivers, if any | 1.19% A | 1.17% | 1.19% | 1.19% | 1.10% | 1.06% |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.16% | 1.07% | .96% |
Net investment income (loss) | 1.74% A | 3.92% G | 2.27% | 2.81% | 1.86% | 1.86% |
Supplemental Data |
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|
|
|
| |
Net assets, end of period (000 omitted) | $ 252,643 | $ 322,045 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | (1.32) | 1.42 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.20) | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.37) K | (.65) L | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 7.59 | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | (14.12)% | 17.18% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.73% A | 3.92% G | 2.27% | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,750 | $ 1,785 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share. L Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
3. Significant Accounting Policies - continued
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,758,168 |
Gross unrealized depreciation | (59,985,698) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (56,227,530) |
|
|
Tax cost | $ 321,142,189 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (153,317,175) |
2018 | (136,599,532) |
Total capital loss carryforward | $ (289,916,707) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $175,505,459 and $203,923,586, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 7,381 | $ - |
Class T | .25% | .25% | 5,036 | - |
Class B | .75% | .25% | 2,142 | 1,607 |
Class C | .75% | .25% | 12,665 | 1,861 |
|
|
| $ 27,224 | $ 3,468 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,913 |
Class T | 63 |
Class B* | 729 |
Class C* | 29 |
| $ 4,734 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 8,824 | .30 |
Class T | 3,306 | .33 |
Class B | 638 | .30 |
Class C | 3,744 | .29 |
International Real Estate | 381,723 | .30 |
Institutional Class | 2,372 | .30 |
| $ 400,607 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $393 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $6,433. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class T | 1.70% | $ 225 |
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 $136,491 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 129,790 | $ 287,564 |
Class T | 38,723 | 96,278 |
Class B | 5,465 | 19,520 |
Class C | 34,224 | 109,655 |
International Real Estate | 6,491,807 | 13,319,427 |
Institutional Class | 40,510 | 60,300 |
Total | $ 6,740,519 | $ 13,892,744 |
From net realized gain |
|
|
Class A | $ 132,606 | $ 250,090 |
Class T | 47,658 | 89,657 |
Class B | 10,422 | 21,506 |
Class C | 62,457 | 114,914 |
International Real Estate | 6,040,035 | 10,916,536 |
Institutional Class | 36,556 | 48,079 |
Total | $ 6,329,734 | $ 11,440,782 |
10. 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 | |
Class A |
|
|
|
|
Shares sold | 306,688 | 213,763 | $ 2,298,400 | $ 1,964,473 |
Reinvestment of distributions | 30,139 | 50,966 | 225,090 | 451,020 |
Shares redeemed | (243,888) | (357,321) | (1,833,164) | (3,278,956) |
Net increase (decrease) | 92,939 | (92,592) | $ 690,326 | $ (863,463) |
Class T |
|
|
|
|
Shares sold | 25,883 | 73,470 | $ 192,599 | $ 668,265 |
Reinvestment of distributions | 11,086 | 20,063 | 82,612 | 176,852 |
Shares redeemed | (39,607) | (119,466) | (291,019) | (1,082,947) |
Net increase (decrease) | (2,638) | (25,933) | $ (15,808) | $ (237,830) |
Class B |
|
|
|
|
Shares sold | 1,538 | 4,563 | $ 11,023 | $ 41,321 |
Reinvestment of distributions | 2,053 | 4,289 | 15,253 | 37,454 |
Shares redeemed | (9,361) | (21,555) | (69,851) | (195,000) |
Net increase (decrease) | (5,770) | (12,703) | $ (43,575) | $ (116,225) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class C |
|
|
|
|
Shares sold | 23,513 | 111,487 | $ 176,971 | $ 1,002,010 |
Reinvestment of distributions | 11,099 | 21,061 | 82,243 | 183,176 |
Shares redeemed | (60,514) | (162,778) | (436,957) | (1,467,063) |
Net increase (decrease) | (25,902) | (30,230) | $ (177,743) | $ (281,877) |
International Real Estate |
|
|
|
|
Shares sold | 3,060,182 | 7,219,780 | $ 22,805,880 | $ 67,747,351 |
Reinvestment of distributions | 1,561,125 | 2,559,870 | 11,751,117 | 22,802,021 |
Shares redeemed | (6,067,543) | (12,440,980) | (45,381,822) | (115,315,484) |
Net increase (decrease) | (1,446,236) | (2,661,330) | $ (10,824,825) | $ (24,766,112) |
Institutional Class |
|
|
|
|
Shares sold | 68,817 | 99,324 | $ 522,330 | $ 925,861 |
Reinvestment of distributions | 8,633 | 10,892 | 64,775 | 96,908 |
Shares redeemed | (39,347) | (85,350) | (297,523) | (787,527) |
Net increase (decrease) | 38,103 | 24,866 | $ 289,582 | $ 235,242 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, FMR or its affiliates were the owners of record of approximately 15% of the outstanding shares of the fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (UK) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
AIRE-USAN-0312 1.843181.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
International Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Institutional Class is a
class of Fidelity®
International Real Estate Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.00 | $ 6.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.90 | $ 7.30 |
Class T | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 856.60 | $ 7.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.59 | $ 8.62 |
Class B | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 855.70 | $ 10.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
Class C | 2.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 854.70 | $ 10.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.13 | $ 11.09 |
International Real Estate | 1.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.15 | $ 6.04 |
Institutional Class | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 858.80 | $ 5.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.10 | $ 6.09 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Sun Hung Kai Properties Ltd. | 8.3 | 6.0 |
Westfield Group unit | 7.8 | 5.9 |
Mitsui Fudosan Co. Ltd. | 5.7 | 6.3 |
Sumitomo Realty & Development Co. Ltd. | 4.4 | 3.9 |
Unibail-Rodamco | 3.9 | 5.6 |
Hang Lung Properties Ltd. | 2.8 | 3.6 |
British Land Co. PLC | 2.7 | 2.3 |
The GPT Group unit | 2.6 | 2.5 |
Global Logistic Properties Ltd. | 2.6 | 2.2 |
Big Yellow Group PLC | 2.5 | 1.6 |
| 43.3 | |
Top Five Countries as of January 31, 2012 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Japan | 16.1 | 18.6 |
Australia | 16.0 | 13.0 |
Hong Kong | 15.0 | 21.4 |
United Kingdom | 12.8 | 10.3 |
Singapore | 7.5 | 8.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 25.7 | 21.2 |
REITs - Office Buildings | 6.9 | 5.9 |
REITs - Shopping Centers | 3.3 | 2.3 |
REITs - Industrial Buildings | 3.1 | 3.5 |
REITs - Hotels | 0.8 | 0.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Stocks 94.1% |
| ![]() | Stocks 97.5% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 94.1% |
| ** Foreign investments | 97.5% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value | ||
Australia - 16.0% | |||
Abacus Property Group unit | 895,037 | $ 1,738,813 | |
Charter Hall Group unit | 1,084,477 | 2,463,741 | |
Goodman Group unit | 6,841,681 | 4,648,402 | |
Mirvac Group unit | 4,570,384 | 5,992,121 | |
The GPT Group unit | 2,145,735 | 7,038,749 | |
Westfield Group unit | 2,298,560 | 20,741,286 | |
TOTAL AUSTRALIA | 42,623,112 | ||
Bailiwick of Jersey - 1.0% | |||
Atrium European Real Estate Ltd. | 575,646 | 2,642,736 | |
Belgium - 0.6% | |||
Warehouses de Pauw | 32,185 | 1,579,035 | |
Bermuda - 6.4% | |||
Asia Standard International Group | 2,218,000 | 337,480 | |
C C Land Holdings Ltd. | 5,345,000 | 1,164,766 | |
Csi Properties Ltd. | 38,680,000 | 1,187,046 | |
Great Eagle Holdings Ltd. | 1,148,088 | 2,827,566 | |
Hongkong Land Holdings Ltd. | 1,178,000 | 6,066,700 | |
Kerry Properties Ltd. | 1,186,500 | 4,551,546 | |
Soundwill Holdings Ltd. | 728,000 | 877,702 | |
TOTAL BERMUDA | 17,012,806 | ||
Brazil - 2.5% | |||
BR Malls Participacoes SA | 58,300 | 636,322 | |
Companhia Brasileira de Desenvolvimento Imobiliario Turistico SA (a) | 126,600 | 1,159,341 | |
Even Construtora e Incorporadora SA | 225,700 | 930,082 | |
Iguatemi Empresa de Shopping Centers SA | 63,300 | 1,348,096 | |
Multiplan Empreendimentos Imobiliarios SA | 116,800 | 2,673,993 | |
TOTAL BRAZIL | 6,747,834 | ||
Cayman Islands - 2.2% | |||
Country Garden Holdings Co. Ltd. | 4,513,000 | 1,937,821 | |
Longfor Properties Co. Ltd. | 883,500 | 1,162,013 | |
SOHO China Ltd. | 3,789,000 | 2,486,833 | |
SPG Land (Holdings) Ltd. | 929,000 | 170,102 | |
TOTAL CAYMAN ISLANDS | 5,756,769 | ||
Chile - 0.5% | |||
Parque Arauco SA | 732,471 | 1,300,762 | |
China - 0.7% | |||
Guangzhou R F Properties Co. Ltd. (H Shares) | 1,910,400 | 1,872,156 | |
Common Stocks - continued | |||
Shares | Value | ||
France - 7.3% | |||
Altarea | 14,581 | $ 2,267,568 | |
Gecina SA | 19,450 | 1,856,838 | |
Klepierre SA | 63,500 | 1,906,524 | |
Societe de la Tour Eiffel | 30,900 | 1,596,418 | |
Societe Fonciere Lyonnaise SA | 28,400 | 1,300,102 | |
Unibail-Rodamco | 54,307 | 10,427,327 | |
TOTAL FRANCE | 19,354,777 | ||
Germany - 1.9% | |||
alstria office REIT-AG | 126,965 | 1,516,661 | |
GSW Immobilien AG | 116,300 | 3,603,594 | |
TOTAL GERMANY | 5,120,255 | ||
Hong Kong - 15.0% | |||
Hang Lung Properties Ltd. | 2,161,000 | 7,426,021 | |
Hysan Development Co. Ltd. | 1,176,500 | 4,626,962 | |
Link (REIT) | 425,000 | 1,548,145 | |
Magnificent Estates Ltd. | 27,344,000 | 951,985 | |
Sino Land Ltd. | 1,960,000 | 3,265,298 | |
Sun Hung Kai Properties Ltd. | 1,587,226 | 21,980,992 | |
TOTAL HONG KONG | 39,799,403 | ||
Italy - 0.6% | |||
Beni Stabili SpA SIIQ | 3,466,900 | 1,716,774 | |
Japan - 16.1% | |||
BLife Investment Corp. | 531 | 3,395,809 | |
Goldcrest Co. Ltd. | 76,060 | 1,317,056 | |
Hulic Co. Ltd. | 101,400 | 1,210,468 | |
Japan Retail Fund Investment Corp. | 2,665 | 3,863,079 | |
Kenedix, Inc. (a)(d) | 13,803 | 1,825,190 | |
Mitsui Fudosan Co. Ltd. | 916,000 | 15,056,382 | |
Nomura Real Estate Holdings, Inc. | 284,900 | 4,421,313 | |
Sumitomo Realty & Development Co. Ltd. | 611,000 | 11,606,034 | |
TOTAL JAPAN | 42,695,331 | ||
Russia - 0.5% | |||
LSR Group OJSC GDR (Reg. S) | 291,700 | 1,390,534 | |
Singapore - 7.5% | |||
CapitaLand Ltd. | 2,796,870 | 5,847,890 | |
CDL Hospitality Trusts unit | 1,445,000 | 2,039,094 | |
Global Logistic Properties Ltd. (a) | 4,344,000 | 6,872,489 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - continued | |||
Parkway Life REIT | 951,000 | $ 1,341,992 | |
Wing Tai Holdings Ltd. | 3,887,000 | 3,800,938 | |
TOTAL SINGAPORE | 19,902,403 | ||
Sweden - 2.5% | |||
Castellum AB (d) | 268,600 | 3,415,745 | |
Wihlborgs Fastigheter AB | 237,400 | 3,245,839 | |
TOTAL SWEDEN | 6,661,584 | ||
United Kingdom - 12.8% | |||
Big Yellow Group PLC | 1,479,900 | 6,525,838 | |
British Land Co. PLC | 935,689 | 7,205,120 | |
Capital Shopping Centres Group PLC | 684,800 | 3,488,119 | |
Derwent London PLC | 242,800 | 6,401,781 | |
Helical Bar PLC | 838,000 | 2,446,575 | |
Land Securities Group PLC | 412,500 | 4,384,924 | |
Quintain Estates & Development PLC (a) | 1,737,100 | 1,081,379 | |
St. Modwen Properties PLC | 1,259,600 | 2,471,486 | |
TOTAL UNITED KINGDOM | 34,005,222 | ||
TOTAL COMMON STOCKS (Cost $302,828,811) |
| ||
Money Market Funds - 5.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 14,567,298 | 14,567,298 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 165,868 | 165,868 | |
TOTAL MONEY MARKET FUNDS (Cost $14,733,166) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $317,561,977) | 264,914,659 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 865,909 | ||
NET ASSETS - 100% | $ 265,780,568 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 6,348 |
Fidelity Securities Lending Cash Central Fund | 6,433 |
Total | $ 12,781 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $158,059) - See accompanying schedule: Unaffiliated issuers (cost $302,828,811) | $ 250,181,493 |
|
Fidelity Central Funds (cost $14,733,166) | 14,733,166 |
|
Total Investments (cost $317,561,977) |
| $ 264,914,659 |
Foreign currency held at value (cost $232,362) | 230,478 | |
Receivable for investments sold | 9,535,670 | |
Receivable for fund shares sold | 353,586 | |
Dividends receivable | 537,786 | |
Distributions receivable from Fidelity Central Funds | 1,506 | |
Prepaid expenses | 699 | |
Other receivables | 65,781 | |
Total assets | 275,640,165 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 8,910,906 | |
Payable for fund shares redeemed | 446,737 | |
Accrued management fee | 160,006 | |
Distribution and service plan fees payable | 4,343 | |
Other affiliated payables | 73,437 | |
Other payables and accrued expenses | 98,300 | |
Collateral on securities loaned, at value | 165,868 | |
Total liabilities | 9,859,597 | |
|
|
|
Net Assets | $ 265,780,568 | |
Net Assets consist of: |
| |
Paid in capital | $ 637,935,077 | |
Undistributed net investment income | 472,768 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (319,961,150) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (52,666,127) | |
Net Assets | $ 265,780,568 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.55 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.55) | $ 8.01 | |
Class T: | $ 7.52 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.52) | $ 7.79 | |
Class B: | $ 7.47 | |
|
|
|
Class C: | $ 7.44 | |
|
|
|
International Real Estate: | $ 7.61 | |
|
|
|
Institutional Class: | $ 7.59 |
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, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,954,638 |
Interest |
| 64 |
Income from Fidelity Central Funds |
| 12,781 |
Income before foreign taxes withheld |
| 3,967,483 |
Less foreign taxes withheld |
| (173,459) |
Total income |
| 3,794,024 |
|
|
|
Expenses | ||
Management fee | $ 949,177 | |
Transfer agent fees | 400,607 | |
Distribution and service plan fees | 27,224 | |
Accounting and security lending fees | 69,602 | |
Custodian fees and expenses | 101,842 | |
Independent trustees' compensation | 928 | |
Registration fees | 36,844 | |
Audit | 41,189 | |
Legal | 728 | |
Miscellaneous | 1,396 | |
Total expenses before reductions | 1,629,537 | |
Expense reductions | (136,716) | 1,492,821 |
Net investment income (loss) | 2,301,203 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (24,913,335) | |
Foreign currency transactions | (232,341) | |
Total net realized gain (loss) |
| (25,145,676) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (25,389,224) | |
Assets and liabilities in foreign currencies | (7,886) | |
Total change in net unrealized appreciation (depreciation) |
| (25,397,110) |
Net gain (loss) | (50,542,786) | |
Net increase (decrease) in net assets resulting from operations | $ (48,241,583) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,301,203 | $ 14,085,086 |
Net realized gain (loss) | (25,145,676) | 37,430,925 |
Change in net unrealized appreciation (depreciation) | (25,397,110) | 3,876,295 |
Net increase (decrease) in net assets resulting | (48,241,583) | 55,392,306 |
Distributions to shareholders from net investment income | (6,740,519) | (13,892,744) |
Distributions to shareholders from net realized gain | (6,329,734) | (11,440,782) |
Total distributions | (13,070,253) | (25,333,526) |
Share transactions - net increase (decrease) | (10,082,043) | (26,030,265) |
Redemption fees | 23,279 | 74,922 |
Total increase (decrease) in net assets | (71,370,600) | 4,103,437 |
|
|
|
Net Assets | ||
Beginning of period | 337,151,168 | 333,047,731 |
End of period (including undistributed net investment income of $472,768 and undistributed net investment income of $4,912,084, respectively) | $ 265,780,568 | $ 337,151,168 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .06 | .34 H | .17 | .18 | .20 | .11 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .24 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.38 | .41 | (2.39) | (3.28) | (1.76) |
Distributions from net investment income | (.17) | (.33) | (.07) | - | (.31) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.35) | (.63) L | (.19) | - | (1.81) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.55 | $ 9.21 | $ 8.46 | $ 8.24 | $ 10.63 | $ 15.71 |
Total Return B,C,D | (14.20)% | 16.76% | 4.97% | (22.48)% | (23.20)% | (10.02)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of fee waivers, if any | 1.44% A | 1.42% | 1.44% | 1.45% | 1.38% | 1.37% A |
Expenses net of all reductions | 1.34% A | 1.36% | 1.39% | 1.42% | 1.35% | 1.26% A |
Net investment income (loss) | 1.49% A | 3.67% H | 2.02% | 2.55% | 1.58% | 2.08% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 6,479 | $ 7,047 | $ 7,250 | $ 6,745 | $ 9,976 | $ 5,087 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.64%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .05 | .31 H | .15 | .17 | .17 | .10 |
Net realized and unrealized gain (loss) | (1.37) | 1.04 | .23 | (2.58) | (3.48) | (1.87) |
Total from investment operations | (1.32) | 1.35 | .38 | (2.41) | (3.31) | (1.77) |
Distributions from net investment income | (.14) | (.31) | (.06) | - | (.28) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.32) | (.60) | (.18) | - | (1.78) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.52 | $ 9.16 | $ 8.41 | $ 8.21 | $ 10.62 | $ 15.70 |
Total Return B,C,D | (14.34)% | 16.54% | 4.68% | (22.69)% | (23.39)% | (10.08)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 1.72% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of fee waivers, if any | 1.70% A | 1.69% | 1.70% | 1.71% | 1.64% | 1.61% A |
Expenses net of all reductions | 1.60% A | 1.63% | 1.65% | 1.68% | 1.60% | 1.51% A |
Net investment income (loss) | 1.23% A | 3.41% H | 1.75% | 2.29% | 1.32% | 1.90% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,031 | $ 2,496 | $ 2,510 | $ 2,080 | $ 7,566 | $ 2,398 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.38%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.03 | .23 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.29 | .34 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.09) | (.27) | (.04) | - | (.23) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.27) | (.56) | (.16) | - | (1.73) | - |
Redemption fees added to paid in capital E | - K | -K | -K | -K | .01 | .01 |
Net asset value, end of period | $ 7.47 | $ 9.05 | $ 8.32 | $ 8.14 | $ 10.58 | $ 15.67 |
Total Return B,C,D | (14.43)% | 15.90% | 4.20% | (23.06)% | (23.80)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.19% | 2.19% | 2.14% | 2.11% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.01% A |
Net investment income (loss) | .74% A | 2.92% H | 1.26% | 1.81% | .82% | 1.38% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 427 | $ 570 | $ 629 | $ 606 | $ 930 | $ 1,158 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .90%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .26 H | .11 | .13 | .11 | .07 |
Net realized and unrealized gain (loss) | (1.34) | 1.04 | .22 | (2.57) | (3.48) | (1.87) |
Total from investment operations | (1.31) | 1.30 | .33 | (2.44) | (3.37) | (1.80) |
Distributions from net investment income | (.10) | (.28) | (.04) | - | (.24) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.28) | (.57) | (.16) | - | (1.74) | - |
Redemption fees added to paid in capital E | - K | - K | - K | - K | .01 | .01 |
Net asset value, end of period | $ 7.44 | $ 9.03 | $ 8.30 | $ 8.13 | $ 10.57 | $ 15.67 |
Total Return B,C,D | (14.53)% | 16.07% | 4.10% | (23.08)% | (23.78)% | (10.25)% |
Ratios to Average Net Assets F,J |
|
|
|
|
| |
Expenses before reductions | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of fee waivers, if any | 2.19% A | 2.17% | 2.18% | 2.19% | 2.14% | 2.10% A |
Expenses net of all reductions | 2.09% A | 2.11% | 2.14% | 2.17% | 2.11% | 2.00% A |
Net investment income (loss) | .74% A | 2.92% H | 1.27% | 1.81% | .82% | 1.35% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,451 | $ 3,208 | $ 3,201 | $ 2,496 | $ 3,477 | $ 2,629 |
Portfolio turnover rate G | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects large, non-recurring dividends which amounted to $.18 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been .89%. I For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 | $ 14.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .25 | .31 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .25 | (2.59) | (3.50) | 2.35 |
Total from investment operations | (1.32) | 1.42 | .44 | (2.39) | (3.25) | 2.66 |
Distributions from net investment income | (.19) | (.35) | (.08) | - | (.31) | (.22) |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | (1.42) |
Total distributions | (.37) | (.65) J | (.20) | - | (1.81) | (1.64) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .02 |
Net asset value, end of period | $ 7.61 | $ 9.30 | $ 8.53 | $ 8.29 | $ 10.68 | $ 15.73 |
Total Return B,C | (14.12)% | 17.15% | 5.29% | (22.38)% | (22.97)% | 19.01% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | 1.19% A | 1.17% | 1.19% | 1.19% | 1.11% | 1.07% |
Expenses net of fee waivers, if any | 1.19% A | 1.17% | 1.19% | 1.19% | 1.10% | 1.06% |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.16% | 1.07% | .96% |
Net investment income (loss) | 1.74% A | 3.92% G | 2.27% | 2.81% | 1.86% | 1.86% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 252,643 | $ 322,045 | $ 318,032 | $ 336,126 | $ 572,985 | $ 1,032,138 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 H |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 | $ 17.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .36 G | .19 | .20 | .24 | .12 |
Net realized and unrealized gain (loss) | (1.38) | 1.06 | .24 | (2.58) | (3.49) | (1.86) |
Total from investment operations | (1.32) | 1.42 | .43 | (2.38) | (3.25) | (1.74) |
Distributions from net investment income | (.20) | (.35) | (.08) | - | (.33) | - |
Distributions from net realized gain | (.18) | (.29) | (.12) | - | (1.50) | - |
Total distributions | (.37) K | (.65) L | (.20) | - | (1.83) | - |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 7.59 | $ 9.28 | $ 8.51 | $ 8.28 | $ 10.66 | $ 15.73 |
Total Return B,C | (14.12)% | 17.18% | 5.18% | (22.33)% | (22.98)% | (9.91)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of fee waivers, if any | 1.20% A | 1.17% | 1.18% | 1.19% | 1.13% | 1.08% A |
Expenses net of all reductions | 1.09% A | 1.11% | 1.14% | 1.17% | 1.10% | .97% A |
Net investment income (loss) | 1.73% A | 3.92% G | 2.27% | 2.81% | 1.83% | 2.27% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,750 | $ 1,785 | $ 1,425 | $ 1,600 | $ 3,289 | $ 2,477 |
Portfolio turnover rate F | 132% A | 131% | 95% | 55% | 63% | 144% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects large, non-recurring dividends which amounted to $.19 per share. Excluding these non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been 1.90%. H For the period April 4, 2007 (commencement of sale of shares) to July 31, 2007. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share. L Total distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
3. Significant Accounting Policies - continued
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,758,168 |
Gross unrealized depreciation | (59,985,698) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (56,227,530) |
|
|
Tax cost | $ 321,142,189 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (153,317,175) |
2018 | (136,599,532) |
Total capital loss carryforward | $ (289,916,707) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $175,505,459 and $203,923,586, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 7,381 | $ - |
Class T | .25% | .25% | 5,036 | - |
Class B | .75% | .25% | 2,142 | 1,607 |
Class C | .75% | .25% | 12,665 | 1,861 |
|
|
| $ 27,224 | $ 3,468 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 3,913 |
Class T | 63 |
Class B* | 729 |
Class C* | 29 |
| $ 4,734 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 8,824 | .30 |
Class T | 3,306 | .33 |
Class B | 638 | .30 |
Class C | 3,744 | .29 |
International Real Estate | 381,723 | .30 |
Institutional Class | 2,372 | .30 |
| $ 400,607 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $393 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $6,433. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class T | 1.70% | $ 225 |
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 $136,491 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 129,790 | $ 287,564 |
Class T | 38,723 | 96,278 |
Class B | 5,465 | 19,520 |
Class C | 34,224 | 109,655 |
International Real Estate | 6,491,807 | 13,319,427 |
Institutional Class | 40,510 | 60,300 |
Total | $ 6,740,519 | $ 13,892,744 |
From net realized gain |
|
|
Class A | $ 132,606 | $ 250,090 |
Class T | 47,658 | 89,657 |
Class B | 10,422 | 21,506 |
Class C | 62,457 | 114,914 |
International Real Estate | 6,040,035 | 10,916,536 |
Institutional Class | 36,556 | 48,079 |
Total | $ 6,329,734 | $ 11,440,782 |
10. 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 | |
Class A |
|
|
|
|
Shares sold | 306,688 | 213,763 | $ 2,298,400 | $ 1,964,473 |
Reinvestment of distributions | 30,139 | 50,966 | 225,090 | 451,020 |
Shares redeemed | (243,888) | (357,321) | (1,833,164) | (3,278,956) |
Net increase (decrease) | 92,939 | (92,592) | $ 690,326 | $ (863,463) |
Class T |
|
|
|
|
Shares sold | 25,883 | 73,470 | $ 192,599 | $ 668,265 |
Reinvestment of distributions | 11,086 | 20,063 | 82,612 | 176,852 |
Shares redeemed | (39,607) | (119,466) | (291,019) | (1,082,947) |
Net increase (decrease) | (2,638) | (25,933) | $ (15,808) | $ (237,830) |
Class B |
|
|
|
|
Shares sold | 1,538 | 4,563 | $ 11,023 | $ 41,321 |
Reinvestment of distributions | 2,053 | 4,289 | 15,253 | 37,454 |
Shares redeemed | (9,361) | (21,555) | (69,851) | (195,000) |
Net increase (decrease) | (5,770) | (12,703) | $ (43,575) | $ (116,225) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class C |
|
|
|
|
Shares sold | 23,513 | 111,487 | $ 176,971 | $ 1,002,010 |
Reinvestment of distributions | 11,099 | 21,061 | 82,243 | 183,176 |
Shares redeemed | (60,514) | (162,778) | (436,957) | (1,467,063) |
Net increase (decrease) | (25,902) | (30,230) | $ (177,743) | $ (281,877) |
International Real Estate |
|
|
|
|
Shares sold | 3,060,182 | 7,219,780 | $ 22,805,880 | $ 67,747,351 |
Reinvestment of distributions | 1,561,125 | 2,559,870 | 11,751,117 | 22,802,021 |
Shares redeemed | (6,067,543) | (12,440,980) | (45,381,822) | (115,315,484) |
Net increase (decrease) | (1,446,236) | (2,661,330) | $ (10,824,825) | $ (24,766,112) |
Institutional Class |
|
|
|
|
Shares sold | 68,817 | 99,324 | $ 522,330 | $ 925,861 |
Reinvestment of distributions | 8,633 | 10,892 | 64,775 | 96,908 |
Shares redeemed | (39,347) | (85,350) | (297,523) | (787,527) |
Net increase (decrease) | 38,103 | 24,866 | $ 289,582 | $ 235,242 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, FMR or its affiliates were the owners of record of approximately 15% of the outstanding shares of the fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (UK) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
AIREI-USAN-0312 1.843174.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Leveraged Company Stock | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 974.10 | $ 4.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.81 | $ 4.37 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 975.20 | $ 3.48 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.62 | $ 3.56 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 9.1 | 6.0 |
Service Corp. International | 4.6 | 3.6 |
The AES Corp. | 4.2 | 3.0 |
Apple, Inc. | 3.7 | 1.2 |
Comcast Corp. Class A | 2.8 | 2.1 |
ON Semiconductor Corp. | 2.4 | 4.1 |
Tenet Healthcare Corp. | 2.2 | 2.4 |
HollyFrontier Corp. | 2.1 | 1.4 |
El Paso Corp. | 2.0 | 3.3 |
GameStop Corp. Class A | 1.9 | 1.1 |
| 35.0 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 22.4 | 18.3 |
Materials | 16.0 | 15.7 |
Industrials | 14.0 | 16.6 |
Information Technology | 11.5 | 10.5 |
Energy | 9.5 | 15.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 95.7% |
| ![]() | Stocks 96.6% |
| ||
![]() | Bonds 0.3% |
| ![]() | Bonds 0.1% |
| ||
![]() | Other Investments 0.3% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 14.7% |
| ** Foreign investments | 12.4% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 22.2% | |||
Auto Components - 0.9% | |||
Exide Technologies (a)(f) | 3,930,293 | $ 12,970 | |
Tenneco, Inc. (a) | 97,700 | 3,136 | |
TRW Automotive Holdings Corp. (a) | 456,100 | 17,113 | |
| 33,219 | ||
Automobiles - 3.6% | |||
Daimler AG (United States) | 209,400 | 11,649 | |
Ford Motor Co. | 5,817,722 | 72,256 | |
General Motors Co. (a) | 1,542,066 | 37,040 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 445,805 | 6,745 | |
warrants 7/10/19 (a) | 445,805 | 4,654 | |
Toyota Motor Corp. sponsored ADR | 89,500 | 6,576 | |
| 138,920 | ||
Diversified Consumer Services - 4.8% | |||
Service Corp. International (f) | 15,781,118 | 175,170 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 9,319 | |
| 184,489 | ||
Hotels, Restaurants & Leisure - 1.1% | |||
Ameristar Casinos, Inc. | 110,100 | 2,154 | |
Biglari Holdings, Inc. (a) | 32,970 | 13,054 | |
Penn National Gaming, Inc. (a) | 582,836 | 23,861 | |
Station Holdco LLC warrants 6/15/18 (a)(h)(i) | 146,846 | 4 | |
Wendy's Co. | 546,800 | 2,564 | |
| 41,637 | ||
Household Durables - 1.8% | |||
Hovnanian Enterprises, Inc. Class A (a)(e) | 1,419,000 | 3,434 | |
Lennar Corp. Class A | 983,400 | 21,133 | |
Newell Rubbermaid, Inc. | 2,341,747 | 43,252 | |
| 67,819 | ||
Leisure Equipment & Products - 0.3% | |||
Callaway Golf Co. | 1,630,035 | 10,921 | |
Media - 5.0% | |||
AMC Networks, Inc. Class A | 135,331 | 5,787 | |
Belo Corp. Series A | 163,800 | 1,217 | |
Cablevision Systems Corp. - NY Group Class A | 541,324 | 7,876 | |
Cinemark Holdings, Inc. | 2,601,645 | 51,304 | |
Comcast Corp. Class A | 3,962,898 | 105,373 | |
Gray Television, Inc. (a)(f) | 3,766,164 | 7,721 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
LIN TV Corp. Class A (a) | 818,437 | $ 3,298 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 9,575 | |
| 192,151 | ||
Multiline Retail - 0.2% | |||
Target Corp. | 186,100 | 9,456 | |
Specialty Retail - 2.8% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | 8,823 | |
Charming Shoppes, Inc. (a) | 3,558,130 | 17,648 | |
GameStop Corp. Class A (a)(e) | 3,156,107 | 73,727 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 6,186 | |
| 106,384 | ||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Coach, Inc. | 314,020 | 21,997 | |
PVH Corp. | 548,718 | 42,356 | |
| 64,353 | ||
TOTAL CONSUMER DISCRETIONARY | 849,349 | ||
CONSUMER STAPLES - 2.4% | |||
Food & Staples Retailing - 0.4% | |||
Whole Foods Market, Inc. | 222,009 | 16,435 | |
Food Products - 1.8% | |||
Darling International, Inc. (a) | 3,664,042 | 55,987 | |
Smithfield Foods, Inc. (a) | 559,606 | 12,496 | |
| 68,483 | ||
Personal Products - 0.2% | |||
Revlon, Inc. (a) | 553,261 | 8,719 | |
TOTAL CONSUMER STAPLES | 93,637 | ||
ENERGY - 9.5% | |||
Energy Equipment & Services - 3.2% | |||
Ensco International Ltd. ADR | 110,000 | 5,790 | |
Halliburton Co. | 1,191,593 | 43,827 | |
Noble Corp. | 447,200 | 15,580 | |
Oil States International, Inc. (a) | 270,700 | 21,572 | |
Parker Drilling Co. (a) | 1,200,000 | 7,800 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Schlumberger Ltd. | 109,400 | $ 8,224 | |
Transocean Ltd. (United States) | 381,900 | 18,064 | |
| 120,857 | ||
Oil, Gas & Consumable Fuels - 6.3% | |||
Alpha Natural Resources, Inc. (a) | 1,377,413 | 27,714 | |
Continental Resources, Inc. (a) | 241,787 | 19,507 | |
El Paso Corp. | 2,863,964 | 76,955 | |
Forest Oil Corp. (a) | 1,314,652 | 17,090 | |
HollyFrontier Corp. | 2,711,033 | 79,542 | |
Nexen, Inc. | 188,000 | 3,369 | |
Overseas Shipholding Group, Inc. (e) | 384,692 | 4,889 | |
Range Resources Corp. | 247,200 | 14,219 | |
| 243,285 | ||
TOTAL ENERGY | 364,142 | ||
FINANCIALS - 7.0% | |||
Capital Markets - 0.6% | |||
Morgan Stanley | 1,187,000 | 22,138 | |
Commercial Banks - 2.6% | |||
Huntington Bancshares, Inc. | 9,966,280 | 56,907 | |
Regions Financial Corp. | 3,284,894 | 17,147 | |
SunTrust Banks, Inc. | 1,240,000 | 25,507 | |
| 99,561 | ||
Consumer Finance - 0.7% | |||
American Express Co. | 501,647 | 25,153 | |
Diversified Financial Services - 0.9% | |||
Citigroup, Inc. | 855,847 | 26,292 | |
JPMorgan Chase & Co. | 259,000 | 9,661 | |
| 35,953 | ||
Insurance - 1.6% | |||
AFLAC, Inc. | 641,700 | 30,949 | |
Assured Guaranty Ltd. | 1,249,684 | 19,383 | |
Lincoln National Corp. | 435,700 | 9,385 | |
| 59,717 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 0.6% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | $ 16,685 | |
Sabra Health Care REIT, Inc. | 547,507 | 7,786 | |
| 24,471 | ||
TOTAL FINANCIALS | 266,993 | ||
HEALTH CARE - 6.9% | |||
Health Care Equipment & Supplies - 0.8% | |||
Alere, Inc. (a) | 419,708 | 10,136 | |
Boston Scientific Corp. (a) | 3,575,400 | 21,309 | |
| 31,445 | ||
Health Care Providers & Services - 4.8% | |||
Community Health Systems, Inc. (a) | 965,676 | 18,058 | |
DaVita, Inc. (a) | 367,826 | 30,092 | |
HCA Holdings, Inc. | 1,216,779 | 29,738 | |
Kindred Healthcare, Inc. (a) | 108,330 | 1,329 | |
Sun Healthcare Group, Inc. (a) | 547,507 | 2,486 | |
Tenet Healthcare Corp. (a) | 15,892,339 | 84,070 | |
Universal Health Services, Inc. Class B | 385,505 | 15,918 | |
| 181,691 | ||
Pharmaceuticals - 1.3% | |||
Hospira, Inc. (a) | 360,258 | 12,414 | |
Merck & Co., Inc. | 998,300 | 38,195 | |
| 50,609 | ||
TOTAL HEALTH CARE | 263,745 | ||
INDUSTRIALS - 13.8% | |||
Aerospace & Defense - 1.1% | |||
American Science & Engineering, Inc. | 85,370 | 6,104 | |
Teledyne Technologies, Inc. (a) | 340,694 | 19,338 | |
Textron, Inc. | 602,700 | 15,357 | |
| 40,799 | ||
Airlines - 2.3% | |||
Delta Air Lines, Inc. (a) | 5,304,334 | 55,961 | |
Southwest Airlines Co. | 571,283 | 5,473 | |
United Continental Holdings, Inc. (a) | 370,700 | 8,563 | |
US Airways Group, Inc. (a) | 2,034,580 | 17,172 | |
| 87,169 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Building Products - 2.1% | |||
Armstrong World Industries, Inc. (a) | 1,173,030 | $ 54,781 | |
Owens Corning (a) | 678,219 | 22,890 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 947 | |
| 78,618 | ||
Commercial Services & Supplies - 2.2% | |||
Cenveo, Inc. (a)(e) | 2,858,300 | 9,575 | |
Deluxe Corp. | 1,786,873 | 45,690 | |
R.R. Donnelley & Sons Co. (e) | 450,900 | 5,122 | |
The Brink's Co. | 464,740 | 13,101 | |
Waste Management, Inc. | 340,992 | 11,853 | |
| 85,341 | ||
Electrical Equipment - 2.3% | |||
Belden, Inc. | 1,170,366 | 45,890 | |
Emerson Electric Co. | 163,500 | 8,401 | |
General Cable Corp. (a) | 549,400 | 16,954 | |
Polypore International, Inc. (a) | 436,300 | 16,614 | |
| 87,859 | ||
Industrial Conglomerates - 1.1% | |||
Carlisle Companies, Inc. | 109,910 | 5,246 | |
General Electric Co. | 1,103,883 | 20,654 | |
Tyco International Ltd. | 328,233 | 16,723 | |
| 42,623 | ||
Machinery - 1.8% | |||
Accuride Corp. warrants 2/26/12 (a) | 778,347 | 0* | |
Fiat Industrial SpA (a) | 1,634,423 | 16,012 | |
Ingersoll-Rand PLC | 847,100 | 29,598 | |
Stanley Black & Decker, Inc. | 185,817 | 13,041 | |
Timken Co. | 228,734 | 11,169 | |
| 69,820 | ||
Marine - 0.2% | |||
Navios Maritime Holdings, Inc. | 2,162,794 | 7,829 | |
Road & Rail - 0.7% | |||
Avis Budget Group, Inc. (a) | 719,914 | 10,331 | |
CSX Corp. | 328,200 | 7,401 | |
Hertz Global Holdings, Inc. (a) | 707,700 | 9,625 | |
| 27,357 | ||
TOTAL INDUSTRIALS | 527,415 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.0% | |||
Cisco Systems, Inc. | 1,888,100 | $ 37,063 | |
JDS Uniphase Corp. (a) | 163,300 | 2,072 | |
| 39,135 | ||
Computers & Peripherals - 3.7% | |||
Apple, Inc. (a) | 308,063 | 140,625 | |
Electronic Equipment & Components - 0.9% | |||
Avnet, Inc. (a) | 594,313 | 20,724 | |
DDi Corp. | 295,899 | 2,873 | |
Viasystems Group, Inc. (a) | 540,460 | 9,182 | |
| 32,779 | ||
Internet Software & Services - 0.2% | |||
VeriSign, Inc. | 194,300 | 7,201 | |
IT Services - 0.4% | |||
CACI International, Inc. Class A (a) | 248,000 | 14,555 | |
Office Electronics - 0.3% | |||
Xerox Corp. | 1,756,342 | 13,612 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 1,284,774 | 17,961 | |
Freescale Semiconductor Holdings I Ltd. | 584,500 | 9,334 | |
Intel Corp. | 454,981 | 12,021 | |
Intersil Corp. Class A | 1,460,387 | 16,444 | |
Micron Technology, Inc. (a) | 2,293,545 | 17,408 | |
NXP Semiconductors NV (a) | 275,200 | 5,842 | |
ON Semiconductor Corp. (a) | 10,420,922 | 90,662 | |
| 169,672 | ||
Software - 0.6% | |||
Citrix Systems, Inc. (a) | 230,899 | 15,057 | |
Microsoft Corp. | 108,800 | 3,213 | |
Nuance Communications, Inc. (a) | 219,300 | 6,254 | |
| 24,524 | ||
TOTAL INFORMATION TECHNOLOGY | 442,103 | ||
MATERIALS - 16.0% | |||
Chemicals - 12.3% | |||
Dow Chemical Co. | 832,388 | 27,893 | |
H.B. Fuller Co. | 461,829 | 13,218 | |
LyondellBasell Industries NV Class A | 8,108,809 | 349,493 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
OMNOVA Solutions, Inc. (a)(f) | 2,822,602 | $ 14,000 | |
Phosphate Holdings, Inc. (a) | 307,500 | 1,691 | |
Solutia, Inc. | 657,600 | 18,084 | |
W.R. Grace & Co. (a) | 838,069 | 44,870 | |
| 469,249 | ||
Containers & Packaging - 2.1% | |||
Rock-Tenn Co. Class A | 977,123 | 60,445 | |
Sealed Air Corp. | 1,091,149 | 21,747 | |
| 82,192 | ||
Metals & Mining - 1.3% | |||
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | 24,095 | |
Ormet Corp. (a) | 330,000 | 1,822 | |
Ormet Corp. (a)(i) | 1,075,000 | 5,934 | |
Teck Resources Ltd. Class B (sub. vtg.) | 417,300 | 17,695 | |
| 49,546 | ||
Paper & Forest Products - 0.3% | |||
Neenah Paper, Inc. | 518,300 | 12,320 | |
TOTAL MATERIALS | 613,307 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
CenturyLink, Inc. | 771,680 | 28,575 | |
UTILITIES - 5.2% | |||
Independent Power Producers & Energy Traders - 5.2% | |||
Calpine Corp. (a) | 2,598,800 | 37,942 | |
The AES Corp. (a) | 12,738,524 | 162,544 | |
| 200,486 | ||
TOTAL COMMON STOCKS (Cost $3,246,849) |
| ||
Nonconvertible Preferred Stocks - 0.4% | |||
|
|
|
|
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | 3,607 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - 0.3% | |||
Diversified Financial Services - 0.3% | |||
GMAC Capital Trust I Series 2, 8.125% | 439,013 | $ 9,742 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $19,207) |
|
Nonconvertible Bonds - 0.3% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.2% | ||||
Automobiles - 0.0% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | $ 3,075 | 21 | ||
7.125% 7/15/13 (d) | 8,320 | 56 | ||
7.2% 1/15/11 (d) | 22,980 | 154 | ||
8.25% 7/15/23 (d) | 25,035 | 168 | ||
8.375% 7/15/33 (d) | 50,210 | 336 | ||
8.8% 3/1/21 (d) | 10,765 | 72 | ||
| 807 | |||
Multiline Retail - 0.2% | ||||
The Bon-Ton Department Stores, Inc. 10.25% 3/15/14 | 10,360 | 6,371 | ||
TOTAL CONSUMER DISCRETIONARY | 7,178 | |||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Regions Bank 6.45% 6/26/37 | 5,430 | 4,792 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $11,894) |
| |||
Floating Rate Loans - 0.3% | ||||
| ||||
INDUSTRIALS - 0.2% | ||||
Airlines - 0.2% | ||||
US Airways Group, Inc. term loan 2.77% 3/23/14 (g) | 10,990 | 9,946 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
UTILITIES - 0.1% | ||||
Electric Utilities - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B, term loan 4.7953% 10/10/17 (g) | $ 5,458 | $ 3,384 | ||
TOTAL FLOATING RATE LOANS (Cost $14,335) |
|
Money Market Funds - 4.0% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 141,005,025 | 141,005 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 10,238,825 | 10,239 | |
TOTAL MONEY MARKET FUNDS (Cost $151,244) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $3,443,529) | 3,839,645 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (9,717) | ||
NET ASSETS - 100% | $ 3,829,928 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes which is owned by the Fund. |
(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 $5,938,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Station Holdco LLC warrants 6/15/18 | 10/28/08 - 12/1/08 | $ 5,990 |
* Amount represents less than $1,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 94 |
Fidelity Securities Lending Cash Central Fund | 915 |
Total | $ 1,009 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Cenveo, Inc. | $ 21,182 | $ - | $ 2,557 | $ - | $ - |
Exide Technologies | 26,087 | 897 | - | - | 12,970 |
Gray Television, Inc. | 9,152 | - | - | - | 7,721 |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
OMNOVA Solutions, Inc. | $ 18,584 | $ 330 | $ - | $ - | $ 14,000 |
Service Corp. International | 160,784 | 4,160 | - | 1,557 | 175,170 |
Total | $ 235,789 | $ 5,387 | $ 2,557 | $ 1,557 | $ 209,861 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 849,349 | $ 849,345 | $ - | $ 4 |
Consumer Staples | 97,244 | 93,637 | - | 3,607 |
Energy | 364,142 | 364,142 | - | - |
Financials | 276,735 | 276,735 | - | - |
Health Care | 263,745 | 263,745 | - | - |
Industrials | 527,415 | 527,415 | - | - |
Information Technology | 442,103 | 442,103 | - | - |
Materials | 613,307 | 613,307 | - | - |
Telecommunication Services | 28,575 | 28,575 | - | - |
Utilities | 200,486 | 200,486 | - | - |
Corporate Bonds | 11,970 | - | 11,163 | 807 |
Floating Rate Loans | 13,330 | - | 13,330 | - |
Money Market Funds | 151,244 | 151,244 | - | - |
Total Investments in Securities: | $ 3,839,645 | $ 3,810,734 | $ 24,493 | $ 4,418 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 4,985 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (148) |
Cost of Purchases | - |
Proceeds of Sales | (1,282) |
Amortization/Accretion | 863 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,418 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (148) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.3% |
Netherlands | 9.2% |
Switzerland | 1.3% |
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
Amounts in thousands (except per-share amounts) | January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $9,603) - See accompanying schedule: Unaffiliated issuers (cost $3,100,114) | $ 3,478,540 |
|
Fidelity Central Funds (cost $151,244) | 151,244 |
|
Other affiliated issuers (cost $192,171) | 209,861 |
|
Total Investments (cost $3,443,529) |
| $ 3,839,645 |
Cash |
| 82 |
Receivable for investments sold | 43,436 | |
Receivable for fund shares sold | 2,511 | |
Dividends receivable | 742 | |
Interest receivable | 451 | |
Distributions receivable from Fidelity Central Funds | 85 | |
Prepaid expenses | 10 | |
Other receivables | 251 | |
Total assets | 3,887,213 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 38,694 | |
Payable for fund shares redeemed | 5,770 | |
Accrued management fee | 1,885 | |
Other affiliated payables | 663 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 10,239 | |
Total liabilities | 57,285 | |
|
|
|
Net Assets | $ 3,829,928 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,177,362 | |
Distributions in excess of net investment income | (40,613) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (702,937) | |
Net unrealized appreciation (depreciation) on investments | 396,116 | |
Net Assets | $ 3,829,928 |
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, 2012 (Unaudited) | |
|
|
|
Leveraged Company Stock: | $ 27.78 | |
|
|
|
Class K: | $ 27.80 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $1,557 earned from other affiliated issuers) |
| $ 14,797 |
Interest |
| 812 |
Income from Fidelity Central Funds (including $915 from security lending) |
| 1,009 |
Total income |
| 16,618 |
|
|
|
Expenses | ||
Management fee | $ 10,998 | |
Transfer agent fees | 3,562 | |
Accounting and security lending fees | 517 | |
Custodian fees and expenses | 23 | |
Independent trustees' compensation | 12 | |
Registration fees | 48 | |
Audit | 34 | |
Legal | 12 | |
Miscellaneous | 19 | |
Total expenses before reductions | 15,225 | |
Expense reductions | (280) | 14,945 |
Net investment income (loss) | 1,673 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 42,607 | |
Other affiliated issuers | (3,843) |
|
Foreign currency transactions | 4 | |
Total net realized gain (loss) |
| 38,768 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (222,677) | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) |
| (222,679) |
Net gain (loss) | (183,911) | |
Net increase (decrease) in net assets resulting from operations | $ (182,238) |
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) | $ 1,673 | $ 691 |
Net realized gain (loss) | 38,768 | 265,176 |
Change in net unrealized appreciation (depreciation) | (222,679) | 656,096 |
Net increase (decrease) in net assets resulting | (182,238) | 921,963 |
Distributions to shareholders from net investment income | (41,206) | (19,058) |
Share transactions - net increase (decrease) | (433,024) | (810,250) |
Redemption fees | 237 | 558 |
Total increase (decrease) in net assets | (656,231) | 93,213 |
|
|
|
Net Assets | ||
Beginning of period | 4,486,159 | 4,392,946 |
End of period (including distributions in excess of net investment income of $40,613 and distributions in excess of net investment income of $1,080, respectively) | $ 3,829,928 | $ 4,486,159 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | - J | .07 | .21 | .14 | .44 H |
Net realized and unrealized gain (loss) | (.79) | 5.46 | 3.99 | (11.37) | (1.06) | 6.78 |
Total from investment operations | (.78) | 5.46 | 4.06 | (11.16) | (.92) | 7.22 |
Distributions from net investment income | (.29) | (.11) | (.11) | (.14) | (.39) | (.12) |
Distributions from net realized gain | - | - | - | (.25) | (1.39) | (1.40) |
Total distributions | (.29) | (.11) | (.11) | (.39) | (1.78) | (1.52) |
Redemption fees added to paid in capital D | - J | - J | - J | .01 | .01 | .01 |
Net asset value, end of period | $ 27.78 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 |
Total Return B, C | (2.59)% | 23.27% | 20.84% | (35.99)% | (2.76)% | 27.08% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .86% A | .85% | .88% | .92% | .83% | .83% |
Expenses net of fee waivers, if any | .86% A | .85% | .88% | .92% | .83% | .83% |
Expenses net of all reductions | .85% A | .84% | .88% | .92% | .83% | .83% |
Net investment income (loss) | .07% A | -% G | .29% | 1.17% | .44% | 1.43% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,260 | $ 3,931 | $ 3,983 | $ 3,714 | $ 8,032 | $ 7,830 |
Portfolio turnover rate F | 42% A | 18% | 21% | 34% | 30% | 20% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GAmount represents less than .01%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.26 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .59%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 | .04 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | (.78) | 5.45 | 4.00 | (11.35) | (3.04) |
Total from investment operations | (.75) | 5.49 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.31) | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | - | (.25) | - |
Total distributions | (.31) | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | - I |
Net asset value, end of period | $ 27.80 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B, C | (2.48)% | 23.45% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .70% A | .69% | .70% | .71% | .70% A |
Expenses net of fee waivers, if any | .70% A | .69% | .70% | .71% | .70% A |
Expenses net of all reductions | .68% A | .69% | .69% | .71% | .70% A |
Net investment income (loss) | .24% A | .16% | .47% | 1.39% | .58% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 569,750 | $ 554,907 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 42% A | 18% | 21% | 34% | 30% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GFor the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Leveraged Company Stock and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, equity-debt classifications, partnerships, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 809,359 |
Gross unrealized depreciation | (413,183) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 396,176 |
|
|
Tax cost | $ 3,443,469 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (37,148) |
2018 | (691,824) |
Total capital loss carryforward | $ (728,972) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $749,645 and $1,183,497, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 3,436 | .22 |
Class K | 126 | .05 |
| $ 3,562 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $63 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $358. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $16 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $280 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 35,167 | $ 16,431 |
Class K | 6,039 | 2,627 |
Total | $ 41,206 | $ 19,058 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Leveraged Company Stock |
|
|
|
|
Shares sold | 6,197 | 21,818 | $ 156,859 | $ 623,715 |
Reinvestment of distributions | 1,333 | 608 | 33,481 | 15,688 |
Shares redeemed | (26,436) | (55,621) | (656,817) | (1,504,254) |
Net increase (decrease) | (18,906) | (33,195) | $ (466,477) | $ (864,851) |
Class K |
|
|
|
|
Shares sold | 5,049 | 7,678 | $ 127,977 | $ 217,275 |
Reinvestment of distributions | 240 | 103 | 6,039 | 2,627 |
Shares redeemed | (4,016) | (5,983) | (100,563) | (165,301) |
Net increase (decrease) | 1,273 | 1,798 | $ 33,453 | $ 54,601 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
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Accounts
Buying shares
Fidelity Investments
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Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
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Selling shares
Fidelity Investments
P.O. Box 770001
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Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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Maryland
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Semiannual Report
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Minnesota
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Missouri
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Nevada
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New Jersey
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530 Broad Street
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New Mexico
2261 Q Street NE
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New York
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North Carolina
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Ohio
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Oregon
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Utah
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Virginia
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Washington
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304 Strander Blvd
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Washington, DC
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Wisconsin
16020 West Bluemound Road
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Investment Adviser
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Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the last six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Leveraged Company Stock | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 974.10 | $ 4.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.81 | $ 4.37 |
Class K | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 975.20 | $ 3.48 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.62 | $ 3.56 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 9.1 | 6.0 |
Service Corp. International | 4.6 | 3.6 |
The AES Corp. | 4.2 | 3.0 |
Apple, Inc. | 3.7 | 1.2 |
Comcast Corp. Class A | 2.8 | 2.1 |
ON Semiconductor Corp. | 2.4 | 4.1 |
Tenet Healthcare Corp. | 2.2 | 2.4 |
HollyFrontier Corp. | 2.1 | 1.4 |
El Paso Corp. | 2.0 | 3.3 |
GameStop Corp. Class A | 1.9 | 1.1 |
| 35.0 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 22.4 | 18.3 |
Materials | 16.0 | 15.7 |
Industrials | 14.0 | 16.6 |
Information Technology | 11.5 | 10.5 |
Energy | 9.5 | 15.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 95.7% |
| ![]() | Stocks 96.6% |
| ||
![]() | Bonds 0.3% |
| ![]() | Bonds 0.1% |
| ||
![]() | Other Investments 0.3% |
| ![]() | Other Investments 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 14.7% |
| ** Foreign investments | 12.4% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.3% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 22.2% | |||
Auto Components - 0.9% | |||
Exide Technologies (a)(f) | 3,930,293 | $ 12,970 | |
Tenneco, Inc. (a) | 97,700 | 3,136 | |
TRW Automotive Holdings Corp. (a) | 456,100 | 17,113 | |
| 33,219 | ||
Automobiles - 3.6% | |||
Daimler AG (United States) | 209,400 | 11,649 | |
Ford Motor Co. | 5,817,722 | 72,256 | |
General Motors Co. (a) | 1,542,066 | 37,040 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 445,805 | 6,745 | |
warrants 7/10/19 (a) | 445,805 | 4,654 | |
Toyota Motor Corp. sponsored ADR | 89,500 | 6,576 | |
| 138,920 | ||
Diversified Consumer Services - 4.8% | |||
Service Corp. International (f) | 15,781,118 | 175,170 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 9,319 | |
| 184,489 | ||
Hotels, Restaurants & Leisure - 1.1% | |||
Ameristar Casinos, Inc. | 110,100 | 2,154 | |
Biglari Holdings, Inc. (a) | 32,970 | 13,054 | |
Penn National Gaming, Inc. (a) | 582,836 | 23,861 | |
Station Holdco LLC warrants 6/15/18 (a)(h)(i) | 146,846 | 4 | |
Wendy's Co. | 546,800 | 2,564 | |
| 41,637 | ||
Household Durables - 1.8% | |||
Hovnanian Enterprises, Inc. Class A (a)(e) | 1,419,000 | 3,434 | |
Lennar Corp. Class A | 983,400 | 21,133 | |
Newell Rubbermaid, Inc. | 2,341,747 | 43,252 | |
| 67,819 | ||
Leisure Equipment & Products - 0.3% | |||
Callaway Golf Co. | 1,630,035 | 10,921 | |
Media - 5.0% | |||
AMC Networks, Inc. Class A | 135,331 | 5,787 | |
Belo Corp. Series A | 163,800 | 1,217 | |
Cablevision Systems Corp. - NY Group Class A | 541,324 | 7,876 | |
Cinemark Holdings, Inc. | 2,601,645 | 51,304 | |
Comcast Corp. Class A | 3,962,898 | 105,373 | |
Gray Television, Inc. (a)(f) | 3,766,164 | 7,721 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
LIN TV Corp. Class A (a) | 818,437 | $ 3,298 | |
Nexstar Broadcasting Group, Inc. Class A (a) | 1,130,500 | 9,575 | |
| 192,151 | ||
Multiline Retail - 0.2% | |||
Target Corp. | 186,100 | 9,456 | |
Specialty Retail - 2.8% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | 8,823 | |
Charming Shoppes, Inc. (a) | 3,558,130 | 17,648 | |
GameStop Corp. Class A (a)(e) | 3,156,107 | 73,727 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 6,186 | |
| 106,384 | ||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Coach, Inc. | 314,020 | 21,997 | |
PVH Corp. | 548,718 | 42,356 | |
| 64,353 | ||
TOTAL CONSUMER DISCRETIONARY | 849,349 | ||
CONSUMER STAPLES - 2.4% | |||
Food & Staples Retailing - 0.4% | |||
Whole Foods Market, Inc. | 222,009 | 16,435 | |
Food Products - 1.8% | |||
Darling International, Inc. (a) | 3,664,042 | 55,987 | |
Smithfield Foods, Inc. (a) | 559,606 | 12,496 | |
| 68,483 | ||
Personal Products - 0.2% | |||
Revlon, Inc. (a) | 553,261 | 8,719 | |
TOTAL CONSUMER STAPLES | 93,637 | ||
ENERGY - 9.5% | |||
Energy Equipment & Services - 3.2% | |||
Ensco International Ltd. ADR | 110,000 | 5,790 | |
Halliburton Co. | 1,191,593 | 43,827 | |
Noble Corp. | 447,200 | 15,580 | |
Oil States International, Inc. (a) | 270,700 | 21,572 | |
Parker Drilling Co. (a) | 1,200,000 | 7,800 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Schlumberger Ltd. | 109,400 | $ 8,224 | |
Transocean Ltd. (United States) | 381,900 | 18,064 | |
| 120,857 | ||
Oil, Gas & Consumable Fuels - 6.3% | |||
Alpha Natural Resources, Inc. (a) | 1,377,413 | 27,714 | |
Continental Resources, Inc. (a) | 241,787 | 19,507 | |
El Paso Corp. | 2,863,964 | 76,955 | |
Forest Oil Corp. (a) | 1,314,652 | 17,090 | |
HollyFrontier Corp. | 2,711,033 | 79,542 | |
Nexen, Inc. | 188,000 | 3,369 | |
Overseas Shipholding Group, Inc. (e) | 384,692 | 4,889 | |
Range Resources Corp. | 247,200 | 14,219 | |
| 243,285 | ||
TOTAL ENERGY | 364,142 | ||
FINANCIALS - 7.0% | |||
Capital Markets - 0.6% | |||
Morgan Stanley | 1,187,000 | 22,138 | |
Commercial Banks - 2.6% | |||
Huntington Bancshares, Inc. | 9,966,280 | 56,907 | |
Regions Financial Corp. | 3,284,894 | 17,147 | |
SunTrust Banks, Inc. | 1,240,000 | 25,507 | |
| 99,561 | ||
Consumer Finance - 0.7% | |||
American Express Co. | 501,647 | 25,153 | |
Diversified Financial Services - 0.9% | |||
Citigroup, Inc. | 855,847 | 26,292 | |
JPMorgan Chase & Co. | 259,000 | 9,661 | |
| 35,953 | ||
Insurance - 1.6% | |||
AFLAC, Inc. | 641,700 | 30,949 | |
Assured Guaranty Ltd. | 1,249,684 | 19,383 | |
Lincoln National Corp. | 435,700 | 9,385 | |
| 59,717 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 0.6% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | $ 16,685 | |
Sabra Health Care REIT, Inc. | 547,507 | 7,786 | |
| 24,471 | ||
TOTAL FINANCIALS | 266,993 | ||
HEALTH CARE - 6.9% | |||
Health Care Equipment & Supplies - 0.8% | |||
Alere, Inc. (a) | 419,708 | 10,136 | |
Boston Scientific Corp. (a) | 3,575,400 | 21,309 | |
| 31,445 | ||
Health Care Providers & Services - 4.8% | |||
Community Health Systems, Inc. (a) | 965,676 | 18,058 | |
DaVita, Inc. (a) | 367,826 | 30,092 | |
HCA Holdings, Inc. | 1,216,779 | 29,738 | |
Kindred Healthcare, Inc. (a) | 108,330 | 1,329 | |
Sun Healthcare Group, Inc. (a) | 547,507 | 2,486 | |
Tenet Healthcare Corp. (a) | 15,892,339 | 84,070 | |
Universal Health Services, Inc. Class B | 385,505 | 15,918 | |
| 181,691 | ||
Pharmaceuticals - 1.3% | |||
Hospira, Inc. (a) | 360,258 | 12,414 | |
Merck & Co., Inc. | 998,300 | 38,195 | |
| 50,609 | ||
TOTAL HEALTH CARE | 263,745 | ||
INDUSTRIALS - 13.8% | |||
Aerospace & Defense - 1.1% | |||
American Science & Engineering, Inc. | 85,370 | 6,104 | |
Teledyne Technologies, Inc. (a) | 340,694 | 19,338 | |
Textron, Inc. | 602,700 | 15,357 | |
| 40,799 | ||
Airlines - 2.3% | |||
Delta Air Lines, Inc. (a) | 5,304,334 | 55,961 | |
Southwest Airlines Co. | 571,283 | 5,473 | |
United Continental Holdings, Inc. (a) | 370,700 | 8,563 | |
US Airways Group, Inc. (a) | 2,034,580 | 17,172 | |
| 87,169 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Building Products - 2.1% | |||
Armstrong World Industries, Inc. (a) | 1,173,030 | $ 54,781 | |
Owens Corning (a) | 678,219 | 22,890 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 947 | |
| 78,618 | ||
Commercial Services & Supplies - 2.2% | |||
Cenveo, Inc. (a)(e) | 2,858,300 | 9,575 | |
Deluxe Corp. | 1,786,873 | 45,690 | |
R.R. Donnelley & Sons Co. (e) | 450,900 | 5,122 | |
The Brink's Co. | 464,740 | 13,101 | |
Waste Management, Inc. | 340,992 | 11,853 | |
| 85,341 | ||
Electrical Equipment - 2.3% | |||
Belden, Inc. | 1,170,366 | 45,890 | |
Emerson Electric Co. | 163,500 | 8,401 | |
General Cable Corp. (a) | 549,400 | 16,954 | |
Polypore International, Inc. (a) | 436,300 | 16,614 | |
| 87,859 | ||
Industrial Conglomerates - 1.1% | |||
Carlisle Companies, Inc. | 109,910 | 5,246 | |
General Electric Co. | 1,103,883 | 20,654 | |
Tyco International Ltd. | 328,233 | 16,723 | |
| 42,623 | ||
Machinery - 1.8% | |||
Accuride Corp. warrants 2/26/12 (a) | 778,347 | 0* | |
Fiat Industrial SpA (a) | 1,634,423 | 16,012 | |
Ingersoll-Rand PLC | 847,100 | 29,598 | |
Stanley Black & Decker, Inc. | 185,817 | 13,041 | |
Timken Co. | 228,734 | 11,169 | |
| 69,820 | ||
Marine - 0.2% | |||
Navios Maritime Holdings, Inc. | 2,162,794 | 7,829 | |
Road & Rail - 0.7% | |||
Avis Budget Group, Inc. (a) | 719,914 | 10,331 | |
CSX Corp. | 328,200 | 7,401 | |
Hertz Global Holdings, Inc. (a) | 707,700 | 9,625 | |
| 27,357 | ||
TOTAL INDUSTRIALS | 527,415 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.0% | |||
Cisco Systems, Inc. | 1,888,100 | $ 37,063 | |
JDS Uniphase Corp. (a) | 163,300 | 2,072 | |
| 39,135 | ||
Computers & Peripherals - 3.7% | |||
Apple, Inc. (a) | 308,063 | 140,625 | |
Electronic Equipment & Components - 0.9% | |||
Avnet, Inc. (a) | 594,313 | 20,724 | |
DDi Corp. | 295,899 | 2,873 | |
Viasystems Group, Inc. (a) | 540,460 | 9,182 | |
| 32,779 | ||
Internet Software & Services - 0.2% | |||
VeriSign, Inc. | 194,300 | 7,201 | |
IT Services - 0.4% | |||
CACI International, Inc. Class A (a) | 248,000 | 14,555 | |
Office Electronics - 0.3% | |||
Xerox Corp. | 1,756,342 | 13,612 | |
Semiconductors & Semiconductor Equipment - 4.4% | |||
Fairchild Semiconductor International, Inc. (a) | 1,284,774 | 17,961 | |
Freescale Semiconductor Holdings I Ltd. | 584,500 | 9,334 | |
Intel Corp. | 454,981 | 12,021 | |
Intersil Corp. Class A | 1,460,387 | 16,444 | |
Micron Technology, Inc. (a) | 2,293,545 | 17,408 | |
NXP Semiconductors NV (a) | 275,200 | 5,842 | |
ON Semiconductor Corp. (a) | 10,420,922 | 90,662 | |
| 169,672 | ||
Software - 0.6% | |||
Citrix Systems, Inc. (a) | 230,899 | 15,057 | |
Microsoft Corp. | 108,800 | 3,213 | |
Nuance Communications, Inc. (a) | 219,300 | 6,254 | |
| 24,524 | ||
TOTAL INFORMATION TECHNOLOGY | 442,103 | ||
MATERIALS - 16.0% | |||
Chemicals - 12.3% | |||
Dow Chemical Co. | 832,388 | 27,893 | |
H.B. Fuller Co. | 461,829 | 13,218 | |
LyondellBasell Industries NV Class A | 8,108,809 | 349,493 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
OMNOVA Solutions, Inc. (a)(f) | 2,822,602 | $ 14,000 | |
Phosphate Holdings, Inc. (a) | 307,500 | 1,691 | |
Solutia, Inc. | 657,600 | 18,084 | |
W.R. Grace & Co. (a) | 838,069 | 44,870 | |
| 469,249 | ||
Containers & Packaging - 2.1% | |||
Rock-Tenn Co. Class A | 977,123 | 60,445 | |
Sealed Air Corp. | 1,091,149 | 21,747 | |
| 82,192 | ||
Metals & Mining - 1.3% | |||
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | 24,095 | |
Ormet Corp. (a) | 330,000 | 1,822 | |
Ormet Corp. (a)(i) | 1,075,000 | 5,934 | |
Teck Resources Ltd. Class B (sub. vtg.) | 417,300 | 17,695 | |
| 49,546 | ||
Paper & Forest Products - 0.3% | |||
Neenah Paper, Inc. | 518,300 | 12,320 | |
TOTAL MATERIALS | 613,307 | ||
TELECOMMUNICATION SERVICES - 0.8% | |||
Diversified Telecommunication Services - 0.8% | |||
CenturyLink, Inc. | 771,680 | 28,575 | |
UTILITIES - 5.2% | |||
Independent Power Producers & Energy Traders - 5.2% | |||
Calpine Corp. (a) | 2,598,800 | 37,942 | |
The AES Corp. (a) | 12,738,524 | 162,544 | |
| 200,486 | ||
TOTAL COMMON STOCKS (Cost $3,246,849) |
| ||
Nonconvertible Preferred Stocks - 0.4% | |||
|
|
|
|
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | 3,607 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - 0.3% | |||
Diversified Financial Services - 0.3% | |||
GMAC Capital Trust I Series 2, 8.125% | 439,013 | $ 9,742 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $19,207) |
|
Nonconvertible Bonds - 0.3% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.2% | ||||
Automobiles - 0.0% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | $ 3,075 | 21 | ||
7.125% 7/15/13 (d) | 8,320 | 56 | ||
7.2% 1/15/11 (d) | 22,980 | 154 | ||
8.25% 7/15/23 (d) | 25,035 | 168 | ||
8.375% 7/15/33 (d) | 50,210 | 336 | ||
8.8% 3/1/21 (d) | 10,765 | 72 | ||
| 807 | |||
Multiline Retail - 0.2% | ||||
The Bon-Ton Department Stores, Inc. 10.25% 3/15/14 | 10,360 | 6,371 | ||
TOTAL CONSUMER DISCRETIONARY | 7,178 | |||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Regions Bank 6.45% 6/26/37 | 5,430 | 4,792 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $11,894) |
| |||
Floating Rate Loans - 0.3% | ||||
| ||||
INDUSTRIALS - 0.2% | ||||
Airlines - 0.2% | ||||
US Airways Group, Inc. term loan 2.77% 3/23/14 (g) | 10,990 | 9,946 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
UTILITIES - 0.1% | ||||
Electric Utilities - 0.1% | ||||
Texas Competitive Electric Holdings Co. LLC/Texas Competitive Electric Holdings Finance, Inc. Tranche B, term loan 4.7953% 10/10/17 (g) | $ 5,458 | $ 3,384 | ||
TOTAL FLOATING RATE LOANS (Cost $14,335) |
|
Money Market Funds - 4.0% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 141,005,025 | 141,005 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 10,238,825 | 10,239 | |
TOTAL MONEY MARKET FUNDS (Cost $151,244) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $3,443,529) | 3,839,645 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (9,717) | ||
NET ASSETS - 100% | $ 3,829,928 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes which is owned by the Fund. |
(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 $5,938,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Ormet Corp. | 2/27/07 - 4/4/07 | $ 20,556 |
Station Holdco LLC warrants 6/15/18 | 10/28/08 - 12/1/08 | $ 5,990 |
* Amount represents less than $1,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 94 |
Fidelity Securities Lending Cash Central Fund | 915 |
Total | $ 1,009 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Cenveo, Inc. | $ 21,182 | $ - | $ 2,557 | $ - | $ - |
Exide Technologies | 26,087 | 897 | - | - | 12,970 |
Gray Television, Inc. | 9,152 | - | - | - | 7,721 |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
OMNOVA Solutions, Inc. | $ 18,584 | $ 330 | $ - | $ - | $ 14,000 |
Service Corp. International | 160,784 | 4,160 | - | 1,557 | 175,170 |
Total | $ 235,789 | $ 5,387 | $ 2,557 | $ 1,557 | $ 209,861 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 849,349 | $ 849,345 | $ - | $ 4 |
Consumer Staples | 97,244 | 93,637 | - | 3,607 |
Energy | 364,142 | 364,142 | - | - |
Financials | 276,735 | 276,735 | - | - |
Health Care | 263,745 | 263,745 | - | - |
Industrials | 527,415 | 527,415 | - | - |
Information Technology | 442,103 | 442,103 | - | - |
Materials | 613,307 | 613,307 | - | - |
Telecommunication Services | 28,575 | 28,575 | - | - |
Utilities | 200,486 | 200,486 | - | - |
Corporate Bonds | 11,970 | - | 11,163 | 807 |
Floating Rate Loans | 13,330 | - | 13,330 | - |
Money Market Funds | 151,244 | 151,244 | - | - |
Total Investments in Securities: | $ 3,839,645 | $ 3,810,734 | $ 24,493 | $ 4,418 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 4,985 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (148) |
Cost of Purchases | - |
Proceeds of Sales | (1,282) |
Amortization/Accretion | 863 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,418 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (148) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.3% |
Netherlands | 9.2% |
Switzerland | 1.3% |
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
Amounts in thousands (except per-share amounts) | January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $9,603) - See accompanying schedule: Unaffiliated issuers (cost $3,100,114) | $ 3,478,540 |
|
Fidelity Central Funds (cost $151,244) | 151,244 |
|
Other affiliated issuers (cost $192,171) | 209,861 |
|
Total Investments (cost $3,443,529) |
| $ 3,839,645 |
Cash |
| 82 |
Receivable for investments sold | 43,436 | |
Receivable for fund shares sold | 2,511 | |
Dividends receivable | 742 | |
Interest receivable | 451 | |
Distributions receivable from Fidelity Central Funds | 85 | |
Prepaid expenses | 10 | |
Other receivables | 251 | |
Total assets | 3,887,213 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 38,694 | |
Payable for fund shares redeemed | 5,770 | |
Accrued management fee | 1,885 | |
Other affiliated payables | 663 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 10,239 | |
Total liabilities | 57,285 | |
|
|
|
Net Assets | $ 3,829,928 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,177,362 | |
Distributions in excess of net investment income | (40,613) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (702,937) | |
Net unrealized appreciation (depreciation) on investments | 396,116 | |
Net Assets | $ 3,829,928 |
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, 2012 (Unaudited) | |
|
|
|
Leveraged Company Stock: | $ 27.78 | |
|
|
|
Class K: | $ 27.80 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $1,557 earned from other affiliated issuers) |
| $ 14,797 |
Interest |
| 812 |
Income from Fidelity Central Funds (including $915 from security lending) |
| 1,009 |
Total income |
| 16,618 |
|
|
|
Expenses | ||
Management fee | $ 10,998 | |
Transfer agent fees | 3,562 | |
Accounting and security lending fees | 517 | |
Custodian fees and expenses | 23 | |
Independent trustees' compensation | 12 | |
Registration fees | 48 | |
Audit | 34 | |
Legal | 12 | |
Miscellaneous | 19 | |
Total expenses before reductions | 15,225 | |
Expense reductions | (280) | 14,945 |
Net investment income (loss) | 1,673 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 42,607 | |
Other affiliated issuers | (3,843) |
|
Foreign currency transactions | 4 | |
Total net realized gain (loss) |
| 38,768 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (222,677) | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) |
| (222,679) |
Net gain (loss) | (183,911) | |
Net increase (decrease) in net assets resulting from operations | $ (182,238) |
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) | $ 1,673 | $ 691 |
Net realized gain (loss) | 38,768 | 265,176 |
Change in net unrealized appreciation (depreciation) | (222,679) | 656,096 |
Net increase (decrease) in net assets resulting | (182,238) | 921,963 |
Distributions to shareholders from net investment income | (41,206) | (19,058) |
Share transactions - net increase (decrease) | (433,024) | (810,250) |
Redemption fees | 237 | 558 |
Total increase (decrease) in net assets | (656,231) | 93,213 |
|
|
|
Net Assets | ||
Beginning of period | 4,486,159 | 4,392,946 |
End of period (including distributions in excess of net investment income of $40,613 and distributions in excess of net investment income of $1,080, respectively) | $ 3,829,928 | $ 4,486,159 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 | $ 28.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | - J | .07 | .21 | .14 | .44 H |
Net realized and unrealized gain (loss) | (.79) | 5.46 | 3.99 | (11.37) | (1.06) | 6.78 |
Total from investment operations | (.78) | 5.46 | 4.06 | (11.16) | (.92) | 7.22 |
Distributions from net investment income | (.29) | (.11) | (.11) | (.14) | (.39) | (.12) |
Distributions from net realized gain | - | - | - | (.25) | (1.39) | (1.40) |
Total distributions | (.29) | (.11) | (.11) | (.39) | (1.78) | (1.52) |
Redemption fees added to paid in capital D | - J | - J | - J | .01 | .01 | .01 |
Net asset value, end of period | $ 27.78 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 |
Total Return B, C | (2.59)% | 23.27% | 20.84% | (35.99)% | (2.76)% | 27.08% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | .86% A | .85% | .88% | .92% | .83% | .83% |
Expenses net of fee waivers, if any | .86% A | .85% | .88% | .92% | .83% | .83% |
Expenses net of all reductions | .85% A | .84% | .88% | .92% | .83% | .83% |
Net investment income (loss) | .07% A | -% G | .29% | 1.17% | .44% | 1.43% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,260 | $ 3,931 | $ 3,983 | $ 3,714 | $ 8,032 | $ 7,830 |
Portfolio turnover rate F | 42% A | 18% | 21% | 34% | 30% | 20% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GAmount represents less than .01%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.26 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .59%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 | .04 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | (.78) | 5.45 | 4.00 | (11.35) | (3.04) |
Total from investment operations | (.75) | 5.49 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.31) | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | - | (.25) | - |
Total distributions | (.31) | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | - I |
Net asset value, end of period | $ 27.80 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B, C | (2.48)% | 23.45% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .70% A | .69% | .70% | .71% | .70% A |
Expenses net of fee waivers, if any | .70% A | .69% | .70% | .71% | .70% A |
Expenses net of all reductions | .68% A | .69% | .69% | .71% | .70% A |
Net investment income (loss) | .24% A | .16% | .47% | 1.39% | .58% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 569,750 | $ 554,907 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 42% A | 18% | 21% | 34% | 30% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GFor the period May 9, 2008 (commencement of sale of shares) to July 31, 2008. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount 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, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity® Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Leveraged Company Stock and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, equity-debt classifications, partnerships, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 809,359 |
Gross unrealized depreciation | (413,183) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 396,176 |
|
|
Tax cost | $ 3,443,469 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (37,148) |
2018 | (691,824) |
Total capital loss carryforward | $ (728,972) |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $749,645 and $1,183,497, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .61% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Leveraged Company Stock | $ 3,436 | .22 |
Class K | 126 | .05 |
| $ 3,562 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $63 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $358. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $16 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $280 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 35,167 | $ 16,431 |
Class K | 6,039 | 2,627 |
Total | $ 41,206 | $ 19,058 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Leveraged Company Stock |
|
|
|
|
Shares sold | 6,197 | 21,818 | $ 156,859 | $ 623,715 |
Reinvestment of distributions | 1,333 | 608 | 33,481 | 15,688 |
Shares redeemed | (26,436) | (55,621) | (656,817) | (1,504,254) |
Net increase (decrease) | (18,906) | (33,195) | $ (466,477) | $ (864,851) |
Class K |
|
|
|
|
Shares sold | 5,049 | 7,678 | $ 127,977 | $ 217,275 |
Reinvestment of distributions | 240 | 103 | 6,039 | 2,627 |
Shares redeemed | (4,016) | (5,983) | (100,563) | (165,301) |
Net increase (decrease) | 1,273 | 1,798 | $ 33,453 | $ 54,601 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
LSF-K-USAN-0312 1.863384.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
OTC | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 993.10 | $ 5.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.11 | $ 5.08 |
Class K | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 993.80 | $ 4.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.86 | $ 4.32 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 13.3 | 11.7 |
Google, Inc. Class A | 5.8 | 8.4 |
Microsoft Corp. | 3.9 | 2.2 |
Accretive Health, Inc. | 3.5 | 2.9 |
Green Mountain Coffee Roasters, Inc. | 2.9 | 1.0 |
Oracle Corp. | 2.6 | 2.1 |
Questcor Pharmaceuticals, Inc. | 2.6 | 0.0 |
NVIDIA Corp. | 2.6 | 3.6 |
Randgold Resources Ltd. sponsored ADR | 2.4 | 1.2 |
Rackspace Hosting, Inc. | 2.2 | 3.0 |
| 41.8 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 55.9 | 58.2 |
Consumer Discretionary | 15.9 | 17.8 |
Health Care | 14.3 | 15.3 |
Consumer Staples | 3.1 | 1.1 |
Materials | 3.1 | 1.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 100.2% |
| ![]() | Stocks 99.6% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.6% |
| ** Foreign investments | 8.6% |
|
† Short-Term Investments and Net Other Assets are not included in the pie chart
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.8% | |||
Auto Components - 0.6% | |||
Amerigon, Inc. (a) | 708,782 | $ 10,880 | |
Gentex Corp. | 1,216,500 | 32,687 | |
| 43,567 | ||
Automobiles - 1.9% | |||
Tesla Motors, Inc. (a)(d) | 5,132,864 | 149,212 | |
Diversified Consumer Services - 0.1% | |||
Coinstar, Inc. (a)(d) | 14,600 | 726 | |
K12, Inc. (a) | 314,100 | 7,033 | |
| 7,759 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
BJ's Restaurants, Inc. (a) | 302,600 | 15,139 | |
Bravo Brio Restaurant Group, Inc. (a) | 661,025 | 12,725 | |
China Lodging Group Ltd. ADR (a)(d) | 188,800 | 2,841 | |
Dunkin' Brands Group, Inc. (a) | 37,400 | 1,034 | |
Las Vegas Sands Corp. | 42,200 | 2,072 | |
Starbucks Corp. | 2,118,500 | 101,540 | |
Texas Roadhouse, Inc. Class A | 1,054,000 | 15,979 | |
Wynn Resorts Ltd. | 4,700 | 542 | |
| 151,872 | ||
Household Durables - 1.7% | |||
D.R. Horton, Inc. | 2,121,200 | 29,527 | |
iRobot Corp. (a)(e) | 1,749,645 | 57,808 | |
Lennar Corp. Class A | 221,900 | 4,769 | |
PulteGroup, Inc. (a) | 98,700 | 735 | |
SodaStream International Ltd. (a)(d) | 228,258 | 8,717 | |
Techtronic Industries Co. Ltd. | 672,500 | 747 | |
Toll Brothers, Inc. (a) | 1,246,100 | 27,177 | |
| 129,480 | ||
Internet & Catalog Retail - 2.9% | |||
Amazon.com, Inc. (a) | 823,396 | 160,101 | |
ASOS PLC (a) | 135,500 | 3,673 | |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 62,900 | 462 | |
Groupon, Inc. Class A (a)(d) | 1,620,200 | 33,036 | |
Netflix, Inc. (a) | 160,200 | 19,256 | |
Ocado Group PLC (a) | 2,986,365 | 4,099 | |
| 220,627 | ||
Media - 3.8% | |||
Comcast Corp. Class A | 3,443,000 | 91,549 | |
Discovery Communications, Inc. (a) | 463,900 | 19,892 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
DISH Network Corp. Class A | 1,094,800 | $ 30,567 | |
Focus Media Holding Ltd. ADR (a) | 23,500 | 470 | |
Lions Gate Entertainment Corp. (a) | 3,444,693 | 34,723 | |
Pandora Media, Inc. (d) | 1,866,300 | 24,616 | |
Sirius XM Radio, Inc. (a) | 34,428,384 | 71,955 | |
Virgin Media, Inc. | 648,300 | 15,455 | |
WPP PLC sponsored ADR | 11,900 | 698 | |
| 289,925 | ||
Specialty Retail - 1.0% | |||
Barnes & Noble, Inc. (a) (e) | 5,610,117 | 67,714 | |
Bed Bath & Beyond, Inc. (a) | 184,200 | 11,181 | |
Francescas Holdings Corp. (a) | 9,100 | 202 | |
I.T Ltd. | 722,000 | 414 | |
Teavana Holdings, Inc. (a)(d) | 10,300 | 195 | |
| 79,706 | ||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Burberry Group PLC sponsored ADR | 407,000 | 17,448 | |
Deckers Outdoor Corp. (a) | 107,000 | 8,651 | |
lululemon athletica, Inc. (a) | 1,653,346 | 104,376 | |
Michael Kors Holdings Ltd. | 44,200 | 1,368 | |
Ralph Lauren Corp. | 5,100 | 775 | |
Steven Madden Ltd. (a) | 34,950 | 1,438 | |
Trinity Ltd. | 700,000 | 563 | |
| 134,619 | ||
TOTAL CONSUMER DISCRETIONARY | 1,206,767 | ||
CONSUMER STAPLES - 3.1% | |||
Beverages - 0.0% | |||
Monster Beverage Corp. (a) | 8,700 | 909 | |
Food & Staples Retailing - 0.0% | |||
Drogasil SA | 84,760 | 703 | |
Whole Foods Market, Inc. | 10,900 | 807 | |
| 1,510 | ||
Food Products - 3.1% | |||
Diamond Foods, Inc. | 89,000 | 3,234 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 4,160,204 | 221,905 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Tingyi (Cayman Islands) Holding Corp. ADR | 11,100 | $ 654 | |
Want Want China Holdings Ltd. ADR | 180,400 | 8,291 | |
| 234,084 | ||
Personal Products - 0.0% | |||
USANA Health Sciences, Inc. (a)(d) | 22,500 | 783 | |
TOTAL CONSUMER STAPLES | 237,286 | ||
ENERGY - 2.4% | |||
Energy Equipment & Services - 0.9% | |||
Baker Hughes, Inc. | 546,800 | 26,864 | |
Halliburton Co. | 763,300 | 28,074 | |
ION Geophysical Corp. (a) | 1,374,400 | 10,212 | |
| 65,150 | ||
Oil, Gas & Consumable Fuels - 1.5% | |||
Alpha Natural Resources, Inc. (a) | 1,772,000 | 35,653 | |
Amyris, Inc. (a)(d) | 2,220,628 | 19,919 | |
Georesources, Inc. (a) | 1,053,600 | 32,251 | |
Petroleum Development Corp. (a) | 508,951 | 15,844 | |
Solazyme, Inc. (d) | 884,269 | 10,275 | |
| 113,942 | ||
TOTAL ENERGY | 179,092 | ||
FINANCIALS - 2.1% | |||
Capital Markets - 0.0% | |||
Goldman Sachs Group, Inc. | 300 | 33 | |
WisdomTree Investments, Inc. (a) | 285,920 | 1,638 | |
| 1,671 | ||
Commercial Banks - 0.5% | |||
Associated Banc-Corp. | 54,700 | 682 | |
Fulton Financial Corp. | 63,700 | 592 | |
HDFC Bank Ltd. sponsored ADR | 930,900 | 28,886 | |
Huntington Bancshares, Inc. | 114,900 | 656 | |
National Penn Bancshares, Inc. | 88,300 | 767 | |
Popular, Inc. (a) | 271,600 | 426 | |
Standard Chartered PLC | 26,500 | 641 | |
SVB Financial Group (a) | 19,800 | 1,149 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Wells Fargo & Co. | 191,400 | $ 5,591 | |
Zions Bancorporation | 62,600 | 1,054 | |
| 40,444 | ||
Diversified Financial Services - 1.6% | |||
Citigroup, Inc. | 1,722,960 | 52,929 | |
CME Group, Inc. | 255,100 | 61,099 | |
Hong Kong Exchanges and Clearing Ltd. | 34,800 | 604 | |
JPMorgan Chase & Co. | 17,700 | 660 | |
NBH Holdings Corp. Class A (a)(f) | 110,800 | 1,801 | |
| 117,093 | ||
TOTAL FINANCIALS | 159,208 | ||
HEALTH CARE - 14.3% | |||
Biotechnology - 6.4% | |||
Achillion Pharmaceuticals, Inc. (a) | 1,402,500 | 15,554 | |
Alkermes PLC (a) | 630,498 | 11,860 | |
Alnylam Pharmaceuticals, Inc. (a) | 69,600 | 805 | |
Amarin Corp. PLC ADR (a) | 4,224,061 | 34,468 | |
Amylin Pharmaceuticals, Inc. (a) | 976,939 | 13,902 | |
Anthera Pharmaceuticals, Inc. (a) | 1,934,500 | 15,244 | |
ARIAD Pharmaceuticals, Inc. (a) | 83,400 | 1,230 | |
Biogen Idec, Inc. (a) | 414,100 | 48,831 | |
BioMarin Pharmaceutical, Inc. (a) | 84,800 | 3,025 | |
Cepheid, Inc. (a) | 271,600 | 11,967 | |
Dendreon Corp. (a)(d) | 20,836 | 283 | |
Genomic Health, Inc. (a) | 26,320 | 730 | |
Gilead Sciences, Inc. (a) | 2,138,700 | 104,454 | |
ImmunoGen, Inc. (a) | 297,309 | 4,198 | |
InterMune, Inc. (a) | 1,254,120 | 18,812 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 2,345,200 | 35,178 | |
Isis Pharmaceuticals, Inc. (a) | 80,849 | 660 | |
Medivation, Inc. (a) | 502,920 | 27,867 | |
Mesoblast Ltd. (a)(d) | 983,763 | 6,736 | |
NPS Pharmaceuticals, Inc. (a) | 337,200 | 2,590 | |
Seattle Genetics, Inc. (a) | 339,603 | 6,429 | |
Targacept, Inc. (a) | 216,749 | 1,318 | |
Theravance, Inc. (a) | 1,031,000 | 18,290 | |
Vertex Pharmaceuticals, Inc. (a) | 2,551,188 | 94,266 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Vical, Inc. (a) | 2,954,800 | $ 10,371 | |
ZIOPHARM Oncology, Inc. (a) | 290,700 | 1,544 | |
| 490,612 | ||
Health Care Equipment & Supplies - 0.6% | |||
Endologix, Inc. (a) | 93,600 | 1,215 | |
Mako Surgical Corp. (a)(d) | 767,663 | 27,467 | |
Masimo Corp. (a) | 22,700 | 486 | |
Volcano Corp. (a) | 608,800 | 17,077 | |
Zoll Medical Corp. (a) | 10,800 | 741 | |
| 46,986 | ||
Health Care Providers & Services - 3.5% | |||
Accretive Health, Inc. (a)(d)(e) | 9,821,402 | 263,508 | |
IPC The Hospitalist Co., Inc. (a) | 52,048 | 1,753 | |
| 265,261 | ||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (a) | 221,600 | 12,893 | |
Merge Healthcare, Inc. (a) | 3,533,000 | 19,361 | |
SXC Health Solutions Corp. (a) | 12,200 | 772 | |
| 33,026 | ||
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 43,083 | 641 | |
Pharmaceuticals - 3.4% | |||
Elan Corp. PLC sponsored ADR (a) | 2,511,000 | 34,175 | |
Jazz Pharmaceuticals PLC (a) | 466,600 | 21,697 | |
Questcor Pharmaceuticals, Inc. (a)(e) | 5,667,940 | 200,815 | |
| 256,687 | ||
TOTAL HEALTH CARE | 1,093,213 | ||
INDUSTRIALS - 1.6% | |||
Airlines - 1.1% | |||
Delta Air Lines, Inc. (a) | 3,050,700 | 32,185 | |
United Continental Holdings, Inc. (a) | 2,227,000 | 51,444 | |
| 83,629 | ||
Construction & Engineering - 0.0% | |||
Foster Wheeler AG (a) | 49,384 | 1,109 | |
Electrical Equipment - 0.1% | |||
Polypore International, Inc. (a) | 182,200 | 6,938 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 0.4% | |||
Westport Innovations, Inc. (a) | 790,000 | $ 32,864 | |
Trading Companies & Distributors - 0.0% | |||
Rush Enterprises, Inc. Class A (a) | 34,900 | 803 | |
TOTAL INDUSTRIALS | 125,343 | ||
INFORMATION TECHNOLOGY - 55.9% | |||
Communications Equipment - 6.1% | |||
Acme Packet, Inc. (a) | 970,678 | 28,373 | |
Aruba Networks, Inc. (a)(e) | 6,819,927 | 151,266 | |
Brocade Communications Systems, Inc. (a) | 4,576,400 | 25,674 | |
Cisco Systems, Inc. | 548,200 | 10,761 | |
HTC Corp. | 35,542 | 583 | |
Polycom, Inc. (a) | 5,721,170 | 114,137 | |
QUALCOMM, Inc. | 1,763,409 | 103,724 | |
Riverbed Technology, Inc. (a) | 1,234,003 | 29,542 | |
| 464,060 | ||
Computers & Peripherals - 14.6% | |||
Apple, Inc. (a) | 2,235,900 | 1,020,641 | |
Catcher Technology Co. Ltd. | 135,000 | 839 | |
Fusion-io, Inc. (d) | 1,504,659 | 34,773 | |
SanDisk Corp. (a) | 978,850 | 44,910 | |
Silicon Graphics International Corp. (a)(d) | 1,177,474 | 16,061 | |
| 1,117,224 | ||
Electronic Equipment & Components - 0.4% | |||
Corning, Inc. | 23,600 | 304 | |
E Ink Holdings, Inc. | 6,365,000 | 9,033 | |
E Ink Holdings, Inc. GDR (a)(f) | 35,700 | 507 | |
IPG Photonics Corp. (a) | 16,258 | 858 | |
Itron, Inc. (a) | 173,200 | 6,718 | |
Maxwell Technologies, Inc. (a) | 672,637 | 13,762 | |
| 31,182 | ||
Internet Software & Services - 11.4% | |||
Active Network, Inc. | 51,200 | 762 | |
Angie's List, Inc. (d) | 29,200 | 431 | |
Baidu.com, Inc. sponsored ADR (a) | 863,500 | 110,114 | |
Constant Contact, Inc. (a) | 750,000 | 18,735 | |
eBay, Inc. (a) | 2,895,400 | 91,495 | |
Facebook, Inc. Class B (g) | 335,669 | 8,392 | |
Google, Inc. Class A (a) | 764,522 | 443,507 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
LinkedIn Corp. (a) | 14,500 | $ 1,046 | |
LogMeIn, Inc. (a) | 527,840 | 21,024 | |
Mail.ru Group Ltd. GDR (a)(f) | 11,300 | 373 | |
Rackspace Hosting, Inc. (a) | 3,831,556 | 166,328 | |
Renren, Inc. ADR (d) | 119,800 | 665 | |
SINA Corp. (a) | 120,100 | 8,439 | |
Velti PLC (a) | 356,351 | 3,118 | |
| 874,429 | ||
IT Services - 2.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,999,245 | 143,446 | |
HiSoft Technology International Ltd. ADR (a) | 1,478,580 | 16,811 | |
MasterCard, Inc. Class A | 7,300 | 2,596 | |
ServiceSource International, Inc. | 27,300 | 462 | |
| 163,315 | ||
Semiconductors & Semiconductor Equipment - 8.5% | |||
Altera Corp. | 1,492,200 | 59,375 | |
Applied Micro Circuits Corp. (a) | 445,250 | 3,486 | |
ASML Holding NV | 1,378,600 | 59,266 | |
Broadcom Corp. Class A | 600,200 | 20,611 | |
Cypress Semiconductor Corp. | 32,550 | 560 | |
Inphi Corp. (a) | 1,044,000 | 15,315 | |
Mellanox Technologies Ltd. (a) | 1,524,151 | 55,891 | |
Micron Technology, Inc. (a) | 91,900 | 698 | |
NVE Corp. (a)(e) | 460,415 | 25,111 | |
NVIDIA Corp. (a) | 13,448,212 | 198,630 | |
NXP Semiconductors NV (a) | 3,727,489 | 79,135 | |
ON Semiconductor Corp. (a) | 651,000 | 5,664 | |
RF Micro Devices, Inc. (a) | 6,157,400 | 30,725 | |
Skyworks Solutions, Inc. (a) | 1,305,400 | 28,171 | |
Standard Microsystems Corp. (a) | 29,100 | 750 | |
Texas Instruments, Inc. | 930,100 | 30,117 | |
Volterra Semiconductor Corp. (a) | 1,206,500 | 36,400 | |
| 649,905 | ||
Software - 12.8% | |||
Ariba, Inc. (a) | 1,183,714 | 32,315 | |
BMC Software, Inc. (a) | 13,600 | 493 | |
BroadSoft, Inc. (a) | 874,780 | 24,389 | |
Citrix Systems, Inc. (a) | 578,768 | 37,741 | |
Electronic Arts, Inc. (a) | 1,750,139 | 32,500 | |
Fortinet, Inc. (a) | 33,200 | 757 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Gameloft (a)(e) | 7,579,787 | $ 52,643 | |
Guidewire Software, Inc. | 57,600 | 1,039 | |
Informatica Corp. (a) | 24,400 | 1,032 | |
Jive Software, Inc. | 154,000 | 2,287 | |
Kingdee International Software Group Co. Ltd. | 1,288,800 | 384 | |
Microsoft Corp. | 10,102,665 | 298,332 | |
MicroStrategy, Inc. Class A (a) | 458,300 | 52,759 | |
Oracle Corp. | 7,121,800 | 200,835 | |
QLIK Technologies, Inc. (a) | 941,600 | 26,553 | |
salesforce.com, Inc. (a) | 261,000 | 30,485 | |
Sourcefire, Inc. (a) | 280,100 | 8,689 | |
Synchronoss Technologies, Inc. (a)(e) | 3,643,327 | 121,760 | |
Take-Two Interactive Software, Inc. (a) | 686,515 | 10,710 | |
Ubisoft Entertainment SA (a) | 3,822,966 | 29,901 | |
Zynga, Inc. (d) | 1,692,700 | 17,773 | |
| 983,377 | ||
TOTAL INFORMATION TECHNOLOGY | 4,283,492 | ||
MATERIALS - 3.1% | |||
Chemicals - 0.3% | |||
Celanese Corp. Class A | 13,300 | 648 | |
CF Industries Holdings, Inc. | 33,500 | 5,942 | |
Innophos Holdings, Inc. | 15,056 | 752 | |
The Mosaic Co. | 321,400 | 17,989 | |
| 25,331 | ||
Metals & Mining - 2.8% | |||
Fortescue Metals Group Ltd. ADR | 289,300 | 7,698 | |
Randgold Resources Ltd. sponsored ADR | 1,571,833 | 179,833 | |
Royal Gold, Inc. | 168,800 | 12,852 | |
U.S. Silica Holdings, Inc. | 600,000 | 10,200 | |
| 210,583 | ||
TOTAL MATERIALS | 235,914 | ||
TELECOMMUNICATION SERVICES - 1.8% | |||
Diversified Telecommunication Services - 0.0% | |||
Cbeyond, Inc. (a) | 20,502 | 174 | |
Wireless Telecommunication Services - 1.8% | |||
Clearwire Corp. Class A (a) | 3,463,334 | 5,853 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - continued | |||
NII Holdings, Inc. (a) | 6,650,400 | $ 133,740 | |
Sprint Nextel Corp. (a) | 330,481 | 701 | |
| 140,294 | ||
TOTAL TELECOMMUNICATION SERVICES | 140,468 | ||
TOTAL COMMON STOCKS (Cost $6,923,539) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Porsche Automobil Holding SE (Germany) (Cost $9,186) | 166,975 |
| |
Money Market Funds - 3.8% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 13,138,847 | 13,139 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 279,015,504 | 279,016 | |
TOTAL MONEY MARKET FUNDS (Cost $292,155) |
| ||
Cash Equivalents - 0.1% | |||
Maturity Amount (000s) |
| ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 6,681 |
| |
TOTAL INVESTMENT PORTFOLIO - 104.1% (Cost $7,231,561) | 7,969,855 | ||
NET OTHER ASSETS (LIABILITIES) - (4.1)% | (311,932) | ||
NET ASSETS - 100% | $ 7,657,923 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,681,000 or 0.0% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,392,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 8,394 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$6,681,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 3,524 |
Barclays Capital, Inc. | 1,875 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,282 |
| $ 6,681 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 27 |
Fidelity Securities Lending Cash Central Fund | 12,905 |
Total | $ 12,932 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Accretive Health, Inc. | $ 225,437 | $ 60,544 | $ 1,176 | $ - | $ 263,508 |
Aruba Networks, Inc. | 179,343 | 10,093 | 30,917 | - | 151,266 |
Barnes & Noble, Inc. | - | 112,062 | 20,838 | - | 67,714 |
Gameloft | 51,802 | 565 | - | - | 52,643 |
Georesources, Inc. | 47,705 | - | 22,156 | - | - |
iRobot Corp. | 57,960 | 9,102 | 7,404 | - | 57,808 |
Meru Networks, Inc. | 8,324 | 3,822 | 8,935 | - | - |
NVE Corp. | - | 25,275 | - | - | 25,111 |
Petroleum Development Corp. | 44,294 | - | 23,012 | - | - |
Questcor Pharmaceuticals, Inc. | - | 192,798 | 23,930 | - | 200,815 |
Rackspace Hosting, Inc. | 228,165 | 40,271 | 121,689 | - | - |
Synchronoss Technologies, Inc. | 94,771 | 13,907 | 1,384 | - | 121,760 |
Vical, Inc. | 11,079 | 5,826 | 2,530 | - | - |
Total | $ 948,880 | $ 474,265 | $ 263,971 | $ - | $ 940,625 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,217,003 | $ 1,217,003 | $ - | $ - |
Consumer Staples | 237,286 | 237,286 | - | - |
Energy | 179,092 | 179,092 | - | - |
Financials | 159,208 | 157,407 | - | 1,801 |
Health Care | 1,093,213 | 1,093,213 | - | - |
Industrials | 125,343 | 125,343 | - | - |
Information Technology | 4,283,492 | 4,275,100 | - | 8,392 |
Materials | 235,914 | 225,714 | 10,200 | - |
Telecommunication Services | 140,468 | 140,468 | - | - |
Money Market Funds | 292,155 | 292,155 | - | - |
Cash Equivalents | 6,681 | - | 6,681 | - |
Total Investments in Securities: | $ 7,969,855 | $ 7,942,781 | $ 16,881 | $ 10,193 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 10,386 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (193) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,193 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (193) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.4% |
Bailiwick of Jersey | 2.4% |
Cayman Islands | 1.9% |
Netherlands | 1.8% |
France | 1.1% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $271,383 and repurchase agreements of $6,681) - See accompanying schedule: Unaffiliated issuers (cost $6,133,820) | $ 6,737,075 |
|
Fidelity Central Funds (cost $292,155) | 292,155 |
|
Other affiliated issuers (cost $805,586) | 940,625 |
|
Total Investments (cost $7,231,561) |
| $ 7,969,855 |
Receivable for investments sold | 64,878 | |
Receivable for fund shares sold | 12,045 | |
Dividends receivable | 826 | |
Distributions receivable from Fidelity Central Funds | 2,952 | |
Prepaid expenses | 18 | |
Other receivables | 1,061 | |
Total assets | 8,051,635 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 99,394 | |
Payable for fund shares redeemed | 9,191 | |
Accrued management fee | 4,797 | |
Other affiliated payables | 1,105 | |
Other payables and accrued expenses | 209 | |
Collateral on securities loaned, at value | 279,016 | |
Total liabilities | 393,712 | |
|
|
|
Net Assets | $ 7,657,923 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,249,727 | |
Accumulated net investment loss | (8,313) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (321,711) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 738,220 | |
Net Assets | $ 7,657,923 |
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, 2012 (Unaudited) | |
|
|
|
OTC: | $ 58.87 | |
|
|
|
Class K: | $ 59.24 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 8,287 |
Special dividends |
| 4,466 |
Interest |
| 1 |
Income from Fidelity Central Funds (including $12,905 from security lending) |
| 12,932 |
Total income |
| 25,686 |
|
|
|
Expenses | ||
Management fee | $ 21,850 | |
Performance adjustment | 5,950 | |
Transfer agent fees | 6,052 | |
Accounting and security lending fees | 633 | |
Custodian fees and expenses | 120 | |
Independent trustees' compensation | 24 | |
Registration fees | 108 | |
Audit | 39 | |
Legal | 18 | |
Interest | 4 | |
Miscellaneous | 31 | |
Total expenses before reductions | 34,829 | |
Expense reductions | (964) | 33,865 |
Net investment income (loss) | (8,179) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 86,827 | |
Other affiliated issuers | 61,823 |
|
Foreign currency transactions | (67) | |
Total net realized gain (loss) |
| 148,583 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (204,964) | |
Assets and liabilities in foreign currencies | (45) | |
Total change in net unrealized appreciation (depreciation) |
| (205,009) |
Net gain (loss) | (56,426) | |
Net increase (decrease) in net assets resulting from operations | $ (64,605) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (8,179) | $ (32,610) |
Net realized gain (loss) | 148,583 | 893,317 |
Change in net unrealized appreciation (depreciation) | (205,009) | 918,202 |
Net increase (decrease) in net assets resulting | (64,605) | 1,778,909 |
Share transactions - net increase (decrease) | (14,648) | (58,129) |
Total increase (decrease) in net assets | (79,253) | 1,720,780 |
|
|
|
Net Assets | ||
Beginning of period | 7,737,176 | 6,016,396 |
End of period (including accumulated net investment loss of $8,313 and accumulated net investment loss of $134, respectively) | $ 7,657,923 | $ 7,737,176 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.07) G | (.27) | (.23) | (.12) | (.20) | (.19) |
Net realized and unrealized gain (loss) | (.34) | 14.55 | 6.50 | (5.81) | (2.23) | 12.58 |
Total from investment operations | (.41) | 14.28 | 6.27 | (5.93) | (2.43) | 12.39 |
Net asset value, end of period | $ 58.87 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 |
Total Return B, C | (.69)% | 31.73% | 16.19% | (13.28)% | (5.16)% | 35.71% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.00% A | .94% | 1.06% | 1.13% | 1.06% | .96% |
Expenses net of fee waivers, if any | 1.00% A | .94% | 1.06% | 1.13% | 1.06% | .96% |
Expenses net of all reductions | .97% A | .92% | 1.04% | 1.13% | 1.05% | .95% |
Net investment income (loss) | (.25)% A, G | (.49)% | (.51)% | (.37)% | (.42)% | (.45)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 6,102 | $ 6,374 | $ 5,080 | $ 4,677 | $ 6,871 | $ 8,778 |
Portfolio turnover rate F | 146% A | 158% | 163% | 151% | 145% | 121% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.38)%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2012 | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.19) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | (.34) | 14.61 | 6.52 | (5.80) | (3.06) |
Total from investment operations | (.37) | 14.42 | 6.36 | (5.85) | (3.11) |
Net asset value, end of period | $ 59.24 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B, C | (.62)% | 31.91% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, I |
|
|
|
| |
Expenses before reductions | .85% A | .80% | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .85% A | .80% | .90% | .92% | .91% A |
Expenses net of all reductions | .83% A | .78% | .88% | .92% | .91% A |
Net investment income (loss) | (.11)% A, G | (.35)% | (.35)% | (.17)% | (.47)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,555,809 | $ 1,363,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 146% A | 158% | 163% | 151% | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.24)%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
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 shares and Class K shares, each of which has equal rights as to assets and voting privileges. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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 transactions, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,186,936 |
Gross unrealized depreciation | (522,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 664,441 |
|
|
Tax cost | $ 7,305,414 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (401,153) |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
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 $5,326,981 and $5,304,001, 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 an annualized 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 OTC as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
OTC | $ 5,703 | .20 |
Class K | 349 | .05 |
| $ 6,052 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $423 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 Loan | Weighted Average | Interest |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $27,323. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $667 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $964 for the period.
10. 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 | |
OTC |
|
|
|
|
Shares sold | 14,396 | 24,641 | $ 797,294 | $ 1,408,789 |
Shares redeemed | (18,270) | (29,999) | (1,002,735) | (1,594,260) |
Net increase (decrease) | (3,874) | (5,358) | $ (205,441) | $ (185,471) |
Class K |
|
|
|
|
Shares sold | 7,618 | 7,657 | $ 424,983 | $ 426,960 |
Shares redeemed | (4,229) | (5,502) | (234,190) | (299,618) |
Net increase (decrease) | 3,389 | 2,155 | $ 190,793 | $ 127,342 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
| Annualized | Beginning | Ending | Expenses Paid |
OTC | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 993.10 | $ 5.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.11 | $ 5.08 |
Class K | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 993.80 | $ 4.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.86 | $ 4.32 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 13.3 | 11.7 |
Google, Inc. Class A | 5.8 | 8.4 |
Microsoft Corp. | 3.9 | 2.2 |
Accretive Health, Inc. | 3.5 | 2.9 |
Green Mountain Coffee Roasters, Inc. | 2.9 | 1.0 |
Oracle Corp. | 2.6 | 2.1 |
Questcor Pharmaceuticals, Inc. | 2.6 | 0.0 |
NVIDIA Corp. | 2.6 | 3.6 |
Randgold Resources Ltd. sponsored ADR | 2.4 | 1.2 |
Rackspace Hosting, Inc. | 2.2 | 3.0 |
| 41.8 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 55.9 | 58.2 |
Consumer Discretionary | 15.9 | 17.8 |
Health Care | 14.3 | 15.3 |
Consumer Staples | 3.1 | 1.1 |
Materials | 3.1 | 1.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 100.2% |
| ![]() | Stocks 99.6% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 11.6% |
| ** Foreign investments | 8.6% |
|
† Short-Term Investments and Net Other Assets are not included in the pie chart
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.8% | |||
Auto Components - 0.6% | |||
Amerigon, Inc. (a) | 708,782 | $ 10,880 | |
Gentex Corp. | 1,216,500 | 32,687 | |
| 43,567 | ||
Automobiles - 1.9% | |||
Tesla Motors, Inc. (a)(d) | 5,132,864 | 149,212 | |
Diversified Consumer Services - 0.1% | |||
Coinstar, Inc. (a)(d) | 14,600 | 726 | |
K12, Inc. (a) | 314,100 | 7,033 | |
| 7,759 | ||
Hotels, Restaurants & Leisure - 2.0% | |||
BJ's Restaurants, Inc. (a) | 302,600 | 15,139 | |
Bravo Brio Restaurant Group, Inc. (a) | 661,025 | 12,725 | |
China Lodging Group Ltd. ADR (a)(d) | 188,800 | 2,841 | |
Dunkin' Brands Group, Inc. (a) | 37,400 | 1,034 | |
Las Vegas Sands Corp. | 42,200 | 2,072 | |
Starbucks Corp. | 2,118,500 | 101,540 | |
Texas Roadhouse, Inc. Class A | 1,054,000 | 15,979 | |
Wynn Resorts Ltd. | 4,700 | 542 | |
| 151,872 | ||
Household Durables - 1.7% | |||
D.R. Horton, Inc. | 2,121,200 | 29,527 | |
iRobot Corp. (a)(e) | 1,749,645 | 57,808 | |
Lennar Corp. Class A | 221,900 | 4,769 | |
PulteGroup, Inc. (a) | 98,700 | 735 | |
SodaStream International Ltd. (a)(d) | 228,258 | 8,717 | |
Techtronic Industries Co. Ltd. | 672,500 | 747 | |
Toll Brothers, Inc. (a) | 1,246,100 | 27,177 | |
| 129,480 | ||
Internet & Catalog Retail - 2.9% | |||
Amazon.com, Inc. (a) | 823,396 | 160,101 | |
ASOS PLC (a) | 135,500 | 3,673 | |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 62,900 | 462 | |
Groupon, Inc. Class A (a)(d) | 1,620,200 | 33,036 | |
Netflix, Inc. (a) | 160,200 | 19,256 | |
Ocado Group PLC (a) | 2,986,365 | 4,099 | |
| 220,627 | ||
Media - 3.8% | |||
Comcast Corp. Class A | 3,443,000 | 91,549 | |
Discovery Communications, Inc. (a) | 463,900 | 19,892 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
DISH Network Corp. Class A | 1,094,800 | $ 30,567 | |
Focus Media Holding Ltd. ADR (a) | 23,500 | 470 | |
Lions Gate Entertainment Corp. (a) | 3,444,693 | 34,723 | |
Pandora Media, Inc. (d) | 1,866,300 | 24,616 | |
Sirius XM Radio, Inc. (a) | 34,428,384 | 71,955 | |
Virgin Media, Inc. | 648,300 | 15,455 | |
WPP PLC sponsored ADR | 11,900 | 698 | |
| 289,925 | ||
Specialty Retail - 1.0% | |||
Barnes & Noble, Inc. (a) (e) | 5,610,117 | 67,714 | |
Bed Bath & Beyond, Inc. (a) | 184,200 | 11,181 | |
Francescas Holdings Corp. (a) | 9,100 | 202 | |
I.T Ltd. | 722,000 | 414 | |
Teavana Holdings, Inc. (a)(d) | 10,300 | 195 | |
| 79,706 | ||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Burberry Group PLC sponsored ADR | 407,000 | 17,448 | |
Deckers Outdoor Corp. (a) | 107,000 | 8,651 | |
lululemon athletica, Inc. (a) | 1,653,346 | 104,376 | |
Michael Kors Holdings Ltd. | 44,200 | 1,368 | |
Ralph Lauren Corp. | 5,100 | 775 | |
Steven Madden Ltd. (a) | 34,950 | 1,438 | |
Trinity Ltd. | 700,000 | 563 | |
| 134,619 | ||
TOTAL CONSUMER DISCRETIONARY | 1,206,767 | ||
CONSUMER STAPLES - 3.1% | |||
Beverages - 0.0% | |||
Monster Beverage Corp. (a) | 8,700 | 909 | |
Food & Staples Retailing - 0.0% | |||
Drogasil SA | 84,760 | 703 | |
Whole Foods Market, Inc. | 10,900 | 807 | |
| 1,510 | ||
Food Products - 3.1% | |||
Diamond Foods, Inc. | 89,000 | 3,234 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 4,160,204 | 221,905 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - continued | |||
Tingyi (Cayman Islands) Holding Corp. ADR | 11,100 | $ 654 | |
Want Want China Holdings Ltd. ADR | 180,400 | 8,291 | |
| 234,084 | ||
Personal Products - 0.0% | |||
USANA Health Sciences, Inc. (a)(d) | 22,500 | 783 | |
TOTAL CONSUMER STAPLES | 237,286 | ||
ENERGY - 2.4% | |||
Energy Equipment & Services - 0.9% | |||
Baker Hughes, Inc. | 546,800 | 26,864 | |
Halliburton Co. | 763,300 | 28,074 | |
ION Geophysical Corp. (a) | 1,374,400 | 10,212 | |
| 65,150 | ||
Oil, Gas & Consumable Fuels - 1.5% | |||
Alpha Natural Resources, Inc. (a) | 1,772,000 | 35,653 | |
Amyris, Inc. (a)(d) | 2,220,628 | 19,919 | |
Georesources, Inc. (a) | 1,053,600 | 32,251 | |
Petroleum Development Corp. (a) | 508,951 | 15,844 | |
Solazyme, Inc. (d) | 884,269 | 10,275 | |
| 113,942 | ||
TOTAL ENERGY | 179,092 | ||
FINANCIALS - 2.1% | |||
Capital Markets - 0.0% | |||
Goldman Sachs Group, Inc. | 300 | 33 | |
WisdomTree Investments, Inc. (a) | 285,920 | 1,638 | |
| 1,671 | ||
Commercial Banks - 0.5% | |||
Associated Banc-Corp. | 54,700 | 682 | |
Fulton Financial Corp. | 63,700 | 592 | |
HDFC Bank Ltd. sponsored ADR | 930,900 | 28,886 | |
Huntington Bancshares, Inc. | 114,900 | 656 | |
National Penn Bancshares, Inc. | 88,300 | 767 | |
Popular, Inc. (a) | 271,600 | 426 | |
Standard Chartered PLC | 26,500 | 641 | |
SVB Financial Group (a) | 19,800 | 1,149 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Wells Fargo & Co. | 191,400 | $ 5,591 | |
Zions Bancorporation | 62,600 | 1,054 | |
| 40,444 | ||
Diversified Financial Services - 1.6% | |||
Citigroup, Inc. | 1,722,960 | 52,929 | |
CME Group, Inc. | 255,100 | 61,099 | |
Hong Kong Exchanges and Clearing Ltd. | 34,800 | 604 | |
JPMorgan Chase & Co. | 17,700 | 660 | |
NBH Holdings Corp. Class A (a)(f) | 110,800 | 1,801 | |
| 117,093 | ||
TOTAL FINANCIALS | 159,208 | ||
HEALTH CARE - 14.3% | |||
Biotechnology - 6.4% | |||
Achillion Pharmaceuticals, Inc. (a) | 1,402,500 | 15,554 | |
Alkermes PLC (a) | 630,498 | 11,860 | |
Alnylam Pharmaceuticals, Inc. (a) | 69,600 | 805 | |
Amarin Corp. PLC ADR (a) | 4,224,061 | 34,468 | |
Amylin Pharmaceuticals, Inc. (a) | 976,939 | 13,902 | |
Anthera Pharmaceuticals, Inc. (a) | 1,934,500 | 15,244 | |
ARIAD Pharmaceuticals, Inc. (a) | 83,400 | 1,230 | |
Biogen Idec, Inc. (a) | 414,100 | 48,831 | |
BioMarin Pharmaceutical, Inc. (a) | 84,800 | 3,025 | |
Cepheid, Inc. (a) | 271,600 | 11,967 | |
Dendreon Corp. (a)(d) | 20,836 | 283 | |
Genomic Health, Inc. (a) | 26,320 | 730 | |
Gilead Sciences, Inc. (a) | 2,138,700 | 104,454 | |
ImmunoGen, Inc. (a) | 297,309 | 4,198 | |
InterMune, Inc. (a) | 1,254,120 | 18,812 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 2,345,200 | 35,178 | |
Isis Pharmaceuticals, Inc. (a) | 80,849 | 660 | |
Medivation, Inc. (a) | 502,920 | 27,867 | |
Mesoblast Ltd. (a)(d) | 983,763 | 6,736 | |
NPS Pharmaceuticals, Inc. (a) | 337,200 | 2,590 | |
Seattle Genetics, Inc. (a) | 339,603 | 6,429 | |
Targacept, Inc. (a) | 216,749 | 1,318 | |
Theravance, Inc. (a) | 1,031,000 | 18,290 | |
Vertex Pharmaceuticals, Inc. (a) | 2,551,188 | 94,266 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Vical, Inc. (a) | 2,954,800 | $ 10,371 | |
ZIOPHARM Oncology, Inc. (a) | 290,700 | 1,544 | |
| 490,612 | ||
Health Care Equipment & Supplies - 0.6% | |||
Endologix, Inc. (a) | 93,600 | 1,215 | |
Mako Surgical Corp. (a)(d) | 767,663 | 27,467 | |
Masimo Corp. (a) | 22,700 | 486 | |
Volcano Corp. (a) | 608,800 | 17,077 | |
Zoll Medical Corp. (a) | 10,800 | 741 | |
| 46,986 | ||
Health Care Providers & Services - 3.5% | |||
Accretive Health, Inc. (a)(d)(e) | 9,821,402 | 263,508 | |
IPC The Hospitalist Co., Inc. (a) | 52,048 | 1,753 | |
| 265,261 | ||
Health Care Technology - 0.4% | |||
athenahealth, Inc. (a) | 221,600 | 12,893 | |
Merge Healthcare, Inc. (a) | 3,533,000 | 19,361 | |
SXC Health Solutions Corp. (a) | 12,200 | 772 | |
| 33,026 | ||
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 43,083 | 641 | |
Pharmaceuticals - 3.4% | |||
Elan Corp. PLC sponsored ADR (a) | 2,511,000 | 34,175 | |
Jazz Pharmaceuticals PLC (a) | 466,600 | 21,697 | |
Questcor Pharmaceuticals, Inc. (a)(e) | 5,667,940 | 200,815 | |
| 256,687 | ||
TOTAL HEALTH CARE | 1,093,213 | ||
INDUSTRIALS - 1.6% | |||
Airlines - 1.1% | |||
Delta Air Lines, Inc. (a) | 3,050,700 | 32,185 | |
United Continental Holdings, Inc. (a) | 2,227,000 | 51,444 | |
| 83,629 | ||
Construction & Engineering - 0.0% | |||
Foster Wheeler AG (a) | 49,384 | 1,109 | |
Electrical Equipment - 0.1% | |||
Polypore International, Inc. (a) | 182,200 | 6,938 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - 0.4% | |||
Westport Innovations, Inc. (a) | 790,000 | $ 32,864 | |
Trading Companies & Distributors - 0.0% | |||
Rush Enterprises, Inc. Class A (a) | 34,900 | 803 | |
TOTAL INDUSTRIALS | 125,343 | ||
INFORMATION TECHNOLOGY - 55.9% | |||
Communications Equipment - 6.1% | |||
Acme Packet, Inc. (a) | 970,678 | 28,373 | |
Aruba Networks, Inc. (a)(e) | 6,819,927 | 151,266 | |
Brocade Communications Systems, Inc. (a) | 4,576,400 | 25,674 | |
Cisco Systems, Inc. | 548,200 | 10,761 | |
HTC Corp. | 35,542 | 583 | |
Polycom, Inc. (a) | 5,721,170 | 114,137 | |
QUALCOMM, Inc. | 1,763,409 | 103,724 | |
Riverbed Technology, Inc. (a) | 1,234,003 | 29,542 | |
| 464,060 | ||
Computers & Peripherals - 14.6% | |||
Apple, Inc. (a) | 2,235,900 | 1,020,641 | |
Catcher Technology Co. Ltd. | 135,000 | 839 | |
Fusion-io, Inc. (d) | 1,504,659 | 34,773 | |
SanDisk Corp. (a) | 978,850 | 44,910 | |
Silicon Graphics International Corp. (a)(d) | 1,177,474 | 16,061 | |
| 1,117,224 | ||
Electronic Equipment & Components - 0.4% | |||
Corning, Inc. | 23,600 | 304 | |
E Ink Holdings, Inc. | 6,365,000 | 9,033 | |
E Ink Holdings, Inc. GDR (a)(f) | 35,700 | 507 | |
IPG Photonics Corp. (a) | 16,258 | 858 | |
Itron, Inc. (a) | 173,200 | 6,718 | |
Maxwell Technologies, Inc. (a) | 672,637 | 13,762 | |
| 31,182 | ||
Internet Software & Services - 11.4% | |||
Active Network, Inc. | 51,200 | 762 | |
Angie's List, Inc. (d) | 29,200 | 431 | |
Baidu.com, Inc. sponsored ADR (a) | 863,500 | 110,114 | |
Constant Contact, Inc. (a) | 750,000 | 18,735 | |
eBay, Inc. (a) | 2,895,400 | 91,495 | |
Facebook, Inc. Class B (g) | 335,669 | 8,392 | |
Google, Inc. Class A (a) | 764,522 | 443,507 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
LinkedIn Corp. (a) | 14,500 | $ 1,046 | |
LogMeIn, Inc. (a) | 527,840 | 21,024 | |
Mail.ru Group Ltd. GDR (a)(f) | 11,300 | 373 | |
Rackspace Hosting, Inc. (a) | 3,831,556 | 166,328 | |
Renren, Inc. ADR (d) | 119,800 | 665 | |
SINA Corp. (a) | 120,100 | 8,439 | |
Velti PLC (a) | 356,351 | 3,118 | |
| 874,429 | ||
IT Services - 2.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,999,245 | 143,446 | |
HiSoft Technology International Ltd. ADR (a) | 1,478,580 | 16,811 | |
MasterCard, Inc. Class A | 7,300 | 2,596 | |
ServiceSource International, Inc. | 27,300 | 462 | |
| 163,315 | ||
Semiconductors & Semiconductor Equipment - 8.5% | |||
Altera Corp. | 1,492,200 | 59,375 | |
Applied Micro Circuits Corp. (a) | 445,250 | 3,486 | |
ASML Holding NV | 1,378,600 | 59,266 | |
Broadcom Corp. Class A | 600,200 | 20,611 | |
Cypress Semiconductor Corp. | 32,550 | 560 | |
Inphi Corp. (a) | 1,044,000 | 15,315 | |
Mellanox Technologies Ltd. (a) | 1,524,151 | 55,891 | |
Micron Technology, Inc. (a) | 91,900 | 698 | |
NVE Corp. (a)(e) | 460,415 | 25,111 | |
NVIDIA Corp. (a) | 13,448,212 | 198,630 | |
NXP Semiconductors NV (a) | 3,727,489 | 79,135 | |
ON Semiconductor Corp. (a) | 651,000 | 5,664 | |
RF Micro Devices, Inc. (a) | 6,157,400 | 30,725 | |
Skyworks Solutions, Inc. (a) | 1,305,400 | 28,171 | |
Standard Microsystems Corp. (a) | 29,100 | 750 | |
Texas Instruments, Inc. | 930,100 | 30,117 | |
Volterra Semiconductor Corp. (a) | 1,206,500 | 36,400 | |
| 649,905 | ||
Software - 12.8% | |||
Ariba, Inc. (a) | 1,183,714 | 32,315 | |
BMC Software, Inc. (a) | 13,600 | 493 | |
BroadSoft, Inc. (a) | 874,780 | 24,389 | |
Citrix Systems, Inc. (a) | 578,768 | 37,741 | |
Electronic Arts, Inc. (a) | 1,750,139 | 32,500 | |
Fortinet, Inc. (a) | 33,200 | 757 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Gameloft (a)(e) | 7,579,787 | $ 52,643 | |
Guidewire Software, Inc. | 57,600 | 1,039 | |
Informatica Corp. (a) | 24,400 | 1,032 | |
Jive Software, Inc. | 154,000 | 2,287 | |
Kingdee International Software Group Co. Ltd. | 1,288,800 | 384 | |
Microsoft Corp. | 10,102,665 | 298,332 | |
MicroStrategy, Inc. Class A (a) | 458,300 | 52,759 | |
Oracle Corp. | 7,121,800 | 200,835 | |
QLIK Technologies, Inc. (a) | 941,600 | 26,553 | |
salesforce.com, Inc. (a) | 261,000 | 30,485 | |
Sourcefire, Inc. (a) | 280,100 | 8,689 | |
Synchronoss Technologies, Inc. (a)(e) | 3,643,327 | 121,760 | |
Take-Two Interactive Software, Inc. (a) | 686,515 | 10,710 | |
Ubisoft Entertainment SA (a) | 3,822,966 | 29,901 | |
Zynga, Inc. (d) | 1,692,700 | 17,773 | |
| 983,377 | ||
TOTAL INFORMATION TECHNOLOGY | 4,283,492 | ||
MATERIALS - 3.1% | |||
Chemicals - 0.3% | |||
Celanese Corp. Class A | 13,300 | 648 | |
CF Industries Holdings, Inc. | 33,500 | 5,942 | |
Innophos Holdings, Inc. | 15,056 | 752 | |
The Mosaic Co. | 321,400 | 17,989 | |
| 25,331 | ||
Metals & Mining - 2.8% | |||
Fortescue Metals Group Ltd. ADR | 289,300 | 7,698 | |
Randgold Resources Ltd. sponsored ADR | 1,571,833 | 179,833 | |
Royal Gold, Inc. | 168,800 | 12,852 | |
U.S. Silica Holdings, Inc. | 600,000 | 10,200 | |
| 210,583 | ||
TOTAL MATERIALS | 235,914 | ||
TELECOMMUNICATION SERVICES - 1.8% | |||
Diversified Telecommunication Services - 0.0% | |||
Cbeyond, Inc. (a) | 20,502 | 174 | |
Wireless Telecommunication Services - 1.8% | |||
Clearwire Corp. Class A (a) | 3,463,334 | 5,853 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - continued | |||
NII Holdings, Inc. (a) | 6,650,400 | $ 133,740 | |
Sprint Nextel Corp. (a) | 330,481 | 701 | |
| 140,294 | ||
TOTAL TELECOMMUNICATION SERVICES | 140,468 | ||
TOTAL COMMON STOCKS (Cost $6,923,539) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Porsche Automobil Holding SE (Germany) (Cost $9,186) | 166,975 |
| |
Money Market Funds - 3.8% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 13,138,847 | 13,139 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 279,015,504 | 279,016 | |
TOTAL MONEY MARKET FUNDS (Cost $292,155) |
| ||
Cash Equivalents - 0.1% | |||
Maturity Amount (000s) |
| ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 6,681 |
| |
TOTAL INVESTMENT PORTFOLIO - 104.1% (Cost $7,231,561) | 7,969,855 | ||
NET OTHER ASSETS (LIABILITIES) - (4.1)% | (311,932) | ||
NET ASSETS - 100% | $ 7,657,923 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,681,000 or 0.0% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,392,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 - 5/19/11 | $ 8,394 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$6,681,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 3,524 |
Barclays Capital, Inc. | 1,875 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,282 |
| $ 6,681 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 27 |
Fidelity Securities Lending Cash Central Fund | 12,905 |
Total | $ 12,932 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Accretive Health, Inc. | $ 225,437 | $ 60,544 | $ 1,176 | $ - | $ 263,508 |
Aruba Networks, Inc. | 179,343 | 10,093 | 30,917 | - | 151,266 |
Barnes & Noble, Inc. | - | 112,062 | 20,838 | - | 67,714 |
Gameloft | 51,802 | 565 | - | - | 52,643 |
Georesources, Inc. | 47,705 | - | 22,156 | - | - |
iRobot Corp. | 57,960 | 9,102 | 7,404 | - | 57,808 |
Meru Networks, Inc. | 8,324 | 3,822 | 8,935 | - | - |
NVE Corp. | - | 25,275 | - | - | 25,111 |
Petroleum Development Corp. | 44,294 | - | 23,012 | - | - |
Questcor Pharmaceuticals, Inc. | - | 192,798 | 23,930 | - | 200,815 |
Rackspace Hosting, Inc. | 228,165 | 40,271 | 121,689 | - | - |
Synchronoss Technologies, Inc. | 94,771 | 13,907 | 1,384 | - | 121,760 |
Vical, Inc. | 11,079 | 5,826 | 2,530 | - | - |
Total | $ 948,880 | $ 474,265 | $ 263,971 | $ - | $ 940,625 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,217,003 | $ 1,217,003 | $ - | $ - |
Consumer Staples | 237,286 | 237,286 | - | - |
Energy | 179,092 | 179,092 | - | - |
Financials | 159,208 | 157,407 | - | 1,801 |
Health Care | 1,093,213 | 1,093,213 | - | - |
Industrials | 125,343 | 125,343 | - | - |
Information Technology | 4,283,492 | 4,275,100 | - | 8,392 |
Materials | 235,914 | 225,714 | 10,200 | - |
Telecommunication Services | 140,468 | 140,468 | - | - |
Money Market Funds | 292,155 | 292,155 | - | - |
Cash Equivalents | 6,681 | - | 6,681 | - |
Total Investments in Securities: | $ 7,969,855 | $ 7,942,781 | $ 16,881 | $ 10,193 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 10,386 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (193) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,193 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (193) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.4% |
Bailiwick of Jersey | 2.4% |
Cayman Islands | 1.9% |
Netherlands | 1.8% |
France | 1.1% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
| 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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $271,383 and repurchase agreements of $6,681) - See accompanying schedule: Unaffiliated issuers (cost $6,133,820) | $ 6,737,075 |
|
Fidelity Central Funds (cost $292,155) | 292,155 |
|
Other affiliated issuers (cost $805,586) | 940,625 |
|
Total Investments (cost $7,231,561) |
| $ 7,969,855 |
Receivable for investments sold | 64,878 | |
Receivable for fund shares sold | 12,045 | |
Dividends receivable | 826 | |
Distributions receivable from Fidelity Central Funds | 2,952 | |
Prepaid expenses | 18 | |
Other receivables | 1,061 | |
Total assets | 8,051,635 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 99,394 | |
Payable for fund shares redeemed | 9,191 | |
Accrued management fee | 4,797 | |
Other affiliated payables | 1,105 | |
Other payables and accrued expenses | 209 | |
Collateral on securities loaned, at value | 279,016 | |
Total liabilities | 393,712 | |
|
|
|
Net Assets | $ 7,657,923 | |
Net Assets consist of: |
| |
Paid in capital | $ 7,249,727 | |
Accumulated net investment loss | (8,313) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (321,711) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 738,220 | |
Net Assets | $ 7,657,923 |
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, 2012 (Unaudited) | |
|
|
|
OTC: | $ 58.87 | |
|
|
|
Class K: | $ 59.24 |
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, 2012 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 8,287 |
Special dividends |
| 4,466 |
Interest |
| 1 |
Income from Fidelity Central Funds (including $12,905 from security lending) |
| 12,932 |
Total income |
| 25,686 |
|
|
|
Expenses | ||
Management fee | $ 21,850 | |
Performance adjustment | 5,950 | |
Transfer agent fees | 6,052 | |
Accounting and security lending fees | 633 | |
Custodian fees and expenses | 120 | |
Independent trustees' compensation | 24 | |
Registration fees | 108 | |
Audit | 39 | |
Legal | 18 | |
Interest | 4 | |
Miscellaneous | 31 | |
Total expenses before reductions | 34,829 | |
Expense reductions | (964) | 33,865 |
Net investment income (loss) | (8,179) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 86,827 | |
Other affiliated issuers | 61,823 |
|
Foreign currency transactions | (67) | |
Total net realized gain (loss) |
| 148,583 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (204,964) | |
Assets and liabilities in foreign currencies | (45) | |
Total change in net unrealized appreciation (depreciation) |
| (205,009) |
Net gain (loss) | (56,426) | |
Net increase (decrease) in net assets resulting from operations | $ (64,605) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (8,179) | $ (32,610) |
Net realized gain (loss) | 148,583 | 893,317 |
Change in net unrealized appreciation (depreciation) | (205,009) | 918,202 |
Net increase (decrease) in net assets resulting | (64,605) | 1,778,909 |
Share transactions - net increase (decrease) | (14,648) | (58,129) |
Total increase (decrease) in net assets | (79,253) | 1,720,780 |
|
|
|
Net Assets | ||
Beginning of period | 7,737,176 | 6,016,396 |
End of period (including accumulated net investment loss of $8,313 and accumulated net investment loss of $134, respectively) | $ 7,657,923 | $ 7,737,176 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 | $ 34.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.07) G | (.27) | (.23) | (.12) | (.20) | (.19) |
Net realized and unrealized gain (loss) | (.34) | 14.55 | 6.50 | (5.81) | (2.23) | 12.58 |
Total from investment operations | (.41) | 14.28 | 6.27 | (5.93) | (2.43) | 12.39 |
Net asset value, end of period | $ 58.87 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 |
Total Return B, C | (.69)% | 31.73% | 16.19% | (13.28)% | (5.16)% | 35.71% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | 1.00% A | .94% | 1.06% | 1.13% | 1.06% | .96% |
Expenses net of fee waivers, if any | 1.00% A | .94% | 1.06% | 1.13% | 1.06% | .96% |
Expenses net of all reductions | .97% A | .92% | 1.04% | 1.13% | 1.05% | .95% |
Net investment income (loss) | (.25)% A, G | (.49)% | (.51)% | (.37)% | (.42)% | (.45)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 6,102 | $ 6,374 | $ 5,080 | $ 4,677 | $ 6,871 | $ 8,778 |
Portfolio turnover rate F | 146% A | 158% | 163% | 151% | 145% | 121% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.38)%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2012 | Years ended July 31, | |||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.19) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | (.34) | 14.61 | 6.52 | (5.80) | (3.06) |
Total from investment operations | (.37) | 14.42 | 6.36 | (5.85) | (3.11) |
Net asset value, end of period | $ 59.24 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B, C | (.62)% | 31.91% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E, I |
|
|
|
| |
Expenses before reductions | .85% A | .80% | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .85% A | .80% | .90% | .92% | .91% A |
Expenses net of all reductions | .83% A | .78% | .88% | .92% | .91% A |
Net investment income (loss) | (.11)% A, G | (.35)% | (.35)% | (.17)% | (.47)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,555,809 | $ 1,363,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 146% A | 158% | 163% | 151% | 145% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.24)%.
H For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
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 shares and Class K shares, each of which has equal rights as to assets and voting privileges. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Security Valuation - continued
hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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 transactions, deferred trustees compensation, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,186,936 |
Gross unrealized depreciation | (522,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 664,441 |
|
|
Tax cost | $ 7,305,414 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At July 31, 2011 capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (401,153) |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
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 $5,326,981 and $5,304,001, 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 an annualized 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 OTC as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
OTC | $ 5,703 | .20 |
Class K | 349 | .05 |
| $ 6,052 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $423 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 Loan | Weighted Average | Interest |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $27,323. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $667 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $964 for the period.
10. 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 | |
OTC |
|
|
|
|
Shares sold | 14,396 | 24,641 | $ 797,294 | $ 1,408,789 |
Shares redeemed | (18,270) | (29,999) | (1,002,735) | (1,594,260) |
Net increase (decrease) | (3,874) | (5,358) | $ (205,441) | $ (185,471) |
Class K |
|
|
|
|
Shares sold | 7,618 | 7,657 | $ 424,983 | $ 426,960 |
Shares redeemed | (4,229) | (5,502) | (234,190) | (299,618) |
Net increase (decrease) | 3,389 | 2,155 | $ 190,793 | $ 127,342 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OTC-K-USAN-0312 1.863312.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Real Estate Income
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,030.70 | $ 5.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.74 |
Class T | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 5.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.84 |
Class C | 1.89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,028.20 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.63 | $ 9.58 |
Real Estate Income | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.60 | $ 4.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Institutional Class | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,033.30 | $ 4.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Ventas, Inc. | 2.0 | 1.9 |
MFA Financial, Inc. | 1.6 | 1.5 |
Acadia Realty Trust (SBI) | 1.6 | 1.6 |
Equity LifeStyle Properties, Inc. | 1.5 | 1.3 |
Equity LifeStyle Properties, Inc. 8.034% | 1.1 | 1.1 |
| 7.8 | |
Top Five Bonds as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 | 2.6 | 2.4 |
Standard Pacific Corp. 8.375% 5/15/18 | 1.4 | 0.7 |
KB Home 9.1% 9/15/17 | 0.9 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 0.9 | 0.5 |
Wachovia Ltd./Wachovia LLC Series 2006-1A Class A1B, 0.9038% 9/25/26 | 0.8 | 0.3 |
| 6.6 | |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 7.3 | 5.5 |
REITs - Shopping Centers | 6.9 | 6.5 |
REITs - Health Care Facilities | 6.6 | 6.2 |
REITs - Mortgage | 6.4 | 5.5 |
REITs - Hotels | 3.8 | 2.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Common Stocks 24.2% |
| ![]() | Common Stocks 23.4% |
| ||
![]() | Preferred Stocks 11.2% |
| ![]() | Preferred Stocks 9.7% |
| ||
![]() | Bonds 48.6% |
| ![]() | Bonds 48.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 4.2% |
| ![]() | Other Investments 4.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.0% |
| ** Foreign investments | 6.3% |
|
Semiannual Report
Investments January 31, 2012
Showing Percentage of Net Assets
Common Stocks - 24.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 1.3% | |||
Household Durables - 1.3% | |||
Meritage Homes Corp. (a) | 135,900 | $ 3,288,780 | |
NVR, Inc. (a) | 5,800 | 4,020,850 | |
Standard Pacific Corp. (a)(e) | 3,375,200 | 12,285,728 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,036,910 | |
Toll Brothers, Inc. (a) | 183,100 | 3,993,411 | |
| 27,625,679 | ||
FINANCIALS - 21.7% | |||
Capital Markets - 0.3% | |||
HFF, Inc. (a) | 441,814 | 6,233,996 | |
Real Estate Investment Trusts - 20.9% | |||
Acadia Realty Trust (SBI) | 1,583,849 | 33,292,506 | |
American Campus Communities, Inc. | 87,200 | 3,732,160 | |
American Tower Corp. | 167,100 | 10,612,521 | |
Annaly Capital Management, Inc. | 329,150 | 5,542,886 | |
Anworth Mortgage Asset Corp. | 875,710 | 5,692,115 | |
Apartment Investment & Management Co. Class A | 291,400 | 7,156,784 | |
AvalonBay Communities, Inc. | 20,800 | 2,829,008 | |
Brandywine Realty Trust (SBI) | 274,400 | 2,919,616 | |
Canadian (REIT) | 107,800 | 4,004,538 | |
CapLease, Inc. | 1,591,600 | 6,621,056 | |
CBL & Associates Properties, Inc. | 604,873 | 10,506,644 | |
Chartwell Seniors Housing (REIT) (e) | 509,700 | 4,528,972 | |
Chesapeake Lodging Trust | 223,500 | 3,806,205 | |
Colony Financial, Inc. | 101,637 | 1,723,764 | |
CommonWealth REIT | 278,000 | 5,468,260 | |
Coresite Realty Corp. | 281,000 | 5,634,050 | |
Cousins Properties, Inc. | 246,800 | 1,818,916 | |
Cys Investments, Inc. (e) | 992,339 | 13,396,577 | |
DCT Industrial Trust, Inc. | 1,175,300 | 6,487,656 | |
DiamondRock Hospitality Co. | 668,900 | 7,050,206 | |
Douglas Emmett, Inc. | 172,900 | 3,615,339 | |
Dynex Capital, Inc. | 1,592,186 | 14,743,642 | |
Education Realty Trust, Inc. | 281,800 | 3,015,260 | |
Equity LifeStyle Properties, Inc. | 457,430 | 32,084,140 | |
Excel Trust, Inc. | 697,228 | 8,854,796 | |
H&R REIT/H&R Finance Trust | 256,500 | 5,960,060 | |
Healthcare Realty Trust, Inc. | 246,300 | 5,189,541 | |
Highwoods Properties, Inc. (SBI) | 51,400 | 1,700,826 | |
Hospitality Properties Trust (SBI) | 106,400 | 2,578,072 | |
Lexington Corporate Properties Trust | 1,771,300 | 15,233,180 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LTC Properties, Inc. | 339,113 | $ 10,834,660 | |
MFA Financial, Inc. | 4,635,781 | 34,026,633 | |
Mid-America Apartment Communities, Inc. | 53,900 | 3,445,288 | |
Monmouth Real Estate Investment Corp. Class A | 455,073 | 4,236,730 | |
National Health Investors, Inc. | 90,306 | 4,371,713 | |
National Retail Properties, Inc. | 114,100 | 3,081,841 | |
Newcastle Investment Corp. | 400,000 | 2,144,000 | |
Omega Healthcare Investors, Inc. | 532,179 | 11,090,610 | |
Pebblebrook Hotel Trust | 51,882 | 1,150,743 | |
Prologis, Inc. | 705,287 | 22,364,651 | |
Sabra Health Care REIT, Inc. | 178,800 | 2,542,536 | |
Senior Housing Properties Trust (SBI) | 175,600 | 3,982,608 | |
Simon Property Group, Inc. | 45,801 | 6,222,524 | |
Stag Industrial, Inc. | 382,692 | 4,584,650 | |
Summit Hotel Properties, Inc. | 634,200 | 5,929,770 | |
Sun Communities, Inc. | 85,000 | 3,409,350 | |
Sunstone Hotel Investors, Inc. (a) | 290,734 | 2,700,919 | |
Terreno Realty Corp. | 320,264 | 4,522,128 | |
Two Harbors Investment Corp. | 1,195,580 | 11,872,109 | |
Ventas, Inc. | 708,346 | 41,303,655 | |
Weyerhaeuser Co. | 535,229 | 10,715,285 | |
Whitestone REIT Class B | 379,067 | 4,825,523 | |
| 435,157,222 | ||
Real Estate Management & Development - 0.5% | |||
Brookfield Asset Management, Inc. Class A | 156,900 | 4,761,373 | |
Kennedy-Wilson Holdings, Inc. | 348,200 | 4,676,326 | |
| 9,437,699 | ||
TOTAL FINANCIALS | 450,828,917 | ||
HEALTH CARE - 1.2% | |||
Health Care Providers & Services - 1.2% | |||
Brookdale Senior Living, Inc. (a) | 733,300 | 12,906,080 | |
Capital Senior Living Corp. (a) | 687,750 | 5,570,775 | |
Emeritus Corp. (a) | 356,493 | 6,224,368 | |
| 24,701,223 | ||
TOTAL COMMON STOCKS (Cost $427,578,421) |
| ||
Preferred Stocks - 12.9% | |||
Shares | Value | ||
Convertible Preferred Stocks - 1.7% | |||
FINANCIALS - 1.7% | |||
Real Estate Investment Trusts - 1.7% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | $ 2,363,125 | |
CommonWealth REIT 6.50% | 339,844 | 7,187,701 | |
Excel Trust, Inc. 7.00% (f) | 248,200 | 5,894,750 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,509,650 | |
Lexington Corporate Properties Trust Series C, 6.50% | 349,551 | 15,030,693 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 1,871,200 | |
| 34,857,119 | ||
Real Estate Management & Development - 0.0% | |||
Grubb & Ellis Co. 12.00% (f) | 14,800 | 51,356 | |
TOTAL FINANCIALS | 34,908,475 | ||
Nonconvertible Preferred Stocks - 11.2% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | 426,087 | |
FINANCIALS - 11.2% | |||
Diversified Financial Services - 0.2% | |||
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | 100,000 | |
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,214,470 | |
| 4,314,470 | ||
Real Estate Investment Trusts - 10.9% | |||
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | 1,725,250 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 1,203 | |
Series B, 9.25% (a) | 124,100 | 124 | |
Annaly Capital Management, Inc. Series A, 7.875% | 134,900 | 3,630,159 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,003,936 | |
Apartment Investment & Management Co.: | |||
Series T, 8.00% | 57,500 | 1,469,125 | |
Series U, 7.75% | 150,773 | 3,829,634 | |
Ashford Hospitality Trust, Inc. Series E, 9.00% | 57,030 | 1,434,305 | |
Brandywine Realty Trust Series C, 7.50% | 37,615 | 964,449 | |
CapLease, Inc. Series A, 8.125% | 117,510 | 2,914,248 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
CBL & Associates Properties, Inc.: | |||
(depositary shares) Series C, 7.75% | 147,962 | $ 3,768,592 | |
7.375% | 274,876 | 6,863,654 | |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | 7,261,704 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,046,688 | |
Cogdell Spencer, Inc. 8.50% | 114,300 | 2,912,364 | |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | 125,650 | |
Cousins Properties, Inc. Series A, 7.75% | 178,330 | 4,306,670 | |
CubeSmart Series A, 7.75% | 40,000 | 1,008,000 | |
DDR Corp. Series I, 7.50% | 24,684 | 616,113 | |
Digital Realty Trust, Inc. Series E, 7.00% | 40,000 | 1,026,800 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,409,556 | |
Series L, 6.60% | 10,666 | 267,397 | |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | 48,000 | |
Equity LifeStyle Properties, Inc. 8.034% | 885,479 | 23,128,711 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,034,000 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,100,000 | |
First Potomac Realty Trust 7.75% | 80,779 | 2,067,135 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 5,754,858 | |
Glimcher Realty Trust Series G, 8.125% | 171,111 | 4,098,108 | |
Hersha Hospitality Trust Series B, 8.00% | 98,910 | 2,377,796 | |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | 1 | |
Hospitality Properties Trust: | |||
Series B, 8.875% | 84,500 | 2,125,175 | |
Series C, 7.00% | 58,500 | 1,447,875 | |
Series D, 7.125% | 40,800 | 1,017,960 | |
Hudson Pacific Properties, Inc. 8.375% | 303,800 | 8,020,320 | |
Inland Real Estate Corp. Series A, 8.125% | 223,500 | 5,652,315 | |
Kimco Realty Corp. Series G, 7.75% | 113,026 | 2,952,239 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,383,280 | |
LaSalle Hotel Properties: | |||
Series E, 8.00% | 50,468 | 1,268,766 | |
Series G, 7.25% | 114,485 | 2,833,504 | |
Series H, 7.50% | 126,308 | 3,153,911 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,173,500 | |
Series B, 7.625% (a) | 31,240 | 484,220 | |
Lexington Corporate Properties Trust Series B, 8.05% | 104,300 | 2,601,242 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Lexington Realty Trust 7.55% | 23,800 | $ 581,910 | |
MFA Financial, Inc. Series A, 8.50% | 485,381 | 12,391,777 | |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | 2,009,600 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 855,999 | |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | 5,780,970 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,210,720 | |
Series B, 8.00% | 180,991 | 4,461,428 | |
Prologis, Inc. Series Q, 8.54% | 94,446 | 5,256,515 | |
PS Business Parks, Inc.: | |||
(depositary shares) Series H, 7.00% | 13,300 | 338,086 | |
6.875% | 50,000 | 1,292,500 | |
7.20% | 83,040 | 2,094,269 | |
7.375% | 100,610 | 2,535,372 | |
Series P, 6.70% | 36,000 | 904,320 | |
Public Storage Series N, 7.00% | 4,200 | 109,326 | |
Regency Centers Corp.: | |||
7.25% | 10,500 | 269,535 | |
Series C 7.45% | 18,000 | 459,000 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,420,271 | |
Series B (depositary shares) 9.00% | 118,550 | 3,235,230 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,081,200 | |
Summit Hotel Properties, Inc. Series A, 9.25% | 138,240 | 3,525,120 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 366,039 | 8,967,956 | |
Series D, 8.00% | 37,862 | 916,260 | |
UMH Properties, Inc. Series A, 8.25% | 310,000 | 7,985,600 | |
Vornado Realty Trust 6.75% | 20,000 | 506,400 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | 1,422,619 | |
Winthrop Realty Trust Series D, 9.25% | 25,000 | 646,875 | |
| 227,567,395 | ||
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.1% | |||
Vornado Realty LP 7.875% | 54,682 | $ 1,531,096 | |
TOTAL FINANCIALS | 233,412,961 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 233,839,048 | ||
TOTAL PREFERRED STOCKS (Cost $271,877,950) |
|
Corporate Bonds - 24.6% | ||||
| Principal Amount (i) |
| ||
Convertible Bonds - 1.7% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 1,340,000 | 1,132,300 | ||
FINANCIALS - 1.6% | ||||
Real Estate Investment Trusts - 1.1% | ||||
Annaly Capital Management, Inc. 4% 2/15/15 | 1,000,000 | 1,182,500 | ||
CapLease, Inc. 7.5% 10/1/27 (f) | 5,180,000 | 5,192,950 | ||
Developers Diversified Realty Corp. 1.75% 11/15/40 | 1,000,000 | 1,064,000 | ||
Hospitality Properties Trust 3.8% 3/15/27 | 6,100,000 | 6,103,813 | ||
ProLogis LP: | ||||
1.875% 11/15/37 | 2,450,000 | 2,425,500 | ||
2.625% 5/15/38 | 1,500,000 | 1,492,575 | ||
The Macerich Co. 3.25% 3/15/12 (f) | 4,800,000 | 4,797,000 | ||
| 22,258,338 | |||
Real Estate Management & Development - 0.5% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (f) | 5,460,000 | 5,289,375 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (f) | 5,500,000 | 3,182,850 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Kilroy Realty LP 3.25% 4/15/12 (f) | $ 2,185,000 | $ 2,182,269 | ||
SL Green Realty Corp. 3% 3/30/27 (f) | 500,000 | 498,750 | ||
| 11,153,244 | |||
TOTAL FINANCIALS | 33,411,582 | |||
TOTAL CONVERTIBLE BONDS | 34,543,882 | |||
Nonconvertible Bonds - 22.9% | ||||
CONSUMER DISCRETIONARY - 8.4% | ||||
Hotels, Restaurants & Leisure - 1.0% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 1,945,000 | 2,042,250 | ||
FelCor Lodging LP 6.75% 6/1/19 | 5,875,000 | 5,720,781 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,878,500 | ||
Landry's Restaurants, Inc. 11.625% 12/1/15 | 1,325,000 | 1,424,375 | ||
Times Square Hotel Trust 8.528% 8/1/26 (f) | 9,217,662 | 9,917,702 | ||
| 20,983,608 | |||
Household Durables - 7.0% | ||||
KB Home: | ||||
5.75% 2/1/14 | 510,000 | 514,463 | ||
5.875% 1/15/15 | 7,000,000 | 6,895,000 | ||
6.25% 6/15/15 | 10,000,000 | 9,862,500 | ||
7.25% 6/15/18 | 5,160,000 | 4,902,000 | ||
9.1% 9/15/17 | 17,595,000 | 18,034,875 | ||
Lennar Corp.: | ||||
5.5% 9/1/14 | 1,000,000 | 1,032,500 | ||
5.6% 5/31/15 | 6,000,000 | 6,180,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,170,000 | ||
6.95% 6/1/18 | 14,280,000 | 14,851,200 | ||
M/I Homes, Inc.: | ||||
6.875% 4/1/12 | 2,150,000 | 2,085,500 | ||
8.625% 11/15/18 | 17,655,000 | 16,419,150 | ||
Meritage Homes Corp.: | ||||
6.25% 3/15/15 | 2,500,000 | 2,500,000 | ||
7.15% 4/15/20 | 7,060,000 | 6,848,200 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | $ 1,555,000 | $ 1,543,338 | ||
8.4% 5/15/17 | 5,420,000 | 5,826,500 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,010,000 | ||
8.375% 5/15/18 | 28,983,000 | 29,417,745 | ||
10.75% 9/15/16 | 8,415,000 | 9,361,688 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,549,969 | ||
| 146,004,628 | |||
Multiline Retail - 0.4% | ||||
Sears Holdings Corp. 6.625% 10/15/18 | 9,065,000 | 7,433,300 | ||
TOTAL CONSUMER DISCRETIONARY | 174,421,536 | |||
CONSUMER STAPLES - 0.3% | ||||
Food & Staples Retailing - 0.3% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 1,086,076 | 1,221,836 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (f) | 4,400,000 | 4,708,000 | ||
| 5,929,836 | |||
FINANCIALS - 12.9% | ||||
Diversified Financial Services - 0.7% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | 10,820,000 | 11,252,800 | ||
8% 1/15/18 (f) | 3,070,000 | 3,200,475 | ||
| 14,453,275 | |||
Real Estate Investment Trusts - 7.2% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,181,047 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,756,919 | ||
6.25% 6/15/14 | 5,005,000 | 5,365,540 | ||
Developers Diversified Realty Corp.: | ||||
5.375% 10/15/12 | 500,000 | 505,467 | ||
5.5% 5/1/15 | 4,000,000 | 4,155,296 | ||
7.5% 4/1/17 | 6,000,000 | 6,760,584 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Developers Diversified Realty Corp.: - continued | ||||
7.5% 7/15/18 | $ 8,756,000 | $ 9,769,673 | ||
7.875% 9/1/20 | 4,637,000 | 5,488,446 | ||
9.625% 3/15/16 | 3,836,000 | 4,503,479 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,610,527 | ||
6.25% 12/15/14 | 4,081,000 | 4,344,318 | ||
6.25% 1/15/17 | 3,000,000 | 3,155,439 | ||
Health Care Property Investors, Inc.: | ||||
6% 3/1/15 | 1,000,000 | 1,073,976 | ||
7.072% 6/8/15 | 1,500,000 | 1,688,213 | ||
Health Care REIT, Inc.: | ||||
6% 11/15/13 | 1,000,000 | 1,049,543 | ||
6.2% 6/1/16 | 750,000 | 821,068 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,279,119 | ||
5.75% 1/15/21 | 2,000,000 | 2,071,490 | ||
6.5% 1/17/17 | 1,875,000 | 2,061,424 | ||
HMB Capital Trust V 4.1463% 12/15/36 (d)(f)(g) | 2,530,000 | 0 | ||
Hospitality Properties Trust: | ||||
5.625% 3/15/17 | 915,000 | 944,522 | ||
6.75% 2/15/13 | 1,765,000 | 1,794,213 | ||
7.875% 8/15/14 | 1,000,000 | 1,091,725 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 3,600,000 | 3,811,043 | ||
6.25% 8/15/16 | 1,500,000 | 1,598,573 | ||
6.5% 1/15/13 | 200,000 | 202,452 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 500,000 | 392,500 | ||
5.875% 3/15/16 | 6,400,000 | 5,472,000 | ||
5.95% 10/15/13 | 7,330,000 | 6,743,600 | ||
6.05% 4/15/15 | 4,725,000 | 3,780,000 | ||
6.5% 12/15/13 | 5,400,000 | 4,941,000 | ||
8.625% 6/1/13 | 1,565,000 | 1,484,794 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 | 2,000,000 | 2,070,000 | ||
Nationwide Health Properties, Inc.: | ||||
6.25% 2/1/13 | 1,000,000 | 1,034,780 | ||
8.25% 7/1/12 | 1,300,000 | 1,322,108 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | $ 2,115,000 | $ 2,257,763 | ||
7% 1/15/16 | 1,295,000 | 1,325,756 | ||
7.5% 2/15/20 | 1,000,000 | 1,080,000 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,868,451 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,050,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,300,504 | ||
7.625% 7/1/17 | 4,690,000 | 5,373,868 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,253,800 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 4,999,360 | ||
6.75% 4/15/20 | 6,000,000 | 6,369,534 | ||
6.75% 12/15/21 | 8,000,000 | 8,567,704 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 522,260 | ||
5.25% 1/15/15 | 1,000,000 | 1,063,465 | ||
5.25% 1/15/16 | 4,000,000 | 4,278,468 | ||
| 150,635,811 | |||
Real Estate Management & Development - 4.9% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 412,880 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 1,987,422 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 6,961,329 | ||
5.75% 4/1/12 | 1,000,000 | 1,004,288 | ||
7.5% 5/15/15 | 1,000,000 | 1,096,543 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,256,213 | ||
11.625% 6/15/17 | 1,500,000 | 1,732,500 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,534,317 | ||
6.25% 6/15/14 | 3,094,000 | 3,251,745 | ||
6.875% 8/15/12 | 1,000,000 | 1,014,636 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,601,650 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 784,013 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | $ 16,120,000 | $ 15,152,800 | ||
7.625% 6/1/15 | 15,725,000 | 15,567,750 | ||
Highwoods/Forsyth LP 5.85% 3/15/17 | 2,800,000 | 3,016,863 | ||
Host Hotels & Resorts LP: | ||||
5.875% 6/15/19 | 2,725,000 | 2,895,313 | ||
6.875% 11/1/14 | 500,000 | 507,500 | ||
9% 5/15/17 | 750,000 | 828,750 | ||
Kennedy-Wilson, Inc. 8.75% 4/1/19 (f) | 2,785,000 | 2,805,888 | ||
Post Apartment Homes LP 6.3% 6/1/13 | 2,000,000 | 2,086,006 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (f) | 7,085,000 | 6,518,200 | ||
9% 1/15/20 (f) | 1,920,000 | 1,876,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,867,290 | ||
5.875% 6/15/17 | 400,000 | 448,110 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,770,125 | ||
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | 1,000,000 | 1,071,300 | ||
Ventas Realty LP Series 1, 6.5% 6/1/16 | 11,370,000 | 11,789,621 | ||
Vornado Realty LP 5% 1/15/22 | 2,000,000 | 2,096,590 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,088,941 | ||
| 101,025,383 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 | 4,349,567 | 1,496,251 | ||
TOTAL FINANCIALS | 267,610,720 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 7,290,000 | 7,308,225 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 16,765,000 | 17,645,163 | ||
Skilled Healthcare Group, Inc. 11% 1/15/14 | 3,080,000 | 3,072,300 | ||
| 20,717,463 | |||
TOTAL HEALTH CARE | 28,025,688 | |||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
INDUSTRIALS - 0.0% | ||||
Commercial Services & Supplies - 0.0% | ||||
Landry's Acquisition Co. 11.625% 12/1/15 (f) | $ 500,000 | $ 537,500 | ||
TOTAL NONCONVERTIBLE BONDS | 476,525,280 | |||
TOTAL CORPORATE BONDS (Cost $493,411,545) |
| |||
Asset-Backed Securities - 5.4% | ||||
| ||||
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (f) | 1,384,000 | 1,385,384 | ||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.6373% 3/23/19 (f)(g) | 286,251 | 237,589 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7809% 3/20/50 (f)(g) | 2,250,000 | 0 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (f) | 6,023,049 | 5,974,864 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.8315% 1/20/37 (f)(g) | 1,329,924 | 1,060,614 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (f) | 1,213,640 | 1,055,867 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.8325% 4/7/52 (f)(g) | 16,300,116 | 10,758,076 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 298,823 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (f) | 1,570,000 | 1,263,850 | ||
Class B2, 1.9238% 12/28/35 (f)(g) | 1,575,000 | 1,078,875 | ||
Class D, 9% 12/28/35 (f) | 501,103 | 105,232 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 2.0738% 6/28/38 (f)(g) | 1,230,000 | 1,051,650 | ||
Class D, 9% 6/28/38 (f) | 997,000 | 697,900 | ||
Crest Ltd. Series 2002-IGA Class B, 1.9031% 7/28/35 (f)(g) | 806,845 | 774,571 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 8,746,528 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.8767% 11/28/39 (f)(g) | 555,122 | 16,654 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount (i) | Value | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | $ 1,788,179 | $ 1,637,614 | ||
Series 1997-3 Class M1, 7.53% 3/15/28 | 7,588,081 | 6,308,944 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 (g)(j) | 1,259,000 | 59,691 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.8263% 8/26/30 (f)(g) | 735,000 | 102,900 | ||
Class E, 2.2763% 8/26/30 (f)(g) | 1,503,628 | 41,350 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,226,943 | 456,865 | ||
Merit Securities Corp. Series 13 Class M1, 7.9068% 12/28/33 (g) | 1,923,000 | 1,783,100 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (f) | 899,989 | 732,141 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (f) | 4,067,741 | 4,111,600 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (f) | 4,590,000 | 4,257,225 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (f) | 4,610,000 | 4,287,300 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 3.085% 2/5/36 (f)(g) | 3,526,224 | 353 | ||
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (f) | 2,818,047 | 2,811,002 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 0% 9/25/26 (f)(g) | 2,000,000 | 840,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.8338% 9/25/26 (f)(g) | 17,832,122 | 15,335,625 | ||
Class A1B, 0.9038% 9/25/26 (f)(g) | 22,506,000 | 16,766,970 | ||
Class A2A, 0.7938% 9/25/26 (f)(g) | 7,145,081 | 6,359,122 | ||
Class A2B, 0.8838% 9/25/26 (f)(g) | 1,550,000 | 1,255,500 | ||
Class B, 0.9338% 9/25/26 (f)(g) | 890,000 | 660,825 | ||
Class G, 1.9238% 9/25/26 (f)(g) | 1,150,000 | 747,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.7994% 11/21/40 (f)(g) | 10,500,000 | 8,085,000 | ||
Class F, 2.4294% 11/21/40 (f)(g) | 250,000 | 50,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $116,618,589) |
| |||
Collateralized Mortgage Obligations - 1.0% | ||||
| Principal Amount (i) | Value | ||
Private Sponsor - 1.0% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4651% 6/15/22 (f)(g) | $ 2,410,041 | $ 2,336,200 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (f) | 75,113 | 56,662 | ||
Series 2002-R2 Class 2B3, 3.9405% 7/25/33 (f)(g) | 217,132 | 81,449 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (f) | 116,163 | 64,298 | ||
Series 2003-R2 Class B3, 5.5% 5/25/43 (f) | 24,854 | 8 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (f) | 1,452,178 | 327,819 | ||
Class B3, 5.5% 11/25/33 | 220,407 | 16,170 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (f)(g) | 132,011 | 4,397 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.435% 4/25/20 (f)(g) | 3,200,000 | 3,119,197 | ||
Series 2010-K6 Class B, 5.3579% 12/25/46 (f)(g) | 4,500,000 | 4,319,738 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (f) | 7,120,000 | 7,337,288 | ||
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (f) | 1,600,000 | 1,602,701 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.2463% 7/10/35 (f)(g) | 384,767 | 238,556 | ||
Series 2005-A Class B6, 2.2963% 3/10/37 (f)(g) | 1,536,575 | 147,818 | ||
Series 2005-B Class B6, 1.8963% 6/10/37 (f)(g) | 866,877 | 39,790 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (f) | 54,522 | 46,174 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7963% 12/10/35 (f)(g) | 362,913 | 136,855 | ||
Series 2004-A Class B7, 4.5463% 2/10/36 (f)(g) | 391,667 | 179,031 | ||
Series 2004-B Class B7, 4.2963% 2/10/36 (f)(g) | 468,310 | 198,423 | ||
Series 2005-C Class B7, 3.3963% 9/10/37 (f)(g) | 958,286 | 2,396 | ||
TOTAL PRIVATE SPONSOR | 20,254,970 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (j) | 171,999 | 38,930 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.3623% 2/25/42 (f)(g) | 107,088 | 49,268 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | 250,155 | 71,474 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount (i) | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.4138% 6/25/43 (f)(g) | $ 156,663 | $ 63,807 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.5113% 10/25/42 (f)(g) | 68,888 | 24,915 | ||
TOTAL U.S. GOVERNMENT AGENCY | 248,394 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $25,215,026) |
| |||
Commercial Mortgage Securities - 19.3% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (j) | 5,666,539 | 5,476,179 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (f) | 2,000,000 | 2,162,544 | ||
Asset Securitization Corp. Series 1997-D4: | ||||
Class B1, 7.525% 4/14/29 | 906,721 | 910,528 | ||
Class B2, 7.525% 4/14/29 | 560,000 | 565,550 | ||
Banc of America Commercial Mortgage, Inc.: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 4,185,000 | 4,215,864 | ||
Series 2005-1 Class CJ, 5.1847% 11/10/42 (g) | 3,580,000 | 3,578,249 | ||
Series 2005-6 Class AJ, 5.1932% 9/10/47 (g) | 5,000,000 | 5,063,450 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 (f)(g) | 59,783,885 | 54,702,235 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.3351% 3/15/22 (f)(g) | 2,000,000 | 1,700,000 | ||
Class K, 2.2851% 3/15/22 (f)(g) | 4,190,000 | 3,268,200 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4414% 3/11/39 (g) | 5,700,000 | 5,229,516 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5327% 4/12/38 (f)(g) | 2,520,000 | 1,955,061 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12 Class AJ, 0.4151% 12/15/20 (f)(g) | 8,000,000 | 7,165,408 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (f) | 9,851,841 | 9,845,930 | ||
Commercial Mortgage pass-thru certificates: | ||||
Series 2011-STRT Class C, 4.755% 12/10/24 (f) | 2,000,000 | 2,002,500 | ||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (g) | 4,000,000 | 3,885,744 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Communication Mortgage Trust Series 2011-THL Class F, 4.867% 6/9/28 (f) | $ 11,090,000 | $ 9,216,466 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (f) | 2,540,000 | 2,609,439 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (f) | 3,000,000 | 3,278,313 | ||
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.9263% 3/25/17 (f)(g) | 2,512,000 | 1,758,400 | ||
CRESIX Finance Ltd. Series 2006-AA: | ||||
Class F, 4.4763% 3/25/17 (f)(g) | 3,860,000 | 2,509,000 | ||
Class G, 7.2763% 3/25/17 (f)(g) | 3,272,000 | 1,963,200 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5569% 11/10/46 (f)(g) | 3,240,000 | 2,872,513 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 992,906 | ||
DLJ Commercial Mortgage Corp.: | ||||
Series 1998-CG1 Class B4, 7.2186% 6/10/31 (f)(g) | 2,500,000 | 2,634,495 | ||
Series 2000-CKP1 Class B3, 7.8963% 11/10/33 (g) | 2,970,000 | 2,971,978 | ||
Extended Stay America Trust Series 2010-ESHA Class D, 5.4983% 11/5/27 (f) | 5,000,000 | 5,060,428 | ||
FHMLC Multi-class participation certificates guaranteed: | ||||
Series K013 Class X3, 2.7897% 1/25/43 (g)(h) | 14,360,000 | 2,362,909 | ||
Series KAIV Class X2, 3.6146% 6/25/46 (g)(h) | 7,430,000 | 1,561,757 | ||
First Union National Bank Commercial Mortgage Trust Series 2001-C4 Class K, 6% 12/12/33 (f) | 623,409 | 619,163 | ||
Freddie Mac Multi-Class participation certificates guaranteed: | ||||
Series K011 Class X3, 2.5748% 12/25/43 (g)(h) | 12,206,096 | 1,837,152 | ||
Series K012 Class X3, 2.2876% 1/25/41 (g)(h) | 21,072,888 | 2,881,844 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (f) | 11,951,806 | 10,995,662 | ||
GE Capital Commercial Mortgage Corp. Series 2002-1A Class H, 7.1177% 12/10/35 (f)(g) | 991,000 | 989,801 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2: | ||||
Class F, 6.75% 4/15/29 (g) | 1,658,805 | 1,722,090 | ||
Class G, 6.75% 4/15/29 (g) | 1,250,000 | 1,371,753 | ||
Series 1999-C3: | ||||
Class G, 6.974% 8/15/36 (f) | 653,942 | 651,557 | ||
Class J, 6.974% 8/15/36 | 1,500,000 | 1,516,317 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 469,146 | 348,075 | ||
Series 2002-C3 Class D, 5.27% 7/10/39 | 3,000,000 | 3,031,029 | ||
Greenwich Capital Commercial Funding Corp.: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (f) | 2,000,000 | 2,038,266 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Greenwich Capital Commercial Funding Corp.: - continued | ||||
Series 2002-C1 Class H, 5.903% 1/11/35 (f) | $ 880,000 | $ 883,289 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 6.4193% 3/6/20 (f)(g) | 1,400,000 | 1,391,750 | ||
Series 2010-C1: | ||||
Class D, 5.999% 8/10/43 (f)(g) | 4,000,000 | 3,317,672 | ||
Class E, 4% 8/10/43 (f) | 3,000,000 | 1,881,903 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (f) | 9,185,000 | 8,666,966 | ||
GS Mortgage Securities Trust: | ||||
Series 2011-GC5 Class C, 5.3086% 8/10/44 (f)(g) | 9,000,000 | 7,761,546 | ||
Series 2012-GC6 Class C, 0% 1/10/45 (f)(g) | 3,600,000 | 3,261,960 | ||
JP Morgan Chase Commercial Mortgage Securities Corp. Series 2010-CNTM Class MZ, 8.5% 8/5/20 (f) | 4,000,000 | 3,680,924 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (f)(g) | 2,038,274 | 3,057 | ||
Class X, 0.6261% 10/15/32 (f)(g)(h) | 4,870,680 | 1,519 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (f) | 3,000,000 | 3,014,244 | ||
Series 2009-IWST Class D, 7.4453% 12/5/27 (f)(g) | 6,500,000 | 6,535,263 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (f)(g) | 4,500,000 | 4,258,791 | ||
Class XB, 0.9305% 8/5/32 (f)(h) | 32,655,000 | 1,715,008 | ||
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class AJ, 5.3265% 12/15/44 (g) | 3,470,000 | 3,442,541 | ||
JPMorgan Chase Commercial Mortgage Security Trust Series 2011-C5 Class B. 5.4912% 8/15/46 (f)(g) | 7,500,000 | 7,336,500 | ||
JPMorgan Commercial Mortgage Finance Corp.: | ||||
Series 1997-C5 Class F, 7.5605% 9/15/29 | 1,093,611 | 1,107,965 | ||
Series 1999-C8: | ||||
Class G, 6% 7/15/31 (f) | 1,078,879 | 1,106,357 | ||
Class H, 6% 7/15/31 (f) | 1,341,102 | 447,094 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (f) | 2,920,000 | 3,023,383 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 1,961,598 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,516,351 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,109,936 | ||
Series 2006-C7 Class AM, 5.378% 11/15/38 | 2,040,000 | 2,030,806 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
Series 2005-C2 Class AJ, 5.205% 4/15/30 (g) | $ 8,910,000 | $ 9,196,581 | ||
Series 2006-C4: | ||||
Class AJ, 5.8897% 6/15/38 (g) | 7,005,000 | 5,688,095 | ||
Class AM, 5.8897% 6/15/38 (g) | 6,700,000 | 6,982,479 | ||
Lstar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.6768% 6/25/43 (f)(g) | 4,699,000 | 3,873,926 | ||
Series 2011-1 Class B, 5.6768% 6/25/43 (f)(g) | 5,720,000 | 5,750,133 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 505,922 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 245,699 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 158,678 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 231,924 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 225,391 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 145,644 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 478,991 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (f) | 2,414,948 | 1,412,744 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6655% 5/12/39 (g) | 1,200,000 | 1,264,776 | ||
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (f) | 750,000 | 75 | ||
Class E, 7.983% 1/15/37 (f) | 1,453,000 | 145 | ||
Class IO, 8.3831% 1/15/37 (g)(h) | 4,967,025 | 372,527 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (f) | 1,309,233 | 1,312,506 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,401,736 | ||
Series 1997-RR Class F, 7.3991% 4/30/39 (f)(g) | 1,979,357 | 1,821,009 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (f) | 2,611,253 | 1,201,176 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 7,627,358 | ||
Series 2011-C1 Class C, 5.2554% 9/15/47 (f)(g) | 2,000,000 | 1,887,386 | ||
Series 2011-C2: | ||||
Class D, 5.3186% 6/15/44 (f)(g) | 4,610,000 | 4,149,692 | ||
Class E, 5.3186% 6/15/44 (f)(g) | 9,600,000 | 7,978,944 | ||
Class F, 5.3186% 6/15/44 (f)(g) | 4,440,000 | 3,224,550 | ||
Class XB, 0.465% 6/15/44 (f)(g)(h) | 63,708,222 | 1,974,955 | ||
Series 2011-C3 Class D, 5.357% 7/15/49 (f) | 7,400,000 | 6,424,813 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (h) | 2,158,523 | 1,877,915 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (f) | 3,506,029 | 3,689,394 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6727% 4/15/24 (f)(g) | $ 5,820,000 | $ 5,476,256 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA: | ||||
Class E3, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,126,591 | ||
Class E5, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,023,058 | ||
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f) | 2,170,000 | 2,170,584 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.7386% 8/15/39 (g) | 2,080,000 | 2,089,360 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (f) | 10,630,000 | 9,884,709 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8601% 7/15/24 (f)(g) | 1,200,000 | 809,941 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.0708% 1/10/45 (f)(g) | 3,000,000 | 3,048,510 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (f) | 2,540,000 | 2,614,592 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 1,972,832 | ||
Series 2004-C11: | ||||
Class D, 5.3607% 1/15/41 (g) | 5,177,000 | 4,666,739 | ||
Class E, 5.4107% 1/15/41 (g) | 3,785,000 | 3,172,841 | ||
Series 2004-C12 Class D, 5.3163% 7/15/41 (g) | 2,750,000 | 2,607,809 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,076,186 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (f) | 4,000,000 | 4,131,052 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $400,243,984) |
| |||
Floating Rate Loans - 4.2% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.7% | ||||
Hotels, Restaurants & Leisure - 0.5% | ||||
Extended Stay America, Inc. term loan 9.75% 11/1/15 | 9,000,000 | 8,842,500 | ||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (g) | 2,835,750 | 2,523,818 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
CONSUMER DISCRETIONARY - continued | ||||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack term loan 2.53% 10/27/13 (g) | $ 1,974,717 | $ 1,969,781 | ||
TOTAL CONSUMER DISCRETIONARY | 13,336,099 | |||
FINANCIALS - 2.2% | ||||
Diversified Financial Services - 0.2% | ||||
Pilot Travel Centers LLC Tranche B, term loan 4.25% 3/30/18 (g) | 3,885,475 | 3,895,188 | ||
Real Estate Investment Trusts - 0.0% | ||||
iStar Financial, Inc. Tranche A 1LN, term loan 5% 6/28/13 (g) | 1,230,680 | 1,233,757 | ||
Real Estate Management & Development - 2.0% | ||||
Capital Automotive LP term loan 5% 3/11/17 (g) | 8,079,388 | 8,038,991 | ||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7958% 9/4/19 (g) | 1,990,000 | 1,970,100 | ||
CityCenter term loan 8.75% 7/1/13 (g) | 8,000,000 | 7,820,000 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 9.5% 11/2/12 (g) | 2,184,917 | 1,662,388 | ||
Tranche B 2LN, term loan 6.55% 11/2/12 (g) | 5,000,000 | 4,300,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 4.5453% 10/10/16 (g) | 712,762 | 662,869 | ||
term loan 4.6914% 10/10/16 (g) | 8,058,859 | 7,494,739 | ||
Tranche 2LN, term loan 13.5% 10/15/17 | 3,500,000 | 3,570,000 | ||
Tranche B, term loan 3.4414% 10/10/13 (g) | 5,208,029 | 5,155,949 | ||
3.2953% 10/10/13 (g) | 521,472 | 521,472 | ||
| 41,196,508 | |||
TOTAL FINANCIALS | 46,325,453 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc.: | ||||
Tranche B, term loan 2.7552% 7/25/14 (g) | 2,833,380 | 2,794,421 | ||
Tranche DD, term loan 2.52% 7/25/14 (g) | 145,277 | 143,279 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (g) | $ 2,000,000 | $ 1,980,000 | ||
Skilled Healthcare Group, Inc. term loan 5.2644% 4/9/16 (g) | 3,614,832 | 3,379,868 | ||
| 8,297,568 | |||
INDUSTRIALS - 0.5% | ||||
Construction & Engineering - 0.5% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (g) | 11,938,567 | 10,714,863 | ||
TELECOMMUNICATION SERVICES - 0.4% | ||||
Wireless Telecommunication Services - 0.4% | ||||
Crown Castle Operating Co. Tranche B, term loan 4% 1/18/19 (g) | 3,890,000 | 3,885,332 | ||
TowerCo Finance LLC Tranche B, term loan 5.25% 2/2/17 (g) | 3,650,804 | 3,664,495 | ||
| 7,549,827 | |||
TOTAL FLOATING RATE LOANS (Cost $88,536,290) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (f) | 500,000 | 15,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (f) | 1,220,000 | 305,000 | |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(f) | 1,350,000 | 0 | |
| 320,000 | ||
TOTAL PREFERRED SECURITIES (Cost $2,593,186) |
| ||
Money Market Funds - 9.6% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 182,069,601 | $ 182,069,601 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 17,597,164 | 17,597,164 | |
TOTAL MONEY MARKET FUNDS (Cost $199,666,765) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $2,025,741,756) | 2,101,837,665 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (24,500,740) | ||
NET ASSETS - 100% | $ 2,077,336,925 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $436,528,742 or 21.0% of net assets. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
(i) Principal amount is stated in United States dollars unless otherwise noted. |
(j) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,646,274 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 5,487,274 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 149,048 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 188,515 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 | 6/3/05 | $ 1,110,697 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 79,961 |
Fidelity Securities Lending Cash Central Fund | 38,456 |
Total | $ 118,417 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 28,051,766 | $ 24,014,856 | $ - | $ 4,036,910 |
Financials | 719,150,353 | 690,048,288 | 24,880,549 | 4,221,516 |
Health Care | 24,701,223 | 24,701,223 | - | - |
Corporate Bonds | 511,069,162 | - | 509,572,911 | 1,496,251 |
Asset-Backed Securities | 111,197,104 | - | 68,122,562 | 43,074,542 |
Collateralized Mortgage Obligations | 20,503,364 | - | 18,715,124 | 1,788,240 |
Commercial Mortgage Securities | 400,954,118 | - | 373,565,635 | 27,388,483 |
Floating Rate Loans | 86,223,810 | - | 69,561,310 | 16,662,500 |
Preferred Securities | 320,000 | - | - | 320,000 |
Money Market Funds | 199,666,765 | 199,666,765 | - | - |
Total Investments in Securities: | $ 2,101,837,665 | $ 938,431,132 | $ 1,064,418,091 | $ 98,988,442 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $ 3,528,571 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 508,339 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,036,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 508,339 |
Investments in Securities: | |
Equities - Financials | |
Beginning Balance | $ 4,941,370 |
Total Realized Gain (Loss) | (607) |
Total Unrealized Gain (Loss) | (719,371) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 124 |
Transfers out of Level 3 | - |
Ending Balance | $ 4,221,516 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (719,371) |
Corporate Bonds | |
Beginning Balance | $ 9,384,800 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (253,316) |
Cost of Purchases | 4,349,567 |
Proceeds of Sales | (4,000,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (7,984,800) |
Ending Balance | $ 1,496,251 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (2,853,316) |
Asset-Backed Securities | |
Beginning Balance | $ 79,390,084 |
Total Realized Gain (Loss) | 605,893 |
Total Unrealized Gain (Loss) | 1,072,967 |
Cost of Purchases | 1,446,937 |
Proceeds of Sales | (10,646,620) |
Amortization/Accretion | 445,740 |
Transfers in to Level 3 | 3,448,211 |
Transfers out of Level 3 | (32,688,670) |
Ending Balance | $ 43,074,542 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,184,788 |
Investments in Securities: | |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 862,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (185,450) |
Cost of Purchases | - |
Proceeds of Sales | (420,485) |
Amortization/Accretion | (133,520) |
Transfers in to Level 3 | 1,665,695 |
Transfers out of Level 3 | - |
Ending Balance | $ 1,788,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (185,450) |
Commercial Mortgage Securities | |
Beginning Balance | $ 31,940,633 |
Total Realized Gain (Loss) | (116,008) |
Total Unrealized Gain (Loss) | (438,874) |
Cost of Purchases | - |
Proceeds of Sales | (2,634,998) |
Amortization/Accretion | (157,614) |
Transfers in to Level 3 | 8,344,793 |
Transfers out of Level 3 | (9,549,449) |
Ending Balance | $ 27,388,483 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (681,865) |
Floating Rate Loans | |
Beginning Balance | $ 9,000,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (328,461) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 6,161 |
Transfers in to Level 3 | 7,984,800 |
Transfers out of Level 3 | - |
Ending Balance | $ 16,662,500 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (328,461) |
Investments in Securities: | |
Preferred Securities | |
Beginning Balance | $ 442,008 |
Total Realized Gain (Loss) | (785,700) |
Total Unrealized Gain (Loss) | 662,305 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 1,387 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 320,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (123,387) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.4% |
AAA,AA,A | 9.9% |
BBB | 14.0% |
BB | 5.3% |
B | 13.7% |
CCC,CC,C | 3.8% |
D | 0.1% |
Not Rated | 7.3% |
Equities | 37.1% |
Short-Term Investments and Net Other Assets | 8.4% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $16,815,259) - See accompanying schedule: Unaffiliated issuers (cost $1,826,074,991) | $ 1,902,170,900 |
|
Fidelity Central Funds (cost $199,666,765) | 199,666,765 |
|
Total Investments (cost $2,025,741,756) |
| $ 2,101,837,665 |
Cash |
| 1,082,494 |
Foreign currency held at value (cost $20,196) | 20,196 | |
Receivable for investments sold | 399,857 | |
Receivable for fund shares sold | 17,547,019 | |
Dividends receivable | 1,521,211 | |
Interest receivable | 11,529,814 | |
Distributions receivable from Fidelity Central Funds | 23,488 | |
Prepaid expenses | 4,696 | |
Other receivables | 7,857 | |
Total assets | 2,133,974,297 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 30,146,494 | |
Payable for fund shares redeemed | 6,645,368 | |
Accrued management fee | 923,689 | |
Distribution and service plan fees payable | 40,032 | |
Other affiliated payables | 508,146 | |
Other payables and accrued expenses | 776,479 | |
Collateral on securities loaned, at value | 17,597,164 | |
Total liabilities | 56,637,372 | |
|
|
|
Net Assets | $ 2,077,336,925 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,981,809,486 | |
Undistributed net investment income | 7,376,521 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 12,029,101 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 76,121,817 | |
Net Assets | $ 2,077,336,925 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.60 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.60) | $ 11.04 | |
Class T: | $ 10.61 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.61) | $ 11.05 | |
Class C: | $ 10.56 | |
|
|
|
Real Estate Income: | $ 10.63 | |
|
|
|
Institutional Class: | $ 10.62 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2012 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 16,962,406 |
Interest |
| 37,146,888 |
Income from Fidelity Central Funds |
| 118,417 |
Total income |
| 54,227,711 |
|
|
|
Expenses | ||
Management fee | $ 4,971,568 | |
Transfer agent fees | 2,552,941 | |
Distribution and service plan fees | 203,913 | |
Accounting and security lending fees | 351,313 | |
Custodian fees and expenses | 14,448 | |
Independent trustees' compensation | 5,765 | |
Registration fees | 94,816 | |
Audit | 79,530 | |
Legal | 3,629 | |
Miscellaneous | 6,981 | |
Total expenses before reductions | 8,284,904 | |
Expense reductions | (31,579) | 8,253,325 |
Net investment income (loss) | 45,974,386 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 22,757,282 | |
Foreign currency transactions | (14,949) | |
Total net realized gain (loss) |
| 22,742,333 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,462,311) | |
Assets and liabilities in foreign currencies | 934 | |
Total change in net unrealized appreciation (depreciation) |
| (1,461,377) |
Net gain (loss) | 21,280,956 | |
Net increase (decrease) in net assets resulting from operations | $ 67,255,342 |
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, | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 45,974,386 | $ 75,045,871 |
Net realized gain (loss) | 22,742,333 | 26,474,317 |
Change in net unrealized appreciation (depreciation) | (1,461,377) | 63,154,318 |
Net increase (decrease) in net assets resulting | 67,255,342 | 164,674,506 |
Distributions to shareholders from net investment income | (59,240,444) | (66,688,371) |
Distributions to shareholders from net realized gain | (16,498,521) | - |
Total distributions | (75,738,965) | (66,688,371) |
Share transactions - net increase (decrease) | 292,852,190 | 655,640,999 |
Redemption fees | 159,309 | 331,332 |
Total increase (decrease) in net assets | 284,527,876 | 753,958,466 |
|
|
|
Net Assets | ||
Beginning of period | 1,792,809,049 | 1,038,850,583 |
End of period (including undistributed net investment income of $7,376,521 and undistributed net investment income of $20,642,579, respectively) | $ 2,077,336,925 | $ 1,792,809,049 |
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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .53 | .18 |
Net realized and unrealized gain (loss) | .05 | .76 | (.04) |
Total from investment operations | .30 | 1.29 | .14 |
Distributions from net investment income | (.34) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.60 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 3.07% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.13% A | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.13% | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.12% | 1.09% A |
Net investment income (loss) | 4.98% A | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 84,053 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
K Total distributions of $.43 per share is comprised of distributions from net investment income of $.335 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .52 | .17 |
Net realized and unrealized gain (loss) | .07 | .76 | (.03) |
Total from investment operations | .32 | 1.28 | .14 |
Distributions from net investment income | (.33) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.61 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 3.25% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.15% A | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.15% A | 1.16% | 1.17% A |
Expenses net of all reductions | 1.15% A | 1.16% | 1.17% A |
Net investment income (loss) | 4.96% A | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 12,152 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .21 | .45 | .15 |
Net realized and unrealized gain (loss) | .07 | .74 | (.03) |
Total from investment operations | .28 | 1.19 | .12 |
Distributions from net investment income | (.29) | (.45) | (.14) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.39) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.56 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 2.82% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.89% A | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.89% A | 1.89% | 1.86% A |
Expenses net of all reductions | 1.89% A | 1.89% | 1.86% A |
Net investment income (loss) | 4.22% A | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 27,389 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
| Six months ended | Years ended July 31, | ||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D | .27 | .55 | .53 | .54 | .59 | .63 |
Net realized and unrealized gain (loss) | .05 | .76 | 1.73 | (1.27) | (1.48) | (.37) |
Total from investment operations | .32 | 1.31 | 2.26 | (.73) | (.89) | .26 |
Distributions from net investment income | (.35) | (.51) | (.52) | (.50) | (.66) | (.58) |
Distributions from net realized gain | (.10) | - | - | - | (.24) | (.24) |
Total distributions | (.44) I | (.51) | (.52) | (.50) | (.90) | (.82) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | - H |
Net asset value, | $ 10.63 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Total Return B,C | 3.26% | 13.41% | 28.29% | (6.92)% | (8.43)% | 2.00% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .91% A | .92% | .97% | 1.00% | .94% | .88% |
Expenses net of fee waivers, if any | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Expenses net of all reductions | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Net investment income (loss) | 5.20% A | 5.21% | 5.60% | 7.15% | 5.77% | 5.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,823,245 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 |
Portfolio turnover rate F | 29% A | 25% | 28% | 47% | 32% | 45% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I Total distributions of $.44 per share is comprised of distributions from net investment income of $.345 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .27 | .55 | .19 |
Net realized and unrealized gain (loss) | .06 | .76 | (.04) |
Total from investment operations | .33 | 1.31 | .15 |
Distributions from net investment income | (.35) | (.52) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.45) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - |
Net asset value, end of period | $ 10.62 | $ 10.74 | $ 9.95 |
Total Return B,C | 3.33% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | .86% A | .89% | .85% A |
Expenses net of fee waivers, if any | .86% A | .89% | .85% A |
Expenses net of all reductions | .86% A | .89% | .85% A |
Net investment income (loss) | 5.25% A | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 130,498 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012
1. Organization.
Fidelity® Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Real Estate Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, floating rate loans and preferred securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Certain of the Fund's securities may be valued by a single source or dealer.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 152,794,350 |
Gross unrealized depreciation | (78,059,626) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 74,734,724 |
|
|
Tax cost | $ 2,027,102,941 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $474,412,445 and $245,959,640, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 80,667 | $ 3,082 |
Class T | -% | .25% | 11,517 | - |
Class C | .75% | .25% | 111,729 | 73,790 |
|
|
| $ 203,913 | $ 76,872 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 15,102 |
Class T | 1,783 |
Class C* | 4,341 |
| $ 21,226 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of |
Class A | $ 82,289 | .26 |
Class T | 12,478 | .27 |
Class C | 29,588 | .27 |
Real Estate Income | 2,328,675 | .29 |
Institutional Class | 99,911 | .23 |
| $ 2,552,941 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,788 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,437 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any
Semiannual Report
Notes to Financial Statements - continued
8. Security Lending - continued
additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $38,456. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Real Estate Income's operating expenses. During the period, this reimbursement reduced Real Estate Income's expenses by $31,380.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $199.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,120,737 | $ 1,154,662 |
Class T | 293,716 | 160,366 |
Class C | 633,801 | 358,357 |
Real Estate Income | 53,301,588 | 64,149,915 |
Institutional Class | 2,890,602 | 865,071 |
Total | $ 59,240,444 | $ 66,688,371 |
From net realized gain |
|
|
Class A | $ 603,452 | $ - |
Class T | 83,752 | - |
Class C | 208,802 | - |
Real Estate Income | 14,865,902 | - |
Institutional Class | 736,613 | - |
Total | $ 16,498,521 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 3,251,368 | 5,544,292 | $ 33,286,886 | $ 58,675,375 |
Reinvestment of distributions | 210,834 | 75,836 | 2,122,693 | 799,911 |
Shares redeemed | (1,157,024) | (384,554) | (11,722,433) | (4,105,728) |
Net increase (decrease) | 2,305,178 | 5,235,574 | $ 23,687,146 | $ 55,369,558 |
Class T |
|
|
|
|
Shares sold | 484,820 | 662,414 | $ 4,966,659 | $ 7,018,853 |
Reinvestment of distributions | 27,938 | 12,671 | 281,285 | 132,964 |
Shares redeemed | (78,006) | (50,669) | (794,360) | (536,547) |
Net increase (decrease) | 434,752 | 624,416 | $ 4,453,584 | $ 6,615,270 |
Class C |
|
|
|
|
Shares sold | 844,448 | 2,030,776 | $ 8,625,411 | $ 21,411,850 |
Reinvestment of distributions | 72,414 | 29,432 | 726,573 | 309,638 |
Shares redeemed | (342,463) | (125,083) | (3,454,173) | (1,328,625) |
Net increase (decrease) | 574,399 | 1,935,125 | $ 5,897,811 | $ 20,392,863 |
Real Estate Income |
|
|
|
|
Shares sold | 43,937,314 | 89,725,340 | $ 450,081,587 | $ 943,333,748 |
Reinvestment of distributions | 6,112,870 | 5,601,468 | 61,699,330 | 58,273,356 |
Shares redeemed | (32,989,055) | (44,449,757) | (336,589,169) | (467,916,333) |
Net increase (decrease) | 17,061,129 | 50,877,051 | $ 175,191,748 | $ 533,690,771 |
Institutional Class |
|
|
|
|
Shares sold | 8,960,411 | 4,361,479 | $ 90,777,957 | $ 46,245,871 |
Reinvestment of distributions | 259,233 | 55,523 | 2,613,878 | 583,903 |
Shares redeemed | (959,374) | (681,623) | (9,769,934) | (7,257,237) |
Net increase (decrease) | 8,260,270 | 3,735,379 | $ 83,621,901 | $ 39,572,537 |
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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Real Estate Income Fund (the Fund), a fund of Fidelity Securities Fund, including the schedule of investments, as of January 31, 2012, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended July 31, 2012 and for each of the five years in the period ended July 31, 2011. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2012, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Real Estate Income Fund as of January 31, 2012, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended January 31, 2012 and for each of the five years in the period ended July 31, 2011, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
Semiannual Report
March 19, 2012
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
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
REI-USAN-0312 1.789734.108
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Class A, Class T, and Class C
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Class A , Class T, and
Class C are classes of Fidelity® Real Estate Income Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of the fund's holdings. | |
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. | |
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,030.70 | $ 5.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.74 |
Class T | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 5.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.84 |
Class C | 1.89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,028.20 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.63 | $ 9.58 |
Real Estate Income | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.60 | $ 4.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Institutional Class | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,033.30 | $ 4.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Ventas, Inc. | 2.0 | 1.9 |
MFA Financial, Inc. | 1.6 | 1.5 |
Acadia Realty Trust (SBI) | 1.6 | 1.6 |
Equity LifeStyle Properties, Inc. | 1.5 | 1.3 |
Equity LifeStyle Properties, Inc. 8.034% | 1.1 | 1.1 |
| 7.8 | |
Top Five Bonds as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 | 2.6 | 2.4 |
Standard Pacific Corp. 8.375% 5/15/18 | 1.4 | 0.7 |
KB Home 9.1% 9/15/17 | 0.9 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 0.9 | 0.5 |
Wachovia Ltd./Wachovia LLC Series 2006-1A Class A1B, 0.9038% 9/25/26 | 0.8 | 0.3 |
| 6.6 | |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 7.3 | 5.5 |
REITs - Shopping Centers | 6.9 | 6.5 |
REITs - Health Care Facilities | 6.6 | 6.2 |
REITs - Mortgage | 6.4 | 5.5 |
REITs - Hotels | 3.8 | 2.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Common Stocks 24.2% |
| ![]() | Common Stocks 23.4% |
| ||
![]() | Preferred Stocks 11.2% |
| ![]() | Preferred Stocks 9.7% |
| ||
![]() | Bonds 48.6% |
| ![]() | Bonds 48.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 4.2% |
| ![]() | Other Investments 4.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.0% |
| ** Foreign investments | 6.3% |
|
Semiannual Report
Investments January 31, 2012
Showing Percentage of Net Assets
Common Stocks - 24.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 1.3% | |||
Household Durables - 1.3% | |||
Meritage Homes Corp. (a) | 135,900 | $ 3,288,780 | |
NVR, Inc. (a) | 5,800 | 4,020,850 | |
Standard Pacific Corp. (a)(e) | 3,375,200 | 12,285,728 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,036,910 | |
Toll Brothers, Inc. (a) | 183,100 | 3,993,411 | |
| 27,625,679 | ||
FINANCIALS - 21.7% | |||
Capital Markets - 0.3% | |||
HFF, Inc. (a) | 441,814 | 6,233,996 | |
Real Estate Investment Trusts - 20.9% | |||
Acadia Realty Trust (SBI) | 1,583,849 | 33,292,506 | |
American Campus Communities, Inc. | 87,200 | 3,732,160 | |
American Tower Corp. | 167,100 | 10,612,521 | |
Annaly Capital Management, Inc. | 329,150 | 5,542,886 | |
Anworth Mortgage Asset Corp. | 875,710 | 5,692,115 | |
Apartment Investment & Management Co. Class A | 291,400 | 7,156,784 | |
AvalonBay Communities, Inc. | 20,800 | 2,829,008 | |
Brandywine Realty Trust (SBI) | 274,400 | 2,919,616 | |
Canadian (REIT) | 107,800 | 4,004,538 | |
CapLease, Inc. | 1,591,600 | 6,621,056 | |
CBL & Associates Properties, Inc. | 604,873 | 10,506,644 | |
Chartwell Seniors Housing (REIT) (e) | 509,700 | 4,528,972 | |
Chesapeake Lodging Trust | 223,500 | 3,806,205 | |
Colony Financial, Inc. | 101,637 | 1,723,764 | |
CommonWealth REIT | 278,000 | 5,468,260 | |
Coresite Realty Corp. | 281,000 | 5,634,050 | |
Cousins Properties, Inc. | 246,800 | 1,818,916 | |
Cys Investments, Inc. (e) | 992,339 | 13,396,577 | |
DCT Industrial Trust, Inc. | 1,175,300 | 6,487,656 | |
DiamondRock Hospitality Co. | 668,900 | 7,050,206 | |
Douglas Emmett, Inc. | 172,900 | 3,615,339 | |
Dynex Capital, Inc. | 1,592,186 | 14,743,642 | |
Education Realty Trust, Inc. | 281,800 | 3,015,260 | |
Equity LifeStyle Properties, Inc. | 457,430 | 32,084,140 | |
Excel Trust, Inc. | 697,228 | 8,854,796 | |
H&R REIT/H&R Finance Trust | 256,500 | 5,960,060 | |
Healthcare Realty Trust, Inc. | 246,300 | 5,189,541 | |
Highwoods Properties, Inc. (SBI) | 51,400 | 1,700,826 | |
Hospitality Properties Trust (SBI) | 106,400 | 2,578,072 | |
Lexington Corporate Properties Trust | 1,771,300 | 15,233,180 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LTC Properties, Inc. | 339,113 | $ 10,834,660 | |
MFA Financial, Inc. | 4,635,781 | 34,026,633 | |
Mid-America Apartment Communities, Inc. | 53,900 | 3,445,288 | |
Monmouth Real Estate Investment Corp. Class A | 455,073 | 4,236,730 | |
National Health Investors, Inc. | 90,306 | 4,371,713 | |
National Retail Properties, Inc. | 114,100 | 3,081,841 | |
Newcastle Investment Corp. | 400,000 | 2,144,000 | |
Omega Healthcare Investors, Inc. | 532,179 | 11,090,610 | |
Pebblebrook Hotel Trust | 51,882 | 1,150,743 | |
Prologis, Inc. | 705,287 | 22,364,651 | |
Sabra Health Care REIT, Inc. | 178,800 | 2,542,536 | |
Senior Housing Properties Trust (SBI) | 175,600 | 3,982,608 | |
Simon Property Group, Inc. | 45,801 | 6,222,524 | |
Stag Industrial, Inc. | 382,692 | 4,584,650 | |
Summit Hotel Properties, Inc. | 634,200 | 5,929,770 | |
Sun Communities, Inc. | 85,000 | 3,409,350 | |
Sunstone Hotel Investors, Inc. (a) | 290,734 | 2,700,919 | |
Terreno Realty Corp. | 320,264 | 4,522,128 | |
Two Harbors Investment Corp. | 1,195,580 | 11,872,109 | |
Ventas, Inc. | 708,346 | 41,303,655 | |
Weyerhaeuser Co. | 535,229 | 10,715,285 | |
Whitestone REIT Class B | 379,067 | 4,825,523 | |
| 435,157,222 | ||
Real Estate Management & Development - 0.5% | |||
Brookfield Asset Management, Inc. Class A | 156,900 | 4,761,373 | |
Kennedy-Wilson Holdings, Inc. | 348,200 | 4,676,326 | |
| 9,437,699 | ||
TOTAL FINANCIALS | 450,828,917 | ||
HEALTH CARE - 1.2% | |||
Health Care Providers & Services - 1.2% | |||
Brookdale Senior Living, Inc. (a) | 733,300 | 12,906,080 | |
Capital Senior Living Corp. (a) | 687,750 | 5,570,775 | |
Emeritus Corp. (a) | 356,493 | 6,224,368 | |
| 24,701,223 | ||
TOTAL COMMON STOCKS (Cost $427,578,421) |
| ||
Preferred Stocks - 12.9% | |||
Shares | Value | ||
Convertible Preferred Stocks - 1.7% | |||
FINANCIALS - 1.7% | |||
Real Estate Investment Trusts - 1.7% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | $ 2,363,125 | |
CommonWealth REIT 6.50% | 339,844 | 7,187,701 | |
Excel Trust, Inc. 7.00% (f) | 248,200 | 5,894,750 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,509,650 | |
Lexington Corporate Properties Trust Series C, 6.50% | 349,551 | 15,030,693 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 1,871,200 | |
| 34,857,119 | ||
Real Estate Management & Development - 0.0% | |||
Grubb & Ellis Co. 12.00% (f) | 14,800 | 51,356 | |
TOTAL FINANCIALS | 34,908,475 | ||
Nonconvertible Preferred Stocks - 11.2% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | 426,087 | |
FINANCIALS - 11.2% | |||
Diversified Financial Services - 0.2% | |||
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | 100,000 | |
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,214,470 | |
| 4,314,470 | ||
Real Estate Investment Trusts - 10.9% | |||
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | 1,725,250 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 1,203 | |
Series B, 9.25% (a) | 124,100 | 124 | |
Annaly Capital Management, Inc. Series A, 7.875% | 134,900 | 3,630,159 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,003,936 | |
Apartment Investment & Management Co.: | |||
Series T, 8.00% | 57,500 | 1,469,125 | |
Series U, 7.75% | 150,773 | 3,829,634 | |
Ashford Hospitality Trust, Inc. Series E, 9.00% | 57,030 | 1,434,305 | |
Brandywine Realty Trust Series C, 7.50% | 37,615 | 964,449 | |
CapLease, Inc. Series A, 8.125% | 117,510 | 2,914,248 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
CBL & Associates Properties, Inc.: | |||
(depositary shares) Series C, 7.75% | 147,962 | $ 3,768,592 | |
7.375% | 274,876 | 6,863,654 | |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | 7,261,704 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,046,688 | |
Cogdell Spencer, Inc. 8.50% | 114,300 | 2,912,364 | |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | 125,650 | |
Cousins Properties, Inc. Series A, 7.75% | 178,330 | 4,306,670 | |
CubeSmart Series A, 7.75% | 40,000 | 1,008,000 | |
DDR Corp. Series I, 7.50% | 24,684 | 616,113 | |
Digital Realty Trust, Inc. Series E, 7.00% | 40,000 | 1,026,800 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,409,556 | |
Series L, 6.60% | 10,666 | 267,397 | |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | 48,000 | |
Equity LifeStyle Properties, Inc. 8.034% | 885,479 | 23,128,711 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,034,000 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,100,000 | |
First Potomac Realty Trust 7.75% | 80,779 | 2,067,135 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 5,754,858 | |
Glimcher Realty Trust Series G, 8.125% | 171,111 | 4,098,108 | |
Hersha Hospitality Trust Series B, 8.00% | 98,910 | 2,377,796 | |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | 1 | |
Hospitality Properties Trust: | |||
Series B, 8.875% | 84,500 | 2,125,175 | |
Series C, 7.00% | 58,500 | 1,447,875 | |
Series D, 7.125% | 40,800 | 1,017,960 | |
Hudson Pacific Properties, Inc. 8.375% | 303,800 | 8,020,320 | |
Inland Real Estate Corp. Series A, 8.125% | 223,500 | 5,652,315 | |
Kimco Realty Corp. Series G, 7.75% | 113,026 | 2,952,239 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,383,280 | |
LaSalle Hotel Properties: | |||
Series E, 8.00% | 50,468 | 1,268,766 | |
Series G, 7.25% | 114,485 | 2,833,504 | |
Series H, 7.50% | 126,308 | 3,153,911 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,173,500 | |
Series B, 7.625% (a) | 31,240 | 484,220 | |
Lexington Corporate Properties Trust Series B, 8.05% | 104,300 | 2,601,242 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Lexington Realty Trust 7.55% | 23,800 | $ 581,910 | |
MFA Financial, Inc. Series A, 8.50% | 485,381 | 12,391,777 | |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | 2,009,600 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 855,999 | |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | 5,780,970 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,210,720 | |
Series B, 8.00% | 180,991 | 4,461,428 | |
Prologis, Inc. Series Q, 8.54% | 94,446 | 5,256,515 | |
PS Business Parks, Inc.: | |||
(depositary shares) Series H, 7.00% | 13,300 | 338,086 | |
6.875% | 50,000 | 1,292,500 | |
7.20% | 83,040 | 2,094,269 | |
7.375% | 100,610 | 2,535,372 | |
Series P, 6.70% | 36,000 | 904,320 | |
Public Storage Series N, 7.00% | 4,200 | 109,326 | |
Regency Centers Corp.: | |||
7.25% | 10,500 | 269,535 | |
Series C 7.45% | 18,000 | 459,000 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,420,271 | |
Series B (depositary shares) 9.00% | 118,550 | 3,235,230 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,081,200 | |
Summit Hotel Properties, Inc. Series A, 9.25% | 138,240 | 3,525,120 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 366,039 | 8,967,956 | |
Series D, 8.00% | 37,862 | 916,260 | |
UMH Properties, Inc. Series A, 8.25% | 310,000 | 7,985,600 | |
Vornado Realty Trust 6.75% | 20,000 | 506,400 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | 1,422,619 | |
Winthrop Realty Trust Series D, 9.25% | 25,000 | 646,875 | |
| 227,567,395 | ||
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.1% | |||
Vornado Realty LP 7.875% | 54,682 | $ 1,531,096 | |
TOTAL FINANCIALS | 233,412,961 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 233,839,048 | ||
TOTAL PREFERRED STOCKS (Cost $271,877,950) |
|
Corporate Bonds - 24.6% | ||||
| Principal Amount (i) |
| ||
Convertible Bonds - 1.7% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 1,340,000 | 1,132,300 | ||
FINANCIALS - 1.6% | ||||
Real Estate Investment Trusts - 1.1% | ||||
Annaly Capital Management, Inc. 4% 2/15/15 | 1,000,000 | 1,182,500 | ||
CapLease, Inc. 7.5% 10/1/27 (f) | 5,180,000 | 5,192,950 | ||
Developers Diversified Realty Corp. 1.75% 11/15/40 | 1,000,000 | 1,064,000 | ||
Hospitality Properties Trust 3.8% 3/15/27 | 6,100,000 | 6,103,813 | ||
ProLogis LP: | ||||
1.875% 11/15/37 | 2,450,000 | 2,425,500 | ||
2.625% 5/15/38 | 1,500,000 | 1,492,575 | ||
The Macerich Co. 3.25% 3/15/12 (f) | 4,800,000 | 4,797,000 | ||
| 22,258,338 | |||
Real Estate Management & Development - 0.5% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (f) | 5,460,000 | 5,289,375 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (f) | 5,500,000 | 3,182,850 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Kilroy Realty LP 3.25% 4/15/12 (f) | $ 2,185,000 | $ 2,182,269 | ||
SL Green Realty Corp. 3% 3/30/27 (f) | 500,000 | 498,750 | ||
| 11,153,244 | |||
TOTAL FINANCIALS | 33,411,582 | |||
TOTAL CONVERTIBLE BONDS | 34,543,882 | |||
Nonconvertible Bonds - 22.9% | ||||
CONSUMER DISCRETIONARY - 8.4% | ||||
Hotels, Restaurants & Leisure - 1.0% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 1,945,000 | 2,042,250 | ||
FelCor Lodging LP 6.75% 6/1/19 | 5,875,000 | 5,720,781 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,878,500 | ||
Landry's Restaurants, Inc. 11.625% 12/1/15 | 1,325,000 | 1,424,375 | ||
Times Square Hotel Trust 8.528% 8/1/26 (f) | 9,217,662 | 9,917,702 | ||
| 20,983,608 | |||
Household Durables - 7.0% | ||||
KB Home: | ||||
5.75% 2/1/14 | 510,000 | 514,463 | ||
5.875% 1/15/15 | 7,000,000 | 6,895,000 | ||
6.25% 6/15/15 | 10,000,000 | 9,862,500 | ||
7.25% 6/15/18 | 5,160,000 | 4,902,000 | ||
9.1% 9/15/17 | 17,595,000 | 18,034,875 | ||
Lennar Corp.: | ||||
5.5% 9/1/14 | 1,000,000 | 1,032,500 | ||
5.6% 5/31/15 | 6,000,000 | 6,180,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,170,000 | ||
6.95% 6/1/18 | 14,280,000 | 14,851,200 | ||
M/I Homes, Inc.: | ||||
6.875% 4/1/12 | 2,150,000 | 2,085,500 | ||
8.625% 11/15/18 | 17,655,000 | 16,419,150 | ||
Meritage Homes Corp.: | ||||
6.25% 3/15/15 | 2,500,000 | 2,500,000 | ||
7.15% 4/15/20 | 7,060,000 | 6,848,200 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | $ 1,555,000 | $ 1,543,338 | ||
8.4% 5/15/17 | 5,420,000 | 5,826,500 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,010,000 | ||
8.375% 5/15/18 | 28,983,000 | 29,417,745 | ||
10.75% 9/15/16 | 8,415,000 | 9,361,688 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,549,969 | ||
| 146,004,628 | |||
Multiline Retail - 0.4% | ||||
Sears Holdings Corp. 6.625% 10/15/18 | 9,065,000 | 7,433,300 | ||
TOTAL CONSUMER DISCRETIONARY | 174,421,536 | |||
CONSUMER STAPLES - 0.3% | ||||
Food & Staples Retailing - 0.3% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 1,086,076 | 1,221,836 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (f) | 4,400,000 | 4,708,000 | ||
| 5,929,836 | |||
FINANCIALS - 12.9% | ||||
Diversified Financial Services - 0.7% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | 10,820,000 | 11,252,800 | ||
8% 1/15/18 (f) | 3,070,000 | 3,200,475 | ||
| 14,453,275 | |||
Real Estate Investment Trusts - 7.2% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,181,047 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,756,919 | ||
6.25% 6/15/14 | 5,005,000 | 5,365,540 | ||
Developers Diversified Realty Corp.: | ||||
5.375% 10/15/12 | 500,000 | 505,467 | ||
5.5% 5/1/15 | 4,000,000 | 4,155,296 | ||
7.5% 4/1/17 | 6,000,000 | 6,760,584 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Developers Diversified Realty Corp.: - continued | ||||
7.5% 7/15/18 | $ 8,756,000 | $ 9,769,673 | ||
7.875% 9/1/20 | 4,637,000 | 5,488,446 | ||
9.625% 3/15/16 | 3,836,000 | 4,503,479 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,610,527 | ||
6.25% 12/15/14 | 4,081,000 | 4,344,318 | ||
6.25% 1/15/17 | 3,000,000 | 3,155,439 | ||
Health Care Property Investors, Inc.: | ||||
6% 3/1/15 | 1,000,000 | 1,073,976 | ||
7.072% 6/8/15 | 1,500,000 | 1,688,213 | ||
Health Care REIT, Inc.: | ||||
6% 11/15/13 | 1,000,000 | 1,049,543 | ||
6.2% 6/1/16 | 750,000 | 821,068 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,279,119 | ||
5.75% 1/15/21 | 2,000,000 | 2,071,490 | ||
6.5% 1/17/17 | 1,875,000 | 2,061,424 | ||
HMB Capital Trust V 4.1463% 12/15/36 (d)(f)(g) | 2,530,000 | 0 | ||
Hospitality Properties Trust: | ||||
5.625% 3/15/17 | 915,000 | 944,522 | ||
6.75% 2/15/13 | 1,765,000 | 1,794,213 | ||
7.875% 8/15/14 | 1,000,000 | 1,091,725 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 3,600,000 | 3,811,043 | ||
6.25% 8/15/16 | 1,500,000 | 1,598,573 | ||
6.5% 1/15/13 | 200,000 | 202,452 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 500,000 | 392,500 | ||
5.875% 3/15/16 | 6,400,000 | 5,472,000 | ||
5.95% 10/15/13 | 7,330,000 | 6,743,600 | ||
6.05% 4/15/15 | 4,725,000 | 3,780,000 | ||
6.5% 12/15/13 | 5,400,000 | 4,941,000 | ||
8.625% 6/1/13 | 1,565,000 | 1,484,794 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 | 2,000,000 | 2,070,000 | ||
Nationwide Health Properties, Inc.: | ||||
6.25% 2/1/13 | 1,000,000 | 1,034,780 | ||
8.25% 7/1/12 | 1,300,000 | 1,322,108 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | $ 2,115,000 | $ 2,257,763 | ||
7% 1/15/16 | 1,295,000 | 1,325,756 | ||
7.5% 2/15/20 | 1,000,000 | 1,080,000 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,868,451 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,050,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,300,504 | ||
7.625% 7/1/17 | 4,690,000 | 5,373,868 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,253,800 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 4,999,360 | ||
6.75% 4/15/20 | 6,000,000 | 6,369,534 | ||
6.75% 12/15/21 | 8,000,000 | 8,567,704 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 522,260 | ||
5.25% 1/15/15 | 1,000,000 | 1,063,465 | ||
5.25% 1/15/16 | 4,000,000 | 4,278,468 | ||
| 150,635,811 | |||
Real Estate Management & Development - 4.9% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 412,880 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 1,987,422 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 6,961,329 | ||
5.75% 4/1/12 | 1,000,000 | 1,004,288 | ||
7.5% 5/15/15 | 1,000,000 | 1,096,543 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,256,213 | ||
11.625% 6/15/17 | 1,500,000 | 1,732,500 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,534,317 | ||
6.25% 6/15/14 | 3,094,000 | 3,251,745 | ||
6.875% 8/15/12 | 1,000,000 | 1,014,636 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,601,650 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 784,013 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | $ 16,120,000 | $ 15,152,800 | ||
7.625% 6/1/15 | 15,725,000 | 15,567,750 | ||
Highwoods/Forsyth LP 5.85% 3/15/17 | 2,800,000 | 3,016,863 | ||
Host Hotels & Resorts LP: | ||||
5.875% 6/15/19 | 2,725,000 | 2,895,313 | ||
6.875% 11/1/14 | 500,000 | 507,500 | ||
9% 5/15/17 | 750,000 | 828,750 | ||
Kennedy-Wilson, Inc. 8.75% 4/1/19 (f) | 2,785,000 | 2,805,888 | ||
Post Apartment Homes LP 6.3% 6/1/13 | 2,000,000 | 2,086,006 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (f) | 7,085,000 | 6,518,200 | ||
9% 1/15/20 (f) | 1,920,000 | 1,876,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,867,290 | ||
5.875% 6/15/17 | 400,000 | 448,110 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,770,125 | ||
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | 1,000,000 | 1,071,300 | ||
Ventas Realty LP Series 1, 6.5% 6/1/16 | 11,370,000 | 11,789,621 | ||
Vornado Realty LP 5% 1/15/22 | 2,000,000 | 2,096,590 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,088,941 | ||
| 101,025,383 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 | 4,349,567 | 1,496,251 | ||
TOTAL FINANCIALS | 267,610,720 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 7,290,000 | 7,308,225 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 16,765,000 | 17,645,163 | ||
Skilled Healthcare Group, Inc. 11% 1/15/14 | 3,080,000 | 3,072,300 | ||
| 20,717,463 | |||
TOTAL HEALTH CARE | 28,025,688 | |||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
INDUSTRIALS - 0.0% | ||||
Commercial Services & Supplies - 0.0% | ||||
Landry's Acquisition Co. 11.625% 12/1/15 (f) | $ 500,000 | $ 537,500 | ||
TOTAL NONCONVERTIBLE BONDS | 476,525,280 | |||
TOTAL CORPORATE BONDS (Cost $493,411,545) |
| |||
Asset-Backed Securities - 5.4% | ||||
| ||||
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (f) | 1,384,000 | 1,385,384 | ||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.6373% 3/23/19 (f)(g) | 286,251 | 237,589 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7809% 3/20/50 (f)(g) | 2,250,000 | 0 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (f) | 6,023,049 | 5,974,864 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.8315% 1/20/37 (f)(g) | 1,329,924 | 1,060,614 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (f) | 1,213,640 | 1,055,867 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.8325% 4/7/52 (f)(g) | 16,300,116 | 10,758,076 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 298,823 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (f) | 1,570,000 | 1,263,850 | ||
Class B2, 1.9238% 12/28/35 (f)(g) | 1,575,000 | 1,078,875 | ||
Class D, 9% 12/28/35 (f) | 501,103 | 105,232 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 2.0738% 6/28/38 (f)(g) | 1,230,000 | 1,051,650 | ||
Class D, 9% 6/28/38 (f) | 997,000 | 697,900 | ||
Crest Ltd. Series 2002-IGA Class B, 1.9031% 7/28/35 (f)(g) | 806,845 | 774,571 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 8,746,528 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.8767% 11/28/39 (f)(g) | 555,122 | 16,654 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount (i) | Value | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | $ 1,788,179 | $ 1,637,614 | ||
Series 1997-3 Class M1, 7.53% 3/15/28 | 7,588,081 | 6,308,944 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 (g)(j) | 1,259,000 | 59,691 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.8263% 8/26/30 (f)(g) | 735,000 | 102,900 | ||
Class E, 2.2763% 8/26/30 (f)(g) | 1,503,628 | 41,350 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,226,943 | 456,865 | ||
Merit Securities Corp. Series 13 Class M1, 7.9068% 12/28/33 (g) | 1,923,000 | 1,783,100 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (f) | 899,989 | 732,141 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (f) | 4,067,741 | 4,111,600 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (f) | 4,590,000 | 4,257,225 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (f) | 4,610,000 | 4,287,300 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 3.085% 2/5/36 (f)(g) | 3,526,224 | 353 | ||
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (f) | 2,818,047 | 2,811,002 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 0% 9/25/26 (f)(g) | 2,000,000 | 840,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.8338% 9/25/26 (f)(g) | 17,832,122 | 15,335,625 | ||
Class A1B, 0.9038% 9/25/26 (f)(g) | 22,506,000 | 16,766,970 | ||
Class A2A, 0.7938% 9/25/26 (f)(g) | 7,145,081 | 6,359,122 | ||
Class A2B, 0.8838% 9/25/26 (f)(g) | 1,550,000 | 1,255,500 | ||
Class B, 0.9338% 9/25/26 (f)(g) | 890,000 | 660,825 | ||
Class G, 1.9238% 9/25/26 (f)(g) | 1,150,000 | 747,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.7994% 11/21/40 (f)(g) | 10,500,000 | 8,085,000 | ||
Class F, 2.4294% 11/21/40 (f)(g) | 250,000 | 50,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $116,618,589) |
| |||
Collateralized Mortgage Obligations - 1.0% | ||||
| Principal Amount (i) | Value | ||
Private Sponsor - 1.0% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4651% 6/15/22 (f)(g) | $ 2,410,041 | $ 2,336,200 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (f) | 75,113 | 56,662 | ||
Series 2002-R2 Class 2B3, 3.9405% 7/25/33 (f)(g) | 217,132 | 81,449 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (f) | 116,163 | 64,298 | ||
Series 2003-R2 Class B3, 5.5% 5/25/43 (f) | 24,854 | 8 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (f) | 1,452,178 | 327,819 | ||
Class B3, 5.5% 11/25/33 | 220,407 | 16,170 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (f)(g) | 132,011 | 4,397 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.435% 4/25/20 (f)(g) | 3,200,000 | 3,119,197 | ||
Series 2010-K6 Class B, 5.3579% 12/25/46 (f)(g) | 4,500,000 | 4,319,738 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (f) | 7,120,000 | 7,337,288 | ||
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (f) | 1,600,000 | 1,602,701 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.2463% 7/10/35 (f)(g) | 384,767 | 238,556 | ||
Series 2005-A Class B6, 2.2963% 3/10/37 (f)(g) | 1,536,575 | 147,818 | ||
Series 2005-B Class B6, 1.8963% 6/10/37 (f)(g) | 866,877 | 39,790 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (f) | 54,522 | 46,174 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7963% 12/10/35 (f)(g) | 362,913 | 136,855 | ||
Series 2004-A Class B7, 4.5463% 2/10/36 (f)(g) | 391,667 | 179,031 | ||
Series 2004-B Class B7, 4.2963% 2/10/36 (f)(g) | 468,310 | 198,423 | ||
Series 2005-C Class B7, 3.3963% 9/10/37 (f)(g) | 958,286 | 2,396 | ||
TOTAL PRIVATE SPONSOR | 20,254,970 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (j) | 171,999 | 38,930 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.3623% 2/25/42 (f)(g) | 107,088 | 49,268 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | 250,155 | 71,474 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount (i) | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.4138% 6/25/43 (f)(g) | $ 156,663 | $ 63,807 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.5113% 10/25/42 (f)(g) | 68,888 | 24,915 | ||
TOTAL U.S. GOVERNMENT AGENCY | 248,394 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $25,215,026) |
| |||
Commercial Mortgage Securities - 19.3% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (j) | 5,666,539 | 5,476,179 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (f) | 2,000,000 | 2,162,544 | ||
Asset Securitization Corp. Series 1997-D4: | ||||
Class B1, 7.525% 4/14/29 | 906,721 | 910,528 | ||
Class B2, 7.525% 4/14/29 | 560,000 | 565,550 | ||
Banc of America Commercial Mortgage, Inc.: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 4,185,000 | 4,215,864 | ||
Series 2005-1 Class CJ, 5.1847% 11/10/42 (g) | 3,580,000 | 3,578,249 | ||
Series 2005-6 Class AJ, 5.1932% 9/10/47 (g) | 5,000,000 | 5,063,450 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 (f)(g) | 59,783,885 | 54,702,235 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.3351% 3/15/22 (f)(g) | 2,000,000 | 1,700,000 | ||
Class K, 2.2851% 3/15/22 (f)(g) | 4,190,000 | 3,268,200 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4414% 3/11/39 (g) | 5,700,000 | 5,229,516 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5327% 4/12/38 (f)(g) | 2,520,000 | 1,955,061 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12 Class AJ, 0.4151% 12/15/20 (f)(g) | 8,000,000 | 7,165,408 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (f) | 9,851,841 | 9,845,930 | ||
Commercial Mortgage pass-thru certificates: | ||||
Series 2011-STRT Class C, 4.755% 12/10/24 (f) | 2,000,000 | 2,002,500 | ||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (g) | 4,000,000 | 3,885,744 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Communication Mortgage Trust Series 2011-THL Class F, 4.867% 6/9/28 (f) | $ 11,090,000 | $ 9,216,466 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (f) | 2,540,000 | 2,609,439 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (f) | 3,000,000 | 3,278,313 | ||
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.9263% 3/25/17 (f)(g) | 2,512,000 | 1,758,400 | ||
CRESIX Finance Ltd. Series 2006-AA: | ||||
Class F, 4.4763% 3/25/17 (f)(g) | 3,860,000 | 2,509,000 | ||
Class G, 7.2763% 3/25/17 (f)(g) | 3,272,000 | 1,963,200 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5569% 11/10/46 (f)(g) | 3,240,000 | 2,872,513 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 992,906 | ||
DLJ Commercial Mortgage Corp.: | ||||
Series 1998-CG1 Class B4, 7.2186% 6/10/31 (f)(g) | 2,500,000 | 2,634,495 | ||
Series 2000-CKP1 Class B3, 7.8963% 11/10/33 (g) | 2,970,000 | 2,971,978 | ||
Extended Stay America Trust Series 2010-ESHA Class D, 5.4983% 11/5/27 (f) | 5,000,000 | 5,060,428 | ||
FHMLC Multi-class participation certificates guaranteed: | ||||
Series K013 Class X3, 2.7897% 1/25/43 (g)(h) | 14,360,000 | 2,362,909 | ||
Series KAIV Class X2, 3.6146% 6/25/46 (g)(h) | 7,430,000 | 1,561,757 | ||
First Union National Bank Commercial Mortgage Trust Series 2001-C4 Class K, 6% 12/12/33 (f) | 623,409 | 619,163 | ||
Freddie Mac Multi-Class participation certificates guaranteed: | ||||
Series K011 Class X3, 2.5748% 12/25/43 (g)(h) | 12,206,096 | 1,837,152 | ||
Series K012 Class X3, 2.2876% 1/25/41 (g)(h) | 21,072,888 | 2,881,844 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (f) | 11,951,806 | 10,995,662 | ||
GE Capital Commercial Mortgage Corp. Series 2002-1A Class H, 7.1177% 12/10/35 (f)(g) | 991,000 | 989,801 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2: | ||||
Class F, 6.75% 4/15/29 (g) | 1,658,805 | 1,722,090 | ||
Class G, 6.75% 4/15/29 (g) | 1,250,000 | 1,371,753 | ||
Series 1999-C3: | ||||
Class G, 6.974% 8/15/36 (f) | 653,942 | 651,557 | ||
Class J, 6.974% 8/15/36 | 1,500,000 | 1,516,317 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 469,146 | 348,075 | ||
Series 2002-C3 Class D, 5.27% 7/10/39 | 3,000,000 | 3,031,029 | ||
Greenwich Capital Commercial Funding Corp.: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (f) | 2,000,000 | 2,038,266 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Greenwich Capital Commercial Funding Corp.: - continued | ||||
Series 2002-C1 Class H, 5.903% 1/11/35 (f) | $ 880,000 | $ 883,289 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 6.4193% 3/6/20 (f)(g) | 1,400,000 | 1,391,750 | ||
Series 2010-C1: | ||||
Class D, 5.999% 8/10/43 (f)(g) | 4,000,000 | 3,317,672 | ||
Class E, 4% 8/10/43 (f) | 3,000,000 | 1,881,903 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (f) | 9,185,000 | 8,666,966 | ||
GS Mortgage Securities Trust: | ||||
Series 2011-GC5 Class C, 5.3086% 8/10/44 (f)(g) | 9,000,000 | 7,761,546 | ||
Series 2012-GC6 Class C, 0% 1/10/45 (f)(g) | 3,600,000 | 3,261,960 | ||
JP Morgan Chase Commercial Mortgage Securities Corp. Series 2010-CNTM Class MZ, 8.5% 8/5/20 (f) | 4,000,000 | 3,680,924 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (f)(g) | 2,038,274 | 3,057 | ||
Class X, 0.6261% 10/15/32 (f)(g)(h) | 4,870,680 | 1,519 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (f) | 3,000,000 | 3,014,244 | ||
Series 2009-IWST Class D, 7.4453% 12/5/27 (f)(g) | 6,500,000 | 6,535,263 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (f)(g) | 4,500,000 | 4,258,791 | ||
Class XB, 0.9305% 8/5/32 (f)(h) | 32,655,000 | 1,715,008 | ||
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class AJ, 5.3265% 12/15/44 (g) | 3,470,000 | 3,442,541 | ||
JPMorgan Chase Commercial Mortgage Security Trust Series 2011-C5 Class B. 5.4912% 8/15/46 (f)(g) | 7,500,000 | 7,336,500 | ||
JPMorgan Commercial Mortgage Finance Corp.: | ||||
Series 1997-C5 Class F, 7.5605% 9/15/29 | 1,093,611 | 1,107,965 | ||
Series 1999-C8: | ||||
Class G, 6% 7/15/31 (f) | 1,078,879 | 1,106,357 | ||
Class H, 6% 7/15/31 (f) | 1,341,102 | 447,094 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (f) | 2,920,000 | 3,023,383 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 1,961,598 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,516,351 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,109,936 | ||
Series 2006-C7 Class AM, 5.378% 11/15/38 | 2,040,000 | 2,030,806 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
Series 2005-C2 Class AJ, 5.205% 4/15/30 (g) | $ 8,910,000 | $ 9,196,581 | ||
Series 2006-C4: | ||||
Class AJ, 5.8897% 6/15/38 (g) | 7,005,000 | 5,688,095 | ||
Class AM, 5.8897% 6/15/38 (g) | 6,700,000 | 6,982,479 | ||
Lstar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.6768% 6/25/43 (f)(g) | 4,699,000 | 3,873,926 | ||
Series 2011-1 Class B, 5.6768% 6/25/43 (f)(g) | 5,720,000 | 5,750,133 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 505,922 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 245,699 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 158,678 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 231,924 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 225,391 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 145,644 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 478,991 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (f) | 2,414,948 | 1,412,744 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6655% 5/12/39 (g) | 1,200,000 | 1,264,776 | ||
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (f) | 750,000 | 75 | ||
Class E, 7.983% 1/15/37 (f) | 1,453,000 | 145 | ||
Class IO, 8.3831% 1/15/37 (g)(h) | 4,967,025 | 372,527 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (f) | 1,309,233 | 1,312,506 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,401,736 | ||
Series 1997-RR Class F, 7.3991% 4/30/39 (f)(g) | 1,979,357 | 1,821,009 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (f) | 2,611,253 | 1,201,176 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 7,627,358 | ||
Series 2011-C1 Class C, 5.2554% 9/15/47 (f)(g) | 2,000,000 | 1,887,386 | ||
Series 2011-C2: | ||||
Class D, 5.3186% 6/15/44 (f)(g) | 4,610,000 | 4,149,692 | ||
Class E, 5.3186% 6/15/44 (f)(g) | 9,600,000 | 7,978,944 | ||
Class F, 5.3186% 6/15/44 (f)(g) | 4,440,000 | 3,224,550 | ||
Class XB, 0.465% 6/15/44 (f)(g)(h) | 63,708,222 | 1,974,955 | ||
Series 2011-C3 Class D, 5.357% 7/15/49 (f) | 7,400,000 | 6,424,813 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (h) | 2,158,523 | 1,877,915 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (f) | 3,506,029 | 3,689,394 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6727% 4/15/24 (f)(g) | $ 5,820,000 | $ 5,476,256 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA: | ||||
Class E3, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,126,591 | ||
Class E5, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,023,058 | ||
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f) | 2,170,000 | 2,170,584 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.7386% 8/15/39 (g) | 2,080,000 | 2,089,360 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (f) | 10,630,000 | 9,884,709 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8601% 7/15/24 (f)(g) | 1,200,000 | 809,941 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.0708% 1/10/45 (f)(g) | 3,000,000 | 3,048,510 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (f) | 2,540,000 | 2,614,592 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 1,972,832 | ||
Series 2004-C11: | ||||
Class D, 5.3607% 1/15/41 (g) | 5,177,000 | 4,666,739 | ||
Class E, 5.4107% 1/15/41 (g) | 3,785,000 | 3,172,841 | ||
Series 2004-C12 Class D, 5.3163% 7/15/41 (g) | 2,750,000 | 2,607,809 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,076,186 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (f) | 4,000,000 | 4,131,052 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $400,243,984) |
| |||
Floating Rate Loans - 4.2% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.7% | ||||
Hotels, Restaurants & Leisure - 0.5% | ||||
Extended Stay America, Inc. term loan 9.75% 11/1/15 | 9,000,000 | 8,842,500 | ||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (g) | 2,835,750 | 2,523,818 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
CONSUMER DISCRETIONARY - continued | ||||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack term loan 2.53% 10/27/13 (g) | $ 1,974,717 | $ 1,969,781 | ||
TOTAL CONSUMER DISCRETIONARY | 13,336,099 | |||
FINANCIALS - 2.2% | ||||
Diversified Financial Services - 0.2% | ||||
Pilot Travel Centers LLC Tranche B, term loan 4.25% 3/30/18 (g) | 3,885,475 | 3,895,188 | ||
Real Estate Investment Trusts - 0.0% | ||||
iStar Financial, Inc. Tranche A 1LN, term loan 5% 6/28/13 (g) | 1,230,680 | 1,233,757 | ||
Real Estate Management & Development - 2.0% | ||||
Capital Automotive LP term loan 5% 3/11/17 (g) | 8,079,388 | 8,038,991 | ||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7958% 9/4/19 (g) | 1,990,000 | 1,970,100 | ||
CityCenter term loan 8.75% 7/1/13 (g) | 8,000,000 | 7,820,000 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 9.5% 11/2/12 (g) | 2,184,917 | 1,662,388 | ||
Tranche B 2LN, term loan 6.55% 11/2/12 (g) | 5,000,000 | 4,300,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 4.5453% 10/10/16 (g) | 712,762 | 662,869 | ||
term loan 4.6914% 10/10/16 (g) | 8,058,859 | 7,494,739 | ||
Tranche 2LN, term loan 13.5% 10/15/17 | 3,500,000 | 3,570,000 | ||
Tranche B, term loan 3.4414% 10/10/13 (g) | 5,208,029 | 5,155,949 | ||
3.2953% 10/10/13 (g) | 521,472 | 521,472 | ||
| 41,196,508 | |||
TOTAL FINANCIALS | 46,325,453 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc.: | ||||
Tranche B, term loan 2.7552% 7/25/14 (g) | 2,833,380 | 2,794,421 | ||
Tranche DD, term loan 2.52% 7/25/14 (g) | 145,277 | 143,279 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (g) | $ 2,000,000 | $ 1,980,000 | ||
Skilled Healthcare Group, Inc. term loan 5.2644% 4/9/16 (g) | 3,614,832 | 3,379,868 | ||
| 8,297,568 | |||
INDUSTRIALS - 0.5% | ||||
Construction & Engineering - 0.5% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (g) | 11,938,567 | 10,714,863 | ||
TELECOMMUNICATION SERVICES - 0.4% | ||||
Wireless Telecommunication Services - 0.4% | ||||
Crown Castle Operating Co. Tranche B, term loan 4% 1/18/19 (g) | 3,890,000 | 3,885,332 | ||
TowerCo Finance LLC Tranche B, term loan 5.25% 2/2/17 (g) | 3,650,804 | 3,664,495 | ||
| 7,549,827 | |||
TOTAL FLOATING RATE LOANS (Cost $88,536,290) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (f) | 500,000 | 15,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (f) | 1,220,000 | 305,000 | |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(f) | 1,350,000 | 0 | |
| 320,000 | ||
TOTAL PREFERRED SECURITIES (Cost $2,593,186) |
| ||
Money Market Funds - 9.6% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 182,069,601 | $ 182,069,601 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 17,597,164 | 17,597,164 | |
TOTAL MONEY MARKET FUNDS (Cost $199,666,765) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $2,025,741,756) | 2,101,837,665 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (24,500,740) | ||
NET ASSETS - 100% | $ 2,077,336,925 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $436,528,742 or 21.0% of net assets. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
(i) Principal amount is stated in United States dollars unless otherwise noted. |
(j) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,646,274 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 5,487,274 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 149,048 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 188,515 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 | 6/3/05 | $ 1,110,697 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 79,961 |
Fidelity Securities Lending Cash Central Fund | 38,456 |
Total | $ 118,417 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 28,051,766 | $ 24,014,856 | $ - | $ 4,036,910 |
Financials | 719,150,353 | 690,048,288 | 24,880,549 | 4,221,516 |
Health Care | 24,701,223 | 24,701,223 | - | - |
Corporate Bonds | 511,069,162 | - | 509,572,911 | 1,496,251 |
Asset-Backed Securities | 111,197,104 | - | 68,122,562 | 43,074,542 |
Collateralized Mortgage Obligations | 20,503,364 | - | 18,715,124 | 1,788,240 |
Commercial Mortgage Securities | 400,954,118 | - | 373,565,635 | 27,388,483 |
Floating Rate Loans | 86,223,810 | - | 69,561,310 | 16,662,500 |
Preferred Securities | 320,000 | - | - | 320,000 |
Money Market Funds | 199,666,765 | 199,666,765 | - | - |
Total Investments in Securities: | $ 2,101,837,665 | $ 938,431,132 | $ 1,064,418,091 | $ 98,988,442 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $ 3,528,571 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 508,339 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,036,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 508,339 |
Investments in Securities: | |
Equities - Financials | |
Beginning Balance | $ 4,941,370 |
Total Realized Gain (Loss) | (607) |
Total Unrealized Gain (Loss) | (719,371) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 124 |
Transfers out of Level 3 | - |
Ending Balance | $ 4,221,516 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (719,371) |
Corporate Bonds | |
Beginning Balance | $ 9,384,800 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (253,316) |
Cost of Purchases | 4,349,567 |
Proceeds of Sales | (4,000,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (7,984,800) |
Ending Balance | $ 1,496,251 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (2,853,316) |
Asset-Backed Securities | |
Beginning Balance | $ 79,390,084 |
Total Realized Gain (Loss) | 605,893 |
Total Unrealized Gain (Loss) | 1,072,967 |
Cost of Purchases | 1,446,937 |
Proceeds of Sales | (10,646,620) |
Amortization/Accretion | 445,740 |
Transfers in to Level 3 | 3,448,211 |
Transfers out of Level 3 | (32,688,670) |
Ending Balance | $ 43,074,542 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,184,788 |
Investments in Securities: | |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 862,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (185,450) |
Cost of Purchases | - |
Proceeds of Sales | (420,485) |
Amortization/Accretion | (133,520) |
Transfers in to Level 3 | 1,665,695 |
Transfers out of Level 3 | - |
Ending Balance | $ 1,788,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (185,450) |
Commercial Mortgage Securities | |
Beginning Balance | $ 31,940,633 |
Total Realized Gain (Loss) | (116,008) |
Total Unrealized Gain (Loss) | (438,874) |
Cost of Purchases | - |
Proceeds of Sales | (2,634,998) |
Amortization/Accretion | (157,614) |
Transfers in to Level 3 | 8,344,793 |
Transfers out of Level 3 | (9,549,449) |
Ending Balance | $ 27,388,483 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (681,865) |
Floating Rate Loans | |
Beginning Balance | $ 9,000,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (328,461) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 6,161 |
Transfers in to Level 3 | 7,984,800 |
Transfers out of Level 3 | - |
Ending Balance | $ 16,662,500 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (328,461) |
Investments in Securities: | |
Preferred Securities | |
Beginning Balance | $ 442,008 |
Total Realized Gain (Loss) | (785,700) |
Total Unrealized Gain (Loss) | 662,305 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 1,387 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 320,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (123,387) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.4% |
AAA,AA,A | 9.9% |
BBB | 14.0% |
BB | 5.3% |
B | 13.7% |
CCC,CC,C | 3.8% |
D | 0.1% |
Not Rated | 7.3% |
Equities | 37.1% |
Short-Term Investments and Net Other Assets | 8.4% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $16,815,259) - See accompanying schedule: Unaffiliated issuers (cost $1,826,074,991) | $ 1,902,170,900 |
|
Fidelity Central Funds (cost $199,666,765) | 199,666,765 |
|
Total Investments (cost $2,025,741,756) |
| $ 2,101,837,665 |
Cash |
| 1,082,494 |
Foreign currency held at value (cost $20,196) | 20,196 | |
Receivable for investments sold | 399,857 | |
Receivable for fund shares sold | 17,547,019 | |
Dividends receivable | 1,521,211 | |
Interest receivable | 11,529,814 | |
Distributions receivable from Fidelity Central Funds | 23,488 | |
Prepaid expenses | 4,696 | |
Other receivables | 7,857 | |
Total assets | 2,133,974,297 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 30,146,494 | |
Payable for fund shares redeemed | 6,645,368 | |
Accrued management fee | 923,689 | |
Distribution and service plan fees payable | 40,032 | |
Other affiliated payables | 508,146 | |
Other payables and accrued expenses | 776,479 | |
Collateral on securities loaned, at value | 17,597,164 | |
Total liabilities | 56,637,372 | |
|
|
|
Net Assets | $ 2,077,336,925 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,981,809,486 | |
Undistributed net investment income | 7,376,521 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 12,029,101 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 76,121,817 | |
Net Assets | $ 2,077,336,925 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.60 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.60) | $ 11.04 | |
Class T: | $ 10.61 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.61) | $ 11.05 | |
Class C: | $ 10.56 | |
|
|
|
Real Estate Income: | $ 10.63 | |
|
|
|
Institutional Class: | $ 10.62 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2012 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 16,962,406 |
Interest |
| 37,146,888 |
Income from Fidelity Central Funds |
| 118,417 |
Total income |
| 54,227,711 |
|
|
|
Expenses | ||
Management fee | $ 4,971,568 | |
Transfer agent fees | 2,552,941 | |
Distribution and service plan fees | 203,913 | |
Accounting and security lending fees | 351,313 | |
Custodian fees and expenses | 14,448 | |
Independent trustees' compensation | 5,765 | |
Registration fees | 94,816 | |
Audit | 79,530 | |
Legal | 3,629 | |
Miscellaneous | 6,981 | |
Total expenses before reductions | 8,284,904 | |
Expense reductions | (31,579) | 8,253,325 |
Net investment income (loss) | 45,974,386 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 22,757,282 | |
Foreign currency transactions | (14,949) | |
Total net realized gain (loss) |
| 22,742,333 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,462,311) | |
Assets and liabilities in foreign currencies | 934 | |
Total change in net unrealized appreciation (depreciation) |
| (1,461,377) |
Net gain (loss) | 21,280,956 | |
Net increase (decrease) in net assets resulting from operations | $ 67,255,342 |
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, | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 45,974,386 | $ 75,045,871 |
Net realized gain (loss) | 22,742,333 | 26,474,317 |
Change in net unrealized appreciation (depreciation) | (1,461,377) | 63,154,318 |
Net increase (decrease) in net assets resulting | 67,255,342 | 164,674,506 |
Distributions to shareholders from net investment income | (59,240,444) | (66,688,371) |
Distributions to shareholders from net realized gain | (16,498,521) | - |
Total distributions | (75,738,965) | (66,688,371) |
Share transactions - net increase (decrease) | 292,852,190 | 655,640,999 |
Redemption fees | 159,309 | 331,332 |
Total increase (decrease) in net assets | 284,527,876 | 753,958,466 |
|
|
|
Net Assets | ||
Beginning of period | 1,792,809,049 | 1,038,850,583 |
End of period (including undistributed net investment income of $7,376,521 and undistributed net investment income of $20,642,579, respectively) | $ 2,077,336,925 | $ 1,792,809,049 |
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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .53 | .18 |
Net realized and unrealized gain (loss) | .05 | .76 | (.04) |
Total from investment operations | .30 | 1.29 | .14 |
Distributions from net investment income | (.34) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.60 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 3.07% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.13% A | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.13% | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.12% | 1.09% A |
Net investment income (loss) | 4.98% A | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 84,053 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
K Total distributions of $.43 per share is comprised of distributions from net investment income of $.335 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .52 | .17 |
Net realized and unrealized gain (loss) | .07 | .76 | (.03) |
Total from investment operations | .32 | 1.28 | .14 |
Distributions from net investment income | (.33) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.61 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 3.25% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.15% A | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.15% A | 1.16% | 1.17% A |
Expenses net of all reductions | 1.15% A | 1.16% | 1.17% A |
Net investment income (loss) | 4.96% A | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 12,152 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .21 | .45 | .15 |
Net realized and unrealized gain (loss) | .07 | .74 | (.03) |
Total from investment operations | .28 | 1.19 | .12 |
Distributions from net investment income | (.29) | (.45) | (.14) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.39) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.56 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 2.82% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.89% A | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.89% A | 1.89% | 1.86% A |
Expenses net of all reductions | 1.89% A | 1.89% | 1.86% A |
Net investment income (loss) | 4.22% A | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 27,389 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
| Six months ended | Years ended July 31, | ||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D | .27 | .55 | .53 | .54 | .59 | .63 |
Net realized and unrealized gain (loss) | .05 | .76 | 1.73 | (1.27) | (1.48) | (.37) |
Total from investment operations | .32 | 1.31 | 2.26 | (.73) | (.89) | .26 |
Distributions from net investment income | (.35) | (.51) | (.52) | (.50) | (.66) | (.58) |
Distributions from net realized gain | (.10) | - | - | - | (.24) | (.24) |
Total distributions | (.44) I | (.51) | (.52) | (.50) | (.90) | (.82) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | - H |
Net asset value, | $ 10.63 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Total Return B,C | 3.26% | 13.41% | 28.29% | (6.92)% | (8.43)% | 2.00% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .91% A | .92% | .97% | 1.00% | .94% | .88% |
Expenses net of fee waivers, if any | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Expenses net of all reductions | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Net investment income (loss) | 5.20% A | 5.21% | 5.60% | 7.15% | 5.77% | 5.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,823,245 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 |
Portfolio turnover rate F | 29% A | 25% | 28% | 47% | 32% | 45% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I Total distributions of $.44 per share is comprised of distributions from net investment income of $.345 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .27 | .55 | .19 |
Net realized and unrealized gain (loss) | .06 | .76 | (.04) |
Total from investment operations | .33 | 1.31 | .15 |
Distributions from net investment income | (.35) | (.52) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.45) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - |
Net asset value, end of period | $ 10.62 | $ 10.74 | $ 9.95 |
Total Return B,C | 3.33% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | .86% A | .89% | .85% A |
Expenses net of fee waivers, if any | .86% A | .89% | .85% A |
Expenses net of all reductions | .86% A | .89% | .85% A |
Net investment income (loss) | 5.25% A | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 130,498 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012
1. Organization.
Fidelity® Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Real Estate Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, floating rate loans and preferred securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Certain of the Fund's securities may be valued by a single source or dealer.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 152,794,350 |
Gross unrealized depreciation | (78,059,626) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 74,734,724 |
|
|
Tax cost | $ 2,027,102,941 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $474,412,445 and $245,959,640, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 80,667 | $ 3,082 |
Class T | -% | .25% | 11,517 | - |
Class C | .75% | .25% | 111,729 | 73,790 |
|
|
| $ 203,913 | $ 76,872 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 15,102 |
Class T | 1,783 |
Class C* | 4,341 |
| $ 21,226 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of |
Class A | $ 82,289 | .26 |
Class T | 12,478 | .27 |
Class C | 29,588 | .27 |
Real Estate Income | 2,328,675 | .29 |
Institutional Class | 99,911 | .23 |
| $ 2,552,941 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,788 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,437 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any
Semiannual Report
Notes to Financial Statements - continued
8. Security Lending - continued
additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $38,456. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Real Estate Income's operating expenses. During the period, this reimbursement reduced Real Estate Income's expenses by $31,380.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $199.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,120,737 | $ 1,154,662 |
Class T | 293,716 | 160,366 |
Class C | 633,801 | 358,357 |
Real Estate Income | 53,301,588 | 64,149,915 |
Institutional Class | 2,890,602 | 865,071 |
Total | $ 59,240,444 | $ 66,688,371 |
From net realized gain |
|
|
Class A | $ 603,452 | $ - |
Class T | 83,752 | - |
Class C | 208,802 | - |
Real Estate Income | 14,865,902 | - |
Institutional Class | 736,613 | - |
Total | $ 16,498,521 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 3,251,368 | 5,544,292 | $ 33,286,886 | $ 58,675,375 |
Reinvestment of distributions | 210,834 | 75,836 | 2,122,693 | 799,911 |
Shares redeemed | (1,157,024) | (384,554) | (11,722,433) | (4,105,728) |
Net increase (decrease) | 2,305,178 | 5,235,574 | $ 23,687,146 | $ 55,369,558 |
Class T |
|
|
|
|
Shares sold | 484,820 | 662,414 | $ 4,966,659 | $ 7,018,853 |
Reinvestment of distributions | 27,938 | 12,671 | 281,285 | 132,964 |
Shares redeemed | (78,006) | (50,669) | (794,360) | (536,547) |
Net increase (decrease) | 434,752 | 624,416 | $ 4,453,584 | $ 6,615,270 |
Class C |
|
|
|
|
Shares sold | 844,448 | 2,030,776 | $ 8,625,411 | $ 21,411,850 |
Reinvestment of distributions | 72,414 | 29,432 | 726,573 | 309,638 |
Shares redeemed | (342,463) | (125,083) | (3,454,173) | (1,328,625) |
Net increase (decrease) | 574,399 | 1,935,125 | $ 5,897,811 | $ 20,392,863 |
Real Estate Income |
|
|
|
|
Shares sold | 43,937,314 | 89,725,340 | $ 450,081,587 | $ 943,333,748 |
Reinvestment of distributions | 6,112,870 | 5,601,468 | 61,699,330 | 58,273,356 |
Shares redeemed | (32,989,055) | (44,449,757) | (336,589,169) | (467,916,333) |
Net increase (decrease) | 17,061,129 | 50,877,051 | $ 175,191,748 | $ 533,690,771 |
Institutional Class |
|
|
|
|
Shares sold | 8,960,411 | 4,361,479 | $ 90,777,957 | $ 46,245,871 |
Reinvestment of distributions | 259,233 | 55,523 | 2,613,878 | 583,903 |
Shares redeemed | (959,374) | (681,623) | (9,769,934) | (7,257,237) |
Net increase (decrease) | 8,260,270 | 3,735,379 | $ 83,621,901 | $ 39,572,537 |
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
Report of Independent��Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Real Estate Income Fund (the Fund), a fund of Fidelity Securities Fund, including the schedule of investments, as of January 31, 2012, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended July 31, 2012 and for each of the five years in the period ended July 31, 2011. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2012, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Real Estate Income Fund as of January 31, 2012, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended January 31, 2012 and for each of the five years in the period ended July 31, 2011, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 19, 2012
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
REIA-USAN-0312 1.907551.101
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Institutional Class
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Real Estate Income Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of the fund's holdings. | |
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. | |
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,030.70 | $ 5.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.74 |
Class T | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.50 | $ 5.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.84 |
Class C | 1.89% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,028.20 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.63 | $ 9.58 |
Real Estate Income | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.60 | $ 4.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.56 | $ 4.62 |
Institutional Class | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,033.30 | $ 4.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.81 | $ 4.37 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Ventas, Inc. | 2.0 | 1.9 |
MFA Financial, Inc. | 1.6 | 1.5 |
Acadia Realty Trust (SBI) | 1.6 | 1.6 |
Equity LifeStyle Properties, Inc. | 1.5 | 1.3 |
Equity LifeStyle Properties, Inc. 8.034% | 1.1 | 1.1 |
| 7.8 | |
Top Five Bonds as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 | 2.6 | 2.4 |
Standard Pacific Corp. 8.375% 5/15/18 | 1.4 | 0.7 |
KB Home 9.1% 9/15/17 | 0.9 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 0.9 | 0.5 |
Wachovia Ltd./Wachovia LLC Series 2006-1A Class A1B, 0.9038% 9/25/26 | 0.8 | 0.3 |
| 6.6 | |
Top Five REIT Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
REITs - Management/Investment | 7.3 | 5.5 |
REITs - Shopping Centers | 6.9 | 6.5 |
REITs - Health Care Facilities | 6.6 | 6.2 |
REITs - Mortgage | 6.4 | 5.5 |
REITs - Hotels | 3.8 | 2.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012 * | As of July 31, 2011 ** | ||||||
![]() | Common Stocks 24.2% |
| ![]() | Common Stocks 23.4% |
| ||
![]() | Preferred Stocks 11.2% |
| ![]() | Preferred Stocks 9.7% |
| ||
![]() | Bonds 48.6% |
| ![]() | Bonds 48.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 4.2% |
| ![]() | Other Investments 4.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.0% |
| ** Foreign investments | 6.3% |
|
Semiannual Report
Investments January 31, 2012
Showing Percentage of Net Assets
Common Stocks - 24.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 1.3% | |||
Household Durables - 1.3% | |||
Meritage Homes Corp. (a) | 135,900 | $ 3,288,780 | |
NVR, Inc. (a) | 5,800 | 4,020,850 | |
Standard Pacific Corp. (a)(e) | 3,375,200 | 12,285,728 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,036,910 | |
Toll Brothers, Inc. (a) | 183,100 | 3,993,411 | |
| 27,625,679 | ||
FINANCIALS - 21.7% | |||
Capital Markets - 0.3% | |||
HFF, Inc. (a) | 441,814 | 6,233,996 | |
Real Estate Investment Trusts - 20.9% | |||
Acadia Realty Trust (SBI) | 1,583,849 | 33,292,506 | |
American Campus Communities, Inc. | 87,200 | 3,732,160 | |
American Tower Corp. | 167,100 | 10,612,521 | |
Annaly Capital Management, Inc. | 329,150 | 5,542,886 | |
Anworth Mortgage Asset Corp. | 875,710 | 5,692,115 | |
Apartment Investment & Management Co. Class A | 291,400 | 7,156,784 | |
AvalonBay Communities, Inc. | 20,800 | 2,829,008 | |
Brandywine Realty Trust (SBI) | 274,400 | 2,919,616 | |
Canadian (REIT) | 107,800 | 4,004,538 | |
CapLease, Inc. | 1,591,600 | 6,621,056 | |
CBL & Associates Properties, Inc. | 604,873 | 10,506,644 | |
Chartwell Seniors Housing (REIT) (e) | 509,700 | 4,528,972 | |
Chesapeake Lodging Trust | 223,500 | 3,806,205 | |
Colony Financial, Inc. | 101,637 | 1,723,764 | |
CommonWealth REIT | 278,000 | 5,468,260 | |
Coresite Realty Corp. | 281,000 | 5,634,050 | |
Cousins Properties, Inc. | 246,800 | 1,818,916 | |
Cys Investments, Inc. (e) | 992,339 | 13,396,577 | |
DCT Industrial Trust, Inc. | 1,175,300 | 6,487,656 | |
DiamondRock Hospitality Co. | 668,900 | 7,050,206 | |
Douglas Emmett, Inc. | 172,900 | 3,615,339 | |
Dynex Capital, Inc. | 1,592,186 | 14,743,642 | |
Education Realty Trust, Inc. | 281,800 | 3,015,260 | |
Equity LifeStyle Properties, Inc. | 457,430 | 32,084,140 | |
Excel Trust, Inc. | 697,228 | 8,854,796 | |
H&R REIT/H&R Finance Trust | 256,500 | 5,960,060 | |
Healthcare Realty Trust, Inc. | 246,300 | 5,189,541 | |
Highwoods Properties, Inc. (SBI) | 51,400 | 1,700,826 | |
Hospitality Properties Trust (SBI) | 106,400 | 2,578,072 | |
Lexington Corporate Properties Trust | 1,771,300 | 15,233,180 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LTC Properties, Inc. | 339,113 | $ 10,834,660 | |
MFA Financial, Inc. | 4,635,781 | 34,026,633 | |
Mid-America Apartment Communities, Inc. | 53,900 | 3,445,288 | |
Monmouth Real Estate Investment Corp. Class A | 455,073 | 4,236,730 | |
National Health Investors, Inc. | 90,306 | 4,371,713 | |
National Retail Properties, Inc. | 114,100 | 3,081,841 | |
Newcastle Investment Corp. | 400,000 | 2,144,000 | |
Omega Healthcare Investors, Inc. | 532,179 | 11,090,610 | |
Pebblebrook Hotel Trust | 51,882 | 1,150,743 | |
Prologis, Inc. | 705,287 | 22,364,651 | |
Sabra Health Care REIT, Inc. | 178,800 | 2,542,536 | |
Senior Housing Properties Trust (SBI) | 175,600 | 3,982,608 | |
Simon Property Group, Inc. | 45,801 | 6,222,524 | |
Stag Industrial, Inc. | 382,692 | 4,584,650 | |
Summit Hotel Properties, Inc. | 634,200 | 5,929,770 | |
Sun Communities, Inc. | 85,000 | 3,409,350 | |
Sunstone Hotel Investors, Inc. (a) | 290,734 | 2,700,919 | |
Terreno Realty Corp. | 320,264 | 4,522,128 | |
Two Harbors Investment Corp. | 1,195,580 | 11,872,109 | |
Ventas, Inc. | 708,346 | 41,303,655 | |
Weyerhaeuser Co. | 535,229 | 10,715,285 | |
Whitestone REIT Class B | 379,067 | 4,825,523 | |
| 435,157,222 | ||
Real Estate Management & Development - 0.5% | |||
Brookfield Asset Management, Inc. Class A | 156,900 | 4,761,373 | |
Kennedy-Wilson Holdings, Inc. | 348,200 | 4,676,326 | |
| 9,437,699 | ||
TOTAL FINANCIALS | 450,828,917 | ||
HEALTH CARE - 1.2% | |||
Health Care Providers & Services - 1.2% | |||
Brookdale Senior Living, Inc. (a) | 733,300 | 12,906,080 | |
Capital Senior Living Corp. (a) | 687,750 | 5,570,775 | |
Emeritus Corp. (a) | 356,493 | 6,224,368 | |
| 24,701,223 | ||
TOTAL COMMON STOCKS (Cost $427,578,421) |
| ||
Preferred Stocks - 12.9% | |||
Shares | Value | ||
Convertible Preferred Stocks - 1.7% | |||
FINANCIALS - 1.7% | |||
Real Estate Investment Trusts - 1.7% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | $ 2,363,125 | |
CommonWealth REIT 6.50% | 339,844 | 7,187,701 | |
Excel Trust, Inc. 7.00% (f) | 248,200 | 5,894,750 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,509,650 | |
Lexington Corporate Properties Trust Series C, 6.50% | 349,551 | 15,030,693 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 1,871,200 | |
| 34,857,119 | ||
Real Estate Management & Development - 0.0% | |||
Grubb & Ellis Co. 12.00% (f) | 14,800 | 51,356 | |
TOTAL FINANCIALS | 34,908,475 | ||
Nonconvertible Preferred Stocks - 11.2% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | 426,087 | |
FINANCIALS - 11.2% | |||
Diversified Financial Services - 0.2% | |||
DRA CRT Acquisition Corp. Series A, 8.50% | 25,000 | 100,000 | |
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,214,470 | |
| 4,314,470 | ||
Real Estate Investment Trusts - 10.9% | |||
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 67,000 | 1,725,250 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 1,203 | |
Series B, 9.25% (a) | 124,100 | 124 | |
Annaly Capital Management, Inc. Series A, 7.875% | 134,900 | 3,630,159 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,003,936 | |
Apartment Investment & Management Co.: | |||
Series T, 8.00% | 57,500 | 1,469,125 | |
Series U, 7.75% | 150,773 | 3,829,634 | |
Ashford Hospitality Trust, Inc. Series E, 9.00% | 57,030 | 1,434,305 | |
Brandywine Realty Trust Series C, 7.50% | 37,615 | 964,449 | |
CapLease, Inc. Series A, 8.125% | 117,510 | 2,914,248 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
CBL & Associates Properties, Inc.: | |||
(depositary shares) Series C, 7.75% | 147,962 | $ 3,768,592 | |
7.375% | 274,876 | 6,863,654 | |
Cedar Shopping Centers, Inc. 8.875% | 290,352 | 7,261,704 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,046,688 | |
Cogdell Spencer, Inc. 8.50% | 114,300 | 2,912,364 | |
Corporate Office Properties Trust Series H, 7.50% | 5,000 | 125,650 | |
Cousins Properties, Inc. Series A, 7.75% | 178,330 | 4,306,670 | |
CubeSmart Series A, 7.75% | 40,000 | 1,008,000 | |
DDR Corp. Series I, 7.50% | 24,684 | 616,113 | |
Digital Realty Trust, Inc. Series E, 7.00% | 40,000 | 1,026,800 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,409,556 | |
Series L, 6.60% | 10,666 | 267,397 | |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 24,000 | 48,000 | |
Equity LifeStyle Properties, Inc. 8.034% | 885,479 | 23,128,711 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,034,000 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,100,000 | |
First Potomac Realty Trust 7.75% | 80,779 | 2,067,135 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 5,754,858 | |
Glimcher Realty Trust Series G, 8.125% | 171,111 | 4,098,108 | |
Hersha Hospitality Trust Series B, 8.00% | 98,910 | 2,377,796 | |
HomeBanc Mortgage Corp. Series A (a) | 104,685 | 1 | |
Hospitality Properties Trust: | |||
Series B, 8.875% | 84,500 | 2,125,175 | |
Series C, 7.00% | 58,500 | 1,447,875 | |
Series D, 7.125% | 40,800 | 1,017,960 | |
Hudson Pacific Properties, Inc. 8.375% | 303,800 | 8,020,320 | |
Inland Real Estate Corp. Series A, 8.125% | 223,500 | 5,652,315 | |
Kimco Realty Corp. Series G, 7.75% | 113,026 | 2,952,239 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,383,280 | |
LaSalle Hotel Properties: | |||
Series E, 8.00% | 50,468 | 1,268,766 | |
Series G, 7.25% | 114,485 | 2,833,504 | |
Series H, 7.50% | 126,308 | 3,153,911 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,173,500 | |
Series B, 7.625% (a) | 31,240 | 484,220 | |
Lexington Corporate Properties Trust Series B, 8.05% | 104,300 | 2,601,242 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Lexington Realty Trust 7.55% | 23,800 | $ 581,910 | |
MFA Financial, Inc. Series A, 8.50% | 485,381 | 12,391,777 | |
Monmouth Real Estate Investment Corp. 7.625% | 80,000 | 2,009,600 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 855,999 | |
Parkway Properties, Inc. Series D, 8.00% | 237,900 | 5,780,970 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,210,720 | |
Series B, 8.00% | 180,991 | 4,461,428 | |
Prologis, Inc. Series Q, 8.54% | 94,446 | 5,256,515 | |
PS Business Parks, Inc.: | |||
(depositary shares) Series H, 7.00% | 13,300 | 338,086 | |
6.875% | 50,000 | 1,292,500 | |
7.20% | 83,040 | 2,094,269 | |
7.375% | 100,610 | 2,535,372 | |
Series P, 6.70% | 36,000 | 904,320 | |
Public Storage Series N, 7.00% | 4,200 | 109,326 | |
Regency Centers Corp.: | |||
7.25% | 10,500 | 269,535 | |
Series C 7.45% | 18,000 | 459,000 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,420,271 | |
Series B (depositary shares) 9.00% | 118,550 | 3,235,230 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,081,200 | |
Summit Hotel Properties, Inc. Series A, 9.25% | 138,240 | 3,525,120 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 366,039 | 8,967,956 | |
Series D, 8.00% | 37,862 | 916,260 | |
UMH Properties, Inc. Series A, 8.25% | 310,000 | 7,985,600 | |
Vornado Realty Trust 6.75% | 20,000 | 506,400 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 56,230 | 1,422,619 | |
Winthrop Realty Trust Series D, 9.25% | 25,000 | 646,875 | |
| 227,567,395 | ||
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.1% | |||
Vornado Realty LP 7.875% | 54,682 | $ 1,531,096 | |
TOTAL FINANCIALS | 233,412,961 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 233,839,048 | ||
TOTAL PREFERRED STOCKS (Cost $271,877,950) |
|
Corporate Bonds - 24.6% | ||||
| Principal Amount (i) |
| ||
Convertible Bonds - 1.7% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 1,340,000 | 1,132,300 | ||
FINANCIALS - 1.6% | ||||
Real Estate Investment Trusts - 1.1% | ||||
Annaly Capital Management, Inc. 4% 2/15/15 | 1,000,000 | 1,182,500 | ||
CapLease, Inc. 7.5% 10/1/27 (f) | 5,180,000 | 5,192,950 | ||
Developers Diversified Realty Corp. 1.75% 11/15/40 | 1,000,000 | 1,064,000 | ||
Hospitality Properties Trust 3.8% 3/15/27 | 6,100,000 | 6,103,813 | ||
ProLogis LP: | ||||
1.875% 11/15/37 | 2,450,000 | 2,425,500 | ||
2.625% 5/15/38 | 1,500,000 | 1,492,575 | ||
The Macerich Co. 3.25% 3/15/12 (f) | 4,800,000 | 4,797,000 | ||
| 22,258,338 | |||
Real Estate Management & Development - 0.5% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (f) | 5,460,000 | 5,289,375 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (f) | 5,500,000 | 3,182,850 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Kilroy Realty LP 3.25% 4/15/12 (f) | $ 2,185,000 | $ 2,182,269 | ||
SL Green Realty Corp. 3% 3/30/27 (f) | 500,000 | 498,750 | ||
| 11,153,244 | |||
TOTAL FINANCIALS | 33,411,582 | |||
TOTAL CONVERTIBLE BONDS | 34,543,882 | |||
Nonconvertible Bonds - 22.9% | ||||
CONSUMER DISCRETIONARY - 8.4% | ||||
Hotels, Restaurants & Leisure - 1.0% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 1,945,000 | 2,042,250 | ||
FelCor Lodging LP 6.75% 6/1/19 | 5,875,000 | 5,720,781 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,878,500 | ||
Landry's Restaurants, Inc. 11.625% 12/1/15 | 1,325,000 | 1,424,375 | ||
Times Square Hotel Trust 8.528% 8/1/26 (f) | 9,217,662 | 9,917,702 | ||
| 20,983,608 | |||
Household Durables - 7.0% | ||||
KB Home: | ||||
5.75% 2/1/14 | 510,000 | 514,463 | ||
5.875% 1/15/15 | 7,000,000 | 6,895,000 | ||
6.25% 6/15/15 | 10,000,000 | 9,862,500 | ||
7.25% 6/15/18 | 5,160,000 | 4,902,000 | ||
9.1% 9/15/17 | 17,595,000 | 18,034,875 | ||
Lennar Corp.: | ||||
5.5% 9/1/14 | 1,000,000 | 1,032,500 | ||
5.6% 5/31/15 | 6,000,000 | 6,180,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,170,000 | ||
6.95% 6/1/18 | 14,280,000 | 14,851,200 | ||
M/I Homes, Inc.: | ||||
6.875% 4/1/12 | 2,150,000 | 2,085,500 | ||
8.625% 11/15/18 | 17,655,000 | 16,419,150 | ||
Meritage Homes Corp.: | ||||
6.25% 3/15/15 | 2,500,000 | 2,500,000 | ||
7.15% 4/15/20 | 7,060,000 | 6,848,200 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | $ 1,555,000 | $ 1,543,338 | ||
8.4% 5/15/17 | 5,420,000 | 5,826,500 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,010,000 | ||
8.375% 5/15/18 | 28,983,000 | 29,417,745 | ||
10.75% 9/15/16 | 8,415,000 | 9,361,688 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,549,969 | ||
| 146,004,628 | |||
Multiline Retail - 0.4% | ||||
Sears Holdings Corp. 6.625% 10/15/18 | 9,065,000 | 7,433,300 | ||
TOTAL CONSUMER DISCRETIONARY | 174,421,536 | |||
CONSUMER STAPLES - 0.3% | ||||
Food & Staples Retailing - 0.3% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 1,086,076 | 1,221,836 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (f) | 4,400,000 | 4,708,000 | ||
| 5,929,836 | |||
FINANCIALS - 12.9% | ||||
Diversified Financial Services - 0.7% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | 10,820,000 | 11,252,800 | ||
8% 1/15/18 (f) | 3,070,000 | 3,200,475 | ||
| 14,453,275 | |||
Real Estate Investment Trusts - 7.2% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,181,047 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,756,919 | ||
6.25% 6/15/14 | 5,005,000 | 5,365,540 | ||
Developers Diversified Realty Corp.: | ||||
5.375% 10/15/12 | 500,000 | 505,467 | ||
5.5% 5/1/15 | 4,000,000 | 4,155,296 | ||
7.5% 4/1/17 | 6,000,000 | 6,760,584 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Developers Diversified Realty Corp.: - continued | ||||
7.5% 7/15/18 | $ 8,756,000 | $ 9,769,673 | ||
7.875% 9/1/20 | 4,637,000 | 5,488,446 | ||
9.625% 3/15/16 | 3,836,000 | 4,503,479 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,610,527 | ||
6.25% 12/15/14 | 4,081,000 | 4,344,318 | ||
6.25% 1/15/17 | 3,000,000 | 3,155,439 | ||
Health Care Property Investors, Inc.: | ||||
6% 3/1/15 | 1,000,000 | 1,073,976 | ||
7.072% 6/8/15 | 1,500,000 | 1,688,213 | ||
Health Care REIT, Inc.: | ||||
6% 11/15/13 | 1,000,000 | 1,049,543 | ||
6.2% 6/1/16 | 750,000 | 821,068 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,279,119 | ||
5.75% 1/15/21 | 2,000,000 | 2,071,490 | ||
6.5% 1/17/17 | 1,875,000 | 2,061,424 | ||
HMB Capital Trust V 4.1463% 12/15/36 (d)(f)(g) | 2,530,000 | 0 | ||
Hospitality Properties Trust: | ||||
5.625% 3/15/17 | 915,000 | 944,522 | ||
6.75% 2/15/13 | 1,765,000 | 1,794,213 | ||
7.875% 8/15/14 | 1,000,000 | 1,091,725 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 3,600,000 | 3,811,043 | ||
6.25% 8/15/16 | 1,500,000 | 1,598,573 | ||
6.5% 1/15/13 | 200,000 | 202,452 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 500,000 | 392,500 | ||
5.875% 3/15/16 | 6,400,000 | 5,472,000 | ||
5.95% 10/15/13 | 7,330,000 | 6,743,600 | ||
6.05% 4/15/15 | 4,725,000 | 3,780,000 | ||
6.5% 12/15/13 | 5,400,000 | 4,941,000 | ||
8.625% 6/1/13 | 1,565,000 | 1,484,794 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 | 2,000,000 | 2,070,000 | ||
Nationwide Health Properties, Inc.: | ||||
6.25% 2/1/13 | 1,000,000 | 1,034,780 | ||
8.25% 7/1/12 | 1,300,000 | 1,322,108 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | $ 2,115,000 | $ 2,257,763 | ||
7% 1/15/16 | 1,295,000 | 1,325,756 | ||
7.5% 2/15/20 | 1,000,000 | 1,080,000 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,868,451 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,050,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,300,504 | ||
7.625% 7/1/17 | 4,690,000 | 5,373,868 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,253,800 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 4,999,360 | ||
6.75% 4/15/20 | 6,000,000 | 6,369,534 | ||
6.75% 12/15/21 | 8,000,000 | 8,567,704 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 522,260 | ||
5.25% 1/15/15 | 1,000,000 | 1,063,465 | ||
5.25% 1/15/16 | 4,000,000 | 4,278,468 | ||
| 150,635,811 | |||
Real Estate Management & Development - 4.9% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 412,880 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 1,987,422 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 6,961,329 | ||
5.75% 4/1/12 | 1,000,000 | 1,004,288 | ||
7.5% 5/15/15 | 1,000,000 | 1,096,543 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,256,213 | ||
11.625% 6/15/17 | 1,500,000 | 1,732,500 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,534,317 | ||
6.25% 6/15/14 | 3,094,000 | 3,251,745 | ||
6.875% 8/15/12 | 1,000,000 | 1,014,636 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,601,650 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 784,013 | ||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | $ 16,120,000 | $ 15,152,800 | ||
7.625% 6/1/15 | 15,725,000 | 15,567,750 | ||
Highwoods/Forsyth LP 5.85% 3/15/17 | 2,800,000 | 3,016,863 | ||
Host Hotels & Resorts LP: | ||||
5.875% 6/15/19 | 2,725,000 | 2,895,313 | ||
6.875% 11/1/14 | 500,000 | 507,500 | ||
9% 5/15/17 | 750,000 | 828,750 | ||
Kennedy-Wilson, Inc. 8.75% 4/1/19 (f) | 2,785,000 | 2,805,888 | ||
Post Apartment Homes LP 6.3% 6/1/13 | 2,000,000 | 2,086,006 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (f) | 7,085,000 | 6,518,200 | ||
9% 1/15/20 (f) | 1,920,000 | 1,876,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,867,290 | ||
5.875% 6/15/17 | 400,000 | 448,110 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,770,125 | ||
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | 1,000,000 | 1,071,300 | ||
Ventas Realty LP Series 1, 6.5% 6/1/16 | 11,370,000 | 11,789,621 | ||
Vornado Realty LP 5% 1/15/22 | 2,000,000 | 2,096,590 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,088,941 | ||
| 101,025,383 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 | 4,349,567 | 1,496,251 | ||
TOTAL FINANCIALS | 267,610,720 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 7,290,000 | 7,308,225 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 16,765,000 | 17,645,163 | ||
Skilled Healthcare Group, Inc. 11% 1/15/14 | 3,080,000 | 3,072,300 | ||
| 20,717,463 | |||
TOTAL HEALTH CARE | 28,025,688 | |||
Corporate Bonds - continued | ||||
| Principal Amount (i) | Value | ||
Nonconvertible Bonds - continued | ||||
INDUSTRIALS - 0.0% | ||||
Commercial Services & Supplies - 0.0% | ||||
Landry's Acquisition Co. 11.625% 12/1/15 (f) | $ 500,000 | $ 537,500 | ||
TOTAL NONCONVERTIBLE BONDS | 476,525,280 | |||
TOTAL CORPORATE BONDS (Cost $493,411,545) |
| |||
Asset-Backed Securities - 5.4% | ||||
| ||||
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (f) | 1,384,000 | 1,385,384 | ||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.6373% 3/23/19 (f)(g) | 286,251 | 237,589 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7809% 3/20/50 (f)(g) | 2,250,000 | 0 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (f) | 6,023,049 | 5,974,864 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.8315% 1/20/37 (f)(g) | 1,329,924 | 1,060,614 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (f) | 1,213,640 | 1,055,867 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.8325% 4/7/52 (f)(g) | 16,300,116 | 10,758,076 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 298,823 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (f) | 1,570,000 | 1,263,850 | ||
Class B2, 1.9238% 12/28/35 (f)(g) | 1,575,000 | 1,078,875 | ||
Class D, 9% 12/28/35 (f) | 501,103 | 105,232 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 2.0738% 6/28/38 (f)(g) | 1,230,000 | 1,051,650 | ||
Class D, 9% 6/28/38 (f) | 997,000 | 697,900 | ||
Crest Ltd. Series 2002-IGA Class B, 1.9031% 7/28/35 (f)(g) | 806,845 | 774,571 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 8,746,528 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.8767% 11/28/39 (f)(g) | 555,122 | 16,654 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount (i) | Value | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | $ 1,788,179 | $ 1,637,614 | ||
Series 1997-3 Class M1, 7.53% 3/15/28 | 7,588,081 | 6,308,944 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 (g)(j) | 1,259,000 | 59,691 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.8263% 8/26/30 (f)(g) | 735,000 | 102,900 | ||
Class E, 2.2763% 8/26/30 (f)(g) | 1,503,628 | 41,350 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,226,943 | 456,865 | ||
Merit Securities Corp. Series 13 Class M1, 7.9068% 12/28/33 (g) | 1,923,000 | 1,783,100 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (f) | 899,989 | 732,141 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (f) | 4,067,741 | 4,111,600 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (f) | 4,590,000 | 4,257,225 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (f) | 4,610,000 | 4,287,300 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 3.085% 2/5/36 (f)(g) | 3,526,224 | 353 | ||
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (f) | 2,818,047 | 2,811,002 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 0% 9/25/26 (f)(g) | 2,000,000 | 840,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.8338% 9/25/26 (f)(g) | 17,832,122 | 15,335,625 | ||
Class A1B, 0.9038% 9/25/26 (f)(g) | 22,506,000 | 16,766,970 | ||
Class A2A, 0.7938% 9/25/26 (f)(g) | 7,145,081 | 6,359,122 | ||
Class A2B, 0.8838% 9/25/26 (f)(g) | 1,550,000 | 1,255,500 | ||
Class B, 0.9338% 9/25/26 (f)(g) | 890,000 | 660,825 | ||
Class G, 1.9238% 9/25/26 (f)(g) | 1,150,000 | 747,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.7994% 11/21/40 (f)(g) | 10,500,000 | 8,085,000 | ||
Class F, 2.4294% 11/21/40 (f)(g) | 250,000 | 50,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $116,618,589) |
| |||
Collateralized Mortgage Obligations - 1.0% | ||||
| Principal Amount (i) | Value | ||
Private Sponsor - 1.0% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.4651% 6/15/22 (f)(g) | $ 2,410,041 | $ 2,336,200 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (f) | 75,113 | 56,662 | ||
Series 2002-R2 Class 2B3, 3.9405% 7/25/33 (f)(g) | 217,132 | 81,449 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (f) | 116,163 | 64,298 | ||
Series 2003-R2 Class B3, 5.5% 5/25/43 (f) | 24,854 | 8 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (f) | 1,452,178 | 327,819 | ||
Class B3, 5.5% 11/25/33 | 220,407 | 16,170 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (f)(g) | 132,011 | 4,397 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.435% 4/25/20 (f)(g) | 3,200,000 | 3,119,197 | ||
Series 2010-K6 Class B, 5.3579% 12/25/46 (f)(g) | 4,500,000 | 4,319,738 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (f) | 7,120,000 | 7,337,288 | ||
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (f) | 1,600,000 | 1,602,701 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.2463% 7/10/35 (f)(g) | 384,767 | 238,556 | ||
Series 2005-A Class B6, 2.2963% 3/10/37 (f)(g) | 1,536,575 | 147,818 | ||
Series 2005-B Class B6, 1.8963% 6/10/37 (f)(g) | 866,877 | 39,790 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (f) | 54,522 | 46,174 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7963% 12/10/35 (f)(g) | 362,913 | 136,855 | ||
Series 2004-A Class B7, 4.5463% 2/10/36 (f)(g) | 391,667 | 179,031 | ||
Series 2004-B Class B7, 4.2963% 2/10/36 (f)(g) | 468,310 | 198,423 | ||
Series 2005-C Class B7, 3.3963% 9/10/37 (f)(g) | 958,286 | 2,396 | ||
TOTAL PRIVATE SPONSOR | 20,254,970 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (j) | 171,999 | 38,930 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.3623% 2/25/42 (f)(g) | 107,088 | 49,268 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (j) | 250,155 | 71,474 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal Amount (i) | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.4138% 6/25/43 (f)(g) | $ 156,663 | $ 63,807 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.5113% 10/25/42 (f)(g) | 68,888 | 24,915 | ||
TOTAL U.S. GOVERNMENT AGENCY | 248,394 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $25,215,026) |
| |||
Commercial Mortgage Securities - 19.3% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (j) | 5,666,539 | 5,476,179 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (f) | 2,000,000 | 2,162,544 | ||
Asset Securitization Corp. Series 1997-D4: | ||||
Class B1, 7.525% 4/14/29 | 906,721 | 910,528 | ||
Class B2, 7.525% 4/14/29 | 560,000 | 565,550 | ||
Banc of America Commercial Mortgage, Inc.: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 4,185,000 | 4,215,864 | ||
Series 2005-1 Class CJ, 5.1847% 11/10/42 (g) | 3,580,000 | 3,578,249 | ||
Series 2005-6 Class AJ, 5.1932% 9/10/47 (g) | 5,000,000 | 5,063,450 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.035% 11/15/15 (f)(g) | 59,783,885 | 54,702,235 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.3351% 3/15/22 (f)(g) | 2,000,000 | 1,700,000 | ||
Class K, 2.2851% 3/15/22 (f)(g) | 4,190,000 | 3,268,200 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4414% 3/11/39 (g) | 5,700,000 | 5,229,516 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5327% 4/12/38 (f)(g) | 2,520,000 | 1,955,061 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12 Class AJ, 0.4151% 12/15/20 (f)(g) | 8,000,000 | 7,165,408 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (f) | 9,851,841 | 9,845,930 | ||
Commercial Mortgage pass-thru certificates: | ||||
Series 2011-STRT Class C, 4.755% 12/10/24 (f) | 2,000,000 | 2,002,500 | ||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (g) | 4,000,000 | 3,885,744 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Communication Mortgage Trust Series 2011-THL Class F, 4.867% 6/9/28 (f) | $ 11,090,000 | $ 9,216,466 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (f) | 2,540,000 | 2,609,439 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (f) | 3,000,000 | 3,278,313 | ||
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.9263% 3/25/17 (f)(g) | 2,512,000 | 1,758,400 | ||
CRESIX Finance Ltd. Series 2006-AA: | ||||
Class F, 4.4763% 3/25/17 (f)(g) | 3,860,000 | 2,509,000 | ||
Class G, 7.2763% 3/25/17 (f)(g) | 3,272,000 | 1,963,200 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5569% 11/10/46 (f)(g) | 3,240,000 | 2,872,513 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 992,906 | ||
DLJ Commercial Mortgage Corp.: | ||||
Series 1998-CG1 Class B4, 7.2186% 6/10/31 (f)(g) | 2,500,000 | 2,634,495 | ||
Series 2000-CKP1 Class B3, 7.8963% 11/10/33 (g) | 2,970,000 | 2,971,978 | ||
Extended Stay America Trust Series 2010-ESHA Class D, 5.4983% 11/5/27 (f) | 5,000,000 | 5,060,428 | ||
FHMLC Multi-class participation certificates guaranteed: | ||||
Series K013 Class X3, 2.7897% 1/25/43 (g)(h) | 14,360,000 | 2,362,909 | ||
Series KAIV Class X2, 3.6146% 6/25/46 (g)(h) | 7,430,000 | 1,561,757 | ||
First Union National Bank Commercial Mortgage Trust Series 2001-C4 Class K, 6% 12/12/33 (f) | 623,409 | 619,163 | ||
Freddie Mac Multi-Class participation certificates guaranteed: | ||||
Series K011 Class X3, 2.5748% 12/25/43 (g)(h) | 12,206,096 | 1,837,152 | ||
Series K012 Class X3, 2.2876% 1/25/41 (g)(h) | 21,072,888 | 2,881,844 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (f) | 11,951,806 | 10,995,662 | ||
GE Capital Commercial Mortgage Corp. Series 2002-1A Class H, 7.1177% 12/10/35 (f)(g) | 991,000 | 989,801 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2: | ||||
Class F, 6.75% 4/15/29 (g) | 1,658,805 | 1,722,090 | ||
Class G, 6.75% 4/15/29 (g) | 1,250,000 | 1,371,753 | ||
Series 1999-C3: | ||||
Class G, 6.974% 8/15/36 (f) | 653,942 | 651,557 | ||
Class J, 6.974% 8/15/36 | 1,500,000 | 1,516,317 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 469,146 | 348,075 | ||
Series 2002-C3 Class D, 5.27% 7/10/39 | 3,000,000 | 3,031,029 | ||
Greenwich Capital Commercial Funding Corp.: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (f) | 2,000,000 | 2,038,266 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
Greenwich Capital Commercial Funding Corp.: - continued | ||||
Series 2002-C1 Class H, 5.903% 1/11/35 (f) | $ 880,000 | $ 883,289 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 6.4193% 3/6/20 (f)(g) | 1,400,000 | 1,391,750 | ||
Series 2010-C1: | ||||
Class D, 5.999% 8/10/43 (f)(g) | 4,000,000 | 3,317,672 | ||
Class E, 4% 8/10/43 (f) | 3,000,000 | 1,881,903 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (f) | 9,185,000 | 8,666,966 | ||
GS Mortgage Securities Trust: | ||||
Series 2011-GC5 Class C, 5.3086% 8/10/44 (f)(g) | 9,000,000 | 7,761,546 | ||
Series 2012-GC6 Class C, 0% 1/10/45 (f)(g) | 3,600,000 | 3,261,960 | ||
JP Morgan Chase Commercial Mortgage Securities Corp. Series 2010-CNTM Class MZ, 8.5% 8/5/20 (f) | 4,000,000 | 3,680,924 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (f)(g) | 2,038,274 | 3,057 | ||
Class X, 0.6261% 10/15/32 (f)(g)(h) | 4,870,680 | 1,519 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (f) | 3,000,000 | 3,014,244 | ||
Series 2009-IWST Class D, 7.4453% 12/5/27 (f)(g) | 6,500,000 | 6,535,263 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (f)(g) | 4,500,000 | 4,258,791 | ||
Class XB, 0.9305% 8/5/32 (f)(h) | 32,655,000 | 1,715,008 | ||
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class AJ, 5.3265% 12/15/44 (g) | 3,470,000 | 3,442,541 | ||
JPMorgan Chase Commercial Mortgage Security Trust Series 2011-C5 Class B. 5.4912% 8/15/46 (f)(g) | 7,500,000 | 7,336,500 | ||
JPMorgan Commercial Mortgage Finance Corp.: | ||||
Series 1997-C5 Class F, 7.5605% 9/15/29 | 1,093,611 | 1,107,965 | ||
Series 1999-C8: | ||||
Class G, 6% 7/15/31 (f) | 1,078,879 | 1,106,357 | ||
Class H, 6% 7/15/31 (f) | 1,341,102 | 447,094 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (f) | 2,920,000 | 3,023,383 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 1,961,598 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,516,351 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,109,936 | ||
Series 2006-C7 Class AM, 5.378% 11/15/38 | 2,040,000 | 2,030,806 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
Series 2005-C2 Class AJ, 5.205% 4/15/30 (g) | $ 8,910,000 | $ 9,196,581 | ||
Series 2006-C4: | ||||
Class AJ, 5.8897% 6/15/38 (g) | 7,005,000 | 5,688,095 | ||
Class AM, 5.8897% 6/15/38 (g) | 6,700,000 | 6,982,479 | ||
Lstar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.6768% 6/25/43 (f)(g) | 4,699,000 | 3,873,926 | ||
Series 2011-1 Class B, 5.6768% 6/25/43 (f)(g) | 5,720,000 | 5,750,133 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 505,922 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 245,699 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 158,678 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 231,924 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 225,391 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 145,644 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 478,991 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (f) | 2,414,948 | 1,412,744 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6655% 5/12/39 (g) | 1,200,000 | 1,264,776 | ||
Mezz Capital Commercial Mortgage Trust Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (f) | 750,000 | 75 | ||
Class E, 7.983% 1/15/37 (f) | 1,453,000 | 145 | ||
Class IO, 8.3831% 1/15/37 (g)(h) | 4,967,025 | 372,527 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (f) | 1,309,233 | 1,312,506 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,401,736 | ||
Series 1997-RR Class F, 7.3991% 4/30/39 (f)(g) | 1,979,357 | 1,821,009 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (f) | 2,611,253 | 1,201,176 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 7,627,358 | ||
Series 2011-C1 Class C, 5.2554% 9/15/47 (f)(g) | 2,000,000 | 1,887,386 | ||
Series 2011-C2: | ||||
Class D, 5.3186% 6/15/44 (f)(g) | 4,610,000 | 4,149,692 | ||
Class E, 5.3186% 6/15/44 (f)(g) | 9,600,000 | 7,978,944 | ||
Class F, 5.3186% 6/15/44 (f)(g) | 4,440,000 | 3,224,550 | ||
Class XB, 0.465% 6/15/44 (f)(g)(h) | 63,708,222 | 1,974,955 | ||
Series 2011-C3 Class D, 5.357% 7/15/49 (f) | 7,400,000 | 6,424,813 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (h) | 2,158,523 | 1,877,915 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (f) | 3,506,029 | 3,689,394 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount (i) | Value | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6727% 4/15/24 (f)(g) | $ 5,820,000 | $ 5,476,256 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA: | ||||
Class E3, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,126,591 | ||
Class E5, 6.5% 2/18/34 (f)(g) | 3,000,000 | 3,023,058 | ||
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (f) | 2,170,000 | 2,170,584 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.7386% 8/15/39 (g) | 2,080,000 | 2,089,360 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (f) | 10,630,000 | 9,884,709 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.8601% 7/15/24 (f)(g) | 1,200,000 | 809,941 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.0708% 1/10/45 (f)(g) | 3,000,000 | 3,048,510 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (f) | 2,540,000 | 2,614,592 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 1,972,832 | ||
Series 2004-C11: | ||||
Class D, 5.3607% 1/15/41 (g) | 5,177,000 | 4,666,739 | ||
Class E, 5.4107% 1/15/41 (g) | 3,785,000 | 3,172,841 | ||
Series 2004-C12 Class D, 5.3163% 7/15/41 (g) | 2,750,000 | 2,607,809 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,076,186 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (f) | 4,000,000 | 4,131,052 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $400,243,984) |
| |||
Floating Rate Loans - 4.2% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.7% | ||||
Hotels, Restaurants & Leisure - 0.5% | ||||
Extended Stay America, Inc. term loan 9.75% 11/1/15 | 9,000,000 | 8,842,500 | ||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (g) | 2,835,750 | 2,523,818 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
CONSUMER DISCRETIONARY - continued | ||||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack term loan 2.53% 10/27/13 (g) | $ 1,974,717 | $ 1,969,781 | ||
TOTAL CONSUMER DISCRETIONARY | 13,336,099 | |||
FINANCIALS - 2.2% | ||||
Diversified Financial Services - 0.2% | ||||
Pilot Travel Centers LLC Tranche B, term loan 4.25% 3/30/18 (g) | 3,885,475 | 3,895,188 | ||
Real Estate Investment Trusts - 0.0% | ||||
iStar Financial, Inc. Tranche A 1LN, term loan 5% 6/28/13 (g) | 1,230,680 | 1,233,757 | ||
Real Estate Management & Development - 2.0% | ||||
Capital Automotive LP term loan 5% 3/11/17 (g) | 8,079,388 | 8,038,991 | ||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7958% 9/4/19 (g) | 1,990,000 | 1,970,100 | ||
CityCenter term loan 8.75% 7/1/13 (g) | 8,000,000 | 7,820,000 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 9.5% 11/2/12 (g) | 2,184,917 | 1,662,388 | ||
Tranche B 2LN, term loan 6.55% 11/2/12 (g) | 5,000,000 | 4,300,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 4.5453% 10/10/16 (g) | 712,762 | 662,869 | ||
term loan 4.6914% 10/10/16 (g) | 8,058,859 | 7,494,739 | ||
Tranche 2LN, term loan 13.5% 10/15/17 | 3,500,000 | 3,570,000 | ||
Tranche B, term loan 3.4414% 10/10/13 (g) | 5,208,029 | 5,155,949 | ||
3.2953% 10/10/13 (g) | 521,472 | 521,472 | ||
| 41,196,508 | |||
TOTAL FINANCIALS | 46,325,453 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc.: | ||||
Tranche B, term loan 2.7552% 7/25/14 (g) | 2,833,380 | 2,794,421 | ||
Tranche DD, term loan 2.52% 7/25/14 (g) | 145,277 | 143,279 | ||
Floating Rate Loans - continued | ||||
| Principal Amount (i) | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (g) | $ 2,000,000 | $ 1,980,000 | ||
Skilled Healthcare Group, Inc. term loan 5.2644% 4/9/16 (g) | 3,614,832 | 3,379,868 | ||
| 8,297,568 | |||
INDUSTRIALS - 0.5% | ||||
Construction & Engineering - 0.5% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (g) | 11,938,567 | 10,714,863 | ||
TELECOMMUNICATION SERVICES - 0.4% | ||||
Wireless Telecommunication Services - 0.4% | ||||
Crown Castle Operating Co. Tranche B, term loan 4% 1/18/19 (g) | 3,890,000 | 3,885,332 | ||
TowerCo Finance LLC Tranche B, term loan 5.25% 2/2/17 (g) | 3,650,804 | 3,664,495 | ||
| 7,549,827 | |||
TOTAL FLOATING RATE LOANS (Cost $88,536,290) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (f) | 500,000 | 15,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (f) | 1,220,000 | 305,000 | |
Ipswich Street CDO Series 2006-1, 6/27/46 (d)(f) | 1,350,000 | 0 | |
| 320,000 | ||
TOTAL PREFERRED SECURITIES (Cost $2,593,186) |
| ||
Money Market Funds - 9.6% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 182,069,601 | $ 182,069,601 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 17,597,164 | 17,597,164 | |
TOTAL MONEY MARKET FUNDS (Cost $199,666,765) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $2,025,741,756) | 2,101,837,665 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (24,500,740) | ||
NET ASSETS - 100% | $ 2,077,336,925 |
Currency Abbreviations | ||
CAD | - | Canadian dollar |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Security is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $436,528,742 or 21.0% of net assets. |
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(h) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
(i) Principal amount is stated in United States dollars unless otherwise noted. |
(j) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,646,274 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 5,487,274 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 149,048 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 188,515 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7763% 6/25/35 | 6/3/05 | $ 1,110,697 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 79,961 |
Fidelity Securities Lending Cash Central Fund | 38,456 |
Total | $ 118,417 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 28,051,766 | $ 24,014,856 | $ - | $ 4,036,910 |
Financials | 719,150,353 | 690,048,288 | 24,880,549 | 4,221,516 |
Health Care | 24,701,223 | 24,701,223 | - | - |
Corporate Bonds | 511,069,162 | - | 509,572,911 | 1,496,251 |
Asset-Backed Securities | 111,197,104 | - | 68,122,562 | 43,074,542 |
Collateralized Mortgage Obligations | 20,503,364 | - | 18,715,124 | 1,788,240 |
Commercial Mortgage Securities | 400,954,118 | - | 373,565,635 | 27,388,483 |
Floating Rate Loans | 86,223,810 | - | 69,561,310 | 16,662,500 |
Preferred Securities | 320,000 | - | - | 320,000 |
Money Market Funds | 199,666,765 | 199,666,765 | - | - |
Total Investments in Securities: | $ 2,101,837,665 | $ 938,431,132 | $ 1,064,418,091 | $ 98,988,442 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $ 3,528,571 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 508,339 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,036,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 508,339 |
Investments in Securities: | |
Equities - Financials | |
Beginning Balance | $ 4,941,370 |
Total Realized Gain (Loss) | (607) |
Total Unrealized Gain (Loss) | (719,371) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | 124 |
Transfers out of Level 3 | - |
Ending Balance | $ 4,221,516 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (719,371) |
Corporate Bonds | |
Beginning Balance | $ 9,384,800 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (253,316) |
Cost of Purchases | 4,349,567 |
Proceeds of Sales | (4,000,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (7,984,800) |
Ending Balance | $ 1,496,251 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (2,853,316) |
Asset-Backed Securities | |
Beginning Balance | $ 79,390,084 |
Total Realized Gain (Loss) | 605,893 |
Total Unrealized Gain (Loss) | 1,072,967 |
Cost of Purchases | 1,446,937 |
Proceeds of Sales | (10,646,620) |
Amortization/Accretion | 445,740 |
Transfers in to Level 3 | 3,448,211 |
Transfers out of Level 3 | (32,688,670) |
Ending Balance | $ 43,074,542 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,184,788 |
Investments in Securities: | |
Collateralized Mortgage Obligations | |
Beginning Balance | $ 862,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (185,450) |
Cost of Purchases | - |
Proceeds of Sales | (420,485) |
Amortization/Accretion | (133,520) |
Transfers in to Level 3 | 1,665,695 |
Transfers out of Level 3 | - |
Ending Balance | $ 1,788,240 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (185,450) |
Commercial Mortgage Securities | |
Beginning Balance | $ 31,940,633 |
Total Realized Gain (Loss) | (116,008) |
Total Unrealized Gain (Loss) | (438,874) |
Cost of Purchases | - |
Proceeds of Sales | (2,634,998) |
Amortization/Accretion | (157,614) |
Transfers in to Level 3 | 8,344,793 |
Transfers out of Level 3 | (9,549,449) |
Ending Balance | $ 27,388,483 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (681,865) |
Floating Rate Loans | |
Beginning Balance | $ 9,000,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (328,461) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 6,161 |
Transfers in to Level 3 | 7,984,800 |
Transfers out of Level 3 | - |
Ending Balance | $ 16,662,500 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (328,461) |
Investments in Securities: | |
Preferred Securities | |
Beginning Balance | $ 442,008 |
Total Realized Gain (Loss) | (785,700) |
Total Unrealized Gain (Loss) | 662,305 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | 1,387 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 320,000 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ (123,387) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.4% |
AAA,AA,A | 9.9% |
BBB | 14.0% |
BB | 5.3% |
B | 13.7% |
CCC,CC,C | 3.8% |
D | 0.1% |
Not Rated | 7.3% |
Equities | 37.1% |
Short-Term Investments and Net Other Assets | 8.4% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $16,815,259) - See accompanying schedule: Unaffiliated issuers (cost $1,826,074,991) | $ 1,902,170,900 |
|
Fidelity Central Funds (cost $199,666,765) | 199,666,765 |
|
Total Investments (cost $2,025,741,756) |
| $ 2,101,837,665 |
Cash |
| 1,082,494 |
Foreign currency held at value (cost $20,196) | 20,196 | |
Receivable for investments sold | 399,857 | |
Receivable for fund shares sold | 17,547,019 | |
Dividends receivable | 1,521,211 | |
Interest receivable | 11,529,814 | |
Distributions receivable from Fidelity Central Funds | 23,488 | |
Prepaid expenses | 4,696 | |
Other receivables | 7,857 | |
Total assets | 2,133,974,297 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 30,146,494 | |
Payable for fund shares redeemed | 6,645,368 | |
Accrued management fee | 923,689 | |
Distribution and service plan fees payable | 40,032 | |
Other affiliated payables | 508,146 | |
Other payables and accrued expenses | 776,479 | |
Collateral on securities loaned, at value | 17,597,164 | |
Total liabilities | 56,637,372 | |
|
|
|
Net Assets | $ 2,077,336,925 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,981,809,486 | |
Undistributed net investment income | 7,376,521 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 12,029,101 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 76,121,817 | |
Net Assets | $ 2,077,336,925 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.60 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.60) | $ 11.04 | |
Class T: | $ 10.61 | |
|
|
|
Maximum offering price per share (100/96.00 of $10.61) | $ 11.05 | |
Class C: | $ 10.56 | |
|
|
|
Real Estate Income: | $ 10.63 | |
|
|
|
Institutional Class: | $ 10.62 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2012 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 16,962,406 |
Interest |
| 37,146,888 |
Income from Fidelity Central Funds |
| 118,417 |
Total income |
| 54,227,711 |
|
|
|
Expenses | ||
Management fee | $ 4,971,568 | |
Transfer agent fees | 2,552,941 | |
Distribution and service plan fees | 203,913 | |
Accounting and security lending fees | 351,313 | |
Custodian fees and expenses | 14,448 | |
Independent trustees' compensation | 5,765 | |
Registration fees | 94,816 | |
Audit | 79,530 | |
Legal | 3,629 | |
Miscellaneous | 6,981 | |
Total expenses before reductions | 8,284,904 | |
Expense reductions | (31,579) | 8,253,325 |
Net investment income (loss) | 45,974,386 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 22,757,282 | |
Foreign currency transactions | (14,949) | |
Total net realized gain (loss) |
| 22,742,333 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,462,311) | |
Assets and liabilities in foreign currencies | 934 | |
Total change in net unrealized appreciation (depreciation) |
| (1,461,377) |
Net gain (loss) | 21,280,956 | |
Net increase (decrease) in net assets resulting from operations | $ 67,255,342 |
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, | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 45,974,386 | $ 75,045,871 |
Net realized gain (loss) | 22,742,333 | 26,474,317 |
Change in net unrealized appreciation (depreciation) | (1,461,377) | 63,154,318 |
Net increase (decrease) in net assets resulting | 67,255,342 | 164,674,506 |
Distributions to shareholders from net investment income | (59,240,444) | (66,688,371) |
Distributions to shareholders from net realized gain | (16,498,521) | - |
Total distributions | (75,738,965) | (66,688,371) |
Share transactions - net increase (decrease) | 292,852,190 | 655,640,999 |
Redemption fees | 159,309 | 331,332 |
Total increase (decrease) in net assets | 284,527,876 | 753,958,466 |
|
|
|
Net Assets | ||
Beginning of period | 1,792,809,049 | 1,038,850,583 |
End of period (including undistributed net investment income of $7,376,521 and undistributed net investment income of $20,642,579, respectively) | $ 2,077,336,925 | $ 1,792,809,049 |
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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .53 | .18 |
Net realized and unrealized gain (loss) | .05 | .76 | (.04) |
Total from investment operations | .30 | 1.29 | .14 |
Distributions from net investment income | (.34) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.60 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 3.07% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.13% A | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.13% A | 1.13% | 1.09% A |
Expenses net of all reductions | 1.13% A | 1.12% | 1.09% A |
Net investment income (loss) | 4.98% A | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 84,053 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
K Total distributions of $.43 per share is comprised of distributions from net investment income of $.335 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .25 | .52 | .17 |
Net realized and unrealized gain (loss) | .07 | .76 | (.03) |
Total from investment operations | .32 | 1.28 | .14 |
Distributions from net investment income | (.33) | (.50) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.43) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.61 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 3.25% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.15% A | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.15% A | 1.16% | 1.17% A |
Expenses net of all reductions | 1.15% A | 1.16% | 1.17% A |
Net investment income (loss) | 4.96% A | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 12,152 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | |
| 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .21 | .45 | .15 |
Net realized and unrealized gain (loss) | .07 | .74 | (.03) |
Total from investment operations | .28 | 1.19 | .12 |
Distributions from net investment income | (.29) | (.45) | (.14) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.39) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - |
Net asset value, end of period | $ 10.56 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 2.82% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.89% A | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.89% A | 1.89% | 1.86% A |
Expenses net of all reductions | 1.89% A | 1.89% | 1.86% A |
Net investment income (loss) | 4.22% A | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 27,389 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
| Six months ended | Years ended July 31, | ||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 | $ 11.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D | .27 | .55 | .53 | .54 | .59 | .63 |
Net realized and unrealized gain (loss) | .05 | .76 | 1.73 | (1.27) | (1.48) | (.37) |
Total from investment operations | .32 | 1.31 | 2.26 | (.73) | (.89) | .26 |
Distributions from net investment income | (.35) | (.51) | (.52) | (.50) | (.66) | (.58) |
Distributions from net realized gain | (.10) | - | - | - | (.24) | (.24) |
Total distributions | (.44) I | (.51) | (.52) | (.50) | (.90) | (.82) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | - H | - H |
Net asset value, | $ 10.63 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Total Return B,C | 3.26% | 13.41% | 28.29% | (6.92)% | (8.43)% | 2.00% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .91% A | .92% | .97% | 1.00% | .94% | .88% |
Expenses net of fee waivers, if any | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Expenses net of all reductions | .91% A | .92% | .96% | 1.00% | .94% | .88% |
Net investment income (loss) | 5.20% A | 5.21% | 5.60% | 7.15% | 5.77% | 5.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,823,245 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 | $ 516,268 |
Portfolio turnover rate F | 29% A | 25% | 28% | 47% | 32% | 45% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
I Total distributions of $.44 per share is comprised of distributions from net investment income of $.345 and distributions from net realized gain of $.097 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, | |
| 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .27 | .55 | .19 |
Net realized and unrealized gain (loss) | .06 | .76 | (.04) |
Total from investment operations | .33 | 1.31 | .15 |
Distributions from net investment income | (.35) | (.52) | (.15) |
Distributions from net realized gain | (.10) | - | - |
Total distributions | (.45) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - |
Net asset value, end of period | $ 10.62 | $ 10.74 | $ 9.95 |
Total Return B,C | 3.33% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | .86% A | .89% | .85% A |
Expenses net of fee waivers, if any | .86% A | .89% | .85% A |
Expenses net of all reductions | .86% A | .89% | .85% A |
Net investment income (loss) | 5.25% A | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 130,498 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 29% A | 25% | 28% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012
1. Organization.
Fidelity® Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Real Estate Income and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, floating rate loans and preferred securities, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Certain of the Fund's securities may be valued by a single source or dealer.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 152,794,350 |
Gross unrealized depreciation | (78,059,626) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 74,734,724 |
|
|
Tax cost | $ 2,027,102,941 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $474,412,445 and $245,959,640, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 80,667 | $ 3,082 |
Class T | -% | .25% | 11,517 | - |
Class C | .75% | .25% | 111,729 | 73,790 |
|
|
| $ 203,913 | $ 76,872 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 15,102 |
Class T | 1,783 |
Class C* | 4,341 |
| $ 21,226 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of |
Class A | $ 82,289 | .26 |
Class T | 12,478 | .27 |
Class C | 29,588 | .27 |
Real Estate Income | 2,328,675 | .29 |
Institutional Class | 99,911 | .23 |
| $ 2,552,941 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $11,788 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,437 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any
Semiannual Report
Notes to Financial Statements - continued
8. Security Lending - continued
additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $38,456. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Real Estate Income's operating expenses. During the period, this reimbursement reduced Real Estate Income's expenses by $31,380.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $199.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 2,120,737 | $ 1,154,662 |
Class T | 293,716 | 160,366 |
Class C | 633,801 | 358,357 |
Real Estate Income | 53,301,588 | 64,149,915 |
Institutional Class | 2,890,602 | 865,071 |
Total | $ 59,240,444 | $ 66,688,371 |
From net realized gain |
|
|
Class A | $ 603,452 | $ - |
Class T | 83,752 | - |
Class C | 208,802 | - |
Real Estate Income | 14,865,902 | - |
Institutional Class | 736,613 | - |
Total | $ 16,498,521 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 3,251,368 | 5,544,292 | $ 33,286,886 | $ 58,675,375 |
Reinvestment of distributions | 210,834 | 75,836 | 2,122,693 | 799,911 |
Shares redeemed | (1,157,024) | (384,554) | (11,722,433) | (4,105,728) |
Net increase (decrease) | 2,305,178 | 5,235,574 | $ 23,687,146 | $ 55,369,558 |
Class T |
|
|
|
|
Shares sold | 484,820 | 662,414 | $ 4,966,659 | $ 7,018,853 |
Reinvestment of distributions | 27,938 | 12,671 | 281,285 | 132,964 |
Shares redeemed | (78,006) | (50,669) | (794,360) | (536,547) |
Net increase (decrease) | 434,752 | 624,416 | $ 4,453,584 | $ 6,615,270 |
Class C |
|
|
|
|
Shares sold | 844,448 | 2,030,776 | $ 8,625,411 | $ 21,411,850 |
Reinvestment of distributions | 72,414 | 29,432 | 726,573 | 309,638 |
Shares redeemed | (342,463) | (125,083) | (3,454,173) | (1,328,625) |
Net increase (decrease) | 574,399 | 1,935,125 | $ 5,897,811 | $ 20,392,863 |
Real Estate Income |
|
|
|
|
Shares sold | 43,937,314 | 89,725,340 | $ 450,081,587 | $ 943,333,748 |
Reinvestment of distributions | 6,112,870 | 5,601,468 | 61,699,330 | 58,273,356 |
Shares redeemed | (32,989,055) | (44,449,757) | (336,589,169) | (467,916,333) |
Net increase (decrease) | 17,061,129 | 50,877,051 | $ 175,191,748 | $ 533,690,771 |
Institutional Class |
|
|
|
|
Shares sold | 8,960,411 | 4,361,479 | $ 90,777,957 | $ 46,245,871 |
Reinvestment of distributions | 259,233 | 55,523 | 2,613,878 | 583,903 |
Shares redeemed | (959,374) | (681,623) | (9,769,934) | (7,257,237) |
Net increase (decrease) | 8,260,270 | 3,735,379 | $ 83,621,901 | $ 39,572,537 |
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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Real Estate Income Fund (the Fund), a fund of Fidelity Securities Fund, including the schedule of investments, as of January 31, 2012, and the related statement of operations for the six months then ended, the statements of changes in net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended July 31, 2012 and for each of the five years in the period ended July 31, 2011. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2012, by correspondence with the custodians, agent banks and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Real Estate Income Fund as of January 31, 2012, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2012 and for the year ended July 31, 2011, and the financial highlights for the six months ended January 31, 2012 and for each of the five years in the period ended July 31, 2011, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 19, 2012
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
REII-USAN-0312 1.907543.101
(Fidelity Investment logo)(registered trademark)
Fidelity®
Series Real Estate Equity
Fund
Fidelity Series Real Estate Equity Fund
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Summary | 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. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity Series Real Estate Equity Fund or 1-800-835-5092 for Class F to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 20, 2011 to January 31, 2012). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Series Real Estate Equity | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,135.30 | $ 2.49 B |
HypotheticalA |
| $ 1,000.00 | $ 1,021.01 | $ 4.17 C |
Class F | .62% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,136.80 | $ 1.88 B |
HypotheticalA |
| $ 1,000.00 | $ 1,022.02 | $ 3.15 C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 104/366 (to reflect the period October 20, 2011 to January 31, 2012).
C Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2012 | |
| % of fund's |
Simon Property Group, Inc. | 11.3 |
Public Storage | 7.5 |
Ventas, Inc. | 7.2 |
Prologis, Inc. | 5.9 |
Digital Realty Trust, Inc. | 4.6 |
Boston Properties, Inc. | 4.5 |
Equity Residential (SBI) | 4.2 |
SL Green Realty Corp. | 4.0 |
Essex Property Trust, Inc. | 3.8 |
Camden Property Trust (SBI) | 3.8 |
| 56.8 |
Top Five REIT Sectors as of January 31, 2012 | |
| % of fund's |
REITs - Apartments | 17.2 |
REITs - Malls | 15.8 |
REITs - Office Buildings | 14.6 |
REITs - Industrial Buildings | 14.5 |
REITs - Health Care Facilities | 10.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* |
| ||||||
![]() | Stocks 96.2% |
| ![]() |
|
| ||
![]() | Short-Term |
| ![]() |
|
| ||
* Foreign investments | 0.7% |
|
|
|
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.2% | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - 2.2% | |||
Health Care Facilities - 2.2% | |||
Brookdale Senior Living, Inc. (a) | 170,909 | $ 3,007,998 | |
Emeritus Corp. (a) | 361,064 | 6,304,177 | |
Sunrise Senior Living, Inc. (a) | 272,300 | 1,936,053 | |
TOTAL HEALTH CARE FACILITIES | 11,248,228 | ||
REAL ESTATE INVESTMENT TRUSTS - 92.6% | |||
REITs - Apartments - 17.2% | |||
AvalonBay Communities, Inc. | 40,900 | 5,562,809 | |
Camden Property Trust (SBI) | 309,000 | 19,930,500 | |
Education Realty Trust, Inc. | 1,119,300 | 11,976,510 | |
Equity Residential (SBI) | 361,878 | 21,549,835 | |
Essex Property Trust, Inc. | 138,742 | 19,978,848 | |
Post Properties, Inc. | 236,100 | 10,551,309 | |
TOTAL REITS - APARTMENTS | 89,549,811 | ||
REITs - Health Care Facilities - 10.6% | |||
HCP, Inc. | 253,200 | 10,641,996 | |
Health Care REIT, Inc. | 123,200 | 7,048,272 | |
Healthcare Realty Trust, Inc. | 12,300 | 259,161 | |
Ventas, Inc. | 638,900 | 37,254,259 | |
TOTAL REITS - HEALTH CARE FACILITIES | 55,203,688 | ||
REITs - Hotels - 5.2% | |||
Chesapeake Lodging Trust | 451,400 | 7,687,342 | |
DiamondRock Hospitality Co. | 609,700 | 6,426,238 | |
Host Hotels & Resorts, Inc. | 470,500 | 7,725,610 | |
LaSalle Hotel Properties (SBI) | 47,900 | 1,295,695 | |
Sunstone Hotel Investors, Inc. (a) | 396,166 | 3,680,382 | |
TOTAL REITS - HOTELS | 26,815,267 | ||
REITs - Industrial Buildings - 14.5% | |||
DCT Industrial Trust, Inc. | 729,000 | 4,024,080 | |
Prologis, Inc. | 962,500 | 30,520,875 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Industrial Buildings - continued | |||
Public Storage | 281,200 | $ 39,047,432 | |
Stag Industrial, Inc. | 135,400 | 1,622,092 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 75,214,479 | ||
REITs - Malls - 15.8% | |||
CBL & Associates Properties, Inc. | 884,100 | 15,356,817 | |
Simon Property Group, Inc. | 431,500 | 58,623,591 | |
The Macerich Co. | 148,273 | 8,051,224 | |
TOTAL REITS - MALLS | 82,031,632 | ||
REITs - Management/Investment - 4.6% | |||
Digital Realty Trust, Inc. (d) | 339,946 | 24,088,574 | |
REITs - Mobile Home Parks - 0.6% | |||
Sun Communities, Inc. | 75,300 | 3,020,283 | |
REITs - Office Buildings - 14.6% | |||
Alexandria Real Estate Equities, Inc. | 54,340 | 3,934,759 | |
Boston Properties, Inc. | 225,600 | 23,473,680 | |
Corporate Office Properties Trust (SBI) | 40,200 | 974,046 | |
Douglas Emmett, Inc. | 661,700 | 13,836,147 | |
Highwoods Properties, Inc. (SBI) | 386,864 | 12,801,330 | |
SL Green Realty Corp. | 283,500 | 20,845,755 | |
TOTAL REITS - OFFICE BUILDINGS | 75,865,717 | ||
REITs - Shopping Centers - 9.5% | |||
Acadia Realty Trust (SBI) | 461,900 | 9,709,138 | |
DDR Corp. | 1,162,100 | 16,106,706 | |
Equity One, Inc. | 233,349 | 4,398,629 | |
Excel Trust, Inc. | 170,500 | 2,165,350 | |
Glimcher Realty Trust | 539,500 | 5,195,385 | |
Kite Realty Group Trust | 407,300 | 2,036,500 | |
Vornado Realty Trust | 119,500 | 9,665,160 | |
TOTAL REITS - SHOPPING CENTERS | 49,276,868 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 481,066,319 | ||
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.4% | |||
Real Estate Operating Companies - 1.4% | |||
Brookfield Properties Corp. | 219,100 | $ 3,782,220 | |
Forest City Enterprises, Inc. Class A (a) | 273,700 | 3,593,681 | |
TOTAL REAL ESTATE OPERATING COMPANIES | 7,375,901 | ||
TOTAL COMMON STOCKS (Cost $445,898,585) |
| ||
Convertible Preferred Stocks - 0.0% | |||
|
|
|
|
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.0% | |||
Real Estate Services - 0.0% | |||
Grubb & Ellis Co.: | |||
12.00% (e) | 8,769 |
| |
Money Market Funds - 6.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.12% (b) | 25,055,145 | 25,055,145 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 10,039,400 | 10,039,400 | |
TOTAL MONEY MARKET FUNDS (Cost $35,094,545) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $481,205,691) | 534,815,421 | ||
NET OTHER ASSETS (LIABILITIES) - (2.9)% | (15,212,335) | ||
NET ASSETS - 100% | $ 519,603,086 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(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 $30,428 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 | $ 5,401 |
Fidelity Securities Lending Cash Central Fund | 22,993 |
Total | $ 28,394 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 499,690,448 | $ 499,690,448 | $ - | $ - |
Convertible Preferred Stocks | 30,428 | - | 30,428 | - |
Money Market Funds | 35,094,545 | 35,094,545 | - | - |
Total Investments in Securities: | $ 534,815,421 | $ 534,784,993 | $ 30,428 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $10,019,604) - See accompanying schedule: Unaffiliated issuers (cost $446,111,146) | $ 499,720,876 |
|
Fidelity Central Funds (cost $35,094,545) | 35,094,545 |
|
Total Investments (cost $481,205,691) |
| $ 534,815,421 |
Receivable for investments sold | 3,126,173 | |
Dividends receivable | 238,530 | |
Distributions receivable from Fidelity Central Funds | 3,454 | |
Other receivables | 1,313 | |
Total assets | 538,184,891 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 8,241,166 | |
Accrued management fee | 219,403 | |
Other affiliated payables | 67,596 | |
Other payables and accrued expenses | 14,240 | |
Collateral on securities loaned, at value | 10,039,400 | |
Total liabilities | 18,581,805 | |
|
|
|
Net Assets | $ 519,603,086 | |
Net Assets consist of: |
| |
Paid in capital | $ 464,728,725 | |
Distributions in excess of net investment income | (40,203) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,304,310 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 53,610,254 | |
Net Assets | $ 519,603,086 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Series Real Estate Equity: | $ 11.29 | |
|
|
|
Class F: | $ 11.30 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
For the period October 20, 2011 (commencement | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,492,654 |
Income from Fidelity Central Funds |
| 28,394 |
Total income |
| 2,521,048 |
|
|
|
Expenses | ||
Management fee | $ 674,403 | |
Transfer agent fees | 170,651 | |
Accounting and security lending fees | 47,187 | |
Custodian fees and expenses | 4,455 | |
Independent trustees' compensation | 656 | |
Audit | 15,623 | |
Legal | 17 | |
Miscellaneous | 2 | |
Total expenses before reductions | 912,994 | |
Expense reductions | (1,313) | 911,681 |
Net investment income (loss) | 1,609,367 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 2,105,396 | |
Foreign currency transactions | (2,435) | |
Total net realized gain (loss) |
| 2,102,961 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 53,609,730 | |
Assets and liabilities in foreign currencies | 524 | |
Total change in net unrealized appreciation (depreciation) |
| 53,610,254 |
Net gain (loss) | 55,713,215 | |
Net increase (decrease) in net assets resulting from operations | $ 57,322,582 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 1,609,367 |
Net realized gain (loss) | 2,102,961 |
Change in net unrealized appreciation (depreciation) | 53,610,254 |
Net increase (decrease) in net assets resulting from operations | 57,322,582 |
Distributions to shareholders from net investment income | (1,649,570) |
Distributions to shareholders from net realized gain | (798,651) |
Total distributions | (2,448,221) |
Share transactions - net increase (decrease) | 464,728,725 |
Total increase (decrease) in net assets | 519,603,086 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including distributions in excess of net investment income of $40,203) | $ 519,603,086 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Equity
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .04 |
Net realized and unrealized gain (loss) | 1.31 |
Total from investment operations | 1.35 |
Distributions from net investment income | (.04) |
Distributions from net realized gain | (.02) |
Total distributions | (.06) |
Net asset value, end of period | $ 11.29 |
Total Return B, C | 13.53% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .82% A |
Expenses net of fee waivers, if any | .82% A |
Expenses net of all reductions | .82% A |
Net investment income (loss) | 1.27% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 327,191 |
Portfolio turnover rate F | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to January 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .04 |
Net realized and unrealized gain (loss) | 1.32 |
Total from investment operations | 1.36 |
Distributions from net investment income | (.04) |
Distributions from net realized gain | (.02) |
Total distributions | (.06) |
Net asset value, end of period | $ 11.30 |
Total Return B, C | 13.68% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .62% A |
Expenses net of fee waivers, if any | .62% A |
Expenses net of all reductions | .61% A |
Net investment income (loss) | 1.48% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 192,413 |
Portfolio turnover rate F | 14% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to January 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Series Real Estate Equity Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Real Estate Equity and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 53,857,878 |
Gross unrealized depreciation | (311,753) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 53,546,125 |
|
|
Tax cost | $ 481,269,296 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $508,164,768 and $62,995,344, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Real Estate Equity. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Series Real Estate Equity | $ 170,651 | .21 |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $2,017 for the period.
Exchanges In-Kind. During the period, certain investment companies managed by FMR or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered securities valued at $402,288,933 in exchange for 40,228,893 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $22,993. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,313 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Period ended | |
From net investment income |
|
Series Real Estate Equity | $ 1,100,760 |
Class F | 548,810 |
Total | $ 1,649,570 |
From net realized gain |
|
Series Real Estate Equity | $ 550,380 |
Class F | 248,271 |
Total | $ 798,651 |
A For the period October 20, 2011 (commencement of operations) to January 31, 2012.
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Period ended | Period ended | |
Series Real Estate Equity |
|
|
Shares sold | 35,627,061 B | $ 359,194,063 B |
Reinvestment of distributions | 161,718 | 1,651,140 |
Shares redeemed | (6,820,993) | (70,899,752) |
Net increase (decrease) | 28,967,786 | $ 289,945,451 |
Class F |
|
|
Shares sold | 19,436,244 B | $ 199,805,482 B |
Reinvestment of distributions | 78,069 | 797,081 |
Shares redeemed | (2,482,091) | (25,819,289) |
Net increase (decrease) | 17,032,222 | $ 174,783,274 |
A For the period October 20, 2011 (commencement of operations) to January 31, 2012.
B Amount includes in-kind exchanges (see Note 6: Exchanges In-Kind).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the Fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Series Real Estate Equity Fund
On June 15, 2011, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the equity research subcommittee of the Board's Fund Oversight Committee reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. The Board noted FMR's continued focus on strengthening the organization and discipline of equity portfolio management and research.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven real estate selection, which the Board is familiar with through its supervision of other Fidelity funds that invest in such securities.
Based on its review, the Board concluded that the nature, extent, and quality of the services provided by Fidelity to the fund will benefit the fund's shareholders.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's proposed management fee and the projected total operating expenses of each class of the fund in reviewing the Advisory Contracts. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable management fee characteristics. The Board also considered that the projected total operating expenses are comparable to those of similar classes and funds that Fidelity offers to shareholders.
Based on its review, the Board concluded that the fund's management fee and the projected total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders.
Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be approved.
Semiannual Report
Managing Your Investments
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Semiannual Report
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Semiannual Report
Investment Adviser
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Fidelity®
Series Real Estate Income
Fund
Fidelity Series Real Estate Income Fund
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Summary | A summary of the fund's investments. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Real Estate Income Fund or 1-800-835-5092 for Class F to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 20, 2011 to January 31, 2012). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Series Real Estate Income | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.80 | $ 2.41 B |
HypotheticalA |
| $ 1,000.00 | $ 1,021.01 | $ 4.17 C |
Class F | .63% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,068.20 | $ 1.85 B |
HypotheticalA |
| $ 1,000.00 | $ 1,021.97 | $ 3.20 C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 104/366 (to reflect the period October 20, 2011 to January 31, 2012).
C Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Summary (Unaudited)
Top Five Stocks as of January 31, 2012 | |
| % of fund's |
Ventas, Inc. | 1.6 |
MFA Financial, Inc. | 1.5 |
Excel Trust, Inc. Series B, 8.125% | 1.5 |
Acadia Realty Trust (SBI) | 1.5 |
Equity Lifestyle Properties, Inc. | 1.4 |
| 7.5 |
Top Five Bonds as of January 31, 2012 | |
| % of fund's |
Banc of America Large Loan Trust floater Series 2010-HLTN | 2.5 |
Wachovia Ltd./Wachovia LLC Series 2006-1A Class A1B, | 1.4 |
Standard Pacific Corp. 8.375% 5/15/18 | 1.4 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 1.2 |
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, | 1.0 |
| 7.5 |
Top Five REIT Sectors as of January 31, 2012 | |
| % of fund's |
REITs - Mortgage | 7.5 |
REITs - Shopping Centers | 6.9 |
REITs - Health Care Facilities | 6.2 |
REITs - Management/Investment | 5.7 |
REITs - Hotels | 5.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* |
| ||||||
![]() | Common stocks 16.4% |
| ![]() |
|
| ||
![]() | Preferred stocks 15.8% |
| ![]() |
|
| ||
![]() | Bonds 55.1% |
| ![]() |
|
| ||
![]() | Convertible |
| ![]() |
|
| ||
![]() | Other Investments 2.4% |
| ![]() |
|
| ||
![]() | Short-Term |
| ![]() |
|
| ||
* Foreign investments | 6.1% |
|
|
|
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 16.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.4% | |||
Household Durables - 0.4% | |||
Standard Pacific Corp. (a) | 598,500 | $ 2,178,540 | |
FINANCIALS - 14.6% | |||
Capital Markets - 0.2% | |||
HFF, Inc. (a) | 71,500 | 1,008,865 | |
Real Estate Investment Trusts - 14.3% | |||
Acadia Realty Trust (SBI) | 420,200 | 8,832,604 | |
American Campus Communities, Inc. | 12,100 | 517,880 | |
American Tower Corp. | 22,300 | 1,416,273 | |
Annaly Capital Management, Inc. | 51,200 | 862,208 | |
Anworth Mortgage Asset Corp. | 271,800 | 1,766,700 | |
Apartment Investment & Management Co. Class A | 38,900 | 955,384 | |
AvalonBay Communities, Inc. | 2,100 | 285,621 | |
Brandywine Realty Trust (SBI) | 59,000 | 627,760 | |
CapLease, Inc. | 233,400 | 970,944 | |
CBL & Associates Properties, Inc. | 164,200 | 2,852,154 | |
Chesapeake Lodging Trust | 68,500 | 1,166,555 | |
Colony Financial, Inc. | 7,000 | 118,720 | |
CommonWealth REIT | 46,300 | 910,721 | |
Coresite Realty Corp. | 53,000 | 1,062,650 | |
Cousins Properties, Inc. | 42,600 | 313,962 | |
Cys Investments, Inc. | 230,900 | 3,117,150 | |
DCT Industrial Trust, Inc. | 257,100 | 1,419,192 | |
DiamondRock Hospitality Co. | 106,300 | 1,120,402 | |
Douglas Emmett, Inc. | 19,900 | 416,109 | |
Dynex Capital, Inc. | 198,900 | 1,841,814 | |
Education Realty Trust, Inc. | 102,100 | 1,092,470 | |
Equity Lifestyle Properties, Inc. | 119,300 | 8,367,702 | |
Excel Trust, Inc. | 206,300 | 2,620,010 | |
Healthcare Realty Trust, Inc. | 63,000 | 1,327,410 | |
Highwoods Properties, Inc. (SBI) | 9,300 | 307,737 | |
Hospitality Properties Trust (SBI) | 11,500 | 278,645 | |
Lexington Corporate Properties Trust | 242,300 | 2,083,780 | |
LTC Properties, Inc. | 43,200 | 1,380,240 | |
MFA Financial, Inc. | 1,254,200 | 9,205,828 | |
Mid-America Apartment Communities, Inc. | 7,900 | 504,968 | |
Monmouth Real Estate Investment Corp. Class A | 89,100 | 829,521 | |
National Retail Properties, Inc. | 29,500 | 796,795 | |
Omega Healthcare Investors, Inc. | 64,500 | 1,344,180 | |
Pebblebrook Hotel Trust | 5,800 | 128,644 | |
Prologis, Inc. | 152,200 | 4,826,262 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Senior Housing Properties Trust (SBI) | 45,200 | $ 1,025,136 | |
Simon Property Group, Inc. | 6,100 | 828,746 | |
Stag Industrial, Inc. | 154,500 | 1,850,910 | |
Summit Hotel Properties, Inc. | 129,300 | 1,208,955 | |
Sun Communities, Inc. | 15,000 | 601,650 | |
Sunstone Hotel Investors, Inc. (a) | 58,500 | 543,465 | |
Two Harbors Investment Corp. | 166,300 | 1,651,359 | |
Ventas, Inc. | 167,000 | 9,737,770 | |
Weyerhaeuser Co. | 125,100 | 2,504,502 | |
| 85,621,488 | ||
Real Estate Management & Development - 0.1% | |||
Kennedy-Wilson Holdings, Inc. | 59,000 | 792,370 | |
TOTAL FINANCIALS | 87,422,723 | ||
HEALTH CARE - 1.4% | |||
Health Care Providers & Services - 1.4% | |||
Brookdale Senior Living, Inc. (a) | 204,300 | 3,595,680 | |
Capital Senior Living Corp. (a) | 219,900 | 1,781,190 | |
Emeritus Corp. (a) | 186,600 | 3,258,036 | |
| 8,634,906 | ||
TOTAL COMMON STOCKS (Cost $86,892,233) |
| ||
Preferred Stocks - 16.8% | |||
|
|
|
|
Convertible Preferred Stocks - 1.0% | |||
FINANCIALS - 1.0% | |||
Real Estate Investment Trusts - 1.0% | |||
CommonWealth REIT 6.50% | 127,200 | 2,690,280 | |
Health Care REIT, Inc. Series I, 6.50% | 16,200 | 868,725 | |
Lexington Corporate Properties Trust Series C, 6.50% | 58,800 | 2,528,400 | |
| 6,087,405 | ||
Preferred Stocks - continued | |||
Shares | Value | ||
Convertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.0% | |||
Grubb & Ellis Co. 12.00% (c) | 11,000 | $ 38,170 | |
TOTAL FINANCIALS | 6,125,575 | ||
Nonconvertible Preferred Stocks - 15.8% | |||
FINANCIALS - 15.8% | |||
Diversified Financial Services - 0.5% | |||
DRA CRT Acquisition Corp. Series A, 8.50% | 1,400 | 5,600 | |
Red Lion Hotels Capital Trust 9.50% | 112,200 | 2,897,004 | |
| 2,902,604 | ||
Real Estate Investment Trusts - 15.3% | |||
Alexandria Real Estate Equities, Inc. Series C, 8.375% | 43,400 | 1,117,550 | |
Annaly Capital Management, Inc. Series A, 7.875% | 150,300 | 4,044,573 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 178,800 | 4,621,980 | |
Apartment Investment & Management Co.: | |||
Series T, 8.00% | 64,900 | 1,658,195 | |
Series U, 7.75% | 32,600 | 828,040 | |
Ashford Hospitality Trust, Inc. Series E, 9.00% | 16,800 | 422,520 | |
BioMed Realty Trust, Inc. Series A, 7.375% | 16,200 | 414,072 | |
CapLease, Inc. Series A, 8.125% | 9,000 | 223,200 | |
CBL & Associates Properties, Inc.: | |||
(depositary shares) Series C, 7.75% | 8,100 | 206,307 | |
7.375% | 67,200 | 1,677,984 | |
Cedar Shopping Centers, Inc. 8.875% | 40,900 | 1,022,909 | |
Cousins Properties, Inc.: | |||
Series A, 7.75% | 79,500 | 1,919,925 | |
Series B, 7.50% | 34,900 | 848,768 | |
CubeSmart Series A, 7.75% | 40,000 | 1,008,000 | |
Duke Realty LP: | |||
8.375% | 51,200 | 1,358,336 | |
Series L, 6.60% | 4,300 | 107,801 | |
Eagle Hospitality Properties Trust, Inc. 8.25% (a) | 57,800 | 115,600 | |
Equity Lifestyle Properties, Inc. 8.034% | 162,105 | 4,234,183 | |
Equity Residential (depositary shares) Series N, 6.48% | 17,200 | 433,956 | |
Essex Property Trust, Inc. Series H, 7.125% | 8,100 | 209,385 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Excel Trust, Inc. Series B, 8.125% | 360,000 | $ 9,090,000 | |
Gladstone Commercial Corp. Series C, 7.125% | 67,762 | 1,679,142 | |
Glimcher Realty Trust Series G, 8.125% | 33,050 | 791,548 | |
Health Care REIT, Inc. Series F, 7.625% | 40,500 | 1,050,975 | |
Hersha Hospitality Trust Series B, 8.00% | 800 | 19,232 | |
Hospitality Properties Trust: | |||
Series B, 8.875% | 166,057 | 4,176,334 | |
Series C, 7.00% | 60,600 | 1,499,850 | |
Series D, 7.125% | 40,200 | 1,002,990 | |
Hudson Pacific Properties, Inc. 8.375% | 77,800 | 2,053,920 | |
Kimco Realty Corp. Series G, 7.75% | 102,900 | 2,687,748 | |
Kite Realty Group Trust 8.25% | 4,100 | 101,680 | |
LaSalle Hotel Properties: | |||
Series E, 8.00% | 74,100 | 1,862,874 | |
Series G, 7.25% | 71,100 | 1,759,725 | |
Series H, 7.50% | 7,192 | 179,584 | |
LBA Realty Fund II Series B, 7.625% (a) | 118,900 | 1,842,950 | |
Lexington Corporate Properties Trust Series B, 8.05% | 64,200 | 1,601,148 | |
Lexington Realty Trust 7.55% | 16,500 | 403,425 | |
MFA Financial, Inc. Series A, 8.50% | 306,700 | 7,830,051 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 49,000 | 1,213,240 | |
Series B, 8.00% | 36,400 | 897,260 | |
Prologis, Inc.: | |||
Series O, 7.00% | 900 | 22,941 | |
Series Q, 8.54% | 15,800 | 879,370 | |
PS Business Parks, Inc. Series P, 6.70% | 52,700 | 1,323,824 | |
Public Storage Series N, 7.00% | 32,400 | 843,372 | |
Regency Centers Corp. 7.25% | 25,200 | 646,884 | |
Saul Centers, Inc.: | |||
8.00% | 36,400 | 940,212 | |
Series B (depositary shares) 9.00% | 24,400 | 665,876 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,081,200 | |
Summit Hotel Properties, Inc. Series A, 9.25% | 173,600 | 4,426,800 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 126,400 | 3,096,800 | |
Series D, 8.00% | 200 | 4,840 | |
UMH Properties, Inc. Series A, 8.25% | 40,500 | 1,043,280 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Weingarten Realty Investors (SBI) Series F, 6.50% | 62,800 | $ 1,588,840 | |
Winthrop Realty Trust Series D, 9.25% | 25,000 | 646,875 | |
| 91,428,074 | ||
TOTAL FINANCIALS | 94,330,678 | ||
TOTAL PREFERRED STOCKS (Cost $99,077,379) |
|
Corporate Bonds - 28.0% | ||||
| Principal Amount |
| ||
Convertible Bonds - 2.3% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 535,000 | 452,075 | ||
FINANCIALS - 2.2% | ||||
Real Estate Investment Trusts - 1.7% | ||||
Annaly Capital Management, Inc. 4% 2/15/15 | 405,000 | 478,913 | ||
CapLease, Inc. 7.5% 10/1/27 (c) | 4,458,000 | 4,469,145 | ||
ProLogis LP: | ||||
1.875% 11/15/37 | 1,783,000 | 1,765,170 | ||
2.625% 5/15/38 | 405,000 | 402,995 | ||
The Macerich Co. 3.25% 3/15/12 (c) | 3,486,000 | 3,483,821 | ||
| 10,600,044 | |||
Real Estate Management & Development - 0.5% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (c) | 940,000 | 910,625 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (c) | 1,540,000 | 891,198 | ||
SL Green Realty Corp. 3% 3/30/27 (c) | 1,175,000 | 1,172,063 | ||
| 2,973,886 | |||
TOTAL FINANCIALS | 13,573,930 | |||
TOTAL CONVERTIBLE BONDS | 14,026,005 | |||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - 25.7% | ||||
CONSUMER DISCRETIONARY - 7.8% | ||||
Hotels, Restaurants & Leisure - 0.7% | ||||
FelCor Lodging LP 6.75% 6/1/19 | $ 1,375,000 | $ 1,338,906 | ||
Times Square Hotel Trust 8.528% 8/1/26 (c) | 2,872,159 | 3,090,286 | ||
| 4,429,192 | |||
Household Durables - 7.0% | ||||
D.R. Horton, Inc. 6.5% 4/15/16 | 811,000 | 869,798 | ||
KB Home: | ||||
5.75% 2/1/14 | 414,000 | 417,623 | ||
5.875% 1/15/15 | 1,216,000 | 1,197,760 | ||
6.25% 6/15/15 | 5,634,000 | 5,556,533 | ||
7.25% 6/15/18 | 1,510,000 | 1,434,500 | ||
9.1% 9/15/17 | 3,230,000 | 3,310,750 | ||
Lennar Corp.: | ||||
5.5% 9/1/14 | 3,242,000 | 3,347,365 | ||
5.6% 5/31/15 | 1,216,000 | 1,252,480 | ||
6.95% 6/1/18 | 1,720,000 | 1,788,800 | ||
M/I Homes, Inc. 8.625% 11/15/18 | 5,564,000 | 5,174,520 | ||
Meritage Homes Corp.: | ||||
6.25% 3/15/15 | 2,837,000 | 2,837,000 | ||
7.15% 4/15/20 | 440,000 | 426,800 | ||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | 445,000 | 441,663 | ||
8.4% 5/15/17 | 1,446,000 | 1,554,450 | ||
Standard Pacific Corp.: | ||||
8.375% 5/15/18 | 8,047,000 | 8,167,705 | ||
10.75% 9/15/16 | 2,284,000 | 2,540,950 | ||
Standard Pacific Escrow LLC 10.75% 9/15/16 (c) | 1,000,000 | 1,070,000 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 450,000 | 449,991 | ||
| 41,838,688 | |||
Multiline Retail - 0.1% | ||||
Sears Holdings Corp. 6.625% 10/15/18 | 853,000 | 699,460 | ||
TOTAL CONSUMER DISCRETIONARY | 46,967,340 | |||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - 15.8% | ||||
Diversified Financial Services - 0.6% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | $ 2,172,000 | $ 2,258,880 | ||
8% 1/15/18 (c) | 1,215,000 | 1,266,638 | ||
| 3,525,518 | |||
Real Estate Investment Trusts - 8.2% | ||||
Camden Property Trust 5% 6/15/15 | 1,135,000 | 1,218,626 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 917,000 | 1,000,829 | ||
6.25% 6/15/14 | 949,000 | 1,017,362 | ||
Developers Diversified Realty Corp.: | ||||
5.375% 10/15/12 | 1,621,000 | 1,638,722 | ||
7.5% 7/15/18 | 2,407,000 | 2,685,656 | ||
9.625% 3/15/16 | 2,254,000 | 2,646,205 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 405,000 | 417,790 | ||
6% 9/15/16 | 811,000 | 846,968 | ||
6.25% 12/15/14 | 811,000 | 863,328 | ||
6.25% 1/15/17 | 811,000 | 853,020 | ||
Health Care Property Investors, Inc.: | ||||
6% 3/1/15 | 1,216,000 | 1,305,955 | ||
6.3% 9/15/16 | 3,850,000 | 4,355,998 | ||
7.072% 6/8/15 | 405,000 | 455,817 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 811,000 | 842,125 | ||
6.5% 1/17/17 | 506,000 | 556,310 | ||
Hospitality Properties Trust: | ||||
5.625% 3/15/17 | 1,248,000 | 1,288,267 | ||
6.7% 1/15/18 | 811,000 | 901,418 | ||
6.75% 2/15/13 | 1,013,000 | 1,029,766 | ||
7.875% 8/15/14 | 405,000 | 442,149 | ||
HRPT Properties Trust 6.5% 1/15/13 | 811,000 | 820,943 | ||
iStar Financial, Inc.: | ||||
5.875% 3/15/16 | 1,911,000 | 1,633,905 | ||
5.95% 10/15/13 | 3,833,000 | 3,526,360 | ||
6.05% 4/15/15 | 332,000 | 265,600 | ||
6.5% 12/15/13 | 600,000 | 549,000 | ||
8.625% 6/1/13 | 435,000 | 412,706 | ||
National Retail Properties, Inc. 6.875% 10/15/17 | 1,621,000 | 1,842,780 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | $ 1,540,000 | $ 1,681,652 | ||
6.25% 2/1/13 | 1,621,000 | 1,677,378 | ||
Omega Healthcare Investors, Inc.: | ||||
7% 1/15/16 | 1,863,000 | 1,907,246 | ||
7.5% 2/15/20 | 811,000 | 875,880 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,378,000 | 1,471,271 | ||
Potlatch Corp. 7.5% 11/1/19 | 811,000 | 851,550 | ||
ProLogis LP 7.625% 7/1/17 | 1,268,000 | 1,452,892 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 811,000 | 913,916 | ||
Senior Housing Properties Trust: | ||||
6.75% 4/15/20 | 576,000 | 611,475 | ||
6.75% 12/15/21 | 2,000,000 | 2,141,926 | ||
UDR, Inc. 5.5% 4/1/14 | 1,000,000 | 1,054,709 | ||
United Dominion Realty Trust, Inc.: | ||||
5.25% 1/15/15 | 405,000 | 430,703 | ||
5.25% 1/15/16 | 811,000 | 867,459 | ||
| 49,355,662 | |||
Real Estate Management & Development - 7.0% | ||||
AMB Property LP 5.9% 8/15/13 | 486,000 | 501,649 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 1,216,000 | 1,254,071 | ||
5.75% 4/1/12 | 811,000 | 814,478 | ||
6% 4/1/16 | 811,000 | 859,699 | ||
7.5% 5/15/15 | 405,000 | 444,100 | ||
CB Richard Ellis Services, Inc. 11.625% 6/15/17 | 811,000 | 936,705 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,013,000 | 1,036,175 | ||
6.25% 6/15/14 | 1,293,000 | 1,358,922 | ||
6.875% 8/15/12 | 811,000 | 822,870 | ||
Colonial Realty LP 6.05% 9/1/16 | 1,216,000 | 1,265,443 | ||
Duke Realty LP 6.25% 5/15/13 | 608,000 | 635,573 | ||
First Industrial LP 5.75% 1/15/16 | 811,000 | 784,529 | ||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | 6,171,000 | 5,800,740 | ||
7.625% 6/1/15 | 3,810,000 | 3,771,900 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Highwoods/Forsyth LP 5.85% 3/15/17 | $ 2,593,000 | $ 2,793,830 | ||
Host Hotels & Resorts LP: | ||||
6% 10/1/21 (c) | 485,000 | 520,163 | ||
6.875% 11/1/14 | 1,621,000 | 1,645,315 | ||
9% 5/15/17 | 608,000 | 671,840 | ||
Kennedy-Wilson, Inc. 8.75% 4/1/19 (c) | 215,000 | 216,613 | ||
Post Apartment Homes LP 6.3% 6/1/13 | 811,000 | 845,875 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (c) | 1,450,000 | 1,334,000 | ||
9% 1/15/20 (c) | 560,000 | 547,400 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 3,250,000 | 3,508,248 | ||
5.875% 6/15/17 | 486,000 | 544,454 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,035,000 | 2,263,938 | ||
Toys 'R' Us Property Co. II LLC 8.5% 12/1/17 | 811,000 | 868,824 | ||
Ventas Realty LP Series 1, 6.5% 6/1/16 | 4,515,000 | 4,681,631 | ||
Vornado Realty LP 5% 1/15/22 | 1,000,000 | 1,048,295 | ||
| 41,777,280 | |||
TOTAL FINANCIALS | 94,658,460 | |||
HEALTH CARE - 1.7% | ||||
Health Care Equipment & Supplies - 0.2% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 1,000,000 | 1,002,500 | ||
Health Care Providers & Services - 1.5% | ||||
Health Management Associates, Inc. 7.375% 1/15/20 (c) | 385,000 | 397,513 | ||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 6,827,000 | 7,185,418 | ||
Skilled Healthcare Group, Inc. 11% 1/15/14 | 1,394,000 | 1,390,515 | ||
| 8,973,446 | |||
TOTAL HEALTH CARE | 9,975,946 | |||
INDUSTRIALS - 0.1% | ||||
Commercial Services & Supplies - 0.1% | ||||
Landry's Acquisition Co. 11.625% 12/1/15 (c) | 295,000 | 317,125 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
MATERIALS - 0.3% | ||||
Paper & Forest Products - 0.3% | ||||
Plum Creek Timberlands LP 5.875% 11/15/15 | $ 1,621,000 | $ 1,795,300 | ||
TOTAL NONCONVERTIBLE BONDS | 153,714,171 | |||
TOTAL CORPORATE BONDS (Cost $161,779,610) |
| |||
Asset-Backed Securities - 7.0% | ||||
| ||||
Anthracite CDO I Ltd. Series 2002-CIBA Class B, 6.633% 5/24/37 (c) | 1,331,000 | 1,332,331 | ||
Anthracite CDO III Ltd./Anthracite CDO III Corp. | 1,561,215 | 1,295,808 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (c) | 3,607,697 | 3,578,835 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.8315% 1/20/37 (c)(e) | 1,236,859 | 986,395 | ||
CBRE Realty Finance CDO LLC Series 2007-1A | 4,855,304 | 3,204,501 | ||
Conseco Finance Securitizations Corp.: | ||||
Series 2002-1 Class M2, 9.546% 12/1/33 | 1,216,000 | 1,001,981 | ||
Series 2002-2 Class M2, 9.163% 3/1/33 | 2,026,000 | 1,210,832 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. | ||||
Class B1, 6.065% 12/28/35 (c) | 1,734,000 | 1,395,870 | ||
Class B2, 1.9238% 12/28/35 (c)(e) | 1,711,000 | 1,172,035 | ||
Deutsche Financial Capital Securitization LLC | 1,627,000 | 1,497,958 | ||
Lehman ABS Manufactured Housing Contract Trust | 4,127,438 | 1,536,895 | ||
N-Star Real Estate CDO Ltd. Series 1A Class B1, 2.1867% 8/28/38 (c)(e) | 3,574,000 | 3,046,835 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, | 1,310,000 | 1,218,300 | ||
Residential Asset Securities Corp. Series 2003-KS10 Class MI3, 6.41% 12/25/33 | 322,106 | 89,232 | ||
TIAA Real Estate CDO Ltd./TIAA Real Estate CDO Corp. Series 2002-1A Class IIFX, 6.77% 5/22/37 (c) | 761,273 | 759,370 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 0% 9/25/26 (c)(e) | 2,432,000 | 1,021,440 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Wachovia Ltd./Wachovia LLC: - continued | ||||
Series 2006-1A: | ||||
Class A1A, 0.8338% 9/25/26 (c)(e) | $ 1,429,484 | $ 1,229,356 | ||
Class A1B, 0.9038% 9/25/26 (c)(e) | 11,266,000 | 8,393,170 | ||
Class A2A, 0.7938% 9/25/26 (c)(e) | 3,968,813 | 3,532,243 | ||
Class F, 1.7238% 9/25/26 (c)(e) | 1,824,000 | 1,222,080 | ||
Class G, 1.9238% 9/25/26 (c)(e) | 1,241,000 | 806,650 | ||
Class H, 2.2238% 9/25/26 (c)(e) | 3,486,000 | 2,161,320 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $39,965,546) |
| |||
Collateralized Mortgage Obligations - 1.3% | ||||
| ||||
Private Sponsor - 1.3% | ||||
COMM pass-thru certificates Series 2007-FL14 | 1,652,917 | 1,602,273 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.435% 4/25/20 (c)(e) | 2,605,000 | 2,539,221 | ||
Series 2010-K6 Class B, 5.3579% 12/25/46 (c)(e) | 811,000 | 778,513 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (c) | 811,000 | 835,750 | ||
Merrill Lynch Mortgage Trust Series 2002-MW1 Class E, 6.219% 7/12/34 (c) | 1,687,000 | 1,689,848 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $7,187,502) |
| |||
Commercial Mortgage Securities - 21.1% | ||||
| ||||
Banc of America Commercial Mortgage, Inc.: | ||||
sequential payer: | ||||
Series 2002-2 Class F, 5.487% 7/11/43 | 3,242,000 | 3,265,910 | ||
Series 2005-1 Class A3, 4.877% 11/10/42 | 93,862 | 93,795 | ||
Series 2005-1 Class CJ, 5.1847% 11/10/42 (e) | 1,175,000 | 1,174,425 | ||
Banc of America Large Loan Trust floater | 16,631,707 | 15,218,003 | ||
Banc of America Large Loan, Inc. floater | 2,132,000 | 1,662,960 | ||
Bear Stearns Commercial Mortgage Securities, Inc. | 2,432,000 | 2,231,260 | ||
Chase Commercial Mortgage Securities Corp. | 1,621,000 | 1,354,145 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12 Class AJ, 0.4151% 12/15/20 (c)(e) | $ 1,621,000 | $ 1,451,891 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (c) | 2,482,761 | 2,481,271 | ||
Commercial Mortgage pass-thru certificates: | ||||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (e) | 2,000,000 | 1,942,872 | ||
Series 2011-STRT Class C, 4.755% 12/10/24 (c) | 500,000 | 500,625 | ||
Communication Mortgage Trust Series 2011-THL: | ||||
Class E, 5.949% 6/9/28 (c) | 1,230,000 | 1,249,975 | ||
Class F, 4.867% 6/9/28 (c) | 3,640,000 | 3,025,062 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C2 Class F, 6.75% 11/15/30 (c) | 811,000 | 886,237 | ||
Series 2003-C3 Class D, 4.131% 5/15/38 | 1,621,000 | 1,627,118 | ||
CRESI Finance Ltd. Partnership floater Series 2006-A Class E, 1.9263% 3/25/17 (c)(e) | 1,167,000 | 816,900 | ||
CRESIX Finance Ltd. Series 2006-AA: | ||||
Class F, 4.4763% 3/25/17 (c)(e) | 1,783,000 | 1,158,950 | ||
Class G, 7.2763% 3/25/17 (c)(e) | 1,516,000 | 909,600 | ||
Deutsche Mortgage & Asset Receiving Corp. | 1,946,000 | 1,610,163 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 | 2,026,000 | 2,134,995 | ||
Extended Stay America Trust Series 2010-ESHA | 4,500,000 | 4,554,385 | ||
FHMLC Multi-class participation certificates guaranteed Series K013 Class X3, 2.7897% 1/25/43 (e)(f) | 4,806,000 | 790,818 | ||
Freddie Mac Multi-Class participation certificates guaranteed: | ||||
Series K011 Class X3, 2.5748% 12/25/43 (e)(f) | 4,947,000 | 744,578 | ||
Series K012 Class X3, 2.2876% 1/25/41 (e)(f) | 2,847,000 | 389,344 | ||
G-Force LLC sequential payer Series 2005-RRA | 5,948,991 | 5,473,071 | ||
GE Capital Commercial Mortgage Corp. | 1,035,000 | 1,033,748 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2: | ||||
Class F, 6.75% 4/15/29 (e) | 493,985 | 512,831 | ||
Class G, 6.75% 4/15/29 (e) | 1,096,000 | 1,202,753 | ||
Series 1999-C1 Class F, 6.02% 5/15/33 (c) | 1,072,111 | 1,101,956 | ||
Series 1999-C3: | ||||
Class G, 6.974% 8/15/36 (c) | 370,450 | 369,099 | ||
Class J, 6.974% 8/15/36 | 2,204,000 | 2,227,975 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 345,889 | 256,627 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Greenwich Capital Commercial Funding Corp.: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (c) | $ 811,000 | $ 826,517 | ||
Series 2002-C1 Class H, 5.903% 1/11/35 (c) | 925,000 | 928,457 | ||
Series 2005-GG3 Class B, 4.894% 8/10/42 (e) | 885,000 | 861,566 | ||
GS Mortgage Securities Corp. II floater | 2,270,000 | 2,256,623 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (c) | 6,300,000 | 5,944,680 | ||
GS Mortgage Securities Trust Series 2012-GC6 Class C, 0% 1/10/45 (c)(d)(e) | 2,400,000 | 2,174,640 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2009-IWST Class D, 7.4453% 12/5/27 (c)(e) | 2,229,000 | 2,241,092 | ||
Series 2010-CNTR Class D, 6.1838% 8/5/32 (c)(e) | 1,216,000 | 1,150,820 | ||
JPMorgan Commercial Mortgage Finance Corp. | 684,311 | 693,293 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (c) | 868,000 | 898,732 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 3,760,000 | 3,701,130 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 1,240,000 | 1,257,040 | ||
Series 2005-C2 Class AJ, 5.205% 4/15/30 (e) | 4,863,000 | 5,019,414 | ||
Series 2006-C4 Class AJ, 5.8897% 6/15/38 (e) | 2,511,000 | 2,038,945 | ||
Lstar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.6768% 6/25/43 (c)(e) | 1,564,000 | 1,289,385 | ||
Series 2011-1 Class B, 5.6768% 6/25/43 (c)(e) | 1,897,000 | 1,906,993 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (c) | 1,946,387 | 1,951,253 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 3,769,000 | 3,861,725 | ||
Series 1997-RR Class F, 7.3991% 4/30/39 (c)(e) | 421,445 | 387,729 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (c) | 1,779,839 | 818,726 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 3,242,000 | 3,297,052 | ||
Series 2011-C1 Class C, 5.2554% 9/15/47 (c)(e) | 2,000,000 | 1,887,386 | ||
Series 2011-C2: | ||||
Class D, 5.3186% 6/15/44 (c)(e) | 1,532,000 | 1,379,030 | ||
Class E, 5.3186% 6/15/44 (c)(e) | 1,946,000 | 1,617,398 | ||
Class F, 5.3186% 6/15/44 (c)(e) | 1,467,000 | 1,065,409 | ||
Class XB, 0.465% 6/15/44 (c)(e)(f) | 51,641,000 | 1,600,871 | ||
Providence Place Group Ltd. Partnership | 962,989 | 1,013,354 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Structured Asset Securities Corp. Series 1997-LLI Class F, 7.3% 10/12/34 (c) | $ 965,000 | $ 965,260 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (c) | 2,026,000 | 1,883,953 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 | 1,459,000 | 984,754 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 1,621,000 | 1,598,980 | ||
Series 2004-C12 Class D, 5.3163% 7/15/41 (e) | 1,824,000 | 1,729,688 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 2,708,000 | 2,619,595 | ||
WF-RBS Commercial Mortgage Trust Series 2011-C5 Class C, 5.6368% 11/15/44 (c)(e) | 1,250,000 | 1,151,250 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $121,899,815) |
| |||
Floating Rate Loans - 2.4% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack term loan 2.53% 10/27/13 (e) | 395,277 | 394,289 | ||
FINANCIALS - 1.4% | ||||
Real Estate Management & Development - 1.4% | ||||
Capital Automotive LP term loan 5% 3/11/17 (e) | 1,937,806 | 1,928,117 | ||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7958% 9/4/19 (e) | 807,970 | 799,890 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.2953% 10/10/13 (e) | 236,824 | 236,824 | ||
Credit-Linked Deposit 4.5453% 10/10/16 (e) | 156,389 | 145,442 | ||
term loan 4.6914% 10/10/16 (e) | 1,988,611 | 1,849,408 | ||
Tranche 2LN, term loan 13.5% 10/15/17 | 1,219,000 | 1,243,380 | ||
Tranche B, term loan 3.4414% 10/10/13 (e) | 2,362,035 | 2,338,415 | ||
| 8,541,476 | |||
HEALTH CARE - 0.1% | ||||
Health Care Providers & Services - 0.1% | ||||
Community Health Systems, Inc.: | ||||
Tranche B, term loan 2.7552% 7/25/14 (e) | 384,263 | 378,979 | ||
Floating Rate Loans - continued | ||||
| Principal Amount | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Community Health Systems, Inc.: - continued | ||||
Tranche DD, term loan 2.52% 7/25/14 (e) | $ 18,951 | $ 18,691 | ||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (e) | 500,000 | 495,000 | ||
| 892,670 | |||
INDUSTRIALS - 0.5% | ||||
Construction & Engineering - 0.5% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (e) | 3,232,683 | 2,901,333 | ||
TELECOMMUNICATION SERVICES - 0.3% | ||||
Wireless Telecommunication Services - 0.3% | ||||
Crown Castle Operating Co. Tranche B, term loan 4% 1/18/19 (e) | 1,135,000 | 1,133,638 | ||
TowerCo Finance LLC Tranche B, term loan 5.25% 2/2/17 (e) | 674,705 | 677,235 | ||
| 1,810,873 | |||
TOTAL FLOATING RATE LOANS (Cost $14,244,797) |
|
Money Market Funds - 7.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 47,555,254 |
| |
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $578,602,136) | 604,123,617 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (5,291,085) | ||
NET ASSETS - 100% | $ 598,832,532 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) 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 $145,234,089 or 24.3% of net assets. |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 7,905 |
Fidelity Securities Lending Cash Central Fund | 10,101 |
Total | $ 18,006 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 2,178,540 | $ 2,178,540 | $ - | $ - |
Financials | 187,878,976 | 181,808,144 | 6,070,832 | - |
Health Care | 8,634,906 | 8,634,906 | - | - |
Corporate Bonds | 167,740,176 | - | 167,740,176 | - |
Asset-Backed Securities | 41,693,437 | - | 19,620,735 | 22,072,702 |
Collateralized Mortgage Obligations | 7,445,605 | - | 7,445,605 | - |
Commercial Mortgage Securities | 126,456,082 | - | 115,898,420 | 10,557,662 |
Floating Rate Loans | 14,540,641 | - | 14,540,641 | - |
Money Market Funds | 47,555,254 | 47,555,254 | - | - |
Total Investments in Securities: | $ 604,123,617 | $ 240,176,844 | $ 331,316,409 | $ 32,630,364 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Asset-Backed Securities | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | 25,595 |
Total Unrealized Gain (Loss) | 1,688,531 |
Cost of Purchases | 22,624,773 |
Proceeds of Sales | (2,515,575) |
Amortization/Accretion | 249,378 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 22,072,702 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 1,688,531 |
Commercial Mortgage Securities | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | 1,977 |
Total Unrealized Gain (Loss) | 355,721 |
Cost of Purchases | 10,836,499 |
Proceeds of Sales | (881,119) |
Amortization/Accretion | 244,584 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,557,662 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 355,721 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and includes the value of securities received through affiliated in-kind transactions. See Note 6 of the Notes to Financial Statements. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
U.S. Government and U.S. Government Agency Obligations | 0.3% |
AAA,AA,A | 11.4% |
BBB | 15.6% |
BB | 6.3% |
B | 14.0% |
CCC,CC,C | 5.1% |
Not Rated | 7.1% |
Equities | 33.2% |
Short-Term Investments and Net Other Assets | 7.0% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $531,046,882) | $ 556,568,363 |
|
Fidelity Central Funds (cost $47,555,254) | 47,555,254 |
|
Total Investments (cost $578,602,136) |
| $ 604,123,617 |
Cash |
| 40,871 |
Receivable for investments sold | 578,431 | |
Dividends receivable | 379,223 | |
Interest receivable | 3,720,808 | |
Distributions receivable from Fidelity Central Funds | 5,036 | |
Other receivables | 485 | |
Total assets | 608,848,471 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,516,571 | |
Delayed delivery | 2,135,382 | |
Accrued management fee | 258,862 | |
Other affiliated payables | 79,379 | |
Other payables and accrued expenses | 25,745 | |
Total liabilities | 10,015,939 | |
|
|
|
Net Assets | $ 598,832,532 | |
Net Assets consist of: |
| |
Paid in capital | $ 570,407,520 | |
Undistributed net investment income | 1,945,503 | |
Accumulated undistributed net realized gain (loss) on investments | 958,028 | |
Net unrealized appreciation (depreciation) on investments | 25,521,481 | |
Net Assets | $ 598,832,532 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Series Real Estate Income: | $ 10.54 | |
|
|
|
Class F: | $ 10.54 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
For the period October 20, 2011 (commencement of operations) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,659,319 |
Interest |
| 6,743,391 |
Income from Fidelity Central Funds |
| 18,006 |
Total income |
| 9,420,716 |
|
|
|
Expenses | ||
Management fee | $ 816,114 | |
Transfer agent fees | 189,794 | |
Accounting and security lending fees | 70,645 | |
Custodian fees and expenses | 5,052 | |
Independent trustees' compensation | 803 | |
Audit | 24,922 | |
Legal | 21 | |
Miscellaneous | 379 | |
Total expenses before reductions | 1,107,730 | |
Expense reductions | (485) | 1,107,245 |
Net investment income (loss) | 8,313,471 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 1,474,403 |
Change in net unrealized appreciation (depreciation) on investment securities | 25,521,481 | |
Net gain (loss) | 26,995,884 | |
Net increase (decrease) in net assets resulting from operations | $ 35,309,355 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) | $ 8,313,471 |
Net realized gain (loss) | 1,474,403 |
Change in net unrealized appreciation (depreciation) | 25,521,481 |
Net increase (decrease) in net assets resulting from operations | 35,309,355 |
Distributions to shareholders from net investment income | (6,367,968) |
Distributions to shareholders from net realized gain | (516,375) |
Total distributions | (6,884,343) |
Share transactions - net increase (decrease) | 570,407,520 |
Total increase (decrease) in net assets | 598,832,532 |
|
|
Net Assets | |
Beginning of period | - |
End of period (including undistributed net investment income of $1,945,503) | $ 598,832,532 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Income
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .16 |
Net realized and unrealized gain (loss) | .51 |
Total from investment operations | .67 |
Distributions from net investment income | (.12) |
Distributions from net realized gain | (.01) |
Total distributions | (.13) |
Net asset value, end of period | $ 10.54 |
Total Return B, C | 6.78% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .82% A |
Expenses net of fee waivers, if any | .82% A |
Expenses net of all reductions | .82% A |
Net investment income (loss) | 5.64% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 382,186 |
Portfolio turnover rate F | 11% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to January 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D | .16 |
Net realized and unrealized gain (loss) | .52 |
Total from investment operations | .68 |
Distributions from net investment income | (.13) |
Distributions from net realized gain | (.01) |
Total distributions | (.14) |
Net asset value, end of period | $ 10.54 |
Total Return B, C | 6.82% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .63% A |
Expenses net of fee waivers, if any | .63% A |
Expenses net of all reductions | .63% A |
Net investment income (loss) | 5.83% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 216,647 |
Portfolio turnover rate F | 11% I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to January 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity Series Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Real Estate Income shares and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs)and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and, accordingly, such securities are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Certain of the Fund's securities may be valued by a single source or dealer. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the heirarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
3. Significant Accounting Policies - continued
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.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 27,942,834 |
Gross unrealized depreciation | (2,421,353) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 25,521,481 |
|
|
Tax cost | $ 578,602,136 |
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $575,991,897 and $55,989,604, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Real Estate Income, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Series Real Estate Income | $ 189,794 | .19 |
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $769 for the period.
Exchanges In-Kind. During the period, certain investment companies managed by FMR or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered cash and securities, including accrued interest, valued at $490,818,718 in exchange for 49,081,872 shares of the Fund. The amount of in-kind
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Exchanges In-Kind - continued
exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 10: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $10,101. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $485 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Period ended |
From net investment income |
|
Series Real Estate Income | $ 4,397,767 |
Class F | 1,970,201 |
Total | $ 6,367,968 |
From net realized gain |
|
Series Real Estate Income | $ 360,160 |
Class F | 156,215 |
Total | $ 516,375 |
A For the period October 20, 2011 (commencement of operations) to January 31, 2012.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Period ended | Period ended | |
Series Real Estate Income |
|
|
Shares sold | 36,748,597 B | $ 367,686,078 B |
Reinvestment of distributions | 470,771 | 4,757,927 |
Shares redeemed | (953,291) | (9,691,761) |
Net increase (decrease) | 36,266,077 | $ 362,752,244 |
Class F |
|
|
Shares sold | 20,552,425 B | $ 207,642,808 B |
Reinvestment of distributions | 210,596 | 2,126,417 |
Shares redeemed | (207,664) | (2,113,949) |
Net increase (decrease) | 20,555,357 | $ 207,655,276 |
A For the period October 20, 2011 (commencement of operations) to January 31, 2012.
B Amount includes in-kind exchanges (see Note 6: Exchanges In-Kind).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or an affiliate were the owners of record of all of the outstanding shares of the Fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Series Real Estate Income Fund
On January 19, 2011, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the equity research subcommittee of the Board's Fund Oversight Committee reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. The Board noted FMR's continued focus on strengthening the organization and discipline of equity portfolio management and research.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the investment adviser's supervision of third party service providers, principally custodians and subcustodians.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven real estate selection, which the Board is familiar with through its supervision of other Fidelity funds that invest in such securities.
Based on its review, the Board concluded that the nature, extent, and quality of the services provided by Fidelity to the funds will benefit the fund's shareholders.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's proposed management fee and the projected total operating expenses of each class of the fund in reviewing the Advisory Contracts. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable management fee characteristics. The Board also considered that the projected total operating expenses are comparable to those of similar classes and funds that Fidelity offers to shareholders.
Based on its review, the Board concluded that the fund's management fee and the projected total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders.
Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be approved.
Semiannual Report
Managing Your Investments
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Semiannual Report
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Semiannual Report
Investment Adviser
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Fidelity®
Series Small Cap Opportunities
Fund
Fidelity Series Small Cap Opportunities Fund
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity Series Small Cap Opportunities Fund or 1-800-835-5092 for Class F to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Series Small Cap Opportunities | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 991.30 | $ 5.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.46 | $ 5.74 |
Class F | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 992.20 | $ 4.61 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.51 | $ 4.67 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Glimcher Realty Trust | 1.4 | 0.4 |
ProAssurance Corp. | 1.2 | 1.0 |
American Assets Trust, Inc. | 1.1 | 1.0 |
Highwoods Properties, Inc. (SBI) | 1.1 | 0.9 |
National Retail Properties, Inc. | 1.1 | 1.1 |
Amerisafe, Inc. | 1.1 | 0.9 |
National Penn Bancshares, Inc. | 1.0 | 1.2 |
Parametric Technology Corp. | 1.0 | 0.8 |
Home Properties, Inc. | 0.9 | 1.3 |
Ramco-Gershenson Properties Trust (SBI) | 0.9 | 1.0 |
| 10.8 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 20.4 | 21.1 |
Information Technology | 17.7 | 16.5 |
Industrials | 14.7 | 14.5 |
Consumer Discretionary | 13.1 | 13.6 |
Health Care | 9.6 | 11.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks and Equity |
| ![]() | Stocks and Equity |
| ||
![]() | Convertible Securities 0.2% |
| ![]() | Convertible Securities 0.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.5% |
| ** Foreign investments | 7.0% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Auto Components - 0.8% | |||
Tenneco, Inc. (a) | 493,186 | $ 15,831,271 | |
Hotels, Restaurants & Leisure - 1.6% | |||
Cracker Barrel Old Country Store, Inc. | 161,212 | 8,458,794 | |
Vail Resorts, Inc. | 168,359 | 7,342,136 | |
WMS Industries, Inc. (a) | 162,800 | 3,563,692 | |
Wyndham Worldwide Corp. | 296,100 | 11,772,936 | |
| 31,137,558 | ||
Household Durables - 2.2% | |||
iRobot Corp. (a)(d) | 337,883 | 11,163,654 | |
La-Z-Boy, Inc. (a) | 579,590 | 7,638,996 | |
Meritage Homes Corp. (a) | 425,400 | 10,294,680 | |
Tempur-Pedic International, Inc. (a) | 187,006 | 12,475,170 | |
| 41,572,500 | ||
Media - 0.6% | |||
Digital Generation, Inc. (a) | 400,564 | 5,567,840 | |
MDC Partners, Inc. Class A (sub. vtg.) | 477,000 | 6,239,160 | |
| 11,807,000 | ||
Multiline Retail - 0.5% | |||
Dollarama, Inc. | 243,066 | 10,483,774 | |
Specialty Retail - 5.3% | |||
Ascena Retail Group, Inc. (a) | 411,480 | 14,554,048 | |
Body Central Corp. (a) | 479,791 | 12,896,782 | |
Cabela's, Inc. Class A (a) | 526,338 | 13,726,895 | |
DSW, Inc. Class A | 291,958 | 14,589,141 | |
Fourlis Holdings SA (a) | 437,196 | 869,182 | |
GameStop Corp. Class A (a) | 392,200 | 9,161,792 | |
Shoe Carnival, Inc. (a) | 472,714 | 11,954,937 | |
Signet Jewelers Ltd. | 303,800 | 13,847,204 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 144,708 | 11,029,644 | |
| 102,629,625 | ||
Textiles, Apparel & Luxury Goods - 2.1% | |||
Deckers Outdoor Corp. (a) | 97,833 | 7,909,798 | |
G-III Apparel Group Ltd. (a) | 485,300 | 11,079,399 | |
PVH Corp. | 168,800 | 13,029,672 | |
Vera Bradley, Inc. (a)(d) | 243,298 | 8,714,934 | |
| 40,733,803 | ||
TOTAL CONSUMER DISCRETIONARY | 254,195,531 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.2% | |||
Beverages - 0.6% | |||
Monster Beverage Corp. (a) | 96,700 | $ 10,106,117 | |
Primo Water Corp. (a)(d) | 462,800 | 1,356,004 | |
| 11,462,121 | ||
Food & Staples Retailing - 0.9% | |||
Casey's General Stores, Inc. | 184,840 | 9,415,750 | |
Crumbs Bake Shop, Inc. (a) | 105,115 | 417,307 | |
United Natural Foods, Inc. (a) | 176,355 | 7,768,438 | |
| 17,601,495 | ||
Food Products - 0.7% | |||
Chiquita Brands International, Inc. (a) | 330,230 | 2,902,722 | |
Diamond Foods, Inc. (d) | 55,200 | 2,005,968 | |
Green Mountain Coffee Roasters, Inc. (a) | 142,800 | 7,616,952 | |
| 12,525,642 | ||
Personal Products - 1.0% | |||
Elizabeth Arden, Inc. (a) | 321,584 | 11,567,376 | |
Nu Skin Enterprises, Inc. Class A | 170,507 | 8,516,825 | |
| 20,084,201 | ||
TOTAL CONSUMER STAPLES | 61,673,459 | ||
ENERGY - 6.5% | |||
Energy Equipment & Services - 1.3% | |||
Atwood Oceanics, Inc. (a) | 237,900 | 10,938,642 | |
Total Energy Services, Inc. | 603,300 | 10,119,677 | |
Willbros Group, Inc. (a) | 1,122,618 | 4,782,353 | |
| 25,840,672 | ||
Oil, Gas & Consumable Fuels - 5.2% | |||
Atlas Pipeline Partners, LP | 415,529 | 15,586,493 | |
Berry Petroleum Co. Class A | 377,100 | 16,973,271 | |
Cheniere Energy, Inc. (a) | 458,533 | 5,864,637 | |
Cloud Peak Energy, Inc. (a) | 631,900 | 11,974,505 | |
Energen Corp. | 71,738 | 3,455,619 | |
Petroleum Development Corp. (a) | 356,078 | 11,084,708 | |
SM Energy Co. | 145,852 | 10,585,938 | |
Stone Energy Corp. (a) | 417,500 | 11,710,875 | |
Targa Resources Corp. | 311,100 | 12,891,984 | |
| 100,128,030 | ||
TOTAL ENERGY | 125,968,702 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - 20.4% | |||
Capital Markets - 2.5% | |||
Affiliated Managers Group, Inc. (a) | 84,100 | $ 8,452,891 | |
Duff & Phelps Corp. Class A | 1,113,477 | 17,069,602 | |
Knight Capital Group, Inc. Class A (a) | 1,003,185 | 13,031,373 | |
Waddell & Reed Financial, Inc. Class A | 335,341 | 9,205,110 | |
| 47,758,976 | ||
Commercial Banks - 5.1% | |||
Associated Banc-Corp. | 1,470,628 | 18,324,025 | |
BBCN Bancorp, Inc. (a) | 1,142,797 | 11,565,106 | |
CapitalSource, Inc. | 470,439 | 3,250,733 | |
Cathay General Bancorp | 607,724 | 9,565,576 | |
City National Corp. | 366,800 | 16,828,784 | |
Columbia Banking Systems, Inc. | 279,300 | 5,865,300 | |
National Penn Bancshares, Inc. | 2,322,600 | 20,183,394 | |
PacWest Bancorp | 684,939 | 14,568,653 | |
| 100,151,571 | ||
Insurance - 3.8% | |||
Allied World Assurance Co. Holdings Ltd. | 199,900 | 12,299,847 | |
Alterra Capital Holdings Ltd. | 706,811 | 17,083,622 | |
Amerisafe, Inc. (a) | 837,600 | 20,588,208 | |
ProAssurance Corp. | 283,076 | 23,107,494 | |
| 73,079,171 | ||
Real Estate Investment Trusts - 8.1% | |||
American Assets Trust, Inc. | 958,600 | 21,223,404 | |
Colonial Properties Trust (SBI) | 796,089 | 17,020,383 | |
DCT Industrial Trust, Inc. | 2,342,500 | 12,930,600 | |
Glimcher Realty Trust | 2,784,905 | 26,818,633 | |
Highwoods Properties, Inc. (SBI) | 634,200 | 20,985,678 | |
Home Properties, Inc. | 312,149 | 18,597,837 | |
National Retail Properties, Inc. | 765,900 | 20,686,959 | |
Ramco-Gershenson Properties Trust (SBI) | 1,599,150 | 18,502,166 | |
| 156,765,660 | ||
Thrifts & Mortgage Finance - 0.9% | |||
Washington Federal, Inc. | 584,694 | 9,214,777 | |
WSFS Financial Corp. | 218,759 | 8,511,913 | |
| 17,726,690 | ||
TOTAL FINANCIALS | 395,482,068 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - 9.4% | |||
Biotechnology - 2.5% | |||
Achillion Pharmaceuticals, Inc. (a) | 538,616 | $ 5,973,251 | |
Ardea Biosciences, Inc. (a) | 194,301 | 3,534,335 | |
ARIAD Pharmaceuticals, Inc. (a) | 660,723 | 9,745,664 | |
ArQule, Inc. (a) | 512,342 | 4,047,502 | |
BioMarin Pharmaceutical, Inc. (a) | 138,394 | 4,936,514 | |
Chelsea Therapeutics International Ltd. (a) | 726,899 | 3,271,046 | |
Dynavax Technologies Corp. (a) | 1,852,559 | 6,446,905 | |
Infinity Pharmaceuticals, Inc. (a)(d) | 401,927 | 2,443,716 | |
Synageva BioPharma Corp. (a) | 142,313 | 5,056,381 | |
Theravance, Inc. (a) | 202,219 | 3,587,365 | |
| 49,042,679 | ||
Health Care Equipment & Supplies - 1.7% | |||
Analogic Corp. | 184,505 | 10,466,969 | |
Cerus Corp. (a)(d) | 1,983,251 | 5,652,265 | |
Conceptus, Inc. (a) | 272,086 | 3,368,425 | |
Endologix, Inc. (a) | 380,820 | 4,943,044 | |
Natus Medical, Inc. (a) | 111,294 | 1,258,735 | |
Sirona Dental Systems, Inc. (a) | 170,600 | 8,248,510 | |
| 33,937,948 | ||
Health Care Providers & Services - 3.3% | |||
Air Methods Corp. (a) | 76,841 | 6,477,696 | |
Catalyst Health Solutions, Inc. (a) | 103,399 | 5,662,129 | |
Centene Corp. (a) | 131,747 | 5,954,964 | |
Corvel Corp. (a) | 185,920 | 9,050,586 | |
Humana, Inc. | 103,272 | 9,193,273 | |
MEDNAX, Inc. (a) | 166,925 | 11,888,399 | |
PSS World Medical, Inc. (a) | 314,969 | 7,644,298 | |
Wellcare Health Plans, Inc. (a) | 146,075 | 8,729,442 | |
| 64,600,787 | ||
Health Care Technology - 0.9% | |||
Epocrates, Inc. (a) | 715,110 | 6,929,416 | |
Merge Healthcare, Inc. (a) | 361,991 | 1,983,711 | |
Omnicell, Inc. (a) | 519,584 | 8,043,160 | |
| 16,956,287 | ||
Life Sciences Tools & Services - 0.5% | |||
eResearchTechnology, Inc. (a) | 893,569 | 4,950,372 | |
Furiex Pharmaceuticals, Inc. (a) | 259,036 | 4,105,721 | |
| 9,056,093 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 0.5% | |||
Optimer Pharmaceuticals, Inc. (a) | 170,143 | $ 2,206,755 | |
Questcor Pharmaceuticals, Inc. (a) | 141,610 | 5,017,242 | |
XenoPort, Inc. (a) | 552,700 | 2,315,813 | |
| 9,539,810 | ||
TOTAL HEALTH CARE | 183,133,604 | ||
INDUSTRIALS - 14.7% | |||
Aerospace & Defense - 1.4% | |||
Alliant Techsystems, Inc. | 151,949 | 9,027,290 | |
Teledyne Technologies, Inc. (a) | 322,449 | 18,302,205 | |
| 27,329,495 | ||
Air Freight & Logistics - 0.4% | |||
UTI Worldwide, Inc. | 534,300 | 7,955,727 | |
Building Products - 1.1% | |||
AAON, Inc. (d) | 496,850 | 10,061,213 | |
Armstrong World Industries, Inc. (a) | 264,974 | 12,374,286 | |
| 22,435,499 | ||
Commercial Services & Supplies - 1.4% | |||
Swisher Hygiene, Inc. | 961,491 | 3,374,833 | |
Sykes Enterprises, Inc. (a) | 576,298 | 10,102,504 | |
United Stationers, Inc. | 398,800 | 12,893,204 | |
| 26,370,541 | ||
Construction & Engineering - 0.9% | |||
Foster Wheeler AG (a) | 407,528 | 9,153,079 | |
MasTec, Inc. (a) | 555,110 | 9,042,742 | |
| 18,195,821 | ||
Electrical Equipment - 1.5% | |||
General Cable Corp. (a) | 517,785 | 15,978,845 | |
GrafTech International Ltd. (a) | 668,503 | 10,976,819 | |
II-VI, Inc. (a) | 114,600 | 2,636,946 | |
| 29,592,610 | ||
Industrial Conglomerates - 0.6% | |||
Carlisle Companies, Inc. | 228,900 | 10,925,397 | |
Machinery - 3.2% | |||
Actuant Corp. Class A | 573,731 | 14,544,081 | |
Altra Holdings, Inc. (a) | 450,023 | 8,635,941 | |
CLARCOR, Inc. | 267,786 | 13,766,878 | |
Greenbrier Companies, Inc. (a) | 229,970 | 5,116,833 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
TriMas Corp. (a) | 432,097 | $ 9,363,542 | |
Wabtec Corp. | 152,154 | 10,466,674 | |
| 61,893,949 | ||
Professional Services - 2.9% | |||
Advisory Board Co. (a) | 187,136 | 14,274,734 | |
Equifax, Inc. | 319,600 | 12,454,812 | |
Manpower, Inc. | 279,200 | 11,198,712 | |
Stantec, Inc. (a) | 427,100 | 11,883,411 | |
Towers Watson & Co. | 122,700 | 7,337,460 | |
| 57,149,129 | ||
Trading Companies & Distributors - 1.3% | |||
Interline Brands, Inc. (a) | 570,893 | 9,710,890 | |
Watsco, Inc. | 212,877 | 14,682,127 | |
| 24,393,017 | ||
TOTAL INDUSTRIALS | 286,241,185 | ||
INFORMATION TECHNOLOGY - 17.7% | |||
Communications Equipment - 2.5% | |||
Acme Packet, Inc. (a) | 219,500 | 6,415,985 | |
Brocade Communications Systems, Inc. (a) | 2,921,917 | 16,391,954 | |
Ixia (a) | 1,133,708 | 13,842,575 | |
NETGEAR, Inc. (a) | 171,513 | 6,829,648 | |
Polycom, Inc. (a) | 287,026 | 5,726,169 | |
| 49,206,331 | ||
Computers & Peripherals - 2.9% | |||
NCR Corp. (a) | 561,900 | 10,524,387 | |
Quantum Corp. (a) | 6,389,825 | 16,102,359 | |
Super Micro Computer, Inc. (a) | 1,001,102 | 16,898,602 | |
Synaptics, Inc. (a)(d) | 340,121 | 13,030,036 | |
| 56,555,384 | ||
Electronic Equipment & Components - 0.9% | |||
DDi Corp. | 384,113 | 3,729,737 | |
Fabrinet (a) | 835,139 | 13,754,739 | |
Multi-Fineline Electronix, Inc. (a) | 34,915 | 867,987 | |
| 18,352,463 | ||
Internet Software & Services - 3.1% | |||
Constant Contact, Inc. (a)(d) | 313,789 | 7,838,449 | |
InfoSpace, Inc. (a) | 488,699 | 6,015,885 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Rackspace Hosting, Inc. (a) | 249,099 | $ 10,813,388 | |
Travelzoo, Inc. (a)(d) | 173,035 | 4,466,033 | |
VeriSign, Inc. | 361,299 | 13,389,741 | |
Web.com, Inc. (a) | 1,299,218 | 16,629,990 | |
| 59,153,486 | ||
IT Services - 1.1% | |||
Cardtronics, Inc. (a) | 239,989 | 6,131,719 | |
Euronet Worldwide, Inc. (a) | 588,817 | 10,810,680 | |
HiSoft Technology International Ltd. ADR (a)(d) | 386,924 | 4,399,326 | |
| 21,341,725 | ||
Semiconductors & Semiconductor Equipment - 3.0% | |||
Advanced Micro Devices, Inc. (a) | 866,361 | 5,813,282 | |
Cymer, Inc. (a) | 113,500 | 5,651,165 | |
Entegris, Inc. (a) | 602,430 | 5,771,279 | |
Marvell Technology Group Ltd. (a) | 653,856 | 10,154,384 | |
Micron Technology, Inc. (a) | 1,071,888 | 8,135,630 | |
ON Semiconductor Corp. (a) | 646,632 | 5,625,698 | |
RF Micro Devices, Inc. (a) | 2,267,300 | 11,313,827 | |
Spansion, Inc. Class A (a) | 572,744 | 5,744,622 | |
| 58,209,887 | ||
Software - 4.2% | |||
Aspen Technology, Inc. (a) | 410,473 | 7,392,619 | |
BroadSoft, Inc. (a)(d) | 244,496 | 6,816,548 | |
Gameloft (a) | 578,515 | 4,017,911 | |
JDA Software Group, Inc. (a) | 373,753 | 11,014,501 | |
Kenexa Corp. (a) | 223,950 | 5,379,279 | |
Mentor Graphics Corp. (a) | 358,916 | 4,978,165 | |
Micro Focus International PLC | 1,688,550 | 11,248,701 | |
Parametric Technology Corp. (a) | 746,530 | 18,790,160 | |
Synchronoss Technologies, Inc. (a) | 340,144 | 11,367,612 | |
| 81,005,496 | ||
TOTAL INFORMATION TECHNOLOGY | 343,824,772 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.3% | |||
Cabot Corp. | 359,400 | 13,010,280 | |
Rockwood Holdings, Inc. (a) | 249,550 | 12,602,275 | |
| 25,612,555 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Containers & Packaging - 1.1% | |||
Aptargroup, Inc. | 188,400 | $ 9,875,928 | |
Rock-Tenn Co. Class A | 178,500 | 11,042,010 | |
| 20,917,938 | ||
Metals & Mining - 2.0% | |||
Carpenter Technology Corp. | 186,587 | 9,792,086 | |
Coeur d'Alene Mines Corp. (a) | 396,700 | 10,972,722 | |
Compass Minerals International, Inc. | 149,500 | 10,923,965 | |
HudBay Minerals, Inc. | 568,900 | 6,643,549 | |
| 38,332,322 | ||
TOTAL MATERIALS | 84,862,815 | ||
TELECOMMUNICATION SERVICES - 0.9% | |||
Diversified Telecommunication Services - 0.1% | |||
AboveNet, Inc. (a) | 31,988 | 2,125,603 | |
Wireless Telecommunication Services - 0.8% | |||
Clearwire Corp. Class A (a) | 6,379,536 | 10,781,416 | |
MetroPCS Communications, Inc. (a) | 154,900 | 1,369,316 | |
NII Holdings, Inc. (a) | 157,396 | 3,165,234 | |
| 15,315,966 | ||
TOTAL TELECOMMUNICATION SERVICES | 17,441,569 | ||
UTILITIES - 3.2% | |||
Electric Utilities - 1.8% | |||
Cleco Corp. | 294,700 | 11,717,272 | |
Empire District Electric Co. | 309,223 | 6,441,115 | |
IDACORP, Inc. | 223,493 | 9,420,230 | |
PNM Resources, Inc. | 380,134 | 6,770,187 | |
| 34,348,804 | ||
Gas Utilities - 1.0% | |||
Northwest Natural Gas Co. | 224,281 | 10,664,562 | |
Piedmont Natural Gas Co., Inc. (d) | 297,522 | 9,794,424 | |
| 20,458,986 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Multi-Utilities - 0.4% | |||
NorthWestern Energy Corp. | 222,600 | $ 7,822,164 | |
TOTAL UTILITIES | 62,629,954 | ||
TOTAL COMMON STOCKS (Cost $1,526,657,774) |
| ||
Convertible Preferred Stocks - 0.2% | |||
|
|
|
|
HEALTH CARE - 0.2% | |||
Pharmaceuticals - 0.2% | |||
Agios Pharmaceuticals, Inc. Series C (f) | 353,944 | 1,738,254 | |
Merrimack Pharmaceuticals, Inc. Series G (f) | 380,800 | 2,741,760 | |
| 4,480,014 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $4,403,854) |
|
U.S. Treasury Obligations - 0.1% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0% to 0.04% 2/23/12 to 4/19/12 (e) | $ 1,950,000 |
|
Money Market Funds - 6.4% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 102,990,768 | 102,990,768 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 21,333,825 | 21,333,825 | |
TOTAL MONEY MARKET FUNDS (Cost $124,324,593) |
| ||
Cash Equivalents - 0.9% | |||
Maturity Amount | Value | ||
Investments in repurchase agreements in a joint trading account at 0.2%, dated 1/31/12 due 2/1/12 (Collateralized by U.S. Government Obligations) # | $ 16,258,089 | $ 16,258,000 | |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $1,673,594,198) | 1,962,466,194 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (21,149,842) | ||
NET ASSETS - 100% | 1,941,316,352 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
233 NYFE Russell 2000 Mini Index Contracts | March 2012 | $ 18,434,960 | $ 1,134,571 |
The face value of futures purchased as a percentage of net assets is 0.9% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,949,928. |
(f) 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 $4,480,014 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Agios Pharmaceuticals, Inc. Series C | 11/16/11 | $ 1,738,254 |
Merrimack Pharmaceuticals, Inc. Series G | 3/31/11 | $ 2,665,600 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$16,258,000 due 2/01/12 at 0.20% | |
BNP Paribas Securities Corp. | $ 8,576,107 |
Barclays Capital, Inc. | 4,561,759 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 3,120,134 |
| $ 16,258,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 46,441 |
Fidelity Securities Lending Cash Central Fund | 1,270,405 |
Total | $ 1,316,846 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Western Liberty Bancorp | $ 3,020,000 | $ - | $ 2,360,204 | $ - | $ - |
Total | $ 3,020,000 | $ - | $ 2,360,204 | $ - | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 254,195,531 | $ 254,195,531 | $ - | $ - |
Consumer Staples | 61,673,459 | 61,673,459 | - | - |
Energy | 125,968,702 | 125,968,702 | - | - |
Financials | 395,482,068 | 395,482,068 | - | - |
Health Care | 187,613,618 | 183,133,604 | - | 4,480,014 |
Industrials | 286,241,185 | 286,241,185 | - | - |
Information Technology | 343,824,772 | 343,824,772 | - | - |
Materials | 84,862,815 | 84,862,815 | - | - |
Telecommunication Services | 17,441,569 | 17,441,569 | - | - |
Utilities | 62,629,954 | 62,629,954 | - | - |
U.S. Government and Government Agency Obligations | 1,949,928 | - | 1,949,928 | - |
Money Market Funds | 124,324,593 | 124,324,593 | - | - |
Cash Equivalents | 16,258,000 | - | 16,258,000 | - |
Total Investments in Securities: | $ 1,962,466,194 | $ 1,939,778,252 | $ 18,207,928 | $ 4,480,014 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 1,134,571 | $ 1,134,571 | $ - | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 2,665,600 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 76,160 |
Cost of Purchases | 1,738,254 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 4,480,014 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2012 | $ 76,160 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ 1,134,571 | $ - |
Total Value of Derivatives | $ 1,134,571 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $20,697,289 and repurchase agreements of $16,258,000) - See accompanying schedule: Unaffiliated issuers (cost $1,549,269,605) | $ 1,838,141,601 |
|
Fidelity Central Funds (cost $124,324,593) | 124,324,593 |
|
Total Investments (cost $1,673,594,198) |
| $ 1,962,466,194 |
Receivable for investments sold | 12,703,784 | |
Receivable for fund shares sold | 1,285,701 | |
Dividends receivable | 919,626 | |
Distributions receivable from Fidelity Central Funds | 153,399 | |
Receivable for daily variation margin on futures contracts | 16,271 | |
Prepaid expenses | 4,601 | |
Other receivables | 78,691 | |
Total assets | 1,977,628,267 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 58,695 | |
Payable for investments purchased | 9,733,645 | |
Payable for fund shares redeemed | 3,500,547 | |
Accrued management fee | 1,386,710 | |
Other affiliated payables | 260,711 | |
Other payables and accrued expenses | 37,782 | |
Collateral on securities loaned, at value | 21,333,825 | |
Total liabilities | 36,311,915 | |
|
|
|
Net Assets | $ 1,941,316,352 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,650,013,144 | |
Undistributed net investment income | 359,607 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 937,587 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 290,006,014 | |
Net Assets | $ 1,941,316,352 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Series Small Cap Opportunities: | $ 10.99 | |
|
|
|
Class F: | $ 11.04 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 8,135,256 |
Special dividends |
| 1,323,041 |
Interest |
| 209 |
Income from Fidelity Central Funds (including $1,270,405 from security lending) |
| 1,316,846 |
Total income |
| 10,775,352 |
|
|
|
Expenses | ||
Management fee | $ 6,250,253 | |
Performance adjustment | 1,504,823 | |
Transfer agent fees | 1,296,117 | |
Accounting and security lending fees | 274,846 | |
Custodian fees and expenses | 56,317 | |
Independent trustees' compensation | 5,848 | |
Audit | 32,988 | |
Legal | 3,833 | |
Miscellaneous | 7,912 | |
Total expenses before reductions | 9,432,937 | |
Expense reductions | (35,605) | 9,397,332 |
Net investment income (loss) | 1,378,020 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 14,814,259 | |
Other affiliated issuers | (7,300,281) |
|
Foreign currency transactions | 17,318 | |
Futures contracts | (502,879) | |
Total net realized gain (loss) |
| 7,028,417 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (19,016,629) | |
Assets and liabilities in foreign currencies | (5,629) | |
Futures contracts | 1,126,545 | |
Total change in net unrealized appreciation (depreciation) |
| (17,895,713) |
Net gain (loss) | (10,867,296) | |
Net increase (decrease) in net assets resulting from operations | $ (9,489,276) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,378,020 | $ 32,296 |
Net realized gain (loss) | 7,028,417 | 321,537,979 |
Change in net unrealized appreciation (depreciation) | (17,895,713) | 104,100,585 |
Net increase (decrease) in net assets resulting | (9,489,276) | 425,670,860 |
Distributions to shareholders from net investment income | (1,018,413) | - |
Distributions to shareholders from net realized gain | (19,349,019) | (6,204,046) |
Total distributions | (20,367,432) | (6,204,046) |
Share transactions - net increase (decrease) | 76,781,989 | (63,505,361) |
Total increase (decrease) in net assets | 46,925,281 | 355,961,453 |
|
|
|
Net Assets | ||
Beginning of period | 1,894,391,071 | 1,538,429,618 |
End of period (including undistributed net investment income of $359,607 and $0, respectively) | $ 1,941,316,352 | $ 1,894,391,071 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Small Cap Opportunities
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 I |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.22 | $ 8.76 | $ 6.94 | $ 7.97 | $ 9.65 | $ 10.00 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss)D | - G,L | (-) H,L | (.01) | .03 | .02 | .01 |
Net realized and unrealized gain (loss) | (.11) | 2.50 | 1.83 | (1.02) | (1.66) | (.36) |
Total from investment operations | (.11) | 2.50 | 1.82 | (.99) | (1.64) | (.35) |
Distributions from net investment income | -L | -N | - | (.04) | (.02) | - |
Distributions from net realized gain | (.11) | (.04)N | - | - | (.02) | - |
Total distributions | (.12)M | (.04) | - | (.04) | (.04) | - |
Redemption fees added to paid in capitalK | - | - | - | - | - D,L | - D,L |
Net asset value, end of period | $ 10.99 | $ 11.22 | $ 8.76 | $ 6.94 | $ 7.97 | $ 9.65 |
Total ReturnB,C | (.87)% | 28.50% | 26.22% | (12.34)% | (17.10)% | (3.50)% |
Ratios to Average Net AssetsE,J |
|
|
|
|
| |
Expenses before reductions | 1.13% A | 1.10% | 1.02% | .93% | .93% | 1.00% A |
Expenses net of fee waivers, if any | 1.13% A | 1.10% | 1.02% | .93% | .93% | 1.00% A |
Expenses net of all reductions | 1.13% A | 1.09% | 1.01% | .93% | .92% | .98% A |
Net investment income (loss) | .09% A,G | (.04)%H | (.07)% | .49% | .20% | .20% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,265,262 | $ 1,415,570 | $ 1,363,646 | $ 1,284,079 | $ 1,348,258 | $ 984,470 |
Portfolio turnover rate F | 59% A | 73% | 104% | 167% | 179% | 176% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.27)%. I For the period March 22, 2007 (commencement of sale of shares) to July 31, 2007. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K The redemption fee was eliminated during the year ended July 31, 2009. L Amount represents less than $.01 per share. M Total distributions of $.12 per share is comprised of distributions from net investment income of $.003 and distributions from net realized gain of $.113 per share. N The amount shown reflects certain reclassifications related to book to tax differences.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class F
| Six months ended | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009I |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.27 | $ 8.79 | $ 6.94 | $ 6.24 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss)D | .02G | .02H | .01 | -K |
Net realized and unrealized gain (loss) | (.12) | 2.50 | 1.84 | .70 |
Total from investment operations | (.10) | 2.52 | 1.85 | .70 |
Distributions from net investment income | (.01) | -M | - | - |
Distributions from net realized gain | (.11) | (.04)M | - | - |
Total distributions | (.13)L | (.04) | - | - |
Net asset value, end of period | $ 11.04 | $ 11.27 | $ 8.79 | $ 6.94 |
Total ReturnB,C | (.78)% | 28.74% | 26.66% | 11.22% |
Ratios to Average Net AssetsE,J |
|
|
|
|
Expenses before reductions | .92%A | .89% | .78% | .68%A |
Expenses net of fee waivers, if any | .92%A | .89% | .78% | .68%A |
Expenses net of all reductions | .92%A | 88% | 77% | 68%A |
Net investment income (loss) | .30%A,G | .17%H | .17% | .11%A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 676,055 | $ 478,821 | $ 174,783 | $ 197 |
Portfolio turnover rateF | 59%A | 73% | 104% | 167% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .15%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06) %. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. KAmount represents less than $.01 per share. L Total distributions of $.13 per share is comprised of distributions from net investment income of $.012 and distributions from net realized gain of $.113 per share. M The amount shown reflects certain reclassifications related to book to tax differences.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity Series Small Cap Opportunities Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager and, for shares of Series Small Cap Opportunities, FMR investment professionals. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Small Cap Opportunities and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, partnerships, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 377,712,652 |
Gross unrealized depreciation | (93,223,591) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 284,489,061 |
|
|
Tax cost | $ 1,677,977,133 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
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. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock markets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period, the Fund recognized net realized gain (loss) of $(502,879) and a change in net unrealized appreciation (depreciation) of $1,126,545 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $512,172,983 and $512,812,218, respectively.
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Series Small Cap Opportunities as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .88% of the Fund's average net assets.
Semiannual Report
7. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Small Cap Opportunities. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Series Small Cap Opportunities | $ 1,296,117 | .21 |
*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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $47,151 for the period.
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,474 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Security Lending - continued
of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $35,605 for the period.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Series Small Cap Opportunities | $ 360,217 | $ - |
Class F | 658,196 | - |
Total | $ 1,018,413 | $ - |
From net realized gain |
|
|
Series Small Cap Opportunities | $ 14,087,548 | $ 4,912,757 |
Class F | 5,261,471 | 1,291,289 |
Total | $ 19,349,019 | $ 6,204,046 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Series Small Cap Opportunities |
|
|
|
|
Shares sold | 8,086,833 | 16,351,707 | $ 80,639,379 | $ 173,441,686 |
Reinvestment of distributions | 1,501,907 | 455,386 | 14,447,765 | 4,912,757 |
Shares redeemed | (20,633,228) | (46,302,549) | (208,437,626) | (481,366,419) |
Net increase (decrease) | (11,044,488) | (29,495,456) | $ (113,350,482) | $ (303,011,976) |
Class F |
|
|
|
|
Shares sold | 20,977,648 | 27,247,978 | $ 212,819,309 | $ 289,602,420 |
Reinvestment of distributions | 607,120 | 119,471 | 5,919,667 | 1,291,289 |
Shares redeemed | (2,844,534) | (4,765,328) | (28,606,505) | (51,387,094) |
Net increase (decrease) | 18,740,234 | 22,602,121 | $ 190,132,471 | $ 239,506,615 |
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At period end, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(envelope 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
(envelope graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
SMO-SANN-0312 1.839810.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.00 | $ 6.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 967.10 | $ 8.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.30 | $ 10.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.38 | $ 10.84 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.20 | $ 10.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Small Cap Growth | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.70 | $ 5.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.71 | $ 5.48 |
Class F | .84% |
|
|
|
Actual |
| $ 1,000.00 | $ 971.00 | $ 4.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.91 | $ 4.27 |
Institutional Class | 1.11% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.10 | $ 5.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.56 | $ 5.63 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Jabil Circuit, Inc. | 1.3 | 1.1 |
Entegris, Inc. | 1.3 | 1.1 |
Steven Madden Ltd. | 1.3 | 1.3 |
Sally Beauty Holdings, Inc. | 1.2 | 1.2 |
Westport Innovations, Inc. | 1.1 | 0.0 |
Ebix, Inc. | 1.1 | 0.8 |
TransDigm Group, Inc. | 1.1 | 0.8 |
The Cooper Companies, Inc. | 1.1 | 1.2 |
Hubbell, Inc. Class B | 1.1 | 0.0 |
Watsco, Inc. | 1.1 | 0.7 |
| 11.7 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 24.4 | 26.8 |
Industrials | 17.8 | 20.1 |
Consumer Discretionary | 16.5 | 17.0 |
Health Care | 14.2 | 17.5 |
Financials | 6.8 | 3.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks and Equity |
| ![]() | Stocks and Equity |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.4% |
| ** Foreign investments | 13.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.5% | |||
Auto Components - 1.8% | |||
Modine Manufacturing Co. (a) | 1,244,000 | $ 13,609,360 | |
Tenneco, Inc. (a) | 558,000 | 17,911,800 | |
| 31,521,160 | ||
Diversified Consumer Services - 0.4% | |||
Steiner Leisure Ltd. (a) | 146,907 | 7,254,268 | |
Hotels, Restaurants & Leisure - 2.1% | |||
Cracker Barrel Old Country Store, Inc. | 220,000 | 11,543,400 | |
Life Time Fitness, Inc. (a) | 247,731 | 12,173,501 | |
Texas Roadhouse, Inc. Class A | 825,000 | 12,507,000 | |
| 36,223,901 | ||
Household Durables - 1.3% | |||
Lennar Corp. Class A | 303,800 | 6,528,662 | |
Toll Brothers, Inc. (a) | 741,300 | 16,167,753 | |
| 22,696,415 | ||
Internet & Catalog Retail - 0.4% | |||
Start Today Co. Ltd. (d) | 400,000 | 7,807,950 | |
Multiline Retail - 0.9% | |||
Dollarama, Inc. | 374,900 | 16,169,958 | |
Specialty Retail - 6.9% | |||
Ascena Retail Group, Inc. (a) | 520,000 | 18,392,400 | |
DSW, Inc. Class A | 191,800 | 9,584,246 | |
Group 1 Automotive, Inc. | 186,367 | 9,940,816 | |
Hibbett Sports, Inc. (a) | 275,000 | 13,180,750 | |
Jos. A. Bank Clothiers, Inc. (a) | 310,000 | 14,802,500 | |
Sally Beauty Holdings, Inc. (a) | 1,036,000 | 21,362,320 | |
Signet Jewelers Ltd. | 171,100 | 7,798,738 | |
Tractor Supply Co. | 128,000 | 10,338,560 | |
Vitamin Shoppe, Inc. (a) | 349,000 | 14,916,260 | |
| 120,316,590 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
PVH Corp. | 232,559 | 17,951,229 | |
Steven Madden Ltd. (a) | 527,500 | 21,701,350 | |
Ted Baker PLC | 591,073 | 6,942,235 | |
| 46,594,814 | ||
TOTAL CONSUMER DISCRETIONARY | 288,585,056 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.3% | |||
Food & Staples Retailing - 1.7% | |||
Chefs' Warehouse Holdings (a) | 515,000 | $ 10,881,950 | |
Fresh Market, Inc. (a)(d) | 83,600 | 3,599,816 | |
Ruddick Corp. | 350,000 | 14,119,000 | |
| 28,600,766 | ||
Food Products - 0.8% | |||
Calavo Growers, Inc. (d) | 525,075 | 14,282,040 | |
Personal Products - 0.8% | |||
Elizabeth Arden, Inc. (a) | 395,000 | 14,208,150 | |
TOTAL CONSUMER STAPLES | 57,090,956 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 3.8% | |||
Essential Energy Services Ltd. (a) | 4,338,800 | 8,870,147 | |
ION Geophysical Corp. (a) | 1,542,023 | 11,457,231 | |
Newpark Resources, Inc. (a) | 1,624,700 | 13,225,058 | |
Rowan Companies, Inc. (a) | 256,000 | 8,706,560 | |
Western Energy Services Corp. (a) | 1,530,000 | 13,411,818 | |
Xtreme Coil Drilling Corp. (a) | 3,000,000 | 9,603,590 | |
Zedi, Inc. (a) | 666,500 | 498,504 | |
| 65,772,908 | ||
Oil, Gas & Consumable Fuels - 2.5% | |||
Alpha Natural Resources, Inc. (a) | 414,000 | 8,329,680 | |
Gulfport Energy Corp. (a) | 129,700 | 4,263,239 | |
Petroleum Development Corp. (a) | 392,200 | 12,209,186 | |
Targa Resources Corp. | 454,500 | 18,834,480 | |
| 43,636,585 | ||
TOTAL ENERGY | 109,409,493 | ||
FINANCIALS - 6.8% | |||
Commercial Banks - 2.4% | |||
Banco Pine SA | 1,618,519 | 12,181,505 | |
BBCN Bancorp, Inc. (a) | 1,000,000 | 10,120,000 | |
CapitalSource, Inc. | 1,800,200 | 12,439,382 | |
Columbia Banking Systems, Inc. | 333,272 | 6,998,712 | |
| 41,739,599 | ||
Insurance - 1.1% | |||
Allied World Assurance Co. Holdings Ltd. | 300,000 | 18,459,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 3.3% | |||
CBL & Associates Properties, Inc. | 1,022,000 | $ 17,752,140 | |
Equity Lifestyle Properties, Inc. | 125,000 | 8,767,500 | |
Highwoods Properties, Inc. (SBI) | 419,000 | 13,864,710 | |
LTC Properties, Inc. | 280,000 | 8,946,000 | |
Rayonier, Inc. | 200,000 | 9,146,000 | |
| 58,476,350 | ||
TOTAL FINANCIALS | 118,674,949 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 2.9% | |||
Alkermes PLC (a) | 145,200 | 2,731,212 | |
AMAG Pharmaceuticals, Inc. (a) | 120,200 | 1,973,684 | |
Ardea Biosciences, Inc. (a)(d) | 349,263 | 6,353,094 | |
ArQule, Inc. (a) | 900,000 | 7,110,000 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 6,777,300 | |
Horizon Pharma, Inc. (d) | 550,000 | 2,183,500 | |
Seattle Genetics, Inc. (a) | 330,000 | 6,246,900 | |
Theravance, Inc. (a)(d) | 299,000 | 5,304,260 | |
United Therapeutics Corp. (a) | 229,900 | 11,306,482 | |
| 49,986,432 | ||
Health Care Equipment & Supplies - 3.2% | |||
Cyberonics, Inc. (a) | 487,000 | 15,827,500 | |
Sirona Dental Systems, Inc. (a) | 195,000 | 9,428,250 | |
The Cooper Companies, Inc. | 270,800 | 19,535,512 | |
Wright Medical Group, Inc. (a) | 625,000 | 10,593,750 | |
| 55,385,012 | ||
Health Care Providers & Services - 6.2% | |||
Air Methods Corp. (a) | 141,000 | 11,886,300 | |
Catalyst Health Solutions, Inc. (a) | 293,000 | 16,044,680 | |
Corvel Corp. (a) | 287,592 | 13,999,979 | |
HMS Holdings Corp. (a) | 479,008 | 15,812,054 | |
IPC The Hospitalist Co., Inc. (a) | 105,071 | 3,539,842 | |
MEDNAX, Inc. (a) | 180,000 | 12,819,600 | |
MWI Veterinary Supply, Inc. (a) | 197,000 | 15,466,470 | |
PSS World Medical, Inc. (a) | 447,000 | 10,848,690 | |
Synergy Health PLC | 595,411 | 7,947,975 | |
| 108,365,590 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.2% | |||
Epocrates, Inc. (a) | 67,158 | $ 650,761 | |
Merge Healthcare, Inc. (a) | 538,568 | 2,951,353 | |
Omnicell, Inc. (a) | 23,300 | 360,684 | |
| 3,962,798 | ||
Pharmaceuticals - 1.7% | |||
Cadence Pharmaceuticals, Inc. (a) | 767,693 | 3,201,280 | |
Dechra Pharmaceuticals PLC | 1,470,000 | 12,185,947 | |
Impax Laboratories, Inc. (a) | 370,000 | 6,981,900 | |
Questcor Pharmaceuticals, Inc. (a) | 199,000 | 7,050,570 | |
| 29,419,697 | ||
TOTAL HEALTH CARE | 247,119,529 | ||
INDUSTRIALS - 17.8% | |||
Aerospace & Defense - 3.4% | |||
BE Aerospace, Inc. (a) | 390,000 | 16,458,000 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 200,000 | 4,548,000 | |
Teledyne Technologies, Inc. (a) | 327,000 | 18,560,520 | |
TransDigm Group, Inc. (a) | 189,000 | 19,756,170 | |
| 59,322,690 | ||
Building Products - 0.8% | |||
A.O. Smith Corp. | 308,000 | 13,083,840 | |
Construction & Engineering - 2.0% | |||
Foster Wheeler AG (a) | 837,400 | 18,808,004 | |
Outotec Oyj | 311,095 | 16,349,110 | |
| 35,157,114 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a) | 808,000 | 13,267,360 | |
Hubbell, Inc. Class B | 270,000 | 19,429,200 | |
II-VI, Inc. (a) | 193,284 | 4,447,465 | |
| 37,144,025 | ||
Machinery - 4.5% | |||
Actuant Corp. Class A | 400,000 | 10,140,000 | |
Blount International, Inc. (a) | 774,000 | 12,709,080 | |
CLARCOR, Inc. | 200,000 | 10,282,000 | |
TriMas Corp. (a) | 550,000 | 11,918,500 | |
Wabtec Corp. | 195,000 | 13,414,050 | |
Westport Innovations, Inc. (a) | 484,700 | 20,163,520 | |
| 78,627,150 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Professional Services - 1.1% | |||
Advisory Board Co. (a) | 247,000 | $ 18,841,160 | |
Trading Companies & Distributors - 3.6% | |||
DXP Enterprises, Inc. (a) | 423,839 | 14,296,089 | |
Rush Enterprises, Inc. Class A (a) | 728,254 | 16,757,125 | |
Watsco, Inc. | 279,000 | 19,242,630 | |
WESCO International, Inc. (a) | 205,000 | 12,890,400 | |
| 63,186,244 | ||
Transportation Infrastructure - 0.3% | |||
Wesco Aircraft Holdings, Inc. (a) | 300,000 | 4,197,000 | |
TOTAL INDUSTRIALS | 309,559,223 | ||
INFORMATION TECHNOLOGY - 24.4% | |||
Communications Equipment - 3.7% | |||
Anaren, Inc. (a) | 656,774 | 11,441,003 | |
Brocade Communications Systems, Inc. (a) | 2,500,000 | 14,025,000 | |
Comtech Telecommunications Corp. | 362,777 | 11,195,298 | |
Parrot SA (a) | 400,000 | 10,829,826 | |
Polycom, Inc. (a) | 893,000 | 17,815,350 | |
| 65,306,477 | ||
Computers & Peripherals - 1.0% | |||
Super Micro Computer, Inc. (a) | 980,923 | 16,557,980 | |
Electronic Equipment & Components - 3.7% | |||
Fabrinet (a) | 558,429 | 9,197,326 | |
Insight Enterprises, Inc. (a) | 837,400 | 15,458,404 | |
Jabil Circuit, Inc. | 1,013,000 | 22,954,577 | |
OSI Systems, Inc. (a) | 314,000 | 16,871,220 | |
TTM Technologies, Inc. (a) | 36,700 | 450,309 | |
| 64,931,836 | ||
Internet Software & Services - 4.5% | |||
Ancestry.com, Inc. (a)(d) | 400,000 | 11,840,000 | |
Bankrate, Inc. | 450,000 | 10,525,500 | |
Demand Media, Inc. (d) | 1,680,000 | 10,584,000 | |
InfoSpace, Inc. (a) | 860,000 | 10,586,600 | |
LivePerson, Inc. (a) | 960,000 | 11,520,000 | |
Open Text Corp. (a) | 142,000 | 7,196,649 | |
Perficient, Inc. (a) | 978,447 | 10,890,115 | |
Saba Software, Inc. (a) | 500,501 | 4,974,980 | |
| 78,117,844 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 2.5% | |||
Broadridge Financial Solutions, Inc. | 500,000 | $ 11,985,000 | |
Higher One Holdings, Inc. (a)(d) | 530,000 | 8,978,200 | |
VeriFone Systems, Inc. (a) | 150,000 | 6,405,000 | |
Virtusa Corp. (a) | 915,000 | 14,630,850 | |
WNS Holdings Ltd. sponsored ADR (a) | 168,290 | 1,637,462 | |
| 43,636,512 | ||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Cymer, Inc. (a) | 306,901 | 15,280,601 | |
Entegris, Inc. (a) | 2,356,500 | 22,575,270 | |
| 37,855,871 | ||
Software - 6.8% | |||
Aspen Technology, Inc. (a) | 704,000 | 12,679,040 | |
BroadSoft, Inc. (a)(d) | 382,591 | 10,666,637 | |
CommVault Systems, Inc. (a) | 245,000 | 11,515,000 | |
Ebix, Inc. (d) | 797,810 | 19,769,732 | |
Kenexa Corp. (a) | 610,000 | 14,652,200 | |
MICROS Systems, Inc. (a) | 235,000 | 11,681,850 | |
Royalblue Group PLC | 108,700 | 2,842,053 | |
SolarWinds, Inc. (a) | 300,000 | 9,483,000 | |
Solera Holdings, Inc. | 332,000 | 15,859,640 | |
Sourcefire, Inc. (a)(d) | 300,000 | 9,306,000 | |
| 118,455,152 | ||
TOTAL INFORMATION TECHNOLOGY | 424,861,672 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.5% | |||
Innophos Holdings, Inc. | 340,000 | 16,972,800 | |
Rockwood Holdings, Inc. (a) | 285,000 | 14,392,500 | |
Solutia, Inc. | 433,700 | 11,926,750 | |
| 43,292,050 | ||
Containers & Packaging - 0.5% | |||
Silgan Holdings, Inc. | 220,000 | 9,143,200 | |
Metals & Mining - 0.6% | |||
Carpenter Technology Corp. | 218,000 | 11,440,640 | |
TOTAL MATERIALS | 63,875,890 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.6% | |||
AboveNet, Inc. (a) | 165,000 | $ 10,964,250 | |
Wireless Telecommunication Services - 0.4% | |||
NII Holdings, Inc. (a) | 300,000 | 6,033,000 | |
TOTAL TELECOMMUNICATION SERVICES | 16,997,250 | ||
TOTAL COMMON STOCKS (Cost $1,429,065,527) |
|
U.S. Treasury Obligations - 0.4% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 2/23/12 (e) | $ 7,300,000 |
|
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 92,167,955 | 92,167,955 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 54,743,850 | 54,743,850 | |
TOTAL MONEY MARKET FUNDS (Cost $146,911,805) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $1,583,277,150) | 1,790,385,633 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (48,372,593) | ||
NET ASSETS - 100% | $ 1,742,013,040 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
1,000 NYFE Russell 2000 Mini Index Contracts | March 2012 | $ 79,120,000 | $ 192,165 |
The face value of futures purchased as a percentage of net assets is 4.5% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $7,299,810. |
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 | $ 30,779 |
Fidelity Securities Lending Cash Central Fund | 2,823,997 |
Total | $ 2,854,776 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Calavo Growers, Inc. | $ 16,826,331 | $ 5,168,688 | $ 10,470,737 | $ 307,289 | $ - |
Perficient, Inc. | 17,202,205 | 2,900,335 | 9,868,943 | - | - |
Total | $ 34,028,536 | $ 8,069,023 | $ 20,339,680 | $ 307,289 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 288,585,056 | $ 288,585,056 | $ - | $ - |
Consumer Staples | 57,090,956 | 57,090,956 | - | - |
Energy | 109,409,493 | 109,409,493 | - | - |
Financials | 118,674,949 | 118,674,949 | - | - |
Health Care | 247,119,529 | 247,119,529 | - | - |
Industrials | 309,559,223 | 309,559,223 | - | - |
Information Technology | 424,861,672 | 424,861,672 | - | - |
Materials | 63,875,890 | 63,875,890 | - | - |
Telecommunication Services | 16,997,250 | 16,997,250 | - | - |
U.S. Government and Government Agency Obligations | 7,299,810 | - | 7,299,810 | - |
Money Market Funds | 146,911,805 | 146,911,805 | - | - |
Total Investments in Securities: | $ 1,790,385,633 | $ 1,783,085,823 | $ 7,299,810 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 192,165 | $ 192,165 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
Equity Risk | Asset | Liability |
Futures Contracts (a) | $ 192,165 | $ - |
Total Value of Derivatives | $ 192,165 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.6% |
Canada | 4.2% |
Switzerland | 2.2% |
United Kingdom | 1.8% |
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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $52,621,626) - See accompanying schedule: Unaffiliated issuers (cost $1,436,365,345) | $ 1,643,473,828 |
|
Fidelity Central Funds (cost $146,911,805) | 146,911,805 |
|
Total Investments (cost $1,583,277,150) |
| $ 1,790,385,633 |
Foreign currency held at value (cost $967,552) | 968,022 | |
Receivable for investments sold | 54,876,970 | |
Receivable for fund shares sold | 2,051,195 | |
Dividends receivable | 548,358 | |
Distributions receivable from Fidelity Central Funds | 381,659 | |
Receivable for daily variation margin on futures contracts | 70,000 | |
Prepaid expenses | 4,542 | |
Other receivables | 76,405 | |
Total assets | 1,849,362,784 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 569 | |
Payable for investments purchased | 44,752,700 | |
Payable for fund shares redeemed | 6,452,851 | |
Accrued management fee | 1,010,245 | |
Distribution and service plan fees payable | 47,095 | |
Other affiliated payables | 303,678 | |
Other payables and accrued expenses | 38,756 | |
Collateral on securities loaned, at value | 54,743,850 | |
Total liabilities | 107,349,744 | |
|
|
|
Net Assets | $ 1,742,013,040 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,534,220,464 | |
Accumulated net investment loss | (1,995,221) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,494,310 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 207,293,487 | |
Net Assets | $ 1,742,013,040 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 15.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.54) | $ 16.49 | |
Class T: | $ 15.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.38) | $ 15.94 | |
Class B: | $ 14.94 | |
|
|
|
Class C: | $ 14.91 | |
|
|
|
|
|
|
Small Cap Growth: | $ 15.79 | |
|
|
|
Class F: | $ 15.89 | |
|
|
|
Institutional Class: | $ 15.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $307,289 earned from other affiliated issuers) |
| $ 4,663,559 |
Interest |
| 65 |
Income from Fidelity Central Funds (including $2,823,997 from security lending) |
| 2,854,776 |
Total income |
| 7,518,400 |
|
|
|
Expenses | ||
Management fee | $ 5,791,373 | |
Performance adjustment | 707,182 | |
Transfer agent fees | 1,598,494 | |
Distribution and service plan fees | 269,796 | |
Accounting and security lending fees | 264,275 | |
Independent trustees' compensation | 5,495 | |
Registration fees | 76,308 | |
Audit | 32,519 | |
Legal | 3,692 | |
Total expenses before reductions | 8,749,134 | |
Expense reductions | (83,817) | 8,665,317 |
Net investment income (loss) | (1,146,917) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 16,542,030 | |
Other affiliated issuers | (1,854,112) |
|
Foreign currency transactions | (138,389) | |
Futures contracts | 4,024,161 | |
Total net realized gain (loss) |
| 18,573,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,175,941) | |
Assets and liabilities in foreign currencies | (10,827) | |
Futures contracts | 192,165 | |
Total change in net unrealized appreciation (depreciation) |
| (77,994,603) |
Net gain (loss) | (59,420,913) | |
Net increase (decrease) in net assets resulting from operations | $ (60,567,830) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,146,917) | $ (3,102,614) |
Net realized gain (loss) | 18,573,690 | 221,065,530 |
Change in net unrealized appreciation (depreciation) | (77,994,603) | 210,253,368 |
Net increase (decrease) in net assets resulting | (60,567,830) | 428,216,284 |
Distributions to shareholders from net realized gain | (34,799,429) | (3,013,255) |
Share transactions - net increase (decrease) | (5,937,033) | (17,486,495) |
Redemption fees | 179,111 | 229,000 |
Total increase (decrease) in net assets | (101,125,181) | 407,945,534 |
|
|
|
Net Assets | ||
Beginning of period | 1,843,138,221 | 1,435,192,687 |
End of period (including accumulated net investment loss of $1,995,221 and accumulated net investment loss of $848,304, respectively) | $ 1,742,013,040 | $ 1,843,138,221 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.07) H | (.07) I | (.06) | (.11) | (.12) J |
Net realized and unrealized gain (loss) | (.53) | 3.84 | 1.94 | (2.35) | (1.73) | 3.39 |
Total from investment operations | (.56) | 3.77 | 1.87 | (2.41) | (1.84) | 3.27 |
Distributions from net realized gain | (.32) | (.01) M | - | - | (1.02) | (.09) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.54 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Total Return B, C, D | (3.20)% | 29.78% | 17.33% | (18.26)% | (12.26)% | 25.52% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.44% |
Expenses net of fee waivers, if any | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.23% | 1.34% | 1.33% | 1.39% | 1.39% |
Net investment income (loss) | (.46)% A | (.47)% H | (.56)% I | (.64)% | (.74)% | (.80)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 61,719 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.11) H | (.10)I | (.09) | (.15) | (.16) J |
Net realized and unrealized gain (loss) | (.52) | 3.81 | 1.93 | (2.34) | (1.73) | 3.38 |
Total from investment operations | (.57) | 3.70 | 1.83 | (2.43) | (1.88) | 3.22 |
Distributions from net realized gain | (.32) | - | - | - | (.96) | (.07) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.38 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Total ReturnB, C, D | (3.29)% | 29.44% | 17.04% | (18.45)% | (12.50)% | 25.18% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.67% |
Expenses net of fee waivers, if any | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.49% | 1.60% | 1.59% | 1.65% | 1.65% |
Net investment income (loss) | (.72)% A | (.73)% H | (.82)% I | (.91)% | (.99)% | (1.05)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27,457 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.74 | 1.89 | (2.33) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.56 | 1.73 | (2.46) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.89) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.94 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Total Return B, C, D | (3.57)% | 28.94% | 16.37% | (18.88)% | (12.92)% | 24.57% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.08% | 2.15% | 2.15% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,636 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.73 | 1.89 | (2.32) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.55 | 1.73 | (2.45) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.91) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Total Return B, C, D | (3.58)% | 28.91% | 16.40% | (18.85)% | (12.94)% | 24.59% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.07% | 2.14% | 2.14% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,856 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.04) H | (.04) | (.07) | (.08) I |
Net realized and unrealized gain (loss) | (.53) | 3.90 | 1.96 | (2.36) | (1.74) | 3.40 |
Total from investment operations | (.54) | 3.87 | 1.92 | (2.40) | (1.81) | 3.32 |
Distributions from net realized gain | (.32) | (.03) L | - | - | (1.05) | (.10) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Total Return B, C | (3.03)% | 30.20% | 17.63% | (18.06)% | (11.98)% | 25.84% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of fee waivers, if any | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of all reductions | 1.07% A | .93% | 1.07% | 1.08% | 1.10% | 1.09% |
Net investment income (loss) | (.15)% A | (.17)% G | (.29)% H | (.39)% | (.45)% | (.50)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,183,821 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L The amount shown reflects certain reclassifications related to book to tax differences. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 J |
Selected Per-Share Data |
|
|
| |
Net asset value, beginning of period | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .01 | .01 H | - I, L | (.01) |
Net realized and unrealized gain (loss) | (.53) | 3.91 | 1.95 | .88 |
Total from investment operations | (.52) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (.32) | (.04) M | - | - |
Redemption fees added to paid in capital D, L | - | - | - | - |
Net asset value, end of period | $ 15.89 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | (2.90)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, K |
|
|
|
|
Expenses before reductions | .84% A | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .84% A | .70% | .78% | .74% A |
Expenses net of all reductions | .83% A | .68% | .77% | .73% A |
Net investment income (loss) | .09% A | .08% H | -% G, I | (.54)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 401,078 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Amount represents less than .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.03) H | (.03) | (.06) | (.07) I |
Net realized and unrealized gain (loss) | (.54) | 3.91 | 1.95 | (2.36) | (1.74) | 3.41 |
Total from investment operations | (.55) | 3.88 | 1.92 | (2.39) | (1.80) | 3.34 |
Distributions from net realized gain | (.32) | (.03) K | - | - | (1.05) | (.11) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Total Return B, C | (3.09)% | 30.24% | 17.60% | (17.97)% | (11.93)% | 25.99% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of fee waivers, if any | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of all reductions | 1.10% A | .93% | 1.02% | 1.04% | 1.03% | 1.05% |
Net investment income (loss) | (.18)% A | (.17)% G | (.24)% H | (.36)% | (.38)% | (.46)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,446 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price or official closing price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 252,506,620 |
Gross unrealized depreciation | (50,384,829) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,121,791 |
Tax cost | $ 1,588,263,842 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $848,304 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments variation margin are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $4,024,161 and a change in net unrealized appreciation (depreciation) of $192,165 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,103,583,096 and $1,222,225,338, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 72,929 | $ 1,626 |
Class T | .25% | .25% | 65,842 | - |
Class B | .75% | .25% | 22,469 | 16,852 |
Class C | .75% | .25% | 108,556 | 20,033 |
|
|
| $ 269,796 | $ 38,511 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 4,601 |
Class T | 2,209 |
Class B* | 3,893 |
Class C* | 1,901 |
| $ 12,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 88,069 | .30 |
Class T | 40,770 | .31 |
Class B | 6,750 | .30 |
Class C | 32,667 | .30 |
Small Cap Growth | 1,380,680 | .24 |
Institutional Class | 49,558 | .27 |
| $ 1,598,494 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $67,747 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,327 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $4,899,808. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $27,226 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $83,817 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 1,262,924 | $ 40,130 |
Class T | 573,407 | - |
Class B | 101,910 | - |
Class C | 481,854 | - |
Small Cap Growth | 25,434,274 | 2,420,020 |
Class F | 6,152,820 | 492,928 |
Institutional Class | 792,240 | 60,177 |
Total | $ 34,799,429 | $ 3,013,255 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 572,746 | 1,459,436 | $ 8,320,416 | $ 22,640,692 |
Reinvestment of distributions | 85,896 | 2,323 | 1,194,285 | 36,172 |
Shares redeemed | (784,049) | (1,364,690) | (11,395,250) | (20,977,078) |
Net increase (decrease) | (125,407) | 97,069 | $ (1,880,549) | $ 1,699,786 |
Class T |
|
|
|
|
Shares sold | 145,630 | 420,613 | $ 2,106,118 | $ 6,491,294 |
Reinvestment of distributions | 38,774 | - | 533,890 | - |
Shares redeemed | (289,373) | (434,512) | (4,124,620) | (6,714,256) |
Net increase (decrease) | (104,969) | (13,899) | $ (1,484,612) | $ (222,962) |
Class B |
|
|
|
|
Shares sold | 7,487 | 25,204 | $ 106,396 | $ 366,276 |
Reinvestment of distributions | 7,173 | - | 96,091 | - |
Shares redeemed | (38,240) | (109,118) | (533,021) | (1,597,390) |
Net increase (decrease) | (23,580) | (83,914) | $ (330,534) | $ (1,231,114) |
Class C |
|
|
|
|
Shares sold | 221,401 | 469,568 | $ 3,147,700 | $ 7,154,653 |
Reinvestment of distributions | 33,110 | - | 443,092 | - |
Shares redeemed | (228,620) | (368,398) | (3,163,309) | (5,494,248) |
Net increase (decrease) | 25,891 | 101,170 | $ 427,483 | $ 1,660,405 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 7,365,218 | 19,971,507 | $ 108,678,938 | $ 315,167,556 |
Reinvestment of distributions | 1,774,193 | 153,921 | 25,023,264 | 2,384,001 |
Shares redeemed | (17,201,403) | (31,144,660) | (252,657,502) | (483,710,319) |
Net increase (decrease) | (8,061,992) | (11,019,232) | $ (118,955,300) | $ (166,158,762) |
Class F |
|
|
|
|
Shares sold | 8,575,077 | 11,382,202 | $ 126,763,266 | $ 176,012,143 |
Reinvestment of distributions | 432,802 | 31,816 | 6,152,820 | 492,928 |
Shares redeemed | (1,138,704) | (2,356,621) | (16,794,218) | (37,493,486) |
Net increase (decrease) | 7,869,175 | 9,057,397 | $ 116,121,868 | $ 139,011,585 |
Institutional Class |
|
|
|
|
Shares sold | 592,919 | 1,038,111 | $ 8,818,174 | $ 16,415,657 |
Reinvestment of distributions | 44,186 | 2,532 | 624,723 | 39,301 |
Shares redeemed | (627,210) | (555,221) | (9,278,286) | (8,700,391) |
Net increase (decrease) | 9,895 | 485,422 | $ 164,611 | $ 7,754,567 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 56% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
SCP-USAN-0312 1.803699.107
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Small Cap Growth
Fund
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
p20
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.00 | $ 6.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 967.10 | $ 8.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.30 | $ 10.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.38 | $ 10.84 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.20 | $ 10.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Small Cap Growth | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.70 | $ 5.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.71 | $ 5.48 |
Class F | .84% |
|
|
|
Actual |
| $ 1,000.00 | $ 971.00 | $ 4.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.91 | $ 4.27 |
Institutional Class | 1.11% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.10 | $ 5.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.56 | $ 5.63 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Jabil Circuit, Inc. | 1.3 | 1.1 |
Entegris, Inc. | 1.3 | 1.1 |
Steven Madden Ltd. | 1.3 | 1.3 |
Sally Beauty Holdings, Inc. | 1.2 | 1.2 |
Westport Innovations, Inc. | 1.1 | 0.0 |
Ebix, Inc. | 1.1 | 0.8 |
TransDigm Group, Inc. | 1.1 | 0.8 |
The Cooper Companies, Inc. | 1.1 | 1.2 |
Hubbell, Inc. Class B | 1.1 | 0.0 |
Watsco, Inc. | 1.1 | 0.7 |
| 11.7 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 24.4 | 26.8 |
Industrials | 17.8 | 20.1 |
Consumer Discretionary | 16.5 | 17.0 |
Health Care | 14.2 | 17.5 |
Financials | 6.8 | 3.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks and Equity |
| ![]() | Stocks and Equity |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.4% |
| ** Foreign investments | 13.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.5% | |||
Auto Components - 1.8% | |||
Modine Manufacturing Co. (a) | 1,244,000 | $ 13,609,360 | |
Tenneco, Inc. (a) | 558,000 | 17,911,800 | |
| 31,521,160 | ||
Diversified Consumer Services - 0.4% | |||
Steiner Leisure Ltd. (a) | 146,907 | 7,254,268 | |
Hotels, Restaurants & Leisure - 2.1% | |||
Cracker Barrel Old Country Store, Inc. | 220,000 | 11,543,400 | |
Life Time Fitness, Inc. (a) | 247,731 | 12,173,501 | |
Texas Roadhouse, Inc. Class A | 825,000 | 12,507,000 | |
| 36,223,901 | ||
Household Durables - 1.3% | |||
Lennar Corp. Class A | 303,800 | 6,528,662 | |
Toll Brothers, Inc. (a) | 741,300 | 16,167,753 | |
| 22,696,415 | ||
Internet & Catalog Retail - 0.4% | |||
Start Today Co. Ltd. (d) | 400,000 | 7,807,950 | |
Multiline Retail - 0.9% | |||
Dollarama, Inc. | 374,900 | 16,169,958 | |
Specialty Retail - 6.9% | |||
Ascena Retail Group, Inc. (a) | 520,000 | 18,392,400 | |
DSW, Inc. Class A | 191,800 | 9,584,246 | |
Group 1 Automotive, Inc. | 186,367 | 9,940,816 | |
Hibbett Sports, Inc. (a) | 275,000 | 13,180,750 | |
Jos. A. Bank Clothiers, Inc. (a) | 310,000 | 14,802,500 | |
Sally Beauty Holdings, Inc. (a) | 1,036,000 | 21,362,320 | |
Signet Jewelers Ltd. | 171,100 | 7,798,738 | |
Tractor Supply Co. | 128,000 | 10,338,560 | |
Vitamin Shoppe, Inc. (a) | 349,000 | 14,916,260 | |
| 120,316,590 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
PVH Corp. | 232,559 | 17,951,229 | |
Steven Madden Ltd. (a) | 527,500 | 21,701,350 | |
Ted Baker PLC | 591,073 | 6,942,235 | |
| 46,594,814 | ||
TOTAL CONSUMER DISCRETIONARY | 288,585,056 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.3% | |||
Food & Staples Retailing - 1.7% | |||
Chefs' Warehouse Holdings (a) | 515,000 | $ 10,881,950 | |
Fresh Market, Inc. (a)(d) | 83,600 | 3,599,816 | |
Ruddick Corp. | 350,000 | 14,119,000 | |
| 28,600,766 | ||
Food Products - 0.8% | |||
Calavo Growers, Inc. (d) | 525,075 | 14,282,040 | |
Personal Products - 0.8% | |||
Elizabeth Arden, Inc. (a) | 395,000 | 14,208,150 | |
TOTAL CONSUMER STAPLES | 57,090,956 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 3.8% | |||
Essential Energy Services Ltd. (a) | 4,338,800 | 8,870,147 | |
ION Geophysical Corp. (a) | 1,542,023 | 11,457,231 | |
Newpark Resources, Inc. (a) | 1,624,700 | 13,225,058 | |
Rowan Companies, Inc. (a) | 256,000 | 8,706,560 | |
Western Energy Services Corp. (a) | 1,530,000 | 13,411,818 | |
Xtreme Coil Drilling Corp. (a) | 3,000,000 | 9,603,590 | |
Zedi, Inc. (a) | 666,500 | 498,504 | |
| 65,772,908 | ||
Oil, Gas & Consumable Fuels - 2.5% | |||
Alpha Natural Resources, Inc. (a) | 414,000 | 8,329,680 | |
Gulfport Energy Corp. (a) | 129,700 | 4,263,239 | |
Petroleum Development Corp. (a) | 392,200 | 12,209,186 | |
Targa Resources Corp. | 454,500 | 18,834,480 | |
| 43,636,585 | ||
TOTAL ENERGY | 109,409,493 | ||
FINANCIALS - 6.8% | |||
Commercial Banks - 2.4% | |||
Banco Pine SA | 1,618,519 | 12,181,505 | |
BBCN Bancorp, Inc. (a) | 1,000,000 | 10,120,000 | |
CapitalSource, Inc. | 1,800,200 | 12,439,382 | |
Columbia Banking Systems, Inc. | 333,272 | 6,998,712 | |
| 41,739,599 | ||
Insurance - 1.1% | |||
Allied World Assurance Co. Holdings Ltd. | 300,000 | 18,459,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 3.3% | |||
CBL & Associates Properties, Inc. | 1,022,000 | $ 17,752,140 | |
Equity Lifestyle Properties, Inc. | 125,000 | 8,767,500 | |
Highwoods Properties, Inc. (SBI) | 419,000 | 13,864,710 | |
LTC Properties, Inc. | 280,000 | 8,946,000 | |
Rayonier, Inc. | 200,000 | 9,146,000 | |
| 58,476,350 | ||
TOTAL FINANCIALS | 118,674,949 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 2.9% | |||
Alkermes PLC (a) | 145,200 | 2,731,212 | |
AMAG Pharmaceuticals, Inc. (a) | 120,200 | 1,973,684 | |
Ardea Biosciences, Inc. (a)(d) | 349,263 | 6,353,094 | |
ArQule, Inc. (a) | 900,000 | 7,110,000 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 6,777,300 | |
Horizon Pharma, Inc. (d) | 550,000 | 2,183,500 | |
Seattle Genetics, Inc. (a) | 330,000 | 6,246,900 | |
Theravance, Inc. (a)(d) | 299,000 | 5,304,260 | |
United Therapeutics Corp. (a) | 229,900 | 11,306,482 | |
| 49,986,432 | ||
Health Care Equipment & Supplies - 3.2% | |||
Cyberonics, Inc. (a) | 487,000 | 15,827,500 | |
Sirona Dental Systems, Inc. (a) | 195,000 | 9,428,250 | |
The Cooper Companies, Inc. | 270,800 | 19,535,512 | |
Wright Medical Group, Inc. (a) | 625,000 | 10,593,750 | |
| 55,385,012 | ||
Health Care Providers & Services - 6.2% | |||
Air Methods Corp. (a) | 141,000 | 11,886,300 | |
Catalyst Health Solutions, Inc. (a) | 293,000 | 16,044,680 | |
Corvel Corp. (a) | 287,592 | 13,999,979 | |
HMS Holdings Corp. (a) | 479,008 | 15,812,054 | |
IPC The Hospitalist Co., Inc. (a) | 105,071 | 3,539,842 | |
MEDNAX, Inc. (a) | 180,000 | 12,819,600 | |
MWI Veterinary Supply, Inc. (a) | 197,000 | 15,466,470 | |
PSS World Medical, Inc. (a) | 447,000 | 10,848,690 | |
Synergy Health PLC | 595,411 | 7,947,975 | |
| 108,365,590 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.2% | |||
Epocrates, Inc. (a) | 67,158 | $ 650,761 | |
Merge Healthcare, Inc. (a) | 538,568 | 2,951,353 | |
Omnicell, Inc. (a) | 23,300 | 360,684 | |
| 3,962,798 | ||
Pharmaceuticals - 1.7% | |||
Cadence Pharmaceuticals, Inc. (a) | 767,693 | 3,201,280 | |
Dechra Pharmaceuticals PLC | 1,470,000 | 12,185,947 | |
Impax Laboratories, Inc. (a) | 370,000 | 6,981,900 | |
Questcor Pharmaceuticals, Inc. (a) | 199,000 | 7,050,570 | |
| 29,419,697 | ||
TOTAL HEALTH CARE | 247,119,529 | ||
INDUSTRIALS - 17.8% | |||
Aerospace & Defense - 3.4% | |||
BE Aerospace, Inc. (a) | 390,000 | 16,458,000 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 200,000 | 4,548,000 | |
Teledyne Technologies, Inc. (a) | 327,000 | 18,560,520 | |
TransDigm Group, Inc. (a) | 189,000 | 19,756,170 | |
| 59,322,690 | ||
Building Products - 0.8% | |||
A.O. Smith Corp. | 308,000 | 13,083,840 | |
Construction & Engineering - 2.0% | |||
Foster Wheeler AG (a) | 837,400 | 18,808,004 | |
Outotec Oyj | 311,095 | 16,349,110 | |
| 35,157,114 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a) | 808,000 | 13,267,360 | |
Hubbell, Inc. Class B | 270,000 | 19,429,200 | |
II-VI, Inc. (a) | 193,284 | 4,447,465 | |
| 37,144,025 | ||
Machinery - 4.5% | |||
Actuant Corp. Class A | 400,000 | 10,140,000 | |
Blount International, Inc. (a) | 774,000 | 12,709,080 | |
CLARCOR, Inc. | 200,000 | 10,282,000 | |
TriMas Corp. (a) | 550,000 | 11,918,500 | |
Wabtec Corp. | 195,000 | 13,414,050 | |
Westport Innovations, Inc. (a) | 484,700 | 20,163,520 | |
| 78,627,150 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Professional Services - 1.1% | |||
Advisory Board Co. (a) | 247,000 | $ 18,841,160 | |
Trading Companies & Distributors - 3.6% | |||
DXP Enterprises, Inc. (a) | 423,839 | 14,296,089 | |
Rush Enterprises, Inc. Class A (a) | 728,254 | 16,757,125 | |
Watsco, Inc. | 279,000 | 19,242,630 | |
WESCO International, Inc. (a) | 205,000 | 12,890,400 | |
| 63,186,244 | ||
Transportation Infrastructure - 0.3% | |||
Wesco Aircraft Holdings, Inc. (a) | 300,000 | 4,197,000 | |
TOTAL INDUSTRIALS | 309,559,223 | ||
INFORMATION TECHNOLOGY - 24.4% | |||
Communications Equipment - 3.7% | |||
Anaren, Inc. (a) | 656,774 | 11,441,003 | |
Brocade Communications Systems, Inc. (a) | 2,500,000 | 14,025,000 | |
Comtech Telecommunications Corp. | 362,777 | 11,195,298 | |
Parrot SA (a) | 400,000 | 10,829,826 | |
Polycom, Inc. (a) | 893,000 | 17,815,350 | |
| 65,306,477 | ||
Computers & Peripherals - 1.0% | |||
Super Micro Computer, Inc. (a) | 980,923 | 16,557,980 | |
Electronic Equipment & Components - 3.7% | |||
Fabrinet (a) | 558,429 | 9,197,326 | |
Insight Enterprises, Inc. (a) | 837,400 | 15,458,404 | |
Jabil Circuit, Inc. | 1,013,000 | 22,954,577 | |
OSI Systems, Inc. (a) | 314,000 | 16,871,220 | |
TTM Technologies, Inc. (a) | 36,700 | 450,309 | |
| 64,931,836 | ||
Internet Software & Services - 4.5% | |||
Ancestry.com, Inc. (a)(d) | 400,000 | 11,840,000 | |
Bankrate, Inc. | 450,000 | 10,525,500 | |
Demand Media, Inc. (d) | 1,680,000 | 10,584,000 | |
InfoSpace, Inc. (a) | 860,000 | 10,586,600 | |
LivePerson, Inc. (a) | 960,000 | 11,520,000 | |
Open Text Corp. (a) | 142,000 | 7,196,649 | |
Perficient, Inc. (a) | 978,447 | 10,890,115 | |
Saba Software, Inc. (a) | 500,501 | 4,974,980 | |
| 78,117,844 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 2.5% | |||
Broadridge Financial Solutions, Inc. | 500,000 | $ 11,985,000 | |
Higher One Holdings, Inc. (a)(d) | 530,000 | 8,978,200 | |
VeriFone Systems, Inc. (a) | 150,000 | 6,405,000 | |
Virtusa Corp. (a) | 915,000 | 14,630,850 | |
WNS Holdings Ltd. sponsored ADR (a) | 168,290 | 1,637,462 | |
| 43,636,512 | ||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Cymer, Inc. (a) | 306,901 | 15,280,601 | |
Entegris, Inc. (a) | 2,356,500 | 22,575,270 | |
| 37,855,871 | ||
Software - 6.8% | |||
Aspen Technology, Inc. (a) | 704,000 | 12,679,040 | |
BroadSoft, Inc. (a)(d) | 382,591 | 10,666,637 | |
CommVault Systems, Inc. (a) | 245,000 | 11,515,000 | |
Ebix, Inc. (d) | 797,810 | 19,769,732 | |
Kenexa Corp. (a) | 610,000 | 14,652,200 | |
MICROS Systems, Inc. (a) | 235,000 | 11,681,850 | |
Royalblue Group PLC | 108,700 | 2,842,053 | |
SolarWinds, Inc. (a) | 300,000 | 9,483,000 | |
Solera Holdings, Inc. | 332,000 | 15,859,640 | |
Sourcefire, Inc. (a)(d) | 300,000 | 9,306,000 | |
| 118,455,152 | ||
TOTAL INFORMATION TECHNOLOGY | 424,861,672 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.5% | |||
Innophos Holdings, Inc. | 340,000 | 16,972,800 | |
Rockwood Holdings, Inc. (a) | 285,000 | 14,392,500 | |
Solutia, Inc. | 433,700 | 11,926,750 | |
| 43,292,050 | ||
Containers & Packaging - 0.5% | |||
Silgan Holdings, Inc. | 220,000 | 9,143,200 | |
Metals & Mining - 0.6% | |||
Carpenter Technology Corp. | 218,000 | 11,440,640 | |
TOTAL MATERIALS | 63,875,890 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.6% | |||
AboveNet, Inc. (a) | 165,000 | $ 10,964,250 | |
Wireless Telecommunication Services - 0.4% | |||
NII Holdings, Inc. (a) | 300,000 | 6,033,000 | |
TOTAL TELECOMMUNICATION SERVICES | 16,997,250 | ||
TOTAL COMMON STOCKS (Cost $1,429,065,527) |
|
U.S. Treasury Obligations - 0.4% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 2/23/12 (e) | $ 7,300,000 |
|
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 92,167,955 | 92,167,955 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 54,743,850 | 54,743,850 | |
TOTAL MONEY MARKET FUNDS (Cost $146,911,805) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $1,583,277,150) | 1,790,385,633 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (48,372,593) | ||
NET ASSETS - 100% | $ 1,742,013,040 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
1,000 NYFE Russell 2000 Mini Index Contracts | March 2012 | $ 79,120,000 | $ 192,165 |
The face value of futures purchased as a percentage of net assets is 4.5% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $7,299,810. |
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 | $ 30,779 |
Fidelity Securities Lending Cash Central Fund | 2,823,997 |
Total | $ 2,854,776 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Calavo Growers, Inc. | $ 16,826,331 | $ 5,168,688 | $ 10,470,737 | $ 307,289 | $ - |
Perficient, Inc. | 17,202,205 | 2,900,335 | 9,868,943 | - | - |
Total | $ 34,028,536 | $ 8,069,023 | $ 20,339,680 | $ 307,289 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 288,585,056 | $ 288,585,056 | $ - | $ - |
Consumer Staples | 57,090,956 | 57,090,956 | - | - |
Energy | 109,409,493 | 109,409,493 | - | - |
Financials | 118,674,949 | 118,674,949 | - | - |
Health Care | 247,119,529 | 247,119,529 | - | - |
Industrials | 309,559,223 | 309,559,223 | - | - |
Information Technology | 424,861,672 | 424,861,672 | - | - |
Materials | 63,875,890 | 63,875,890 | - | - |
Telecommunication Services | 16,997,250 | 16,997,250 | - | - |
U.S. Government and Government Agency Obligations | 7,299,810 | - | 7,299,810 | - |
Money Market Funds | 146,911,805 | 146,911,805 | - | - |
Total Investments in Securities: | $ 1,790,385,633 | $ 1,783,085,823 | $ 7,299,810 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 192,165 | $ 192,165 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
Equity Risk | Asset | Liability |
Futures Contracts (a) | $ 192,165 | $ - |
Total Value of Derivatives | $ 192,165 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.6% |
Canada | 4.2% |
Switzerland | 2.2% |
United Kingdom | 1.8% |
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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $52,621,626) - See accompanying schedule: Unaffiliated issuers (cost $1,436,365,345) | $ 1,643,473,828 |
|
Fidelity Central Funds (cost $146,911,805) | 146,911,805 |
|
Total Investments (cost $1,583,277,150) |
| $ 1,790,385,633 |
Foreign currency held at value (cost $967,552) | 968,022 | |
Receivable for investments sold | 54,876,970 | |
Receivable for fund shares sold | 2,051,195 | |
Dividends receivable | 548,358 | |
Distributions receivable from Fidelity Central Funds | 381,659 | |
Receivable for daily variation margin on futures contracts | 70,000 | |
Prepaid expenses | 4,542 | |
Other receivables | 76,405 | |
Total assets | 1,849,362,784 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 569 | |
Payable for investments purchased | 44,752,700 | |
Payable for fund shares redeemed | 6,452,851 | |
Accrued management fee | 1,010,245 | |
Distribution and service plan fees payable | 47,095 | |
Other affiliated payables | 303,678 | |
Other payables and accrued expenses | 38,756 | |
Collateral on securities loaned, at value | 54,743,850 | |
Total liabilities | 107,349,744 | |
|
|
|
Net Assets | $ 1,742,013,040 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,534,220,464 | |
Accumulated net investment loss | (1,995,221) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,494,310 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 207,293,487 | |
Net Assets | $ 1,742,013,040 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 15.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.54) | $ 16.49 | |
Class T: | $ 15.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.38) | $ 15.94 | |
Class B: | $ 14.94 | |
|
|
|
Class C: | $ 14.91 | |
|
|
|
|
|
|
Small Cap Growth: | $ 15.79 | |
|
|
|
Class F: | $ 15.89 | |
|
|
|
Institutional Class: | $ 15.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $307,289 earned from other affiliated issuers) |
| $ 4,663,559 |
Interest |
| 65 |
Income from Fidelity Central Funds (including $2,823,997 from security lending) |
| 2,854,776 |
Total income |
| 7,518,400 |
|
|
|
Expenses | ||
Management fee | $ 5,791,373 | |
Performance adjustment | 707,182 | |
Transfer agent fees | 1,598,494 | |
Distribution and service plan fees | 269,796 | |
Accounting and security lending fees | 264,275 | |
Independent trustees' compensation | 5,495 | |
Registration fees | 76,308 | |
Audit | 32,519 | |
Legal | 3,692 | |
Total expenses before reductions | 8,749,134 | |
Expense reductions | (83,817) | 8,665,317 |
Net investment income (loss) | (1,146,917) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 16,542,030 | |
Other affiliated issuers | (1,854,112) |
|
Foreign currency transactions | (138,389) | |
Futures contracts | 4,024,161 | |
Total net realized gain (loss) |
| 18,573,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,175,941) | |
Assets and liabilities in foreign currencies | (10,827) | |
Futures contracts | 192,165 | |
Total change in net unrealized appreciation (depreciation) |
| (77,994,603) |
Net gain (loss) | (59,420,913) | |
Net increase (decrease) in net assets resulting from operations | $ (60,567,830) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,146,917) | $ (3,102,614) |
Net realized gain (loss) | 18,573,690 | 221,065,530 |
Change in net unrealized appreciation (depreciation) | (77,994,603) | 210,253,368 |
Net increase (decrease) in net assets resulting | (60,567,830) | 428,216,284 |
Distributions to shareholders from net realized gain | (34,799,429) | (3,013,255) |
Share transactions - net increase (decrease) | (5,937,033) | (17,486,495) |
Redemption fees | 179,111 | 229,000 |
Total increase (decrease) in net assets | (101,125,181) | 407,945,534 |
|
|
|
Net Assets | ||
Beginning of period | 1,843,138,221 | 1,435,192,687 |
End of period (including accumulated net investment loss of $1,995,221 and accumulated net investment loss of $848,304, respectively) | $ 1,742,013,040 | $ 1,843,138,221 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.07) H | (.07) I | (.06) | (.11) | (.12) J |
Net realized and unrealized gain (loss) | (.53) | 3.84 | 1.94 | (2.35) | (1.73) | 3.39 |
Total from investment operations | (.56) | 3.77 | 1.87 | (2.41) | (1.84) | 3.27 |
Distributions from net realized gain | (.32) | (.01) M | - | - | (1.02) | (.09) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.54 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Total Return B, C, D | (3.20)% | 29.78% | 17.33% | (18.26)% | (12.26)% | 25.52% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.44% |
Expenses net of fee waivers, if any | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.23% | 1.34% | 1.33% | 1.39% | 1.39% |
Net investment income (loss) | (.46)% A | (.47)% H | (.56)% I | (.64)% | (.74)% | (.80)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 61,719 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.11) H | (.10)I | (.09) | (.15) | (.16) J |
Net realized and unrealized gain (loss) | (.52) | 3.81 | 1.93 | (2.34) | (1.73) | 3.38 |
Total from investment operations | (.57) | 3.70 | 1.83 | (2.43) | (1.88) | 3.22 |
Distributions from net realized gain | (.32) | - | - | - | (.96) | (.07) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.38 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Total ReturnB, C, D | (3.29)% | 29.44% | 17.04% | (18.45)% | (12.50)% | 25.18% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.67% |
Expenses net of fee waivers, if any | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.49% | 1.60% | 1.59% | 1.65% | 1.65% |
Net investment income (loss) | (.72)% A | (.73)% H | (.82)% I | (.91)% | (.99)% | (1.05)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27,457 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.74 | 1.89 | (2.33) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.56 | 1.73 | (2.46) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.89) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.94 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Total Return B, C, D | (3.57)% | 28.94% | 16.37% | (18.88)% | (12.92)% | 24.57% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.08% | 2.15% | 2.15% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,636 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.73 | 1.89 | (2.32) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.55 | 1.73 | (2.45) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.91) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Total Return B, C, D | (3.58)% | 28.91% | 16.40% | (18.85)% | (12.94)% | 24.59% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.07% | 2.14% | 2.14% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,856 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.04) H | (.04) | (.07) | (.08) I |
Net realized and unrealized gain (loss) | (.53) | 3.90 | 1.96 | (2.36) | (1.74) | 3.40 |
Total from investment operations | (.54) | 3.87 | 1.92 | (2.40) | (1.81) | 3.32 |
Distributions from net realized gain | (.32) | (.03) L | - | - | (1.05) | (.10) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Total Return B, C | (3.03)% | 30.20% | 17.63% | (18.06)% | (11.98)% | 25.84% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of fee waivers, if any | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of all reductions | 1.07% A | .93% | 1.07% | 1.08% | 1.10% | 1.09% |
Net investment income (loss) | (.15)% A | (.17)% G | (.29)% H | (.39)% | (.45)% | (.50)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,183,821 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L The amount shown reflects certain reclassifications related to book to tax differences. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 J |
Selected Per-Share Data |
|
|
| |
Net asset value, beginning of period | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .01 | .01 H | - I, L | (.01) |
Net realized and unrealized gain (loss) | (.53) | 3.91 | 1.95 | .88 |
Total from investment operations | (.52) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (.32) | (.04) M | - | - |
Redemption fees added to paid in capital D, L | - | - | - | - |
Net asset value, end of period | $ 15.89 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | (2.90)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, K |
|
|
|
|
Expenses before reductions | .84% A | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .84% A | .70% | .78% | .74% A |
Expenses net of all reductions | .83% A | .68% | .77% | .73% A |
Net investment income (loss) | .09% A | .08% H | -% G, I | (.54)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 401,078 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Amount represents less than .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.03) H | (.03) | (.06) | (.07) I |
Net realized and unrealized gain (loss) | (.54) | 3.91 | 1.95 | (2.36) | (1.74) | 3.41 |
Total from investment operations | (.55) | 3.88 | 1.92 | (2.39) | (1.80) | 3.34 |
Distributions from net realized gain | (.32) | (.03) K | - | - | (1.05) | (.11) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Total Return B, C | (3.09)% | 30.24% | 17.60% | (17.97)% | (11.93)% | 25.99% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of fee waivers, if any | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of all reductions | 1.10% A | .93% | 1.02% | 1.04% | 1.03% | 1.05% |
Net investment income (loss) | (.18)% A | (.17)% G | (.24)% H | (.36)% | (.38)% | (.46)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,446 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price or official closing price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 252,506,620 |
Gross unrealized depreciation | (50,384,829) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,121,791 |
Tax cost | $ 1,588,263,842 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $848,304 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments variation margin are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $4,024,161 and a change in net unrealized appreciation (depreciation) of $192,165 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,103,583,096 and $1,222,225,338, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 72,929 | $ 1,626 |
Class T | .25% | .25% | 65,842 | - |
Class B | .75% | .25% | 22,469 | 16,852 |
Class C | .75% | .25% | 108,556 | 20,033 |
|
|
| $ 269,796 | $ 38,511 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 4,601 |
Class T | 2,209 |
Class B* | 3,893 |
Class C* | 1,901 |
| $ 12,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 88,069 | .30 |
Class T | 40,770 | .31 |
Class B | 6,750 | .30 |
Class C | 32,667 | .30 |
Small Cap Growth | 1,380,680 | .24 |
Institutional Class | 49,558 | .27 |
| $ 1,598,494 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $67,747 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,327 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $4,899,808. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $27,226 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $83,817 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 1,262,924 | $ 40,130 |
Class T | 573,407 | - |
Class B | 101,910 | - |
Class C | 481,854 | - |
Small Cap Growth | 25,434,274 | 2,420,020 |
Class F | 6,152,820 | 492,928 |
Institutional Class | 792,240 | 60,177 |
Total | $ 34,799,429 | $ 3,013,255 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 572,746 | 1,459,436 | $ 8,320,416 | $ 22,640,692 |
Reinvestment of distributions | 85,896 | 2,323 | 1,194,285 | 36,172 |
Shares redeemed | (784,049) | (1,364,690) | (11,395,250) | (20,977,078) |
Net increase (decrease) | (125,407) | 97,069 | $ (1,880,549) | $ 1,699,786 |
Class T |
|
|
|
|
Shares sold | 145,630 | 420,613 | $ 2,106,118 | $ 6,491,294 |
Reinvestment of distributions | 38,774 | - | 533,890 | - |
Shares redeemed | (289,373) | (434,512) | (4,124,620) | (6,714,256) |
Net increase (decrease) | (104,969) | (13,899) | $ (1,484,612) | $ (222,962) |
Class B |
|
|
|
|
Shares sold | 7,487 | 25,204 | $ 106,396 | $ 366,276 |
Reinvestment of distributions | 7,173 | - | 96,091 | - |
Shares redeemed | (38,240) | (109,118) | (533,021) | (1,597,390) |
Net increase (decrease) | (23,580) | (83,914) | $ (330,534) | $ (1,231,114) |
Class C |
|
|
|
|
Shares sold | 221,401 | 469,568 | $ 3,147,700 | $ 7,154,653 |
Reinvestment of distributions | 33,110 | - | 443,092 | - |
Shares redeemed | (228,620) | (368,398) | (3,163,309) | (5,494,248) |
Net increase (decrease) | 25,891 | 101,170 | $ 427,483 | $ 1,660,405 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 7,365,218 | 19,971,507 | $ 108,678,938 | $ 315,167,556 |
Reinvestment of distributions | 1,774,193 | 153,921 | 25,023,264 | 2,384,001 |
Shares redeemed | (17,201,403) | (31,144,660) | (252,657,502) | (483,710,319) |
Net increase (decrease) | (8,061,992) | (11,019,232) | $ (118,955,300) | $ (166,158,762) |
Class F |
|
|
|
|
Shares sold | 8,575,077 | 11,382,202 | $ 126,763,266 | $ 176,012,143 |
Reinvestment of distributions | 432,802 | 31,816 | 6,152,820 | 492,928 |
Shares redeemed | (1,138,704) | (2,356,621) | (16,794,218) | (37,493,486) |
Net increase (decrease) | 7,869,175 | 9,057,397 | $ 116,121,868 | $ 139,011,585 |
Institutional Class |
|
|
|
|
Shares sold | 592,919 | 1,038,111 | $ 8,818,174 | $ 16,415,657 |
Reinvestment of distributions | 44,186 | 2,532 | 624,723 | 39,301 |
Shares redeemed | (627,210) | (555,221) | (9,278,286) | (8,700,391) |
Net increase (decrease) | 9,895 | 485,422 | $ 164,611 | $ 7,754,567 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 56% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
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Selling shares
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General Correspondence
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Fidelity Investments
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Semiannual Report
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SCP-F-SANN-0312 1.891909.102
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.00 | $ 6.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 967.10 | $ 8.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.30 | $ 10.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.38 | $ 10.84 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.20 | $ 10.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Small Cap Growth | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.70 | $ 5.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.71 | $ 5.48 |
Class F | .84% |
|
|
|
Actual |
| $ 1,000.00 | $ 971.00 | $ 4.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.91 | $ 4.27 |
Institutional Class | 1.11% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.10 | $ 5.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.56 | $ 5.63 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Jabil Circuit, Inc. | 1.3 | 1.1 |
Entegris, Inc. | 1.3 | 1.1 |
Steven Madden Ltd. | 1.3 | 1.3 |
Sally Beauty Holdings, Inc. | 1.2 | 1.2 |
Westport Innovations, Inc. | 1.1 | 0.0 |
Ebix, Inc. | 1.1 | 0.8 |
TransDigm Group, Inc. | 1.1 | 0.8 |
The Cooper Companies, Inc. | 1.1 | 1.2 |
Hubbell, Inc. Class B | 1.1 | 0.0 |
Watsco, Inc. | 1.1 | 0.7 |
| 11.7 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 24.4 | 26.8 |
Industrials | 17.8 | 20.1 |
Consumer Discretionary | 16.5 | 17.0 |
Health Care | 14.2 | 17.5 |
Financials | 6.8 | 3.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks and Equity |
| ![]() | Stocks and Equity |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.4% |
| ** Foreign investments | 13.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.5% | |||
Auto Components - 1.8% | |||
Modine Manufacturing Co. (a) | 1,244,000 | $ 13,609,360 | |
Tenneco, Inc. (a) | 558,000 | 17,911,800 | |
| 31,521,160 | ||
Diversified Consumer Services - 0.4% | |||
Steiner Leisure Ltd. (a) | 146,907 | 7,254,268 | |
Hotels, Restaurants & Leisure - 2.1% | |||
Cracker Barrel Old Country Store, Inc. | 220,000 | 11,543,400 | |
Life Time Fitness, Inc. (a) | 247,731 | 12,173,501 | |
Texas Roadhouse, Inc. Class A | 825,000 | 12,507,000 | |
| 36,223,901 | ||
Household Durables - 1.3% | |||
Lennar Corp. Class A | 303,800 | 6,528,662 | |
Toll Brothers, Inc. (a) | 741,300 | 16,167,753 | |
| 22,696,415 | ||
Internet & Catalog Retail - 0.4% | |||
Start Today Co. Ltd. (d) | 400,000 | 7,807,950 | |
Multiline Retail - 0.9% | |||
Dollarama, Inc. | 374,900 | 16,169,958 | |
Specialty Retail - 6.9% | |||
Ascena Retail Group, Inc. (a) | 520,000 | 18,392,400 | |
DSW, Inc. Class A | 191,800 | 9,584,246 | |
Group 1 Automotive, Inc. | 186,367 | 9,940,816 | |
Hibbett Sports, Inc. (a) | 275,000 | 13,180,750 | |
Jos. A. Bank Clothiers, Inc. (a) | 310,000 | 14,802,500 | |
Sally Beauty Holdings, Inc. (a) | 1,036,000 | 21,362,320 | |
Signet Jewelers Ltd. | 171,100 | 7,798,738 | |
Tractor Supply Co. | 128,000 | 10,338,560 | |
Vitamin Shoppe, Inc. (a) | 349,000 | 14,916,260 | |
| 120,316,590 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
PVH Corp. | 232,559 | 17,951,229 | |
Steven Madden Ltd. (a) | 527,500 | 21,701,350 | |
Ted Baker PLC | 591,073 | 6,942,235 | |
| 46,594,814 | ||
TOTAL CONSUMER DISCRETIONARY | 288,585,056 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.3% | |||
Food & Staples Retailing - 1.7% | |||
Chefs' Warehouse Holdings (a) | 515,000 | $ 10,881,950 | |
Fresh Market, Inc. (a)(d) | 83,600 | 3,599,816 | |
Ruddick Corp. | 350,000 | 14,119,000 | |
| 28,600,766 | ||
Food Products - 0.8% | |||
Calavo Growers, Inc. (d) | 525,075 | 14,282,040 | |
Personal Products - 0.8% | |||
Elizabeth Arden, Inc. (a) | 395,000 | 14,208,150 | |
TOTAL CONSUMER STAPLES | 57,090,956 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 3.8% | |||
Essential Energy Services Ltd. (a) | 4,338,800 | 8,870,147 | |
ION Geophysical Corp. (a) | 1,542,023 | 11,457,231 | |
Newpark Resources, Inc. (a) | 1,624,700 | 13,225,058 | |
Rowan Companies, Inc. (a) | 256,000 | 8,706,560 | |
Western Energy Services Corp. (a) | 1,530,000 | 13,411,818 | |
Xtreme Coil Drilling Corp. (a) | 3,000,000 | 9,603,590 | |
Zedi, Inc. (a) | 666,500 | 498,504 | |
| 65,772,908 | ||
Oil, Gas & Consumable Fuels - 2.5% | |||
Alpha Natural Resources, Inc. (a) | 414,000 | 8,329,680 | |
Gulfport Energy Corp. (a) | 129,700 | 4,263,239 | |
Petroleum Development Corp. (a) | 392,200 | 12,209,186 | |
Targa Resources Corp. | 454,500 | 18,834,480 | |
| 43,636,585 | ||
TOTAL ENERGY | 109,409,493 | ||
FINANCIALS - 6.8% | |||
Commercial Banks - 2.4% | |||
Banco Pine SA | 1,618,519 | 12,181,505 | |
BBCN Bancorp, Inc. (a) | 1,000,000 | 10,120,000 | |
CapitalSource, Inc. | 1,800,200 | 12,439,382 | |
Columbia Banking Systems, Inc. | 333,272 | 6,998,712 | |
| 41,739,599 | ||
Insurance - 1.1% | |||
Allied World Assurance Co. Holdings Ltd. | 300,000 | 18,459,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 3.3% | |||
CBL & Associates Properties, Inc. | 1,022,000 | $ 17,752,140 | |
Equity Lifestyle Properties, Inc. | 125,000 | 8,767,500 | |
Highwoods Properties, Inc. (SBI) | 419,000 | 13,864,710 | |
LTC Properties, Inc. | 280,000 | 8,946,000 | |
Rayonier, Inc. | 200,000 | 9,146,000 | |
| 58,476,350 | ||
TOTAL FINANCIALS | 118,674,949 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 2.9% | |||
Alkermes PLC (a) | 145,200 | 2,731,212 | |
AMAG Pharmaceuticals, Inc. (a) | 120,200 | 1,973,684 | |
Ardea Biosciences, Inc. (a)(d) | 349,263 | 6,353,094 | |
ArQule, Inc. (a) | 900,000 | 7,110,000 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 6,777,300 | |
Horizon Pharma, Inc. (d) | 550,000 | 2,183,500 | |
Seattle Genetics, Inc. (a) | 330,000 | 6,246,900 | |
Theravance, Inc. (a)(d) | 299,000 | 5,304,260 | |
United Therapeutics Corp. (a) | 229,900 | 11,306,482 | |
| 49,986,432 | ||
Health Care Equipment & Supplies - 3.2% | |||
Cyberonics, Inc. (a) | 487,000 | 15,827,500 | |
Sirona Dental Systems, Inc. (a) | 195,000 | 9,428,250 | |
The Cooper Companies, Inc. | 270,800 | 19,535,512 | |
Wright Medical Group, Inc. (a) | 625,000 | 10,593,750 | |
| 55,385,012 | ||
Health Care Providers & Services - 6.2% | |||
Air Methods Corp. (a) | 141,000 | 11,886,300 | |
Catalyst Health Solutions, Inc. (a) | 293,000 | 16,044,680 | |
Corvel Corp. (a) | 287,592 | 13,999,979 | |
HMS Holdings Corp. (a) | 479,008 | 15,812,054 | |
IPC The Hospitalist Co., Inc. (a) | 105,071 | 3,539,842 | |
MEDNAX, Inc. (a) | 180,000 | 12,819,600 | |
MWI Veterinary Supply, Inc. (a) | 197,000 | 15,466,470 | |
PSS World Medical, Inc. (a) | 447,000 | 10,848,690 | |
Synergy Health PLC | 595,411 | 7,947,975 | |
| 108,365,590 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.2% | |||
Epocrates, Inc. (a) | 67,158 | $ 650,761 | |
Merge Healthcare, Inc. (a) | 538,568 | 2,951,353 | |
Omnicell, Inc. (a) | 23,300 | 360,684 | |
| 3,962,798 | ||
Pharmaceuticals - 1.7% | |||
Cadence Pharmaceuticals, Inc. (a) | 767,693 | 3,201,280 | |
Dechra Pharmaceuticals PLC | 1,470,000 | 12,185,947 | |
Impax Laboratories, Inc. (a) | 370,000 | 6,981,900 | |
Questcor Pharmaceuticals, Inc. (a) | 199,000 | 7,050,570 | |
| 29,419,697 | ||
TOTAL HEALTH CARE | 247,119,529 | ||
INDUSTRIALS - 17.8% | |||
Aerospace & Defense - 3.4% | |||
BE Aerospace, Inc. (a) | 390,000 | 16,458,000 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 200,000 | 4,548,000 | |
Teledyne Technologies, Inc. (a) | 327,000 | 18,560,520 | |
TransDigm Group, Inc. (a) | 189,000 | 19,756,170 | |
| 59,322,690 | ||
Building Products - 0.8% | |||
A.O. Smith Corp. | 308,000 | 13,083,840 | |
Construction & Engineering - 2.0% | |||
Foster Wheeler AG (a) | 837,400 | 18,808,004 | |
Outotec Oyj | 311,095 | 16,349,110 | |
| 35,157,114 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a) | 808,000 | 13,267,360 | |
Hubbell, Inc. Class B | 270,000 | 19,429,200 | |
II-VI, Inc. (a) | 193,284 | 4,447,465 | |
| 37,144,025 | ||
Machinery - 4.5% | |||
Actuant Corp. Class A | 400,000 | 10,140,000 | |
Blount International, Inc. (a) | 774,000 | 12,709,080 | |
CLARCOR, Inc. | 200,000 | 10,282,000 | |
TriMas Corp. (a) | 550,000 | 11,918,500 | |
Wabtec Corp. | 195,000 | 13,414,050 | |
Westport Innovations, Inc. (a) | 484,700 | 20,163,520 | |
| 78,627,150 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Professional Services - 1.1% | |||
Advisory Board Co. (a) | 247,000 | $ 18,841,160 | |
Trading Companies & Distributors - 3.6% | |||
DXP Enterprises, Inc. (a) | 423,839 | 14,296,089 | |
Rush Enterprises, Inc. Class A (a) | 728,254 | 16,757,125 | |
Watsco, Inc. | 279,000 | 19,242,630 | |
WESCO International, Inc. (a) | 205,000 | 12,890,400 | |
| 63,186,244 | ||
Transportation Infrastructure - 0.3% | |||
Wesco Aircraft Holdings, Inc. (a) | 300,000 | 4,197,000 | |
TOTAL INDUSTRIALS | 309,559,223 | ||
INFORMATION TECHNOLOGY - 24.4% | |||
Communications Equipment - 3.7% | |||
Anaren, Inc. (a) | 656,774 | 11,441,003 | |
Brocade Communications Systems, Inc. (a) | 2,500,000 | 14,025,000 | |
Comtech Telecommunications Corp. | 362,777 | 11,195,298 | |
Parrot SA (a) | 400,000 | 10,829,826 | |
Polycom, Inc. (a) | 893,000 | 17,815,350 | |
| 65,306,477 | ||
Computers & Peripherals - 1.0% | |||
Super Micro Computer, Inc. (a) | 980,923 | 16,557,980 | |
Electronic Equipment & Components - 3.7% | |||
Fabrinet (a) | 558,429 | 9,197,326 | |
Insight Enterprises, Inc. (a) | 837,400 | 15,458,404 | |
Jabil Circuit, Inc. | 1,013,000 | 22,954,577 | |
OSI Systems, Inc. (a) | 314,000 | 16,871,220 | |
TTM Technologies, Inc. (a) | 36,700 | 450,309 | |
| 64,931,836 | ||
Internet Software & Services - 4.5% | |||
Ancestry.com, Inc. (a)(d) | 400,000 | 11,840,000 | |
Bankrate, Inc. | 450,000 | 10,525,500 | |
Demand Media, Inc. (d) | 1,680,000 | 10,584,000 | |
InfoSpace, Inc. (a) | 860,000 | 10,586,600 | |
LivePerson, Inc. (a) | 960,000 | 11,520,000 | |
Open Text Corp. (a) | 142,000 | 7,196,649 | |
Perficient, Inc. (a) | 978,447 | 10,890,115 | |
Saba Software, Inc. (a) | 500,501 | 4,974,980 | |
| 78,117,844 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 2.5% | |||
Broadridge Financial Solutions, Inc. | 500,000 | $ 11,985,000 | |
Higher One Holdings, Inc. (a)(d) | 530,000 | 8,978,200 | |
VeriFone Systems, Inc. (a) | 150,000 | 6,405,000 | |
Virtusa Corp. (a) | 915,000 | 14,630,850 | |
WNS Holdings Ltd. sponsored ADR (a) | 168,290 | 1,637,462 | |
| 43,636,512 | ||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Cymer, Inc. (a) | 306,901 | 15,280,601 | |
Entegris, Inc. (a) | 2,356,500 | 22,575,270 | |
| 37,855,871 | ||
Software - 6.8% | |||
Aspen Technology, Inc. (a) | 704,000 | 12,679,040 | |
BroadSoft, Inc. (a)(d) | 382,591 | 10,666,637 | |
CommVault Systems, Inc. (a) | 245,000 | 11,515,000 | |
Ebix, Inc. (d) | 797,810 | 19,769,732 | |
Kenexa Corp. (a) | 610,000 | 14,652,200 | |
MICROS Systems, Inc. (a) | 235,000 | 11,681,850 | |
Royalblue Group PLC | 108,700 | 2,842,053 | |
SolarWinds, Inc. (a) | 300,000 | 9,483,000 | |
Solera Holdings, Inc. | 332,000 | 15,859,640 | |
Sourcefire, Inc. (a)(d) | 300,000 | 9,306,000 | |
| 118,455,152 | ||
TOTAL INFORMATION TECHNOLOGY | 424,861,672 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.5% | |||
Innophos Holdings, Inc. | 340,000 | 16,972,800 | |
Rockwood Holdings, Inc. (a) | 285,000 | 14,392,500 | |
Solutia, Inc. | 433,700 | 11,926,750 | |
| 43,292,050 | ||
Containers & Packaging - 0.5% | |||
Silgan Holdings, Inc. | 220,000 | 9,143,200 | |
Metals & Mining - 0.6% | |||
Carpenter Technology Corp. | 218,000 | 11,440,640 | |
TOTAL MATERIALS | 63,875,890 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.6% | |||
AboveNet, Inc. (a) | 165,000 | $ 10,964,250 | |
Wireless Telecommunication Services - 0.4% | |||
NII Holdings, Inc. (a) | 300,000 | 6,033,000 | |
TOTAL TELECOMMUNICATION SERVICES | 16,997,250 | ||
TOTAL COMMON STOCKS (Cost $1,429,065,527) |
|
U.S. Treasury Obligations - 0.4% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 2/23/12 (e) | $ 7,300,000 |
|
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 92,167,955 | 92,167,955 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 54,743,850 | 54,743,850 | |
TOTAL MONEY MARKET FUNDS (Cost $146,911,805) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $1,583,277,150) | 1,790,385,633 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (48,372,593) | ||
NET ASSETS - 100% | $ 1,742,013,040 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
1,000 NYFE Russell 2000 Mini Index Contracts | March 2012 | $ 79,120,000 | $ 192,165 |
The face value of futures purchased as a percentage of net assets is 4.5% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $7,299,810. |
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 | $ 30,779 |
Fidelity Securities Lending Cash Central Fund | 2,823,997 |
Total | $ 2,854,776 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Calavo Growers, Inc. | $ 16,826,331 | $ 5,168,688 | $ 10,470,737 | $ 307,289 | $ - |
Perficient, Inc. | 17,202,205 | 2,900,335 | 9,868,943 | - | - |
Total | $ 34,028,536 | $ 8,069,023 | $ 20,339,680 | $ 307,289 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 288,585,056 | $ 288,585,056 | $ - | $ - |
Consumer Staples | 57,090,956 | 57,090,956 | - | - |
Energy | 109,409,493 | 109,409,493 | - | - |
Financials | 118,674,949 | 118,674,949 | - | - |
Health Care | 247,119,529 | 247,119,529 | - | - |
Industrials | 309,559,223 | 309,559,223 | - | - |
Information Technology | 424,861,672 | 424,861,672 | - | - |
Materials | 63,875,890 | 63,875,890 | - | - |
Telecommunication Services | 16,997,250 | 16,997,250 | - | - |
U.S. Government and Government Agency Obligations | 7,299,810 | - | 7,299,810 | - |
Money Market Funds | 146,911,805 | 146,911,805 | - | - |
Total Investments in Securities: | $ 1,790,385,633 | $ 1,783,085,823 | $ 7,299,810 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 192,165 | $ 192,165 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
Equity Risk | Asset | Liability |
Futures Contracts (a) | $ 192,165 | $ - |
Total Value of Derivatives | $ 192,165 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.6% |
Canada | 4.2% |
Switzerland | 2.2% |
United Kingdom | 1.8% |
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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $52,621,626) - See accompanying schedule: Unaffiliated issuers (cost $1,436,365,345) | $ 1,643,473,828 |
|
Fidelity Central Funds (cost $146,911,805) | 146,911,805 |
|
Total Investments (cost $1,583,277,150) |
| $ 1,790,385,633 |
Foreign currency held at value (cost $967,552) | 968,022 | |
Receivable for investments sold | 54,876,970 | |
Receivable for fund shares sold | 2,051,195 | |
Dividends receivable | 548,358 | |
Distributions receivable from Fidelity Central Funds | 381,659 | |
Receivable for daily variation margin on futures contracts | 70,000 | |
Prepaid expenses | 4,542 | |
Other receivables | 76,405 | |
Total assets | 1,849,362,784 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 569 | |
Payable for investments purchased | 44,752,700 | |
Payable for fund shares redeemed | 6,452,851 | |
Accrued management fee | 1,010,245 | |
Distribution and service plan fees payable | 47,095 | |
Other affiliated payables | 303,678 | |
Other payables and accrued expenses | 38,756 | |
Collateral on securities loaned, at value | 54,743,850 | |
Total liabilities | 107,349,744 | |
|
|
|
Net Assets | $ 1,742,013,040 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,534,220,464 | |
Accumulated net investment loss | (1,995,221) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,494,310 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 207,293,487 | |
Net Assets | $ 1,742,013,040 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 15.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.54) | $ 16.49 | |
Class T: | $ 15.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.38) | $ 15.94 | |
Class B: | $ 14.94 | |
|
|
|
Class C: | $ 14.91 | |
|
|
|
|
|
|
Small Cap Growth: | $ 15.79 | |
|
|
|
Class F: | $ 15.89 | |
|
|
|
Institutional Class: | $ 15.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $307,289 earned from other affiliated issuers) |
| $ 4,663,559 |
Interest |
| 65 |
Income from Fidelity Central Funds (including $2,823,997 from security lending) |
| 2,854,776 |
Total income |
| 7,518,400 |
|
|
|
Expenses | ||
Management fee | $ 5,791,373 | |
Performance adjustment | 707,182 | |
Transfer agent fees | 1,598,494 | |
Distribution and service plan fees | 269,796 | |
Accounting and security lending fees | 264,275 | |
Independent trustees' compensation | 5,495 | |
Registration fees | 76,308 | |
Audit | 32,519 | |
Legal | 3,692 | |
Total expenses before reductions | 8,749,134 | |
Expense reductions | (83,817) | 8,665,317 |
Net investment income (loss) | (1,146,917) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 16,542,030 | |
Other affiliated issuers | (1,854,112) |
|
Foreign currency transactions | (138,389) | |
Futures contracts | 4,024,161 | |
Total net realized gain (loss) |
| 18,573,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,175,941) | |
Assets and liabilities in foreign currencies | (10,827) | |
Futures contracts | 192,165 | |
Total change in net unrealized appreciation (depreciation) |
| (77,994,603) |
Net gain (loss) | (59,420,913) | |
Net increase (decrease) in net assets resulting from operations | $ (60,567,830) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,146,917) | $ (3,102,614) |
Net realized gain (loss) | 18,573,690 | 221,065,530 |
Change in net unrealized appreciation (depreciation) | (77,994,603) | 210,253,368 |
Net increase (decrease) in net assets resulting | (60,567,830) | 428,216,284 |
Distributions to shareholders from net realized gain | (34,799,429) | (3,013,255) |
Share transactions - net increase (decrease) | (5,937,033) | (17,486,495) |
Redemption fees | 179,111 | 229,000 |
Total increase (decrease) in net assets | (101,125,181) | 407,945,534 |
|
|
|
Net Assets | ||
Beginning of period | 1,843,138,221 | 1,435,192,687 |
End of period (including accumulated net investment loss of $1,995,221 and accumulated net investment loss of $848,304, respectively) | $ 1,742,013,040 | $ 1,843,138,221 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.07) H | (.07) I | (.06) | (.11) | (.12) J |
Net realized and unrealized gain (loss) | (.53) | 3.84 | 1.94 | (2.35) | (1.73) | 3.39 |
Total from investment operations | (.56) | 3.77 | 1.87 | (2.41) | (1.84) | 3.27 |
Distributions from net realized gain | (.32) | (.01) M | - | - | (1.02) | (.09) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.54 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Total Return B, C, D | (3.20)% | 29.78% | 17.33% | (18.26)% | (12.26)% | 25.52% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.44% |
Expenses net of fee waivers, if any | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.23% | 1.34% | 1.33% | 1.39% | 1.39% |
Net investment income (loss) | (.46)% A | (.47)% H | (.56)% I | (.64)% | (.74)% | (.80)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 61,719 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.11) H | (.10)I | (.09) | (.15) | (.16) J |
Net realized and unrealized gain (loss) | (.52) | 3.81 | 1.93 | (2.34) | (1.73) | 3.38 |
Total from investment operations | (.57) | 3.70 | 1.83 | (2.43) | (1.88) | 3.22 |
Distributions from net realized gain | (.32) | - | - | - | (.96) | (.07) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.38 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Total ReturnB, C, D | (3.29)% | 29.44% | 17.04% | (18.45)% | (12.50)% | 25.18% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.67% |
Expenses net of fee waivers, if any | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.49% | 1.60% | 1.59% | 1.65% | 1.65% |
Net investment income (loss) | (.72)% A | (.73)% H | (.82)% I | (.91)% | (.99)% | (1.05)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27,457 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.74 | 1.89 | (2.33) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.56 | 1.73 | (2.46) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.89) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.94 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Total Return B, C, D | (3.57)% | 28.94% | 16.37% | (18.88)% | (12.92)% | 24.57% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.08% | 2.15% | 2.15% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,636 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.73 | 1.89 | (2.32) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.55 | 1.73 | (2.45) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.91) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Total Return B, C, D | (3.58)% | 28.91% | 16.40% | (18.85)% | (12.94)% | 24.59% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.07% | 2.14% | 2.14% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,856 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.04) H | (.04) | (.07) | (.08) I |
Net realized and unrealized gain (loss) | (.53) | 3.90 | 1.96 | (2.36) | (1.74) | 3.40 |
Total from investment operations | (.54) | 3.87 | 1.92 | (2.40) | (1.81) | 3.32 |
Distributions from net realized gain | (.32) | (.03) L | - | - | (1.05) | (.10) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Total Return B, C | (3.03)% | 30.20% | 17.63% | (18.06)% | (11.98)% | 25.84% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of fee waivers, if any | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of all reductions | 1.07% A | .93% | 1.07% | 1.08% | 1.10% | 1.09% |
Net investment income (loss) | (.15)% A | (.17)% G | (.29)% H | (.39)% | (.45)% | (.50)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,183,821 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L The amount shown reflects certain reclassifications related to book to tax differences. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 J |
Selected Per-Share Data |
|
|
| |
Net asset value, beginning of period | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .01 | .01 H | - I, L | (.01) |
Net realized and unrealized gain (loss) | (.53) | 3.91 | 1.95 | .88 |
Total from investment operations | (.52) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (.32) | (.04) M | - | - |
Redemption fees added to paid in capital D, L | - | - | - | - |
Net asset value, end of period | $ 15.89 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | (2.90)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, K |
|
|
|
|
Expenses before reductions | .84% A | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .84% A | .70% | .78% | .74% A |
Expenses net of all reductions | .83% A | .68% | .77% | .73% A |
Net investment income (loss) | .09% A | .08% H | -% G, I | (.54)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 401,078 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Amount represents less than .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.03) H | (.03) | (.06) | (.07) I |
Net realized and unrealized gain (loss) | (.54) | 3.91 | 1.95 | (2.36) | (1.74) | 3.41 |
Total from investment operations | (.55) | 3.88 | 1.92 | (2.39) | (1.80) | 3.34 |
Distributions from net realized gain | (.32) | (.03) K | - | - | (1.05) | (.11) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Total Return B, C | (3.09)% | 30.24% | 17.60% | (17.97)% | (11.93)% | 25.99% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of fee waivers, if any | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of all reductions | 1.10% A | .93% | 1.02% | 1.04% | 1.03% | 1.05% |
Net investment income (loss) | (.18)% A | (.17)% G | (.24)% H | (.36)% | (.38)% | (.46)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,446 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price or official closing price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 252,506,620 |
Gross unrealized depreciation | (50,384,829) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,121,791 |
Tax cost | $ 1,588,263,842 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $848,304 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments variation margin are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $4,024,161 and a change in net unrealized appreciation (depreciation) of $192,165 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,103,583,096 and $1,222,225,338, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 72,929 | $ 1,626 |
Class T | .25% | .25% | 65,842 | - |
Class B | .75% | .25% | 22,469 | 16,852 |
Class C | .75% | .25% | 108,556 | 20,033 |
|
|
| $ 269,796 | $ 38,511 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 4,601 |
Class T | 2,209 |
Class B* | 3,893 |
Class C* | 1,901 |
| $ 12,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 88,069 | .30 |
Class T | 40,770 | .31 |
Class B | 6,750 | .30 |
Class C | 32,667 | .30 |
Small Cap Growth | 1,380,680 | .24 |
Institutional Class | 49,558 | .27 |
| $ 1,598,494 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $67,747 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,327 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $4,899,808. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $27,226 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $83,817 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 1,262,924 | $ 40,130 |
Class T | 573,407 | - |
Class B | 101,910 | - |
Class C | 481,854 | - |
Small Cap Growth | 25,434,274 | 2,420,020 |
Class F | 6,152,820 | 492,928 |
Institutional Class | 792,240 | 60,177 |
Total | $ 34,799,429 | $ 3,013,255 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 572,746 | 1,459,436 | $ 8,320,416 | $ 22,640,692 |
Reinvestment of distributions | 85,896 | 2,323 | 1,194,285 | 36,172 |
Shares redeemed | (784,049) | (1,364,690) | (11,395,250) | (20,977,078) |
Net increase (decrease) | (125,407) | 97,069 | $ (1,880,549) | $ 1,699,786 |
Class T |
|
|
|
|
Shares sold | 145,630 | 420,613 | $ 2,106,118 | $ 6,491,294 |
Reinvestment of distributions | 38,774 | - | 533,890 | - |
Shares redeemed | (289,373) | (434,512) | (4,124,620) | (6,714,256) |
Net increase (decrease) | (104,969) | (13,899) | $ (1,484,612) | $ (222,962) |
Class B |
|
|
|
|
Shares sold | 7,487 | 25,204 | $ 106,396 | $ 366,276 |
Reinvestment of distributions | 7,173 | - | 96,091 | - |
Shares redeemed | (38,240) | (109,118) | (533,021) | (1,597,390) |
Net increase (decrease) | (23,580) | (83,914) | $ (330,534) | $ (1,231,114) |
Class C |
|
|
|
|
Shares sold | 221,401 | 469,568 | $ 3,147,700 | $ 7,154,653 |
Reinvestment of distributions | 33,110 | - | 443,092 | - |
Shares redeemed | (228,620) | (368,398) | (3,163,309) | (5,494,248) |
Net increase (decrease) | 25,891 | 101,170 | $ 427,483 | $ 1,660,405 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 7,365,218 | 19,971,507 | $ 108,678,938 | $ 315,167,556 |
Reinvestment of distributions | 1,774,193 | 153,921 | 25,023,264 | 2,384,001 |
Shares redeemed | (17,201,403) | (31,144,660) | (252,657,502) | (483,710,319) |
Net increase (decrease) | (8,061,992) | (11,019,232) | $ (118,955,300) | $ (166,158,762) |
Class F |
|
|
|
|
Shares sold | 8,575,077 | 11,382,202 | $ 126,763,266 | $ 176,012,143 |
Reinvestment of distributions | 432,802 | 31,816 | 6,152,820 | 492,928 |
Shares redeemed | (1,138,704) | (2,356,621) | (16,794,218) | (37,493,486) |
Net increase (decrease) | 7,869,175 | 9,057,397 | $ 116,121,868 | $ 139,011,585 |
Institutional Class |
|
|
|
|
Shares sold | 592,919 | 1,038,111 | $ 8,818,174 | $ 16,415,657 |
Reinvestment of distributions | 44,186 | 2,532 | 624,723 | 39,301 |
Shares redeemed | (627,210) | (555,221) | (9,278,286) | (8,700,391) |
Net increase (decrease) | 9,895 | 485,422 | $ 164,611 | $ 7,754,567 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 56% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCP-USAN-0312 1.803716.108
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.00 | $ 6.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 967.10 | $ 8.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.84 | $ 8.36 |
Class B | 2.14% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.30 | $ 10.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.38 | $ 10.84 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 964.20 | $ 10.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.33 | $ 10.89 |
Small Cap Growth | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.70 | $ 5.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.71 | $ 5.48 |
Class F | .84% |
|
|
|
Actual |
| $ 1,000.00 | $ 971.00 | $ 4.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.91 | $ 4.27 |
Institutional Class | 1.11% |
|
|
|
Actual |
| $ 1,000.00 | $ 969.10 | $ 5.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.56 | $ 5.63 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Jabil Circuit, Inc. | 1.3 | 1.1 |
Entegris, Inc. | 1.3 | 1.1 |
Steven Madden Ltd. | 1.3 | 1.3 |
Sally Beauty Holdings, Inc. | 1.2 | 1.2 |
Westport Innovations, Inc. | 1.1 | 0.0 |
Ebix, Inc. | 1.1 | 0.8 |
TransDigm Group, Inc. | 1.1 | 0.8 |
The Cooper Companies, Inc. | 1.1 | 1.2 |
Hubbell, Inc. Class B | 1.1 | 0.0 |
Watsco, Inc. | 1.1 | 0.7 |
| 11.7 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Information Technology | 24.4 | 26.8 |
Industrials | 17.8 | 20.1 |
Consumer Discretionary | 16.5 | 17.0 |
Health Care | 14.2 | 17.5 |
Financials | 6.8 | 3.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks and Equity |
| ![]() | Stocks and Equity |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 12.4% |
| ** Foreign investments | 13.7% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.5% | |||
Auto Components - 1.8% | |||
Modine Manufacturing Co. (a) | 1,244,000 | $ 13,609,360 | |
Tenneco, Inc. (a) | 558,000 | 17,911,800 | |
| 31,521,160 | ||
Diversified Consumer Services - 0.4% | |||
Steiner Leisure Ltd. (a) | 146,907 | 7,254,268 | |
Hotels, Restaurants & Leisure - 2.1% | |||
Cracker Barrel Old Country Store, Inc. | 220,000 | 11,543,400 | |
Life Time Fitness, Inc. (a) | 247,731 | 12,173,501 | |
Texas Roadhouse, Inc. Class A | 825,000 | 12,507,000 | |
| 36,223,901 | ||
Household Durables - 1.3% | |||
Lennar Corp. Class A | 303,800 | 6,528,662 | |
Toll Brothers, Inc. (a) | 741,300 | 16,167,753 | |
| 22,696,415 | ||
Internet & Catalog Retail - 0.4% | |||
Start Today Co. Ltd. (d) | 400,000 | 7,807,950 | |
Multiline Retail - 0.9% | |||
Dollarama, Inc. | 374,900 | 16,169,958 | |
Specialty Retail - 6.9% | |||
Ascena Retail Group, Inc. (a) | 520,000 | 18,392,400 | |
DSW, Inc. Class A | 191,800 | 9,584,246 | |
Group 1 Automotive, Inc. | 186,367 | 9,940,816 | |
Hibbett Sports, Inc. (a) | 275,000 | 13,180,750 | |
Jos. A. Bank Clothiers, Inc. (a) | 310,000 | 14,802,500 | |
Sally Beauty Holdings, Inc. (a) | 1,036,000 | 21,362,320 | |
Signet Jewelers Ltd. | 171,100 | 7,798,738 | |
Tractor Supply Co. | 128,000 | 10,338,560 | |
Vitamin Shoppe, Inc. (a) | 349,000 | 14,916,260 | |
| 120,316,590 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
PVH Corp. | 232,559 | 17,951,229 | |
Steven Madden Ltd. (a) | 527,500 | 21,701,350 | |
Ted Baker PLC | 591,073 | 6,942,235 | |
| 46,594,814 | ||
TOTAL CONSUMER DISCRETIONARY | 288,585,056 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.3% | |||
Food & Staples Retailing - 1.7% | |||
Chefs' Warehouse Holdings (a) | 515,000 | $ 10,881,950 | |
Fresh Market, Inc. (a)(d) | 83,600 | 3,599,816 | |
Ruddick Corp. | 350,000 | 14,119,000 | |
| 28,600,766 | ||
Food Products - 0.8% | |||
Calavo Growers, Inc. (d) | 525,075 | 14,282,040 | |
Personal Products - 0.8% | |||
Elizabeth Arden, Inc. (a) | 395,000 | 14,208,150 | |
TOTAL CONSUMER STAPLES | 57,090,956 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 3.8% | |||
Essential Energy Services Ltd. (a) | 4,338,800 | 8,870,147 | |
ION Geophysical Corp. (a) | 1,542,023 | 11,457,231 | |
Newpark Resources, Inc. (a) | 1,624,700 | 13,225,058 | |
Rowan Companies, Inc. (a) | 256,000 | 8,706,560 | |
Western Energy Services Corp. (a) | 1,530,000 | 13,411,818 | |
Xtreme Coil Drilling Corp. (a) | 3,000,000 | 9,603,590 | |
Zedi, Inc. (a) | 666,500 | 498,504 | |
| 65,772,908 | ||
Oil, Gas & Consumable Fuels - 2.5% | |||
Alpha Natural Resources, Inc. (a) | 414,000 | 8,329,680 | |
Gulfport Energy Corp. (a) | 129,700 | 4,263,239 | |
Petroleum Development Corp. (a) | 392,200 | 12,209,186 | |
Targa Resources Corp. | 454,500 | 18,834,480 | |
| 43,636,585 | ||
TOTAL ENERGY | 109,409,493 | ||
FINANCIALS - 6.8% | |||
Commercial Banks - 2.4% | |||
Banco Pine SA | 1,618,519 | 12,181,505 | |
BBCN Bancorp, Inc. (a) | 1,000,000 | 10,120,000 | |
CapitalSource, Inc. | 1,800,200 | 12,439,382 | |
Columbia Banking Systems, Inc. | 333,272 | 6,998,712 | |
| 41,739,599 | ||
Insurance - 1.1% | |||
Allied World Assurance Co. Holdings Ltd. | 300,000 | 18,459,000 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - 3.3% | |||
CBL & Associates Properties, Inc. | 1,022,000 | $ 17,752,140 | |
Equity Lifestyle Properties, Inc. | 125,000 | 8,767,500 | |
Highwoods Properties, Inc. (SBI) | 419,000 | 13,864,710 | |
LTC Properties, Inc. | 280,000 | 8,946,000 | |
Rayonier, Inc. | 200,000 | 9,146,000 | |
| 58,476,350 | ||
TOTAL FINANCIALS | 118,674,949 | ||
HEALTH CARE - 14.2% | |||
Biotechnology - 2.9% | |||
Alkermes PLC (a) | 145,200 | 2,731,212 | |
AMAG Pharmaceuticals, Inc. (a) | 120,200 | 1,973,684 | |
Ardea Biosciences, Inc. (a)(d) | 349,263 | 6,353,094 | |
ArQule, Inc. (a) | 900,000 | 7,110,000 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 6,777,300 | |
Horizon Pharma, Inc. (d) | 550,000 | 2,183,500 | |
Seattle Genetics, Inc. (a) | 330,000 | 6,246,900 | |
Theravance, Inc. (a)(d) | 299,000 | 5,304,260 | |
United Therapeutics Corp. (a) | 229,900 | 11,306,482 | |
| 49,986,432 | ||
Health Care Equipment & Supplies - 3.2% | |||
Cyberonics, Inc. (a) | 487,000 | 15,827,500 | |
Sirona Dental Systems, Inc. (a) | 195,000 | 9,428,250 | |
The Cooper Companies, Inc. | 270,800 | 19,535,512 | |
Wright Medical Group, Inc. (a) | 625,000 | 10,593,750 | |
| 55,385,012 | ||
Health Care Providers & Services - 6.2% | |||
Air Methods Corp. (a) | 141,000 | 11,886,300 | |
Catalyst Health Solutions, Inc. (a) | 293,000 | 16,044,680 | |
Corvel Corp. (a) | 287,592 | 13,999,979 | |
HMS Holdings Corp. (a) | 479,008 | 15,812,054 | |
IPC The Hospitalist Co., Inc. (a) | 105,071 | 3,539,842 | |
MEDNAX, Inc. (a) | 180,000 | 12,819,600 | |
MWI Veterinary Supply, Inc. (a) | 197,000 | 15,466,470 | |
PSS World Medical, Inc. (a) | 447,000 | 10,848,690 | |
Synergy Health PLC | 595,411 | 7,947,975 | |
| 108,365,590 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.2% | |||
Epocrates, Inc. (a) | 67,158 | $ 650,761 | |
Merge Healthcare, Inc. (a) | 538,568 | 2,951,353 | |
Omnicell, Inc. (a) | 23,300 | 360,684 | |
| 3,962,798 | ||
Pharmaceuticals - 1.7% | |||
Cadence Pharmaceuticals, Inc. (a) | 767,693 | 3,201,280 | |
Dechra Pharmaceuticals PLC | 1,470,000 | 12,185,947 | |
Impax Laboratories, Inc. (a) | 370,000 | 6,981,900 | |
Questcor Pharmaceuticals, Inc. (a) | 199,000 | 7,050,570 | |
| 29,419,697 | ||
TOTAL HEALTH CARE | 247,119,529 | ||
INDUSTRIALS - 17.8% | |||
Aerospace & Defense - 3.4% | |||
BE Aerospace, Inc. (a) | 390,000 | 16,458,000 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 200,000 | 4,548,000 | |
Teledyne Technologies, Inc. (a) | 327,000 | 18,560,520 | |
TransDigm Group, Inc. (a) | 189,000 | 19,756,170 | |
| 59,322,690 | ||
Building Products - 0.8% | |||
A.O. Smith Corp. | 308,000 | 13,083,840 | |
Construction & Engineering - 2.0% | |||
Foster Wheeler AG (a) | 837,400 | 18,808,004 | |
Outotec Oyj | 311,095 | 16,349,110 | |
| 35,157,114 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a) | 808,000 | 13,267,360 | |
Hubbell, Inc. Class B | 270,000 | 19,429,200 | |
II-VI, Inc. (a) | 193,284 | 4,447,465 | |
| 37,144,025 | ||
Machinery - 4.5% | |||
Actuant Corp. Class A | 400,000 | 10,140,000 | |
Blount International, Inc. (a) | 774,000 | 12,709,080 | |
CLARCOR, Inc. | 200,000 | 10,282,000 | |
TriMas Corp. (a) | 550,000 | 11,918,500 | |
Wabtec Corp. | 195,000 | 13,414,050 | |
Westport Innovations, Inc. (a) | 484,700 | 20,163,520 | |
| 78,627,150 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Professional Services - 1.1% | |||
Advisory Board Co. (a) | 247,000 | $ 18,841,160 | |
Trading Companies & Distributors - 3.6% | |||
DXP Enterprises, Inc. (a) | 423,839 | 14,296,089 | |
Rush Enterprises, Inc. Class A (a) | 728,254 | 16,757,125 | |
Watsco, Inc. | 279,000 | 19,242,630 | |
WESCO International, Inc. (a) | 205,000 | 12,890,400 | |
| 63,186,244 | ||
Transportation Infrastructure - 0.3% | |||
Wesco Aircraft Holdings, Inc. (a) | 300,000 | 4,197,000 | |
TOTAL INDUSTRIALS | 309,559,223 | ||
INFORMATION TECHNOLOGY - 24.4% | |||
Communications Equipment - 3.7% | |||
Anaren, Inc. (a) | 656,774 | 11,441,003 | |
Brocade Communications Systems, Inc. (a) | 2,500,000 | 14,025,000 | |
Comtech Telecommunications Corp. | 362,777 | 11,195,298 | |
Parrot SA (a) | 400,000 | 10,829,826 | |
Polycom, Inc. (a) | 893,000 | 17,815,350 | |
| 65,306,477 | ||
Computers & Peripherals - 1.0% | |||
Super Micro Computer, Inc. (a) | 980,923 | 16,557,980 | |
Electronic Equipment & Components - 3.7% | |||
Fabrinet (a) | 558,429 | 9,197,326 | |
Insight Enterprises, Inc. (a) | 837,400 | 15,458,404 | |
Jabil Circuit, Inc. | 1,013,000 | 22,954,577 | |
OSI Systems, Inc. (a) | 314,000 | 16,871,220 | |
TTM Technologies, Inc. (a) | 36,700 | 450,309 | |
| 64,931,836 | ||
Internet Software & Services - 4.5% | |||
Ancestry.com, Inc. (a)(d) | 400,000 | 11,840,000 | |
Bankrate, Inc. | 450,000 | 10,525,500 | |
Demand Media, Inc. (d) | 1,680,000 | 10,584,000 | |
InfoSpace, Inc. (a) | 860,000 | 10,586,600 | |
LivePerson, Inc. (a) | 960,000 | 11,520,000 | |
Open Text Corp. (a) | 142,000 | 7,196,649 | |
Perficient, Inc. (a) | 978,447 | 10,890,115 | |
Saba Software, Inc. (a) | 500,501 | 4,974,980 | |
| 78,117,844 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - 2.5% | |||
Broadridge Financial Solutions, Inc. | 500,000 | $ 11,985,000 | |
Higher One Holdings, Inc. (a)(d) | 530,000 | 8,978,200 | |
VeriFone Systems, Inc. (a) | 150,000 | 6,405,000 | |
Virtusa Corp. (a) | 915,000 | 14,630,850 | |
WNS Holdings Ltd. sponsored ADR (a) | 168,290 | 1,637,462 | |
| 43,636,512 | ||
Semiconductors & Semiconductor Equipment - 2.2% | |||
Cymer, Inc. (a) | 306,901 | 15,280,601 | |
Entegris, Inc. (a) | 2,356,500 | 22,575,270 | |
| 37,855,871 | ||
Software - 6.8% | |||
Aspen Technology, Inc. (a) | 704,000 | 12,679,040 | |
BroadSoft, Inc. (a)(d) | 382,591 | 10,666,637 | |
CommVault Systems, Inc. (a) | 245,000 | 11,515,000 | |
Ebix, Inc. (d) | 797,810 | 19,769,732 | |
Kenexa Corp. (a) | 610,000 | 14,652,200 | |
MICROS Systems, Inc. (a) | 235,000 | 11,681,850 | |
Royalblue Group PLC | 108,700 | 2,842,053 | |
SolarWinds, Inc. (a) | 300,000 | 9,483,000 | |
Solera Holdings, Inc. | 332,000 | 15,859,640 | |
Sourcefire, Inc. (a)(d) | 300,000 | 9,306,000 | |
| 118,455,152 | ||
TOTAL INFORMATION TECHNOLOGY | 424,861,672 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.5% | |||
Innophos Holdings, Inc. | 340,000 | 16,972,800 | |
Rockwood Holdings, Inc. (a) | 285,000 | 14,392,500 | |
Solutia, Inc. | 433,700 | 11,926,750 | |
| 43,292,050 | ||
Containers & Packaging - 0.5% | |||
Silgan Holdings, Inc. | 220,000 | 9,143,200 | |
Metals & Mining - 0.6% | |||
Carpenter Technology Corp. | 218,000 | 11,440,640 | |
TOTAL MATERIALS | 63,875,890 | ||
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - 1.0% | |||
Diversified Telecommunication Services - 0.6% | |||
AboveNet, Inc. (a) | 165,000 | $ 10,964,250 | |
Wireless Telecommunication Services - 0.4% | |||
NII Holdings, Inc. (a) | 300,000 | 6,033,000 | |
TOTAL TELECOMMUNICATION SERVICES | 16,997,250 | ||
TOTAL COMMON STOCKS (Cost $1,429,065,527) |
|
U.S. Treasury Obligations - 0.4% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.05% 2/23/12 (e) | $ 7,300,000 |
|
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.12% (b) | 92,167,955 | 92,167,955 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 54,743,850 | 54,743,850 | |
TOTAL MONEY MARKET FUNDS (Cost $146,911,805) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $1,583,277,150) | 1,790,385,633 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (48,372,593) | ||
NET ASSETS - 100% | $ 1,742,013,040 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
1,000 NYFE Russell 2000 Mini Index Contracts | March 2012 | $ 79,120,000 | $ 192,165 |
The face value of futures purchased as a percentage of net assets is 4.5% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $7,299,810. |
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 | $ 30,779 |
Fidelity Securities Lending Cash Central Fund | 2,823,997 |
Total | $ 2,854,776 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Calavo Growers, Inc. | $ 16,826,331 | $ 5,168,688 | $ 10,470,737 | $ 307,289 | $ - |
Perficient, Inc. | 17,202,205 | 2,900,335 | 9,868,943 | - | - |
Total | $ 34,028,536 | $ 8,069,023 | $ 20,339,680 | $ 307,289 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 288,585,056 | $ 288,585,056 | $ - | $ - |
Consumer Staples | 57,090,956 | 57,090,956 | - | - |
Energy | 109,409,493 | 109,409,493 | - | - |
Financials | 118,674,949 | 118,674,949 | - | - |
Health Care | 247,119,529 | 247,119,529 | - | - |
Industrials | 309,559,223 | 309,559,223 | - | - |
Information Technology | 424,861,672 | 424,861,672 | - | - |
Materials | 63,875,890 | 63,875,890 | - | - |
Telecommunication Services | 16,997,250 | 16,997,250 | - | - |
U.S. Government and Government Agency Obligations | 7,299,810 | - | 7,299,810 | - |
Money Market Funds | 146,911,805 | 146,911,805 | - | - |
Total Investments in Securities: | $ 1,790,385,633 | $ 1,783,085,823 | $ 7,299,810 | $ - |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 192,165 | $ 192,165 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of January 31, 2012. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure / | Value | |
Equity Risk | Asset | Liability |
Futures Contracts (a) | $ 192,165 | $ - |
Total Value of Derivatives | $ 192,165 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.6% |
Canada | 4.2% |
Switzerland | 2.2% |
United Kingdom | 1.8% |
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, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $52,621,626) - See accompanying schedule: Unaffiliated issuers (cost $1,436,365,345) | $ 1,643,473,828 |
|
Fidelity Central Funds (cost $146,911,805) | 146,911,805 |
|
Total Investments (cost $1,583,277,150) |
| $ 1,790,385,633 |
Foreign currency held at value (cost $967,552) | 968,022 | |
Receivable for investments sold | 54,876,970 | |
Receivable for fund shares sold | 2,051,195 | |
Dividends receivable | 548,358 | |
Distributions receivable from Fidelity Central Funds | 381,659 | |
Receivable for daily variation margin on futures contracts | 70,000 | |
Prepaid expenses | 4,542 | |
Other receivables | 76,405 | |
Total assets | 1,849,362,784 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 569 | |
Payable for investments purchased | 44,752,700 | |
Payable for fund shares redeemed | 6,452,851 | |
Accrued management fee | 1,010,245 | |
Distribution and service plan fees payable | 47,095 | |
Other affiliated payables | 303,678 | |
Other payables and accrued expenses | 38,756 | |
Collateral on securities loaned, at value | 54,743,850 | |
Total liabilities | 107,349,744 | |
|
|
|
Net Assets | $ 1,742,013,040 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,534,220,464 | |
Accumulated net investment loss | (1,995,221) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 2,494,310 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 207,293,487 | |
Net Assets | $ 1,742,013,040 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 15.54 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.54) | $ 16.49 | |
Class T: | $ 15.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.38) | $ 15.94 | |
Class B: | $ 14.94 | |
|
|
|
Class C: | $ 14.91 | |
|
|
|
|
|
|
Small Cap Growth: | $ 15.79 | |
|
|
|
Class F: | $ 15.89 | |
|
|
|
Institutional Class: | $ 15.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $307,289 earned from other affiliated issuers) |
| $ 4,663,559 |
Interest |
| 65 |
Income from Fidelity Central Funds (including $2,823,997 from security lending) |
| 2,854,776 |
Total income |
| 7,518,400 |
|
|
|
Expenses | ||
Management fee | $ 5,791,373 | |
Performance adjustment | 707,182 | |
Transfer agent fees | 1,598,494 | |
Distribution and service plan fees | 269,796 | |
Accounting and security lending fees | 264,275 | |
Independent trustees' compensation | 5,495 | |
Registration fees | 76,308 | |
Audit | 32,519 | |
Legal | 3,692 | |
Total expenses before reductions | 8,749,134 | |
Expense reductions | (83,817) | 8,665,317 |
Net investment income (loss) | (1,146,917) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 16,542,030 | |
Other affiliated issuers | (1,854,112) |
|
Foreign currency transactions | (138,389) | |
Futures contracts | 4,024,161 | |
Total net realized gain (loss) |
| 18,573,690 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (78,175,941) | |
Assets and liabilities in foreign currencies | (10,827) | |
Futures contracts | 192,165 | |
Total change in net unrealized appreciation (depreciation) |
| (77,994,603) |
Net gain (loss) | (59,420,913) | |
Net increase (decrease) in net assets resulting from operations | $ (60,567,830) |
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, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,146,917) | $ (3,102,614) |
Net realized gain (loss) | 18,573,690 | 221,065,530 |
Change in net unrealized appreciation (depreciation) | (77,994,603) | 210,253,368 |
Net increase (decrease) in net assets resulting | (60,567,830) | 428,216,284 |
Distributions to shareholders from net realized gain | (34,799,429) | (3,013,255) |
Share transactions - net increase (decrease) | (5,937,033) | (17,486,495) |
Redemption fees | 179,111 | 229,000 |
Total increase (decrease) in net assets | (101,125,181) | 407,945,534 |
|
|
|
Net Assets | ||
Beginning of period | 1,843,138,221 | 1,435,192,687 |
End of period (including accumulated net investment loss of $1,995,221 and accumulated net investment loss of $848,304, respectively) | $ 1,742,013,040 | $ 1,843,138,221 |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 | $ 12.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.07) H | (.07) I | (.06) | (.11) | (.12) J |
Net realized and unrealized gain (loss) | (.53) | 3.84 | 1.94 | (2.35) | (1.73) | 3.39 |
Total from investment operations | (.56) | 3.77 | 1.87 | (2.41) | (1.84) | 3.27 |
Distributions from net realized gain | (.32) | (.01) M | - | - | (1.02) | (.09) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.54 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Total Return B, C, D | (3.20)% | 29.78% | 17.33% | (18.26)% | (12.26)% | 25.52% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.44% |
Expenses net of fee waivers, if any | 1.40% A | 1.25% | 1.35% | 1.33% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.23% | 1.34% | 1.33% | 1.39% | 1.39% |
Net investment income (loss) | (.46)% A | (.47)% H | (.56)% I | (.64)% | (.74)% | (.80)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 61,719 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 | $ 33,588 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.84)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 | $ 12.86 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.11) H | (.10)I | (.09) | (.15) | (.16) J |
Net realized and unrealized gain (loss) | (.52) | 3.81 | 1.93 | (2.34) | (1.73) | 3.38 |
Total from investment operations | (.57) | 3.70 | 1.83 | (2.43) | (1.88) | 3.22 |
Distributions from net realized gain | (.32) | - | - | - | (.96) | (.07) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 15.38 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Total ReturnB, C, D | (3.29)% | 29.44% | 17.04% | (18.45)% | (12.50)% | 25.18% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.67% |
Expenses net of fee waivers, if any | 1.65% A | 1.50% | 1.61% | 1.60% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.49% | 1.60% | 1.59% | 1.65% | 1.65% |
Net investment income (loss) | (.72)% A | (.73)% H | (.82)% I | (.91)% | (.99)% | (1.05)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 27,457 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 | $ 26,419 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 | $ 12.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.74 | 1.89 | (2.33) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.56 | 1.73 | (2.46) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.89) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.94 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Total Return B, C, D | (3.57)% | 28.94% | 16.37% | (18.88)% | (12.92)% | 24.57% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.14% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.08% | 2.15% | 2.15% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,636 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 | $ 6,242 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 | $ 12.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.18) H | (.16) I | (.13) | (.22) | (.23) J |
Net realized and unrealized gain (loss) | (.52) | 3.73 | 1.89 | (2.32) | (1.71) | 3.36 |
Total from investment operations | (.60) | 3.55 | 1.73 | (2.45) | (1.93) | 3.13 |
Distributions from net realized gain | (.32) | - | - | - | (.91) | (.06) |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Total Return B, C, D | (3.58)% | 28.91% | 16.40% | (18.85)% | (12.94)% | 24.59% |
Ratios to Average Net Assets F, K |
|
|
|
|
| |
Expenses before reductions | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.20% |
Expenses net of fee waivers, if any | 2.15% A | 2.00% | 2.11% | 2.08% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 1.98% | 2.09% | 2.07% | 2.14% | 2.14% |
Net investment income (loss) | (1.21)% A | (1.22)% H | (1.32)% I | (1.39)% | (1.49)% | (1.55)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,856 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 | $ 22,348 |
Portfolio turnover rate G | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.42)%. J Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.59)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 | $ 12.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.04) H | (.04) | (.07) | (.08) I |
Net realized and unrealized gain (loss) | (.53) | 3.90 | 1.96 | (2.36) | (1.74) | 3.40 |
Total from investment operations | (.54) | 3.87 | 1.92 | (2.40) | (1.81) | 3.32 |
Distributions from net realized gain | (.32) | (.03) L | - | - | (1.05) | (.10) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Total Return B, C | (3.03)% | 30.20% | 17.63% | (18.06)% | (11.98)% | 25.84% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of fee waivers, if any | 1.08% A | .95% | 1.08% | 1.08% | 1.11% | 1.10% |
Expenses net of all reductions | 1.07% A | .93% | 1.07% | 1.08% | 1.10% | 1.09% |
Net investment income (loss) | (.15)% A | (.17)% G | (.29)% H | (.39)% | (.45)% | (.50)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,183,821 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 | $ 1,149,809 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.39)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.54)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L The amount shown reflects certain reclassifications related to book to tax differences. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 J |
Selected Per-Share Data |
|
|
| |
Net asset value, beginning of period | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .01 | .01 H | - I, L | (.01) |
Net realized and unrealized gain (loss) | (.53) | 3.91 | 1.95 | .88 |
Total from investment operations | (.52) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (.32) | (.04) M | - | - |
Redemption fees added to paid in capital D, L | - | - | - | - |
Net asset value, end of period | $ 15.89 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | (2.90)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, K |
|
|
|
|
Expenses before reductions | .84% A | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .84% A | .70% | .78% | .74% A |
Expenses net of all reductions | .83% A | .68% | .77% | .73% A |
Net investment income (loss) | .09% A | .08% H | -% G, I | (.54)% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 401,078 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Amount represents less than .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. M The amount shown reflects certain reclassifications related to book to tax differences. |
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) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 | $ 12.92 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | (.03) G | (.03) H | (.03) | (.06) | (.07) I |
Net realized and unrealized gain (loss) | (.54) | 3.91 | 1.95 | (2.36) | (1.74) | 3.41 |
Total from investment operations | (.55) | 3.88 | 1.92 | (2.39) | (1.80) | 3.34 |
Distributions from net realized gain | (.32) | (.03) K | - | - | (1.05) | (.11) |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Total Return B, C | (3.09)% | 30.24% | 17.60% | (17.97)% | (11.93)% | 25.99% |
Ratios to Average Net Assets E, J |
|
|
|
|
| |
Expenses before reductions | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of fee waivers, if any | 1.11% A | .94% | 1.03% | 1.05% | 1.04% | 1.05% |
Expenses net of all reductions | 1.10% A | .93% | 1.02% | 1.04% | 1.03% | 1.05% |
Net investment income (loss) | (.18)% A | (.17)% G | (.24)% H | (.36)% | (.38)% | (.46)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,446 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 | $ 18,671 |
Portfolio turnover rate F | 136% A | 106% | 105% | 150% | 113% | 91% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Growth, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For U.S. government and government agency obligations, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price or official closing price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 252,506,620 |
Gross unrealized depreciation | (50,384,829) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 202,121,791 |
Tax cost | $ 1,588,263,842 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2012 approximately $848,304 of currency losses recognized during the period November 1, 2010 to July 31, 2011.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments variation margin are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $4,024,161 and a change in net unrealized appreciation (depreciation) of $192,165 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,103,583,096 and $1,222,225,338, 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .80% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 72,929 | $ 1,626 |
Class T | .25% | .25% | 65,842 | - |
Class B | .75% | .25% | 22,469 | 16,852 |
Class C | .75% | .25% | 108,556 | 20,033 |
|
|
| $ 269,796 | $ 38,511 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 4,601 |
Class T | 2,209 |
Class B* | 3,893 |
Class C* | 1,901 |
| $ 12,604 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 88,069 | .30 |
Class T | 40,770 | .31 |
Class B | 6,750 | .30 |
Class C | 32,667 | .30 |
Small Cap Growth | 1,380,680 | .24 |
Institutional Class | 49,558 | .27 |
| $ 1,598,494 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $67,747 for the period.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,327 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $4,899,808. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $27,226 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $83,817 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 1,262,924 | $ 40,130 |
Class T | 573,407 | - |
Class B | 101,910 | - |
Class C | 481,854 | - |
Small Cap Growth | 25,434,274 | 2,420,020 |
Class F | 6,152,820 | 492,928 |
Institutional Class | 792,240 | 60,177 |
Total | $ 34,799,429 | $ 3,013,255 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 572,746 | 1,459,436 | $ 8,320,416 | $ 22,640,692 |
Reinvestment of distributions | 85,896 | 2,323 | 1,194,285 | 36,172 |
Shares redeemed | (784,049) | (1,364,690) | (11,395,250) | (20,977,078) |
Net increase (decrease) | (125,407) | 97,069 | $ (1,880,549) | $ 1,699,786 |
Class T |
|
|
|
|
Shares sold | 145,630 | 420,613 | $ 2,106,118 | $ 6,491,294 |
Reinvestment of distributions | 38,774 | - | 533,890 | - |
Shares redeemed | (289,373) | (434,512) | (4,124,620) | (6,714,256) |
Net increase (decrease) | (104,969) | (13,899) | $ (1,484,612) | $ (222,962) |
Class B |
|
|
|
|
Shares sold | 7,487 | 25,204 | $ 106,396 | $ 366,276 |
Reinvestment of distributions | 7,173 | - | 96,091 | - |
Shares redeemed | (38,240) | (109,118) | (533,021) | (1,597,390) |
Net increase (decrease) | (23,580) | (83,914) | $ (330,534) | $ (1,231,114) |
Class C |
|
|
|
|
Shares sold | 221,401 | 469,568 | $ 3,147,700 | $ 7,154,653 |
Reinvestment of distributions | 33,110 | - | 443,092 | - |
Shares redeemed | (228,620) | (368,398) | (3,163,309) | (5,494,248) |
Net increase (decrease) | 25,891 | 101,170 | $ 427,483 | $ 1,660,405 |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Small Cap Growth |
|
|
|
|
Shares sold | 7,365,218 | 19,971,507 | $ 108,678,938 | $ 315,167,556 |
Reinvestment of distributions | 1,774,193 | 153,921 | 25,023,264 | 2,384,001 |
Shares redeemed | (17,201,403) | (31,144,660) | (252,657,502) | (483,710,319) |
Net increase (decrease) | (8,061,992) | (11,019,232) | $ (118,955,300) | $ (166,158,762) |
Class F |
|
|
|
|
Shares sold | 8,575,077 | 11,382,202 | $ 126,763,266 | $ 176,012,143 |
Reinvestment of distributions | 432,802 | 31,816 | 6,152,820 | 492,928 |
Shares redeemed | (1,138,704) | (2,356,621) | (16,794,218) | (37,493,486) |
Net increase (decrease) | 7,869,175 | 9,057,397 | $ 116,121,868 | $ 139,011,585 |
Institutional Class |
|
|
|
|
Shares sold | 592,919 | 1,038,111 | $ 8,818,174 | $ 16,415,657 |
Reinvestment of distributions | 44,186 | 2,532 | 624,723 | 39,301 |
Shares redeemed | (627,210) | (555,221) | (9,278,286) | (8,700,391) |
Net increase (decrease) | 9,895 | 485,422 | $ 164,611 | $ 7,754,567 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
The Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 56% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCPI-USAN-0312 1.803724.108
(Fidelity Investment logo)(registered trademark)
Fidelity®
Small Cap Value
Fund
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.40 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.51 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 8.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.49 | $ 8.72 |
Class B | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.90 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Class C | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Small Cap Value | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.10 | $ 5.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.25 | $ 5.94 |
Class F | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.70 | $ 4.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.46 | $ 4.72 |
Institutional Class | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.00 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.20 | $ 5.99 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
WESCO International, Inc. | 3.3 | 2.7 |
HNI Corp. | 3.0 | 1.9 |
Regis Corp. | 2.8 | 2.4 |
DCT Industrial Trust, Inc. | 2.7 | 3.0 |
United Stationers, Inc. | 2.6 | 2.5 |
TCF Financial Corp. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.3 | 2.1 |
Highwoods Properties, Inc. (SBI) | 2.3 | 2.6 |
Alterra Capital Holdings Ltd. | 2.3 | 2.0 |
MEDNAX, Inc. | 2.2 | 2.7 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 35.6 | 35.2 |
Industrials | 15.2 | 12.5 |
Consumer Discretionary | 13.5 | 11.9 |
Information Technology | 11.5 | 11.6 |
Health Care | 7.9 | 8.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 8.3% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Diversified Consumer Services - 2.8% | |||
Regis Corp. (e) | 3,995,824 | $ 68,488,423 | |
Household Durables - 6.9% | |||
Ethan Allen Interiors, Inc. | 667,112 | 15,743,843 | |
KB Home (d) | 3,300,000 | 29,766,000 | |
M.D.C. Holdings, Inc. (d)(e) | 2,424,300 | 48,049,626 | |
Meritage Homes Corp. (a) | 1,536,160 | 37,175,072 | |
Ryland Group, Inc. (d) | 2,171,537 | 39,521,973 | |
| 170,256,514 | ||
Specialty Retail - 3.4% | |||
Asbury Automotive Group, Inc. (a) | 1,365,159 | 31,275,793 | |
Ascena Retail Group, Inc. (a) | 960,700 | 33,979,959 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 18,905,148 | |
| 84,160,900 | ||
TOTAL CONSUMER DISCRETIONARY | 322,905,837 | ||
CONSUMER STAPLES - 3.1% | |||
Food Products - 2.3% | |||
Chiquita Brands International, Inc. (a) | 2,070,900 | 18,203,211 | |
Dean Foods Co. (a) | 3,600,000 | 38,736,000 | |
| 56,939,211 | ||
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. (a) | 687,476 | 19,902,430 | |
TOTAL CONSUMER STAPLES | 76,841,641 | ||
ENERGY - 3.6% | |||
Energy Equipment & Services - 1.7% | |||
Superior Energy Services, Inc. (a)(d) | 1,466,700 | 41,815,617 | |
Oil, Gas & Consumable Fuels - 1.9% | |||
Berry Petroleum Co. Class A | 1,025,000 | 46,135,250 | |
TOTAL ENERGY | 87,950,867 | ||
FINANCIALS - 34.8% | |||
Capital Markets - 3.4% | |||
Knight Capital Group, Inc. Class A (a) | 3,454,903 | 44,879,190 | |
Monex Beans Holdings, Inc. | 27,904 | 4,458,490 | |
Waddell & Reed Financial, Inc. Class A | 1,210,000 | 33,214,500 | |
| 82,552,180 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 11.3% | |||
Associated Banc-Corp. | 4,432,650 | $ 55,230,819 | |
CapitalSource, Inc. | 6,548,461 | 45,249,866 | |
City National Corp. | 784,900 | 36,011,212 | |
National Penn Bancshares, Inc. | 4,266,604 | 37,076,789 | |
PacWest Bancorp (e) | 1,857,600 | 39,511,152 | |
TCF Financial Corp. | 5,794,547 | 58,177,252 | |
Western Liberty Bancorp (a)(e) | 2,400,000 | 6,312,000 | |
| 277,569,090 | ||
Insurance - 7.4% | |||
Alterra Capital Holdings Ltd. | 2,337,411 | 56,495,224 | |
Aspen Insurance Holdings Ltd. | 1,520,200 | 40,376,512 | |
Platinum Underwriters Holdings Ltd. | 1,694,139 | 58,024,261 | |
ProAssurance Corp. | 350,000 | 28,570,500 | |
| 183,466,497 | ||
Real Estate Investment Trusts - 7.6% | |||
DCT Industrial Trust, Inc. | 12,180,586 | 67,236,835 | |
Franklin Street Properties Corp. | 3,160,000 | 32,200,400 | |
Highwoods Properties, Inc. (SBI) (d) | 1,720,330 | 56,925,720 | |
National Retail Properties, Inc. (d) | 1,140,000 | 30,791,400 | |
| 187,154,355 | ||
Real Estate Management & Development - 1.3% | |||
Forestar Group, Inc. (a)(e) | 1,996,875 | 31,790,250 | |
Thrifts & Mortgage Finance - 3.8% | |||
Astoria Financial Corp. (d)(e) | 5,418,152 | 45,133,206 | |
Washington Federal, Inc. | 3,086,175 | 48,638,118 | |
| 93,771,324 | ||
TOTAL FINANCIALS | 856,303,696 | ||
HEALTH CARE - 7.9% | |||
Health Care Providers & Services - 7.9% | |||
Centene Corp. (a) | 1,124,832 | 50,842,406 | |
Chemed Corp. | 465,200 | 26,116,328 | |
MEDNAX, Inc. (a) | 779,700 | 55,530,234 | |
Providence Service Corp. (a)(e) | 1,016,495 | 15,338,910 | |
Team Health Holdings, Inc. (a) | 2,266,500 | 46,689,900 | |
| 194,517,778 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 15.2% | |||
Commercial Services & Supplies - 7.6% | |||
ACCO Brands Corp. (a) | 2,170,000 | $ 23,045,400 | |
HNI Corp. (d)(e) | 2,674,619 | 72,562,413 | |
Knoll, Inc. | 1,712,898 | 27,337,852 | |
United Stationers, Inc. | 1,980,800 | 64,039,264 | |
| 186,984,929 | ||
Machinery - 2.4% | |||
Blount International, Inc. (a)(e) | 2,604,723 | 42,769,552 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,047,872 | 16,713,558 | |
| 59,483,110 | ||
Trading Companies & Distributors - 5.2% | |||
H&E Equipment Services, Inc. (a)(e) | 2,742,264 | 46,591,065 | |
WESCO International, Inc. (a) | 1,303,633 | 81,972,443 | |
| 128,563,508 | ||
TOTAL INDUSTRIALS | 375,031,547 | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.9% | |||
ViaSat, Inc. (a) | 984,472 | 46,801,799 | |
Electronic Equipment & Components - 6.7% | |||
Ingram Micro, Inc. Class A (a) | 2,753,100 | 52,253,838 | |
Macnica, Inc. | 677,400 | 15,995,278 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 22,798,750 | |
SYNNEX Corp. (a) | 675,710 | 24,447,188 | |
Tech Data Corp. (a) | 964,600 | 50,082,032 | |
| 165,577,086 | ||
Internet Software & Services - 0.8% | |||
j2 Global, Inc. (d) | 730,149 | 19,684,817 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (d)(e) | 720,200 | 10,250,781 | |
Software - 1.7% | |||
Monotype Imaging Holdings, Inc. (a)(e) | 2,604,000 | 40,648,440 | |
TOTAL INFORMATION TECHNOLOGY | 282,962,923 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.0% | |||
PolyOne Corp. | 1,750,000 | 25,235,000 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 3.4% | |||
Carpenter Technology Corp. | 409,380 | $ 21,484,262 | |
Haynes International, Inc. | 496,108 | 30,143,522 | |
RTI International Metals, Inc. (a) | 1,220,997 | 30,732,494 | |
| 82,360,278 | ||
TOTAL MATERIALS | 107,595,278 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,760,000 | 50,054,400 | |
Gas Utilities - 3.1% | |||
Southwest Gas Corp. | 836,756 | 34,976,401 | |
UGI Corp. | 1,502,654 | 40,436,419 | |
| 75,412,820 | ||
TOTAL UTILITIES | 125,467,220 | ||
TOTAL COMMON STOCKS (Cost $2,053,907,920) |
| ||
Nonconvertible Preferred Stocks - 1.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.4% | |||
Household Durables - 0.4% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | 8,712,144 | |
FINANCIALS - 0.8% | |||
Real Estate Investment Trusts - 0.8% | |||
DDR Corp. Series H, 7.375% | 818,790 | 20,469,750 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) |
| ||
Money Market Funds - 3.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 8,469,412 | $ 8,469,412 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 70,626,640 | 70,626,640 | |
TOTAL MONEY MARKET FUNDS (Cost $79,096,052) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $2,153,358,742) | 2,537,854,733 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (75,315,351) | ||
NET ASSETS - 100% | $ 2,462,539,382 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,097 |
Fidelity Securities Lending Cash Central Fund | 67,330 |
Total | $ 71,427 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend Income | Value, |
Astoria Financial Corp. | $ 56,131,471 | $ 5,135,258 | $ - | $ 1,356,720 | $ 45,133,206 |
Blount International, Inc. | 43,316,543 | - | - | - | 42,769,552 |
Columbus McKinnon Corp. (NY Shares) | 15,792,000 | 1,137,487 | - | - | 16,713,558 |
DCT Industrial Trust, Inc. | 74,961,776 | - | 7,151,583 | 509,363 | - |
Forestar Group, Inc. | - | 24,473,760 | - | - | 31,790,250 |
H&E Equipment Services, Inc. | 29,272,896 | 2,743,497 | - | - | 46,591,065 |
Haynes International, Inc. | 42,301,857 | - | 8,879,973 | 228,365 | - |
HNI Corp. | 49,131,621 | 18,981,945 | 17,053,493 | 1,282,635 | 72,562,413 |
Ingles Markets, Inc. Class A | 10,225,970 | - | 9,904,080 | 78,182 | - |
M.D.C. Holdings, Inc. | 54,813,423 | - | - | 1,212,150 | 48,049,626 |
Miraial Co. Ltd. | 15,046,860 | - | - | 259,439 | 10,250,781 |
Monotype Imaging Holdings, Inc. | 35,396,690 | 274,945 | - | - | 40,648,440 |
PacWest Bancorp | 36,873,360 | - | - | 352,944 | 39,511,152 |
Providence Service Corp. | 12,045,466 | - | - | - | 15,338,910 |
Regis Corp. | 60,080,486 | - | 816,632 | 485,499 | 68,488,423 |
Ryoyo Electro Corp. | 19,684,709 | - | - | 355,315 | 22,798,750 |
Western Liberty Bancorp | 7,248,000 | - | - | - | 6,312,000 |
Total | $ 562,323,128 | $ 52,746,892 | $ 43,805,761 | $ 6,120,612 | $ 506,958,126 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $69,413,987) - See accompanying schedule: Unaffiliated issuers (cost $1,624,390,768) | $ 1,951,800,555 |
|
Fidelity Central Funds (cost $79,096,052) | 79,096,052 |
|
Other affiliated issuers (cost $449,871,922) | 506,958,126 |
|
Total Investments (cost $2,153,358,742) |
| $ 2,537,854,733 |
Receivable for fund shares sold | 2,588,317 | |
Dividends receivable | 2,523,736 | |
Distributions receivable from Fidelity Central Funds | 10,327 | |
Prepaid expenses | 5,951 | |
Other receivables | 6,013 | |
Total assets | 2,542,989,077 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,599,920 | |
Payable for fund shares redeemed | 3,866,448 | |
Accrued management fee | 1,774,961 | |
Distribution and service plan fees payable | 94,259 | |
Other affiliated payables | 455,826 | |
Other payables and accrued expenses | 31,641 | |
Collateral on securities loaned, at value | 70,626,640 | |
Total liabilities | 80,449,695 | |
|
|
|
Net Assets | $ 2,462,539,382 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,064,889,931 | |
Undistributed net investment income | 1,369,455 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,771,626 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 384,508,370 | |
Net Assets | $ 2,462,539,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.63) | $ 15.52 | |
Class T: | $ 14.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.48) | $ 15.01 | |
Class B: | $ 14.10 | |
|
|
|
Class C: | $ 14.10 | |
|
|
|
Small Cap Value: | $ 14.78 | |
|
|
|
Class F: | $ 14.81 | |
|
|
|
Institutional Class: | $ 14.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $6,120,612 earned from other affiliated issuers) |
| $ 18,508,901 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 71,427 |
Total income |
| 18,580,331 |
|
|
|
Expenses | ||
Management fee | $ 8,006,899 | |
Performance adjustment | 1,957,959 | |
Transfer agent fees | 2,393,658 | |
Distribution and service plan fees | 524,292 | |
Accounting and security lending fees | 349,431 | |
Custodian fees and expenses | 19,057 | |
Independent trustees' compensation | 7,549 | |
Registration fees | 95,933 | |
Audit | 42,491 | |
Legal | 5,055 | |
Interest | 359 | |
Miscellaneous | 10,472 | |
Total expenses before reductions | 13,413,155 | |
Expense reductions | (15,984) | 13,397,171 |
Net investment income (loss) | 5,183,160 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 37,616,399 | |
Other affiliated issuers | (4,716,500) |
|
Foreign currency transactions | 3,016 | |
Total net realized gain (loss) |
| 32,902,915 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,513,790) | |
Assets and liabilities in foreign currencies | 4,836 | |
Total change in net unrealized appreciation (depreciation) |
| (8,508,954) |
Net gain (loss) | 24,393,961 | |
Net increase (decrease) in net assets resulting from operations | $ 29,577,121 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,183,160 | $ 8,365,475 |
Net realized gain (loss) | 32,902,915 | 155,481,563 |
Change in net unrealized appreciation (depreciation) | (8,508,954) | 203,701,455 |
Net increase (decrease) in net assets resulting | 29,577,121 | 367,548,493 |
Distributions to shareholders from net investment income | (3,813,705) | (16,151,065) |
Distributions to shareholders from net realized gain | (148,970,861) | (20,051,059) |
Total distributions | (152,784,566) | (36,202,124) |
Share transactions - net increase (decrease) | 51,768,518 | 54,629,275 |
Redemption fees | 397,311 | 445,888 |
Total increase (decrease) in net assets | (71,041,616) | 386,421,532 |
|
|
|
Net Assets | ||
Beginning of period | 2,533,580,998 | 2,147,159,466 |
End of period (including undistributed net investment income of $1,369,455 and $0, respectively) | $ 2,462,539,382 | $ 2,533,580,998 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 H | .02 I | .08 | (.01) | (.06) |
Net realized and unrealized gain (loss) | .07 | 2.22 | 2.33 | (.60) | (1.98) | 1.90 |
Total from investment operations | .08 | 2.23 | 2.35 | (.52) | (1.99) | 1.84 |
Distributions from net investment income | (.01) | (.08) | (.03) | (.06) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.67) |
Total distributions | (.93) L | (.20) | (.03) | (.17) | (.53) | (.67) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.63 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Total Return B, C, D | 1.64% | 16.72% | 21.16% | (4.37)% | (14.35)% | 14.59% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.48% A | 1.44% | 1.47% | 1.45% | 1.43% | 1.45% |
Expenses net of fee waivers, if any | 1.48% A | 1.43% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.48% A | 1.43% | 1.39% | 1.40% | 1.40% | 1.40% |
Net investment income (loss) | .17% A | .06% H | .17% I | .81% | (.05)% | (.44)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142,756 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate hare 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 large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.93 per share is comprised of distributions from net investment income of $.006 and distributions from net realized gain of $.925 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - K | (.03) H | (.01) I | .05 | (.04) | (.10) |
Net realized and unrealized gain (loss) | .07 | 2.20 | 2.31 | (.59) | (1.97) | 1.90 |
Total from investment operations | .07 | 2.17 | 2.30 | (.54) | (2.01) | 1.80 |
Distributions from net investment income | - | (.05) | (.01) | (.04) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.65) |
Total distributions | (.93) | (.17) | (.01) | (.15) | (.53) | (.65) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Total Return B, C, D | 1.54% | 16.36% | 20.87% | (4.57)% | (14.58)% | 14.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.72% A | 1.70% | 1.72% | 1.70% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.72% A | 1.69% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.07)% A | (.19)% H | (.08)% I | .56% | (.30)% | (.69)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 55,281 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .07 | 2.15 | 2.27 | (.59) | (1.96) | 1.90 |
Total from investment operations | .03 | 2.05 | 2.20 | (.58) | (2.06) | 1.73 |
Distributions from net investment income | - | (.01) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.13) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.29% | 15.80% | 20.22% | (5.05)% | (15.04)% | 13.78% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.20% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.19% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.69)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,458 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .06 | 2.17 | 2.26 | (.58) | (1.96) | 1.90 |
Total from investment operations | .02 | 2.07 | 2.19 | (.57) | (2.06) | 1.73 |
Distributions from net investment income | - | (.02) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.14) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.22% | 15.91% | 20.11% | (4.98)% | (15.04)% | 13.77% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.18% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.18% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.18% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.68)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 44,667 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .05 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.60) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.39 | (.50) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.10) | (.05) | (.08) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.23) | (.05) | (.19) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.78 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.81% | 17.03% | 21.32% | (4.15)% | (14.10)% | 14.96% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of all reductions | 1.17% A | 1.13% | 1.17% | 1.20% | 1.13% | 1.11% |
Net investment income (loss) | .48% A | .37% G | .39% H | 1.01% | .22% | (.15)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,690,863 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | .94 |
Total from investment operations | .13 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.93) | (.13) | - | - |
Total distributions | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - |
Net asset value, end of period | $ 14.81 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 1.97% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
|
|
Expenses before reductions | .93% A | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .93% A | .88% | .90% | .86% A |
Expenses net of all reductions | .93% A | .88% | .89% | .86% A |
Net investment income (loss) | .72% A | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 407,308 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.96 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.925 per share. M Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .06 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.59) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.40 | (.49) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.11) | (.06) | (.07) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.24) | (.06) | (.18) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.79 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.80% | 17.02% | 21.42% | (4.04)% | (14.10)% | 14.99% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.18% A | 1.10% | 1.12% | 1.20% | 1.13% | 1.10% |
Expenses net of fee waivers, if any | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Expenses net of all reductions | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Net investment income (loss) | .46% A | .39% G | .45% H | 1.06% | .22% | (.13)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 114,206 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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 and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 535,803,791 |
Gross unrealized depreciation | (152,407,227) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 383,396,564 |
|
|
Tax cost | $ 2,154,458,169 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $214,827,972 and $303,280,197, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Value as compared to an appropriate benchmark index. For the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .88% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 158,819 | $ 2,262 |
Class T | .25% | .25% | 123,242 | - |
Class B | .75% | .25% | 36,236 | 27,176 |
Class C | .75% | .25% | 205,995 | 37,926 |
|
|
| $ 524,292 | $ 67,364 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,020 |
Class T | 2,447 |
Class B* | 5,366 |
Class C* | 3,351 |
| $ 25,184 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 189,941 | .30 |
Class T | 72,020 | .29 |
Class B | 10,814 | .30 |
Class C | 61,689 | .30 |
Small Cap Value | 1,934,488 | .24 |
Institutional Class | 124,706 | .25 |
| $ 2,393,658 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,232 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 Loan | Weighted Average | Interest |
Borrower | $ 6,367,333 | .34% | $ 359 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3,193 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $67,330, including $8,338 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,984 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 57,416 | $ 602,963 |
Class T | - | 175,083 |
Class B | - | 8,350 |
Class C | - | 50,685 |
Small Cap Value | 2,736,678 | 13,136,446 |
Class F | 858,634 | 1,502,640 |
Institutional Class | 160,977 | 674,898 |
Total | $ 3,813,705 | $ 16,151,065 |
From net realized gain |
|
|
Class A | $ 8,369,078 | $ 938,086 |
Class T | 3,332,444 | 417,804 |
Class B | 513,839 | 85,354 |
Class C | 2,835,863 | 362,483 |
Small Cap Value | 109,450,262 | 16,213,209 |
Class F | 18,207,376 | 1,278,822 |
Institutional Class | 6,261,999 | 755,301 |
Total | $ 148,970,861 | $ 20,051,059 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,745,502 | 4,641,222 | $ 23,503,323 | $ 70,784,911 |
Reinvestment of distributions | 639,382 | 98,821 | 7,957,626 | 1,412,739 |
Shares redeemed | (1,718,023) | (2,860,682) | (23,026,770) | (43,524,578) |
Net increase (decrease) | 666,861 | 1,879,361 | $ 8,434,179 | $ 28,673,072 |
Class T |
|
|
|
|
Shares sold | 570,970 | 1,830,956 | $ 7,714,081 | $ 27,619,849 |
Reinvestment of distributions | 264,657 | 40,370 | 3,258,576 | 573,649 |
Shares redeemed | (658,126) | (1,537,319) | (8,715,946) | (23,500,005) |
Net increase (decrease) | 177,501 | 334,007 | $ 2,256,711 | $ 4,693,493 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 9,521 | 84,331 | $ 123,316 | $ 1,230,023 |
Reinvestment of distributions | 36,117 | 5,817 | 433,889 | 79,168 |
Shares redeemed | (86,527) | (265,513) | (1,119,149) | (3,874,627) |
Net increase (decrease) | (40,889) | (175,365) | $ (561,944) | $ (2,565,436) |
Class C |
|
|
|
|
Shares sold | 362,479 | 1,131,174 | $ 4,727,316 | $ 16,672,873 |
Reinvestment of distributions | 202,948 | 25,779 | 2,439,209 | 354,104 |
Shares redeemed | (560,846) | (848,659) | (7,260,681) | (12,648,504) |
Net increase (decrease) | 4,581 | 308,294 | $ (94,156) | $ 4,378,473 |
Small Cap Value |
|
|
|
|
Shares sold | 12,059,271 | 35,677,635 | $ 165,030,055 | $ 541,990,483 |
Reinvestment of distributions | 8,564,707 | 1,987,755 | 107,820,739 | 28,460,668 |
Shares redeemed | (27,849,295) | (46,640,533) | (376,742,586) | (708,788,001) |
Net increase (decrease) | (7,225,317) | (8,975,143) | $ (103,891,792) | $ (138,336,850) |
Class F |
|
|
|
|
Shares sold | 9,433,667 | 11,644,633 | $ 127,817,009 | $ 177,097,711 |
Reinvestment of distributions | 1,506,337 | 192,943 | 19,066,009 | 2,781,462 |
Shares redeemed | (1,311,697) | (2,052,505) | (17,707,407) | (32,200,197) |
Net increase (decrease) | 9,628,307 | 9,785,071 | $ 129,175,611 | $ 147,678,976 |
Institutional Class |
|
|
|
|
Shares sold | 2,226,725 | 4,417,342 | $ 30,470,570 | $ 67,359,213 |
Reinvestment of distributions | 445,761 | 90,435 | 5,619,794 | 1,288,856 |
Shares redeemed | (1,449,234) | (3,788,938) | (19,640,455) | (58,540,522) |
Net increase (decrease) | 1,223,252 | 718,839 | $ 16,449,909 | $ 10,107,547 |
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
11. Other - continued
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K Funds® were the owners of record, in the aggregate, of approximately 40% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Press
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*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Fidelity®
Small Cap Value
Fund
Class F
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, 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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.40 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.51 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 8.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.49 | $ 8.72 |
Class B | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.90 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Class C | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Small Cap Value | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.10 | $ 5.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.25 | $ 5.94 |
Class F | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.70 | $ 4.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.46 | $ 4.72 |
Institutional Class | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.00 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.20 | $ 5.99 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
WESCO International, Inc. | 3.3 | 2.7 |
HNI Corp. | 3.0 | 1.9 |
Regis Corp. | 2.8 | 2.4 |
DCT Industrial Trust, Inc. | 2.7 | 3.0 |
United Stationers, Inc. | 2.6 | 2.5 |
TCF Financial Corp. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.3 | 2.1 |
Highwoods Properties, Inc. (SBI) | 2.3 | 2.6 |
Alterra Capital Holdings Ltd. | 2.3 | 2.0 |
MEDNAX, Inc. | 2.2 | 2.7 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 35.6 | 35.2 |
Industrials | 15.2 | 12.5 |
Consumer Discretionary | 13.5 | 11.9 |
Information Technology | 11.5 | 11.6 |
Health Care | 7.9 | 8.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 8.3% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Diversified Consumer Services - 2.8% | |||
Regis Corp. (e) | 3,995,824 | $ 68,488,423 | |
Household Durables - 6.9% | |||
Ethan Allen Interiors, Inc. | 667,112 | 15,743,843 | |
KB Home (d) | 3,300,000 | 29,766,000 | |
M.D.C. Holdings, Inc. (d)(e) | 2,424,300 | 48,049,626 | |
Meritage Homes Corp. (a) | 1,536,160 | 37,175,072 | |
Ryland Group, Inc. (d) | 2,171,537 | 39,521,973 | |
| 170,256,514 | ||
Specialty Retail - 3.4% | |||
Asbury Automotive Group, Inc. (a) | 1,365,159 | 31,275,793 | |
Ascena Retail Group, Inc. (a) | 960,700 | 33,979,959 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 18,905,148 | |
| 84,160,900 | ||
TOTAL CONSUMER DISCRETIONARY | 322,905,837 | ||
CONSUMER STAPLES - 3.1% | |||
Food Products - 2.3% | |||
Chiquita Brands International, Inc. (a) | 2,070,900 | 18,203,211 | |
Dean Foods Co. (a) | 3,600,000 | 38,736,000 | |
| 56,939,211 | ||
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. (a) | 687,476 | 19,902,430 | |
TOTAL CONSUMER STAPLES | 76,841,641 | ||
ENERGY - 3.6% | |||
Energy Equipment & Services - 1.7% | |||
Superior Energy Services, Inc. (a)(d) | 1,466,700 | 41,815,617 | |
Oil, Gas & Consumable Fuels - 1.9% | |||
Berry Petroleum Co. Class A | 1,025,000 | 46,135,250 | |
TOTAL ENERGY | 87,950,867 | ||
FINANCIALS - 34.8% | |||
Capital Markets - 3.4% | |||
Knight Capital Group, Inc. Class A (a) | 3,454,903 | 44,879,190 | |
Monex Beans Holdings, Inc. | 27,904 | 4,458,490 | |
Waddell & Reed Financial, Inc. Class A | 1,210,000 | 33,214,500 | |
| 82,552,180 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 11.3% | |||
Associated Banc-Corp. | 4,432,650 | $ 55,230,819 | |
CapitalSource, Inc. | 6,548,461 | 45,249,866 | |
City National Corp. | 784,900 | 36,011,212 | |
National Penn Bancshares, Inc. | 4,266,604 | 37,076,789 | |
PacWest Bancorp (e) | 1,857,600 | 39,511,152 | |
TCF Financial Corp. | 5,794,547 | 58,177,252 | |
Western Liberty Bancorp (a)(e) | 2,400,000 | 6,312,000 | |
| 277,569,090 | ||
Insurance - 7.4% | |||
Alterra Capital Holdings Ltd. | 2,337,411 | 56,495,224 | |
Aspen Insurance Holdings Ltd. | 1,520,200 | 40,376,512 | |
Platinum Underwriters Holdings Ltd. | 1,694,139 | 58,024,261 | |
ProAssurance Corp. | 350,000 | 28,570,500 | |
| 183,466,497 | ||
Real Estate Investment Trusts - 7.6% | |||
DCT Industrial Trust, Inc. | 12,180,586 | 67,236,835 | |
Franklin Street Properties Corp. | 3,160,000 | 32,200,400 | |
Highwoods Properties, Inc. (SBI) (d) | 1,720,330 | 56,925,720 | |
National Retail Properties, Inc. (d) | 1,140,000 | 30,791,400 | |
| 187,154,355 | ||
Real Estate Management & Development - 1.3% | |||
Forestar Group, Inc. (a)(e) | 1,996,875 | 31,790,250 | |
Thrifts & Mortgage Finance - 3.8% | |||
Astoria Financial Corp. (d)(e) | 5,418,152 | 45,133,206 | |
Washington Federal, Inc. | 3,086,175 | 48,638,118 | |
| 93,771,324 | ||
TOTAL FINANCIALS | 856,303,696 | ||
HEALTH CARE - 7.9% | |||
Health Care Providers & Services - 7.9% | |||
Centene Corp. (a) | 1,124,832 | 50,842,406 | |
Chemed Corp. | 465,200 | 26,116,328 | |
MEDNAX, Inc. (a) | 779,700 | 55,530,234 | |
Providence Service Corp. (a)(e) | 1,016,495 | 15,338,910 | |
Team Health Holdings, Inc. (a) | 2,266,500 | 46,689,900 | |
| 194,517,778 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 15.2% | |||
Commercial Services & Supplies - 7.6% | |||
ACCO Brands Corp. (a) | 2,170,000 | $ 23,045,400 | |
HNI Corp. (d)(e) | 2,674,619 | 72,562,413 | |
Knoll, Inc. | 1,712,898 | 27,337,852 | |
United Stationers, Inc. | 1,980,800 | 64,039,264 | |
| 186,984,929 | ||
Machinery - 2.4% | |||
Blount International, Inc. (a)(e) | 2,604,723 | 42,769,552 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,047,872 | 16,713,558 | |
| 59,483,110 | ||
Trading Companies & Distributors - 5.2% | |||
H&E Equipment Services, Inc. (a)(e) | 2,742,264 | 46,591,065 | |
WESCO International, Inc. (a) | 1,303,633 | 81,972,443 | |
| 128,563,508 | ||
TOTAL INDUSTRIALS | 375,031,547 | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.9% | |||
ViaSat, Inc. (a) | 984,472 | 46,801,799 | |
Electronic Equipment & Components - 6.7% | |||
Ingram Micro, Inc. Class A (a) | 2,753,100 | 52,253,838 | |
Macnica, Inc. | 677,400 | 15,995,278 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 22,798,750 | |
SYNNEX Corp. (a) | 675,710 | 24,447,188 | |
Tech Data Corp. (a) | 964,600 | 50,082,032 | |
| 165,577,086 | ||
Internet Software & Services - 0.8% | |||
j2 Global, Inc. (d) | 730,149 | 19,684,817 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (d)(e) | 720,200 | 10,250,781 | |
Software - 1.7% | |||
Monotype Imaging Holdings, Inc. (a)(e) | 2,604,000 | 40,648,440 | |
TOTAL INFORMATION TECHNOLOGY | 282,962,923 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.0% | |||
PolyOne Corp. | 1,750,000 | 25,235,000 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 3.4% | |||
Carpenter Technology Corp. | 409,380 | $ 21,484,262 | |
Haynes International, Inc. | 496,108 | 30,143,522 | |
RTI International Metals, Inc. (a) | 1,220,997 | 30,732,494 | |
| 82,360,278 | ||
TOTAL MATERIALS | 107,595,278 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,760,000 | 50,054,400 | |
Gas Utilities - 3.1% | |||
Southwest Gas Corp. | 836,756 | 34,976,401 | |
UGI Corp. | 1,502,654 | 40,436,419 | |
| 75,412,820 | ||
TOTAL UTILITIES | 125,467,220 | ||
TOTAL COMMON STOCKS (Cost $2,053,907,920) |
| ||
Nonconvertible Preferred Stocks - 1.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.4% | |||
Household Durables - 0.4% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | 8,712,144 | |
FINANCIALS - 0.8% | |||
Real Estate Investment Trusts - 0.8% | |||
DDR Corp. Series H, 7.375% | 818,790 | 20,469,750 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) |
| ||
Money Market Funds - 3.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 8,469,412 | $ 8,469,412 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 70,626,640 | 70,626,640 | |
TOTAL MONEY MARKET FUNDS (Cost $79,096,052) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $2,153,358,742) | 2,537,854,733 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (75,315,351) | ||
NET ASSETS - 100% | $ 2,462,539,382 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,097 |
Fidelity Securities Lending Cash Central Fund | 67,330 |
Total | $ 71,427 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend Income | Value, |
Astoria Financial Corp. | $ 56,131,471 | $ 5,135,258 | $ - | $ 1,356,720 | $ 45,133,206 |
Blount International, Inc. | 43,316,543 | - | - | - | 42,769,552 |
Columbus McKinnon Corp. (NY Shares) | 15,792,000 | 1,137,487 | - | - | 16,713,558 |
DCT Industrial Trust, Inc. | 74,961,776 | - | 7,151,583 | 509,363 | - |
Forestar Group, Inc. | - | 24,473,760 | - | - | 31,790,250 |
H&E Equipment Services, Inc. | 29,272,896 | 2,743,497 | - | - | 46,591,065 |
Haynes International, Inc. | 42,301,857 | - | 8,879,973 | 228,365 | - |
HNI Corp. | 49,131,621 | 18,981,945 | 17,053,493 | 1,282,635 | 72,562,413 |
Ingles Markets, Inc. Class A | 10,225,970 | - | 9,904,080 | 78,182 | - |
M.D.C. Holdings, Inc. | 54,813,423 | - | - | 1,212,150 | 48,049,626 |
Miraial Co. Ltd. | 15,046,860 | - | - | 259,439 | 10,250,781 |
Monotype Imaging Holdings, Inc. | 35,396,690 | 274,945 | - | - | 40,648,440 |
PacWest Bancorp | 36,873,360 | - | - | 352,944 | 39,511,152 |
Providence Service Corp. | 12,045,466 | - | - | - | 15,338,910 |
Regis Corp. | 60,080,486 | - | 816,632 | 485,499 | 68,488,423 |
Ryoyo Electro Corp. | 19,684,709 | - | - | 355,315 | 22,798,750 |
Western Liberty Bancorp | 7,248,000 | - | - | - | 6,312,000 |
Total | $ 562,323,128 | $ 52,746,892 | $ 43,805,761 | $ 6,120,612 | $ 506,958,126 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $69,413,987) - See accompanying schedule: Unaffiliated issuers (cost $1,624,390,768) | $ 1,951,800,555 |
|
Fidelity Central Funds (cost $79,096,052) | 79,096,052 |
|
Other affiliated issuers (cost $449,871,922) | 506,958,126 |
|
Total Investments (cost $2,153,358,742) |
| $ 2,537,854,733 |
Receivable for fund shares sold | 2,588,317 | |
Dividends receivable | 2,523,736 | |
Distributions receivable from Fidelity Central Funds | 10,327 | |
Prepaid expenses | 5,951 | |
Other receivables | 6,013 | |
Total assets | 2,542,989,077 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,599,920 | |
Payable for fund shares redeemed | 3,866,448 | |
Accrued management fee | 1,774,961 | |
Distribution and service plan fees payable | 94,259 | |
Other affiliated payables | 455,826 | |
Other payables and accrued expenses | 31,641 | |
Collateral on securities loaned, at value | 70,626,640 | |
Total liabilities | 80,449,695 | |
|
|
|
Net Assets | $ 2,462,539,382 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,064,889,931 | |
Undistributed net investment income | 1,369,455 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,771,626 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 384,508,370 | |
Net Assets | $ 2,462,539,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.63) | $ 15.52 | |
Class T: | $ 14.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.48) | $ 15.01 | |
Class B: | $ 14.10 | |
|
|
|
Class C: | $ 14.10 | |
|
|
|
Small Cap Value: | $ 14.78 | |
|
|
|
Class F: | $ 14.81 | |
|
|
|
Institutional Class: | $ 14.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $6,120,612 earned from other affiliated issuers) |
| $ 18,508,901 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 71,427 |
Total income |
| 18,580,331 |
|
|
|
Expenses | ||
Management fee | $ 8,006,899 | |
Performance adjustment | 1,957,959 | |
Transfer agent fees | 2,393,658 | |
Distribution and service plan fees | 524,292 | |
Accounting and security lending fees | 349,431 | |
Custodian fees and expenses | 19,057 | |
Independent trustees' compensation | 7,549 | |
Registration fees | 95,933 | |
Audit | 42,491 | |
Legal | 5,055 | |
Interest | 359 | |
Miscellaneous | 10,472 | |
Total expenses before reductions | 13,413,155 | |
Expense reductions | (15,984) | 13,397,171 |
Net investment income (loss) | 5,183,160 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 37,616,399 | |
Other affiliated issuers | (4,716,500) |
|
Foreign currency transactions | 3,016 | |
Total net realized gain (loss) |
| 32,902,915 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,513,790) | |
Assets and liabilities in foreign currencies | 4,836 | |
Total change in net unrealized appreciation (depreciation) |
| (8,508,954) |
Net gain (loss) | 24,393,961 | |
Net increase (decrease) in net assets resulting from operations | $ 29,577,121 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,183,160 | $ 8,365,475 |
Net realized gain (loss) | 32,902,915 | 155,481,563 |
Change in net unrealized appreciation (depreciation) | (8,508,954) | 203,701,455 |
Net increase (decrease) in net assets resulting | 29,577,121 | 367,548,493 |
Distributions to shareholders from net investment income | (3,813,705) | (16,151,065) |
Distributions to shareholders from net realized gain | (148,970,861) | (20,051,059) |
Total distributions | (152,784,566) | (36,202,124) |
Share transactions - net increase (decrease) | 51,768,518 | 54,629,275 |
Redemption fees | 397,311 | 445,888 |
Total increase (decrease) in net assets | (71,041,616) | 386,421,532 |
|
|
|
Net Assets | ||
Beginning of period | 2,533,580,998 | 2,147,159,466 |
End of period (including undistributed net investment income of $1,369,455 and $0, respectively) | $ 2,462,539,382 | $ 2,533,580,998 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 H | .02 I | .08 | (.01) | (.06) |
Net realized and unrealized gain (loss) | .07 | 2.22 | 2.33 | (.60) | (1.98) | 1.90 |
Total from investment operations | .08 | 2.23 | 2.35 | (.52) | (1.99) | 1.84 |
Distributions from net investment income | (.01) | (.08) | (.03) | (.06) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.67) |
Total distributions | (.93) L | (.20) | (.03) | (.17) | (.53) | (.67) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.63 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Total Return B, C, D | 1.64% | 16.72% | 21.16% | (4.37)% | (14.35)% | 14.59% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.48% A | 1.44% | 1.47% | 1.45% | 1.43% | 1.45% |
Expenses net of fee waivers, if any | 1.48% A | 1.43% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.48% A | 1.43% | 1.39% | 1.40% | 1.40% | 1.40% |
Net investment income (loss) | .17% A | .06% H | .17% I | .81% | (.05)% | (.44)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142,756 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate hare 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 large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.93 per share is comprised of distributions from net investment income of $.006 and distributions from net realized gain of $.925 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - K | (.03) H | (.01) I | .05 | (.04) | (.10) |
Net realized and unrealized gain (loss) | .07 | 2.20 | 2.31 | (.59) | (1.97) | 1.90 |
Total from investment operations | .07 | 2.17 | 2.30 | (.54) | (2.01) | 1.80 |
Distributions from net investment income | - | (.05) | (.01) | (.04) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.65) |
Total distributions | (.93) | (.17) | (.01) | (.15) | (.53) | (.65) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Total Return B, C, D | 1.54% | 16.36% | 20.87% | (4.57)% | (14.58)% | 14.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.72% A | 1.70% | 1.72% | 1.70% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.72% A | 1.69% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.07)% A | (.19)% H | (.08)% I | .56% | (.30)% | (.69)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 55,281 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .07 | 2.15 | 2.27 | (.59) | (1.96) | 1.90 |
Total from investment operations | .03 | 2.05 | 2.20 | (.58) | (2.06) | 1.73 |
Distributions from net investment income | - | (.01) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.13) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.29% | 15.80% | 20.22% | (5.05)% | (15.04)% | 13.78% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.20% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.19% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.69)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,458 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .06 | 2.17 | 2.26 | (.58) | (1.96) | 1.90 |
Total from investment operations | .02 | 2.07 | 2.19 | (.57) | (2.06) | 1.73 |
Distributions from net investment income | - | (.02) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.14) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.22% | 15.91% | 20.11% | (4.98)% | (15.04)% | 13.77% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.18% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.18% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.18% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.68)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 44,667 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .05 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.60) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.39 | (.50) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.10) | (.05) | (.08) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.23) | (.05) | (.19) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.78 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.81% | 17.03% | 21.32% | (4.15)% | (14.10)% | 14.96% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of all reductions | 1.17% A | 1.13% | 1.17% | 1.20% | 1.13% | 1.11% |
Net investment income (loss) | .48% A | .37% G | .39% H | 1.01% | .22% | (.15)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,690,863 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | .94 |
Total from investment operations | .13 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.93) | (.13) | - | - |
Total distributions | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - |
Net asset value, end of period | $ 14.81 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 1.97% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
|
|
Expenses before reductions | .93% A | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .93% A | .88% | .90% | .86% A |
Expenses net of all reductions | .93% A | .88% | .89% | .86% A |
Net investment income (loss) | .72% A | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 407,308 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.96 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.925 per share. M Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .06 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.59) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.40 | (.49) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.11) | (.06) | (.07) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.24) | (.06) | (.18) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.79 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.80% | 17.02% | 21.42% | (4.04)% | (14.10)% | 14.99% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.18% A | 1.10% | 1.12% | 1.20% | 1.13% | 1.10% |
Expenses net of fee waivers, if any | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Expenses net of all reductions | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Net investment income (loss) | .46% A | .39% G | .45% H | 1.06% | .22% | (.13)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 114,206 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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 and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 535,803,791 |
Gross unrealized depreciation | (152,407,227) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 383,396,564 |
|
|
Tax cost | $ 2,154,458,169 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $214,827,972 and $303,280,197, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Value as compared to an appropriate benchmark index. For the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .88% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 158,819 | $ 2,262 |
Class T | .25% | .25% | 123,242 | - |
Class B | .75% | .25% | 36,236 | 27,176 |
Class C | .75% | .25% | 205,995 | 37,926 |
|
|
| $ 524,292 | $ 67,364 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,020 |
Class T | 2,447 |
Class B* | 5,366 |
Class C* | 3,351 |
| $ 25,184 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 189,941 | .30 |
Class T | 72,020 | .29 |
Class B | 10,814 | .30 |
Class C | 61,689 | .30 |
Small Cap Value | 1,934,488 | .24 |
Institutional Class | 124,706 | .25 |
| $ 2,393,658 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,232 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 Loan | Weighted Average | Interest |
Borrower | $ 6,367,333 | .34% | $ 359 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3,193 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $67,330, including $8,338 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,984 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 57,416 | $ 602,963 |
Class T | - | 175,083 |
Class B | - | 8,350 |
Class C | - | 50,685 |
Small Cap Value | 2,736,678 | 13,136,446 |
Class F | 858,634 | 1,502,640 |
Institutional Class | 160,977 | 674,898 |
Total | $ 3,813,705 | $ 16,151,065 |
From net realized gain |
|
|
Class A | $ 8,369,078 | $ 938,086 |
Class T | 3,332,444 | 417,804 |
Class B | 513,839 | 85,354 |
Class C | 2,835,863 | 362,483 |
Small Cap Value | 109,450,262 | 16,213,209 |
Class F | 18,207,376 | 1,278,822 |
Institutional Class | 6,261,999 | 755,301 |
Total | $ 148,970,861 | $ 20,051,059 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,745,502 | 4,641,222 | $ 23,503,323 | $ 70,784,911 |
Reinvestment of distributions | 639,382 | 98,821 | 7,957,626 | 1,412,739 |
Shares redeemed | (1,718,023) | (2,860,682) | (23,026,770) | (43,524,578) |
Net increase (decrease) | 666,861 | 1,879,361 | $ 8,434,179 | $ 28,673,072 |
Class T |
|
|
|
|
Shares sold | 570,970 | 1,830,956 | $ 7,714,081 | $ 27,619,849 |
Reinvestment of distributions | 264,657 | 40,370 | 3,258,576 | 573,649 |
Shares redeemed | (658,126) | (1,537,319) | (8,715,946) | (23,500,005) |
Net increase (decrease) | 177,501 | 334,007 | $ 2,256,711 | $ 4,693,493 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 9,521 | 84,331 | $ 123,316 | $ 1,230,023 |
Reinvestment of distributions | 36,117 | 5,817 | 433,889 | 79,168 |
Shares redeemed | (86,527) | (265,513) | (1,119,149) | (3,874,627) |
Net increase (decrease) | (40,889) | (175,365) | $ (561,944) | $ (2,565,436) |
Class C |
|
|
|
|
Shares sold | 362,479 | 1,131,174 | $ 4,727,316 | $ 16,672,873 |
Reinvestment of distributions | 202,948 | 25,779 | 2,439,209 | 354,104 |
Shares redeemed | (560,846) | (848,659) | (7,260,681) | (12,648,504) |
Net increase (decrease) | 4,581 | 308,294 | $ (94,156) | $ 4,378,473 |
Small Cap Value |
|
|
|
|
Shares sold | 12,059,271 | 35,677,635 | $ 165,030,055 | $ 541,990,483 |
Reinvestment of distributions | 8,564,707 | 1,987,755 | 107,820,739 | 28,460,668 |
Shares redeemed | (27,849,295) | (46,640,533) | (376,742,586) | (708,788,001) |
Net increase (decrease) | (7,225,317) | (8,975,143) | $ (103,891,792) | $ (138,336,850) |
Class F |
|
|
|
|
Shares sold | 9,433,667 | 11,644,633 | $ 127,817,009 | $ 177,097,711 |
Reinvestment of distributions | 1,506,337 | 192,943 | 19,066,009 | 2,781,462 |
Shares redeemed | (1,311,697) | (2,052,505) | (17,707,407) | (32,200,197) |
Net increase (decrease) | 9,628,307 | 9,785,071 | $ 129,175,611 | $ 147,678,976 |
Institutional Class |
|
|
|
|
Shares sold | 2,226,725 | 4,417,342 | $ 30,470,570 | $ 67,359,213 |
Reinvestment of distributions | 445,761 | 90,435 | 5,619,794 | 1,288,856 |
Shares redeemed | (1,449,234) | (3,788,938) | (19,640,455) | (58,540,522) |
Net increase (decrease) | 1,223,252 | 718,839 | $ 16,449,909 | $ 10,107,547 |
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
11. Other - continued
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K Funds® were the owners of record, in the aggregate, of approximately 40% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone graphic)Fidelity Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer graphic)Fidelity's Web Site
www.401k.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains distributions, and the effects of any sales charges.
Semiannual Report
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Buying shares
Fidelity Investments
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Cincinnati, OH 45277-0003
Selling shares
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P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
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(U.K.) Inc.
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(Japan) Inc.
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SCV-F-SANN-0312 1.891899.102
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Class A, Class T, Class B
and Class C are classes of
Fidelity® Small Cap Value Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.40 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.51 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 8.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.49 | $ 8.72 |
Class B | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.90 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Class C | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Small Cap Value | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.10 | $ 5.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.25 | $ 5.94 |
Class F | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.70 | $ 4.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.46 | $ 4.72 |
Institutional Class | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.00 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.20 | $ 5.99 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
WESCO International, Inc. | 3.3 | 2.7 |
HNI Corp. | 3.0 | 1.9 |
Regis Corp. | 2.8 | 2.4 |
DCT Industrial Trust, Inc. | 2.7 | 3.0 |
United Stationers, Inc. | 2.6 | 2.5 |
TCF Financial Corp. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.3 | 2.1 |
Highwoods Properties, Inc. (SBI) | 2.3 | 2.6 |
Alterra Capital Holdings Ltd. | 2.3 | 2.0 |
MEDNAX, Inc. | 2.2 | 2.7 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 35.6 | 35.2 |
Industrials | 15.2 | 12.5 |
Consumer Discretionary | 13.5 | 11.9 |
Information Technology | 11.5 | 11.6 |
Health Care | 7.9 | 8.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 8.3% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Diversified Consumer Services - 2.8% | |||
Regis Corp. (e) | 3,995,824 | $ 68,488,423 | |
Household Durables - 6.9% | |||
Ethan Allen Interiors, Inc. | 667,112 | 15,743,843 | |
KB Home (d) | 3,300,000 | 29,766,000 | |
M.D.C. Holdings, Inc. (d)(e) | 2,424,300 | 48,049,626 | |
Meritage Homes Corp. (a) | 1,536,160 | 37,175,072 | |
Ryland Group, Inc. (d) | 2,171,537 | 39,521,973 | |
| 170,256,514 | ||
Specialty Retail - 3.4% | |||
Asbury Automotive Group, Inc. (a) | 1,365,159 | 31,275,793 | |
Ascena Retail Group, Inc. (a) | 960,700 | 33,979,959 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 18,905,148 | |
| 84,160,900 | ||
TOTAL CONSUMER DISCRETIONARY | 322,905,837 | ||
CONSUMER STAPLES - 3.1% | |||
Food Products - 2.3% | |||
Chiquita Brands International, Inc. (a) | 2,070,900 | 18,203,211 | |
Dean Foods Co. (a) | 3,600,000 | 38,736,000 | |
| 56,939,211 | ||
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. (a) | 687,476 | 19,902,430 | |
TOTAL CONSUMER STAPLES | 76,841,641 | ||
ENERGY - 3.6% | |||
Energy Equipment & Services - 1.7% | |||
Superior Energy Services, Inc. (a)(d) | 1,466,700 | 41,815,617 | |
Oil, Gas & Consumable Fuels - 1.9% | |||
Berry Petroleum Co. Class A | 1,025,000 | 46,135,250 | |
TOTAL ENERGY | 87,950,867 | ||
FINANCIALS - 34.8% | |||
Capital Markets - 3.4% | |||
Knight Capital Group, Inc. Class A (a) | 3,454,903 | 44,879,190 | |
Monex Beans Holdings, Inc. | 27,904 | 4,458,490 | |
Waddell & Reed Financial, Inc. Class A | 1,210,000 | 33,214,500 | |
| 82,552,180 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 11.3% | |||
Associated Banc-Corp. | 4,432,650 | $ 55,230,819 | |
CapitalSource, Inc. | 6,548,461 | 45,249,866 | |
City National Corp. | 784,900 | 36,011,212 | |
National Penn Bancshares, Inc. | 4,266,604 | 37,076,789 | |
PacWest Bancorp (e) | 1,857,600 | 39,511,152 | |
TCF Financial Corp. | 5,794,547 | 58,177,252 | |
Western Liberty Bancorp (a)(e) | 2,400,000 | 6,312,000 | |
| 277,569,090 | ||
Insurance - 7.4% | |||
Alterra Capital Holdings Ltd. | 2,337,411 | 56,495,224 | |
Aspen Insurance Holdings Ltd. | 1,520,200 | 40,376,512 | |
Platinum Underwriters Holdings Ltd. | 1,694,139 | 58,024,261 | |
ProAssurance Corp. | 350,000 | 28,570,500 | |
| 183,466,497 | ||
Real Estate Investment Trusts - 7.6% | |||
DCT Industrial Trust, Inc. | 12,180,586 | 67,236,835 | |
Franklin Street Properties Corp. | 3,160,000 | 32,200,400 | |
Highwoods Properties, Inc. (SBI) (d) | 1,720,330 | 56,925,720 | |
National Retail Properties, Inc. (d) | 1,140,000 | 30,791,400 | |
| 187,154,355 | ||
Real Estate Management & Development - 1.3% | |||
Forestar Group, Inc. (a)(e) | 1,996,875 | 31,790,250 | |
Thrifts & Mortgage Finance - 3.8% | |||
Astoria Financial Corp. (d)(e) | 5,418,152 | 45,133,206 | |
Washington Federal, Inc. | 3,086,175 | 48,638,118 | |
| 93,771,324 | ||
TOTAL FINANCIALS | 856,303,696 | ||
HEALTH CARE - 7.9% | |||
Health Care Providers & Services - 7.9% | |||
Centene Corp. (a) | 1,124,832 | 50,842,406 | |
Chemed Corp. | 465,200 | 26,116,328 | |
MEDNAX, Inc. (a) | 779,700 | 55,530,234 | |
Providence Service Corp. (a)(e) | 1,016,495 | 15,338,910 | |
Team Health Holdings, Inc. (a) | 2,266,500 | 46,689,900 | |
| 194,517,778 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 15.2% | |||
Commercial Services & Supplies - 7.6% | |||
ACCO Brands Corp. (a) | 2,170,000 | $ 23,045,400 | |
HNI Corp. (d)(e) | 2,674,619 | 72,562,413 | |
Knoll, Inc. | 1,712,898 | 27,337,852 | |
United Stationers, Inc. | 1,980,800 | 64,039,264 | |
| 186,984,929 | ||
Machinery - 2.4% | |||
Blount International, Inc. (a)(e) | 2,604,723 | 42,769,552 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,047,872 | 16,713,558 | |
| 59,483,110 | ||
Trading Companies & Distributors - 5.2% | |||
H&E Equipment Services, Inc. (a)(e) | 2,742,264 | 46,591,065 | |
WESCO International, Inc. (a) | 1,303,633 | 81,972,443 | |
| 128,563,508 | ||
TOTAL INDUSTRIALS | 375,031,547 | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.9% | |||
ViaSat, Inc. (a) | 984,472 | 46,801,799 | |
Electronic Equipment & Components - 6.7% | |||
Ingram Micro, Inc. Class A (a) | 2,753,100 | 52,253,838 | |
Macnica, Inc. | 677,400 | 15,995,278 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 22,798,750 | |
SYNNEX Corp. (a) | 675,710 | 24,447,188 | |
Tech Data Corp. (a) | 964,600 | 50,082,032 | |
| 165,577,086 | ||
Internet Software & Services - 0.8% | |||
j2 Global, Inc. (d) | 730,149 | 19,684,817 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (d)(e) | 720,200 | 10,250,781 | |
Software - 1.7% | |||
Monotype Imaging Holdings, Inc. (a)(e) | 2,604,000 | 40,648,440 | |
TOTAL INFORMATION TECHNOLOGY | 282,962,923 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.0% | |||
PolyOne Corp. | 1,750,000 | 25,235,000 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 3.4% | |||
Carpenter Technology Corp. | 409,380 | $ 21,484,262 | |
Haynes International, Inc. | 496,108 | 30,143,522 | |
RTI International Metals, Inc. (a) | 1,220,997 | 30,732,494 | |
| 82,360,278 | ||
TOTAL MATERIALS | 107,595,278 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,760,000 | 50,054,400 | |
Gas Utilities - 3.1% | |||
Southwest Gas Corp. | 836,756 | 34,976,401 | |
UGI Corp. | 1,502,654 | 40,436,419 | |
| 75,412,820 | ||
TOTAL UTILITIES | 125,467,220 | ||
TOTAL COMMON STOCKS (Cost $2,053,907,920) |
| ||
Nonconvertible Preferred Stocks - 1.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.4% | |||
Household Durables - 0.4% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | 8,712,144 | |
FINANCIALS - 0.8% | |||
Real Estate Investment Trusts - 0.8% | |||
DDR Corp. Series H, 7.375% | 818,790 | 20,469,750 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) |
| ||
Money Market Funds - 3.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 8,469,412 | $ 8,469,412 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 70,626,640 | 70,626,640 | |
TOTAL MONEY MARKET FUNDS (Cost $79,096,052) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $2,153,358,742) | 2,537,854,733 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (75,315,351) | ||
NET ASSETS - 100% | $ 2,462,539,382 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,097 |
Fidelity Securities Lending Cash Central Fund | 67,330 |
Total | $ 71,427 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend Income | Value, |
Astoria Financial Corp. | $ 56,131,471 | $ 5,135,258 | $ - | $ 1,356,720 | $ 45,133,206 |
Blount International, Inc. | 43,316,543 | - | - | - | 42,769,552 |
Columbus McKinnon Corp. (NY Shares) | 15,792,000 | 1,137,487 | - | - | 16,713,558 |
DCT Industrial Trust, Inc. | 74,961,776 | - | 7,151,583 | 509,363 | - |
Forestar Group, Inc. | - | 24,473,760 | - | - | 31,790,250 |
H&E Equipment Services, Inc. | 29,272,896 | 2,743,497 | - | - | 46,591,065 |
Haynes International, Inc. | 42,301,857 | - | 8,879,973 | 228,365 | - |
HNI Corp. | 49,131,621 | 18,981,945 | 17,053,493 | 1,282,635 | 72,562,413 |
Ingles Markets, Inc. Class A | 10,225,970 | - | 9,904,080 | 78,182 | - |
M.D.C. Holdings, Inc. | 54,813,423 | - | - | 1,212,150 | 48,049,626 |
Miraial Co. Ltd. | 15,046,860 | - | - | 259,439 | 10,250,781 |
Monotype Imaging Holdings, Inc. | 35,396,690 | 274,945 | - | - | 40,648,440 |
PacWest Bancorp | 36,873,360 | - | - | 352,944 | 39,511,152 |
Providence Service Corp. | 12,045,466 | - | - | - | 15,338,910 |
Regis Corp. | 60,080,486 | - | 816,632 | 485,499 | 68,488,423 |
Ryoyo Electro Corp. | 19,684,709 | - | - | 355,315 | 22,798,750 |
Western Liberty Bancorp | 7,248,000 | - | - | - | 6,312,000 |
Total | $ 562,323,128 | $ 52,746,892 | $ 43,805,761 | $ 6,120,612 | $ 506,958,126 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $69,413,987) - See accompanying schedule: Unaffiliated issuers (cost $1,624,390,768) | $ 1,951,800,555 |
|
Fidelity Central Funds (cost $79,096,052) | 79,096,052 |
|
Other affiliated issuers (cost $449,871,922) | 506,958,126 |
|
Total Investments (cost $2,153,358,742) |
| $ 2,537,854,733 |
Receivable for fund shares sold | 2,588,317 | |
Dividends receivable | 2,523,736 | |
Distributions receivable from Fidelity Central Funds | 10,327 | |
Prepaid expenses | 5,951 | |
Other receivables | 6,013 | |
Total assets | 2,542,989,077 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,599,920 | |
Payable for fund shares redeemed | 3,866,448 | |
Accrued management fee | 1,774,961 | |
Distribution and service plan fees payable | 94,259 | |
Other affiliated payables | 455,826 | |
Other payables and accrued expenses | 31,641 | |
Collateral on securities loaned, at value | 70,626,640 | |
Total liabilities | 80,449,695 | |
|
|
|
Net Assets | $ 2,462,539,382 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,064,889,931 | |
Undistributed net investment income | 1,369,455 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,771,626 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 384,508,370 | |
Net Assets | $ 2,462,539,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.63) | $ 15.52 | |
Class T: | $ 14.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.48) | $ 15.01 | |
Class B: | $ 14.10 | |
|
|
|
Class C: | $ 14.10 | |
|
|
|
Small Cap Value: | $ 14.78 | |
|
|
|
Class F: | $ 14.81 | |
|
|
|
Institutional Class: | $ 14.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $6,120,612 earned from other affiliated issuers) |
| $ 18,508,901 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 71,427 |
Total income |
| 18,580,331 |
|
|
|
Expenses | ||
Management fee | $ 8,006,899 | |
Performance adjustment | 1,957,959 | |
Transfer agent fees | 2,393,658 | |
Distribution and service plan fees | 524,292 | |
Accounting and security lending fees | 349,431 | |
Custodian fees and expenses | 19,057 | |
Independent trustees' compensation | 7,549 | |
Registration fees | 95,933 | |
Audit | 42,491 | |
Legal | 5,055 | |
Interest | 359 | |
Miscellaneous | 10,472 | |
Total expenses before reductions | 13,413,155 | |
Expense reductions | (15,984) | 13,397,171 |
Net investment income (loss) | 5,183,160 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 37,616,399 | |
Other affiliated issuers | (4,716,500) |
|
Foreign currency transactions | 3,016 | |
Total net realized gain (loss) |
| 32,902,915 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,513,790) | |
Assets and liabilities in foreign currencies | 4,836 | |
Total change in net unrealized appreciation (depreciation) |
| (8,508,954) |
Net gain (loss) | 24,393,961 | |
Net increase (decrease) in net assets resulting from operations | $ 29,577,121 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,183,160 | $ 8,365,475 |
Net realized gain (loss) | 32,902,915 | 155,481,563 |
Change in net unrealized appreciation (depreciation) | (8,508,954) | 203,701,455 |
Net increase (decrease) in net assets resulting | 29,577,121 | 367,548,493 |
Distributions to shareholders from net investment income | (3,813,705) | (16,151,065) |
Distributions to shareholders from net realized gain | (148,970,861) | (20,051,059) |
Total distributions | (152,784,566) | (36,202,124) |
Share transactions - net increase (decrease) | 51,768,518 | 54,629,275 |
Redemption fees | 397,311 | 445,888 |
Total increase (decrease) in net assets | (71,041,616) | 386,421,532 |
|
|
|
Net Assets | ||
Beginning of period | 2,533,580,998 | 2,147,159,466 |
End of period (including undistributed net investment income of $1,369,455 and $0, respectively) | $ 2,462,539,382 | $ 2,533,580,998 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 H | .02 I | .08 | (.01) | (.06) |
Net realized and unrealized gain (loss) | .07 | 2.22 | 2.33 | (.60) | (1.98) | 1.90 |
Total from investment operations | .08 | 2.23 | 2.35 | (.52) | (1.99) | 1.84 |
Distributions from net investment income | (.01) | (.08) | (.03) | (.06) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.67) |
Total distributions | (.93) L | (.20) | (.03) | (.17) | (.53) | (.67) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.63 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Total Return B, C, D | 1.64% | 16.72% | 21.16% | (4.37)% | (14.35)% | 14.59% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.48% A | 1.44% | 1.47% | 1.45% | 1.43% | 1.45% |
Expenses net of fee waivers, if any | 1.48% A | 1.43% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.48% A | 1.43% | 1.39% | 1.40% | 1.40% | 1.40% |
Net investment income (loss) | .17% A | .06% H | .17% I | .81% | (.05)% | (.44)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 142,756 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate hare 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 large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.93 per share is comprised of distributions from net investment income of $.006 and distributions from net realized gain of $.925 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - K | (.03) H | (.01) I | .05 | (.04) | (.10) |
Net realized and unrealized gain (loss) | .07 | 2.20 | 2.31 | (.59) | (1.97) | 1.90 |
Total from investment operations | .07 | 2.17 | 2.30 | (.54) | (2.01) | 1.80 |
Distributions from net investment income | - | (.05) | (.01) | (.04) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.65) |
Total distributions | (.93) | (.17) | (.01) | (.15) | (.53) | (.65) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Total Return B, C, D | 1.54% | 16.36% | 20.87% | (4.57)% | (14.58)% | 14.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.72% A | 1.70% | 1.72% | 1.70% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.72% A | 1.69% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.07)% A | (.19)% H | (.08)% I | .56% | (.30)% | (.69)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 55,281 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .07 | 2.15 | 2.27 | (.59) | (1.96) | 1.90 |
Total from investment operations | .03 | 2.05 | 2.20 | (.58) | (2.06) | 1.73 |
Distributions from net investment income | - | (.01) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.13) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.29% | 15.80% | 20.22% | (5.05)% | (15.04)% | 13.78% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.20% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.19% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.69)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,458 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .06 | 2.17 | 2.26 | (.58) | (1.96) | 1.90 |
Total from investment operations | .02 | 2.07 | 2.19 | (.57) | (2.06) | 1.73 |
Distributions from net investment income | - | (.02) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.14) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.22% | 15.91% | 20.11% | (4.98)% | (15.04)% | 13.77% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.23% A | 2.18% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.18% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.18% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.68)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 44,667 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .05 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.60) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.39 | (.50) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.10) | (.05) | (.08) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.23) | (.05) | (.19) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.78 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.81% | 17.03% | 21.32% | (4.15)% | (14.10)% | 14.96% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of all reductions | 1.17% A | 1.13% | 1.17% | 1.20% | 1.13% | 1.11% |
Net investment income (loss) | .48% A | .37% G | .39% H | 1.01% | .22% | (.15)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,690,863 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | .94 |
Total from investment operations | .13 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.93) | (.13) | - | - |
Total distributions | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - |
Net asset value, end of period | $ 14.81 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 1.97% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
|
|
Expenses before reductions | .93% A | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .93% A | .88% | .90% | .86% A |
Expenses net of all reductions | .93% A | .88% | .89% | .86% A |
Net investment income (loss) | .72% A | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 407,308 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.96 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.925 per share. M Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .03 | .06 G | .06 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.59) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.40 | (.49) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.11) | (.06) | (.07) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.24) | (.06) | (.18) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.79 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.80% | 17.02% | 21.42% | (4.04)% | (14.10)% | 14.99% |
Ratios to Average Net Assets E, I |
|
|
|
|
| |
Expenses before reductions | 1.18% A | 1.10% | 1.12% | 1.20% | 1.13% | 1.10% |
Expenses net of fee waivers, if any | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Expenses net of all reductions | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Net investment income (loss) | .46% A | .39% G | .45% H | 1.06% | .22% | (.13)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 114,206 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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 and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 535,803,791 |
Gross unrealized depreciation | (152,407,227) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 383,396,564 |
|
|
Tax cost | $ 2,154,458,169 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $214,827,972 and $303,280,197, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Value as compared to an appropriate benchmark index. For the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .88% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 158,819 | $ 2,262 |
Class T | .25% | .25% | 123,242 | - |
Class B | .75% | .25% | 36,236 | 27,176 |
Class C | .75% | .25% | 205,995 | 37,926 |
|
|
| $ 524,292 | $ 67,364 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,020 |
Class T | 2,447 |
Class B* | 5,366 |
Class C* | 3,351 |
| $ 25,184 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 189,941 | .30 |
Class T | 72,020 | .29 |
Class B | 10,814 | .30 |
Class C | 61,689 | .30 |
Small Cap Value | 1,934,488 | .24 |
Institutional Class | 124,706 | .25 |
| $ 2,393,658 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,232 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 Loan | Weighted Average | Interest |
Borrower | $ 6,367,333 | .34% | $ 359 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3,193 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $67,330, including $8,338 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,984 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 57,416 | $ 602,963 |
Class T | - | 175,083 |
Class B | - | 8,350 |
Class C | - | 50,685 |
Small Cap Value | 2,736,678 | 13,136,446 |
Class F | 858,634 | 1,502,640 |
Institutional Class | 160,977 | 674,898 |
Total | $ 3,813,705 | $ 16,151,065 |
From net realized gain |
|
|
Class A | $ 8,369,078 | $ 938,086 |
Class T | 3,332,444 | 417,804 |
Class B | 513,839 | 85,354 |
Class C | 2,835,863 | 362,483 |
Small Cap Value | 109,450,262 | 16,213,209 |
Class F | 18,207,376 | 1,278,822 |
Institutional Class | 6,261,999 | 755,301 |
Total | $ 148,970,861 | $ 20,051,059 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,745,502 | 4,641,222 | $ 23,503,323 | $ 70,784,911 |
Reinvestment of distributions | 639,382 | 98,821 | 7,957,626 | 1,412,739 |
Shares redeemed | (1,718,023) | (2,860,682) | (23,026,770) | (43,524,578) |
Net increase (decrease) | 666,861 | 1,879,361 | $ 8,434,179 | $ 28,673,072 |
Class T |
|
|
|
|
Shares sold | 570,970 | 1,830,956 | $ 7,714,081 | $ 27,619,849 |
Reinvestment of distributions | 264,657 | 40,370 | 3,258,576 | 573,649 |
Shares redeemed | (658,126) | (1,537,319) | (8,715,946) | (23,500,005) |
Net increase (decrease) | 177,501 | 334,007 | $ 2,256,711 | $ 4,693,493 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 9,521 | 84,331 | $ 123,316 | $ 1,230,023 |
Reinvestment of distributions | 36,117 | 5,817 | 433,889 | 79,168 |
Shares redeemed | (86,527) | (265,513) | (1,119,149) | (3,874,627) |
Net increase (decrease) | (40,889) | (175,365) | $ (561,944) | $ (2,565,436) |
Class C |
|
|
|
|
Shares sold | 362,479 | 1,131,174 | $ 4,727,316 | $ 16,672,873 |
Reinvestment of distributions | 202,948 | 25,779 | 2,439,209 | 354,104 |
Shares redeemed | (560,846) | (848,659) | (7,260,681) | (12,648,504) |
Net increase (decrease) | 4,581 | 308,294 | $ (94,156) | $ 4,378,473 |
Small Cap Value |
|
|
|
|
Shares sold | 12,059,271 | 35,677,635 | $ 165,030,055 | $ 541,990,483 |
Reinvestment of distributions | 8,564,707 | 1,987,755 | 107,820,739 | 28,460,668 |
Shares redeemed | (27,849,295) | (46,640,533) | (376,742,586) | (708,788,001) |
Net increase (decrease) | (7,225,317) | (8,975,143) | $ (103,891,792) | $ (138,336,850) |
Class F |
|
|
|
|
Shares sold | 9,433,667 | 11,644,633 | $ 127,817,009 | $ 177,097,711 |
Reinvestment of distributions | 1,506,337 | 192,943 | 19,066,009 | 2,781,462 |
Shares redeemed | (1,311,697) | (2,052,505) | (17,707,407) | (32,200,197) |
Net increase (decrease) | 9,628,307 | 9,785,071 | $ 129,175,611 | $ 147,678,976 |
Institutional Class |
|
|
|
|
Shares sold | 2,226,725 | 4,417,342 | $ 30,470,570 | $ 67,359,213 |
Reinvestment of distributions | 445,761 | 90,435 | 5,619,794 | 1,288,856 |
Shares redeemed | (1,449,234) | (3,788,938) | (19,640,455) | (58,540,522) |
Net increase (decrease) | 1,223,252 | 718,839 | $ 16,449,909 | $ 10,107,547 |
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
11. Other - continued
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K Funds® were the owners of record, in the aggregate, of approximately 40% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCV-USAN-0312 1.803737.108
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Institutional Class
Semiannual Report
January 31, 2012
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year marked by unusually high volatility, 2012 began with most major asset classes advancing steadily in January. For U.S. equities, it was the strongest start to a new year since 1997. International stocks fared even better, despite continued uncertainty related to the sovereign debt crisis in Europe. Investors have been acutely sensitive to the latest news, for better or worse, coming out of the eurozone and its impact on financial markets. As we look ahead, the unresolved debt crisis in Europe remains at the center of a series of risk factors, summarized below, that we believe have the greatest potential to influence the global investment landscape.
Deleveraging and the economy
In the euro-currency area, fiscal austerity among nations and debt deleveraging among financial companies loaded with sovereign debt are deflationary measures and serve to hinder economic growth in the short term. Such an economic and financial-market scenario has not been historically supportive of strong performance among riskier assets, and emerges at a time when many nations need a resurgent economy to assist them in closing their budget deficits and in building confidence among bond buyers to help them refinance their existing debt obligations.
Slowdown in China and Europe
China's economy is the second-largest in the world, and it has been the biggest contributor to global growth since the end of the last recession. Thus, the slower pace of domestic growth in China has led to lower demand for imports of commodities and other construction materials from the rest of the world. In addition, economic weakness in Europe and the broad-based global economic slowdown are putting pressure on China's export growth, which has been largely responsible for its breakneck pace of annual gross domestic product (GDP) growth during the past three decades.
Credit deterioration and contagion
The heightened macroeconomic risk and elevated credit risk swirling around certain European nations and financial institutions have caused many market participants to avoid purchases of or reduce exposure to short-term debt offerings by these issuers. With increased credit risk, there are growing concerns about the potential credit contraction and contagion from European issuers spreading to other financial markets.
We invite you to learn more by visiting us on the Internet or calling us by phone. It is our privilege to provide the resources you need to choose investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2011 to January 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,016.40 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.70 | $ 7.51 |
Class T | 1.72% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,015.40 | $ 8.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.49 | $ 8.72 |
Class B | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.90 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Class C | 2.23% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,012.20 | $ 11.28 |
HypotheticalA |
| $ 1,000.00 | $ 1,013.93 | $ 11.29 |
Small Cap Value | 1.17% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.10 | $ 5.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.25 | $ 5.94 |
Class F | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.70 | $ 4.72 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.46 | $ 4.72 |
Institutional Class | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,018.00 | $ 5.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.20 | $ 5.99 |
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 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
WESCO International, Inc. | 3.3 | 2.7 |
HNI Corp. | 3.0 | 1.9 |
Regis Corp. | 2.8 | 2.4 |
DCT Industrial Trust, Inc. | 2.7 | 3.0 |
United Stationers, Inc. | 2.6 | 2.5 |
TCF Financial Corp. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.3 | 2.1 |
Highwoods Properties, Inc. (SBI) | 2.3 | 2.6 |
Alterra Capital Holdings Ltd. | 2.3 | 2.0 |
MEDNAX, Inc. | 2.2 | 2.7 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2012 | ||
| % of fund's | % of fund's net assets |
Financials | 35.6 | 35.2 |
Industrials | 15.2 | 12.5 |
Consumer Discretionary | 13.5 | 11.9 |
Information Technology | 11.5 | 11.6 |
Health Care | 7.9 | 8.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2012* | As of July 31, 2011** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.7% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.1% |
| ** Foreign investments | 8.3% |
|
Semiannual Report
Investments January 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.1% | |||
Diversified Consumer Services - 2.8% | |||
Regis Corp. (e) | 3,995,824 | $ 68,488,423 | |
Household Durables - 6.9% | |||
Ethan Allen Interiors, Inc. | 667,112 | 15,743,843 | |
KB Home (d) | 3,300,000 | 29,766,000 | |
M.D.C. Holdings, Inc. (d)(e) | 2,424,300 | 48,049,626 | |
Meritage Homes Corp. (a) | 1,536,160 | 37,175,072 | |
Ryland Group, Inc. (d) | 2,171,537 | 39,521,973 | |
| 170,256,514 | ||
Specialty Retail - 3.4% | |||
Asbury Automotive Group, Inc. (a) | 1,365,159 | 31,275,793 | |
Ascena Retail Group, Inc. (a) | 960,700 | 33,979,959 | |
Tsutsumi Jewelry Co. Ltd. | 791,400 | 18,905,148 | |
| 84,160,900 | ||
TOTAL CONSUMER DISCRETIONARY | 322,905,837 | ||
CONSUMER STAPLES - 3.1% | |||
Food Products - 2.3% | |||
Chiquita Brands International, Inc. (a) | 2,070,900 | 18,203,211 | |
Dean Foods Co. (a) | 3,600,000 | 38,736,000 | |
| 56,939,211 | ||
Household Products - 0.8% | |||
Spectrum Brands Holdings, Inc. (a) | 687,476 | 19,902,430 | |
TOTAL CONSUMER STAPLES | 76,841,641 | ||
ENERGY - 3.6% | |||
Energy Equipment & Services - 1.7% | |||
Superior Energy Services, Inc. (a)(d) | 1,466,700 | 41,815,617 | |
Oil, Gas & Consumable Fuels - 1.9% | |||
Berry Petroleum Co. Class A | 1,025,000 | 46,135,250 | |
TOTAL ENERGY | 87,950,867 | ||
FINANCIALS - 34.8% | |||
Capital Markets - 3.4% | |||
Knight Capital Group, Inc. Class A (a) | 3,454,903 | 44,879,190 | |
Monex Beans Holdings, Inc. | 27,904 | 4,458,490 | |
Waddell & Reed Financial, Inc. Class A | 1,210,000 | 33,214,500 | |
| 82,552,180 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 11.3% | |||
Associated Banc-Corp. | 4,432,650 | $ 55,230,819 | |
CapitalSource, Inc. | 6,548,461 | 45,249,866 | |
City National Corp. | 784,900 | 36,011,212 | |
National Penn Bancshares, Inc. | 4,266,604 | 37,076,789 | |
PacWest Bancorp (e) | 1,857,600 | 39,511,152 | |
TCF Financial Corp. | 5,794,547 | 58,177,252 | |
Western Liberty Bancorp (a)(e) | 2,400,000 | 6,312,000 | |
| 277,569,090 | ||
Insurance - 7.4% | |||
Alterra Capital Holdings Ltd. | 2,337,411 | 56,495,224 | |
Aspen Insurance Holdings Ltd. | 1,520,200 | 40,376,512 | |
Platinum Underwriters Holdings Ltd. | 1,694,139 | 58,024,261 | |
ProAssurance Corp. | 350,000 | 28,570,500 | |
| 183,466,497 | ||
Real Estate Investment Trusts - 7.6% | |||
DCT Industrial Trust, Inc. | 12,180,586 | 67,236,835 | |
Franklin Street Properties Corp. | 3,160,000 | 32,200,400 | |
Highwoods Properties, Inc. (SBI) (d) | 1,720,330 | 56,925,720 | |
National Retail Properties, Inc. (d) | 1,140,000 | 30,791,400 | |
| 187,154,355 | ||
Real Estate Management & Development - 1.3% | |||
Forestar Group, Inc. (a)(e) | 1,996,875 | 31,790,250 | |
Thrifts & Mortgage Finance - 3.8% | |||
Astoria Financial Corp. (d)(e) | 5,418,152 | 45,133,206 | |
Washington Federal, Inc. | 3,086,175 | 48,638,118 | |
| 93,771,324 | ||
TOTAL FINANCIALS | 856,303,696 | ||
HEALTH CARE - 7.9% | |||
Health Care Providers & Services - 7.9% | |||
Centene Corp. (a) | 1,124,832 | 50,842,406 | |
Chemed Corp. | 465,200 | 26,116,328 | |
MEDNAX, Inc. (a) | 779,700 | 55,530,234 | |
Providence Service Corp. (a)(e) | 1,016,495 | 15,338,910 | |
Team Health Holdings, Inc. (a) | 2,266,500 | 46,689,900 | |
| 194,517,778 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 15.2% | |||
Commercial Services & Supplies - 7.6% | |||
ACCO Brands Corp. (a) | 2,170,000 | $ 23,045,400 | |
HNI Corp. (d)(e) | 2,674,619 | 72,562,413 | |
Knoll, Inc. | 1,712,898 | 27,337,852 | |
United Stationers, Inc. | 1,980,800 | 64,039,264 | |
| 186,984,929 | ||
Machinery - 2.4% | |||
Blount International, Inc. (a)(e) | 2,604,723 | 42,769,552 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,047,872 | 16,713,558 | |
| 59,483,110 | ||
Trading Companies & Distributors - 5.2% | |||
H&E Equipment Services, Inc. (a)(e) | 2,742,264 | 46,591,065 | |
WESCO International, Inc. (a) | 1,303,633 | 81,972,443 | |
| 128,563,508 | ||
TOTAL INDUSTRIALS | 375,031,547 | ||
INFORMATION TECHNOLOGY - 11.5% | |||
Communications Equipment - 1.9% | |||
ViaSat, Inc. (a) | 984,472 | 46,801,799 | |
Electronic Equipment & Components - 6.7% | |||
Ingram Micro, Inc. Class A (a) | 2,753,100 | 52,253,838 | |
Macnica, Inc. | 677,400 | 15,995,278 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 22,798,750 | |
SYNNEX Corp. (a) | 675,710 | 24,447,188 | |
Tech Data Corp. (a) | 964,600 | 50,082,032 | |
| 165,577,086 | ||
Internet Software & Services - 0.8% | |||
j2 Global, Inc. (d) | 730,149 | 19,684,817 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (d)(e) | 720,200 | 10,250,781 | |
Software - 1.7% | |||
Monotype Imaging Holdings, Inc. (a)(e) | 2,604,000 | 40,648,440 | |
TOTAL INFORMATION TECHNOLOGY | 282,962,923 | ||
MATERIALS - 4.4% | |||
Chemicals - 1.0% | |||
PolyOne Corp. | 1,750,000 | 25,235,000 | |
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Metals & Mining - 3.4% | |||
Carpenter Technology Corp. | 409,380 | $ 21,484,262 | |
Haynes International, Inc. | 496,108 | 30,143,522 | |
RTI International Metals, Inc. (a) | 1,220,997 | 30,732,494 | |
| 82,360,278 | ||
TOTAL MATERIALS | 107,595,278 | ||
UTILITIES - 5.1% | |||
Electric Utilities - 2.0% | |||
Westar Energy, Inc. | 1,760,000 | 50,054,400 | |
Gas Utilities - 3.1% | |||
Southwest Gas Corp. | 836,756 | 34,976,401 | |
UGI Corp. | 1,502,654 | 40,436,419 | |
| 75,412,820 | ||
TOTAL UTILITIES | 125,467,220 | ||
TOTAL COMMON STOCKS (Cost $2,053,907,920) |
| ||
Nonconvertible Preferred Stocks - 1.2% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.4% | |||
Household Durables - 0.4% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 750,400 | 8,712,144 | |
FINANCIALS - 0.8% | |||
Real Estate Investment Trusts - 0.8% | |||
DDR Corp. Series H, 7.375% | 818,790 | 20,469,750 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $20,354,770) |
| ||
Money Market Funds - 3.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.12% (b) | 8,469,412 | $ 8,469,412 | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 70,626,640 | 70,626,640 | |
TOTAL MONEY MARKET FUNDS (Cost $79,096,052) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $2,153,358,742) | 2,537,854,733 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (75,315,351) | ||
NET ASSETS - 100% | $ 2,462,539,382 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,097 |
Fidelity Securities Lending Cash Central Fund | 67,330 |
Total | $ 71,427 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend Income | Value, |
Astoria Financial Corp. | $ 56,131,471 | $ 5,135,258 | $ - | $ 1,356,720 | $ 45,133,206 |
Blount International, Inc. | 43,316,543 | - | - | - | 42,769,552 |
Columbus McKinnon Corp. (NY Shares) | 15,792,000 | 1,137,487 | - | - | 16,713,558 |
DCT Industrial Trust, Inc. | 74,961,776 | - | 7,151,583 | 509,363 | - |
Forestar Group, Inc. | - | 24,473,760 | - | - | 31,790,250 |
H&E Equipment Services, Inc. | 29,272,896 | 2,743,497 | - | - | 46,591,065 |
Haynes International, Inc. | 42,301,857 | - | 8,879,973 | 228,365 | - |
HNI Corp. | 49,131,621 | 18,981,945 | 17,053,493 | 1,282,635 | 72,562,413 |
Ingles Markets, Inc. Class A | 10,225,970 | - | 9,904,080 | 78,182 | - |
M.D.C. Holdings, Inc. | 54,813,423 | - | - | 1,212,150 | 48,049,626 |
Miraial Co. Ltd. | 15,046,860 | - | - | 259,439 | 10,250,781 |
Monotype Imaging Holdings, Inc. | 35,396,690 | 274,945 | - | - | 40,648,440 |
PacWest Bancorp | 36,873,360 | - | - | 352,944 | 39,511,152 |
Providence Service Corp. | 12,045,466 | - | - | - | 15,338,910 |
Regis Corp. | 60,080,486 | - | 816,632 | 485,499 | 68,488,423 |
Ryoyo Electro Corp. | 19,684,709 | - | - | 355,315 | 22,798,750 |
Western Liberty Bancorp | 7,248,000 | - | - | - | 6,312,000 |
Total | $ 562,323,128 | $ 52,746,892 | $ 43,805,761 | $ 6,120,612 | $ 506,958,126 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2012 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $69,413,987) - See accompanying schedule: Unaffiliated issuers (cost $1,624,390,768) | $ 1,951,800,555 |
|
Fidelity Central Funds (cost $79,096,052) | 79,096,052 |
|
Other affiliated issuers (cost $449,871,922) | 506,958,126 |
|
Total Investments (cost $2,153,358,742) |
| $ 2,537,854,733 |
Receivable for fund shares sold | 2,588,317 | |
Dividends receivable | 2,523,736 | |
Distributions receivable from Fidelity Central Funds | 10,327 | |
Prepaid expenses | 5,951 | |
Other receivables | 6,013 | |
Total assets | 2,542,989,077 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,599,920 | |
Payable for fund shares redeemed | 3,866,448 | |
Accrued management fee | 1,774,961 | |
Distribution and service plan fees payable | 94,259 | |
Other affiliated payables | 455,826 | |
Other payables and accrued expenses | 31,641 | |
Collateral on securities loaned, at value | 70,626,640 | |
Total liabilities | 80,449,695 | |
|
|
|
Net Assets | $ 2,462,539,382 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,064,889,931 | |
Undistributed net investment income | 1,369,455 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,771,626 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 384,508,370 | |
Net Assets | $ 2,462,539,382 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2012 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 14.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $14.63) | $ 15.52 | |
Class T: | $ 14.48 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.48) | $ 15.01 | |
Class B: | $ 14.10 | |
|
|
|
Class C: | $ 14.10 | |
|
|
|
Small Cap Value: | $ 14.78 | |
|
|
|
Class F: | $ 14.81 | |
|
|
|
Institutional Class: | $ 14.79 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2012 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $6,120,612 earned from other affiliated issuers) |
| $ 18,508,901 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 71,427 |
Total income |
| 18,580,331 |
|
|
|
Expenses | ||
Management fee | $ 8,006,899 | |
Performance adjustment | 1,957,959 | |
Transfer agent fees | 2,393,658 | |
Distribution and service plan fees | 524,292 | |
Accounting and security lending fees | 349,431 | |
Custodian fees and expenses | 19,057 | |
Independent trustees' compensation | 7,549 | |
Registration fees | 95,933 | |
Audit | 42,491 | |
Legal | 5,055 | |
Interest | 359 | |
Miscellaneous | 10,472 | |
Total expenses before reductions | 13,413,155 | |
Expense reductions | (15,984) | 13,397,171 |
Net investment income (loss) | 5,183,160 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 37,616,399 | |
Other affiliated issuers | (4,716,500) |
|
Foreign currency transactions | 3,016 | |
Total net realized gain (loss) |
| 32,902,915 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,513,790) | |
Assets and liabilities in foreign currencies | 4,836 | |
Total change in net unrealized appreciation (depreciation) |
| (8,508,954) |
Net gain (loss) | 24,393,961 | |
Net increase (decrease) in net assets resulting from operations | $ 29,577,121 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended January 31, 2012 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,183,160 | $ 8,365,475 |
Net realized gain (loss) | 32,902,915 | 155,481,563 |
Change in net unrealized appreciation (depreciation) | (8,508,954) | 203,701,455 |
Net increase (decrease) in net assets resulting | 29,577,121 | 367,548,493 |
Distributions to shareholders from net investment income | (3,813,705) | (16,151,065) |
Distributions to shareholders from net realized gain | (148,970,861) | (20,051,059) |
Total distributions | (152,784,566) | (36,202,124) |
Share transactions - net increase (decrease) | 51,768,518 | 54,629,275 |
Redemption fees | 397,311 | 445,888 |
Total increase (decrease) in net assets | (71,041,616) | 386,421,532 |
|
|
|
Net Assets | ||
Beginning of period | 2,533,580,998 | 2,147,159,466 |
End of period (including undistributed net investment income of $1,369,455 and $0, respectively) | $ 2,462,539,382 | $ 2,533,580,998 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 | $ 13.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 H | .02 I | .08 | (.01) | (.06) |
Net realized and unrealized gain (loss) | .07 | 2.22 | 2.33 | (.60) | (1.98) | 1.90 |
Total from investment operations | .08 | 2.23 | 2.35 | (.52) | (1.99) | 1.84 |
Distributions from net investment income | (.01) | (.08) | (.03) | (.06) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.67) |
Total distributions | (.93) L | (.20) | (.03) | (.17) | (.53) | (.67) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.63 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Total Return B, C, D | 1.64% | 16.72% | 21.16% | (4.37)% | (14.35)% | 14.59% |
Ratios to Average Net Assets F, J |
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|
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|
| |
Expenses before reductions | 1.48% A | 1.44% | 1.47% | 1.45% | 1.43% | 1.45% |
Expenses net of fee waivers, if any | 1.48% A | 1.43% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.48% A | 1.43% | 1.39% | 1.40% | 1.40% | 1.40% |
Net investment income (loss) | .17% A | .06% H | .17% I | .81% | (.05)% | (.44)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 142,756 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 | $ 61,357 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate hare 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 large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.93 per share is comprised of distributions from net investment income of $.006 and distributions from net realized gain of $.925 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
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|
|
|
| |
Net asset value, beginning of period | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 | $ 13.13 |
Income from Investment Operations |
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|
Net investment income (loss) E | - K | (.03) H | (.01) I | .05 | (.04) | (.10) |
Net realized and unrealized gain (loss) | .07 | 2.20 | 2.31 | (.59) | (1.97) | 1.90 |
Total from investment operations | .07 | 2.17 | 2.30 | (.54) | (2.01) | 1.80 |
Distributions from net investment income | - | (.05) | (.01) | (.04) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.65) |
Total distributions | (.93) | (.17) | (.01) | (.15) | (.53) | (.65) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Total Return B, C, D | 1.54% | 16.36% | 20.87% | (4.57)% | (14.58)% | 14.34% |
Ratios to Average Net Assets F, J |
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| |
Expenses before reductions | 1.72% A | 1.70% | 1.72% | 1.70% | 1.68% | 1.66% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.72% A | 1.69% | 1.64% | 1.65% | 1.65% | 1.65% |
Net investment income (loss) | (.07)% A | (.19)% H | (.08)% I | .56% | (.30)% | (.69)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 55,281 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 | $ 51,518 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.35)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
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|
| |
Net asset value, beginning of period | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
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|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .07 | 2.15 | 2.27 | (.59) | (1.96) | 1.90 |
Total from investment operations | .03 | 2.05 | 2.20 | (.58) | (2.06) | 1.73 |
Distributions from net investment income | - | (.01) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.13) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.29% | 15.80% | 20.22% | (5.05)% | (15.04)% | 13.78% |
Ratios to Average Net Assets F, J |
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| |
Expenses before reductions | 2.23% A | 2.20% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.19% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.69)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 7,458 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 | $ 12,075 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
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|
| |
Net asset value, beginning of period | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 | $ 13.07 |
Income from Investment Operations |
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|
Net investment income (loss) E | (.04) | (.10) H | (.07) I | .01 | (.10) | (.17) |
Net realized and unrealized gain (loss) | .06 | 2.17 | 2.26 | (.58) | (1.96) | 1.90 |
Total from investment operations | .02 | 2.07 | 2.19 | (.57) | (2.06) | 1.73 |
Distributions from net investment income | - | (.02) | - | (.03) | - | - |
Distributions from net realized gain | (.93) | (.12) | - | (.11) | (.53) | (.61) |
Total distributions | (.93) | (.14) | - | (.14) | (.53) | (.61) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 14.10 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Total Return B, C, D | 1.22% | 15.91% | 20.11% | (4.98)% | (15.04)% | 13.77% |
Ratios to Average Net Assets F, J |
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| |
Expenses before reductions | 2.23% A | 2.18% | 2.22% | 2.20% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.23% A | 2.18% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.23% A | 2.18% | 2.14% | 2.15% | 2.15% | 2.15% |
Net investment income (loss) | (.58)% A | (.68)% H | (.58)% I | .06% | (.80)% | (1.19)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 44,667 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 | $ 34,155 |
Portfolio turnover rate G | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable 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 any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. I Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.85)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
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|
|
|
| |
Net asset value, beginning of period | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
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|
Net investment income (loss) D | .03 | .06 G | .05 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.60) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.39 | (.50) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.10) | (.05) | (.08) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.23) | (.05) | (.19) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.78 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.81% | 17.03% | 21.32% | (4.15)% | (14.10)% | 14.96% |
Ratios to Average Net Assets E, I |
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| |
Expenses before reductions | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of fee waivers, if any | 1.17% A | 1.13% | 1.18% | 1.20% | 1.14% | 1.11% |
Expenses net of all reductions | 1.17% A | 1.13% | 1.17% | 1.20% | 1.13% | 1.11% |
Net investment income (loss) | .48% A | .37% G | .39% H | 1.01% | .22% | (.15)% |
Supplemental Data |
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| |
Net assets, end of period (000 omitted) | $ 1,690,863 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 | $ 1,233,808 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended January 31, 2012 | Years ended July 31, | ||
| (Unaudited) | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
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|
|
Net asset value, beginning of period | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
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|
|
Net investment income (loss) D | .05 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | .94 |
Total from investment operations | .13 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.93) | (.13) | - | - |
Total distributions | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - |
Net asset value, end of period | $ 14.81 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 1.97% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
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|
Expenses before reductions | .93% A | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .93% A | .88% | .90% | .86% A |
Expenses net of all reductions | .93% A | .88% | .89% | .86% A |
Net investment income (loss) | .72% A | .61% G | .67% H | .64% A |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 407,308 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .24%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. I For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.96 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.925 per share. M Total distributions of $.26 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $.126 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2012 | Years ended July 31, | ||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 | $ 13.22 |
Income from Investment Operations |
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|
|
Net investment income (loss) D | .03 | .06 G | .06 H | .10 | .03 | (.02) |
Net realized and unrealized gain (loss) | .08 | 2.23 | 2.34 | (.59) | (1.99) | 1.91 |
Total from investment operations | .11 | 2.29 | 2.40 | (.49) | (1.96) | 1.89 |
Distributions from net investment income | (.02) | (.11) | (.06) | (.07) | - | - |
Distributions from net realized gain | (.93) | (.13) | - | (.11) | (.56) | (.68) |
Total distributions | (.95) | (.24) | (.06) | (.18) | (.56) | (.68) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.79 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Total Return B, C | 1.80% | 17.02% | 21.42% | (4.04)% | (14.10)% | 14.99% |
Ratios to Average Net Assets E, I |
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| |
Expenses before reductions | 1.18% A | 1.10% | 1.12% | 1.20% | 1.13% | 1.10% |
Expenses net of fee waivers, if any | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Expenses net of all reductions | 1.18% A | 1.10% | 1.12% | 1.15% | 1.13% | 1.10% |
Net investment income (loss) | .46% A | .39% G | .45% H | 1.06% | .22% | (.13)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 114,206 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 | $ 11,594 |
Portfolio turnover rate F | 19% A | 22% | 49% | 51% | 149% | 67% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. H Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2012 (Unaudited)
1. Organization.
Fidelity® Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Small Cap Value, Class F and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
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Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where
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3. Significant Accounting Policies - continued
Security Valuation - continued
observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
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Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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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 and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 535,803,791 |
Gross unrealized depreciation | (152,407,227) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 383,396,564 |
|
|
Tax cost | $ 2,154,458,169 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $214,827,972 and $303,280,197, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Value as compared to an appropriate benchmark index. For the
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Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .88% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 158,819 | $ 2,262 |
Class T | .25% | .25% | 123,242 | - |
Class B | .75% | .25% | 36,236 | 27,176 |
Class C | .75% | .25% | 205,995 | 37,926 |
|
|
| $ 524,292 | $ 67,364 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 14,020 |
Class T | 2,447 |
Class B* | 5,366 |
Class C* | 3,351 |
| $ 25,184 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 189,941 | .30 |
Class T | 72,020 | .29 |
Class B | 10,814 | .30 |
Class C | 61,689 | .30 |
Small Cap Value | 1,934,488 | .24 |
Institutional Class | 124,706 | .25 |
| $ 2,393,658 |
|
* 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 each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $10,232 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 Loan | Weighted Average | Interest |
Borrower | $ 6,367,333 | .34% | $ 359 |
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Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3,193 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $67,330, including $8,338 from securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,984 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 57,416 | $ 602,963 |
Class T | - | 175,083 |
Class B | - | 8,350 |
Class C | - | 50,685 |
Small Cap Value | 2,736,678 | 13,136,446 |
Class F | 858,634 | 1,502,640 |
Institutional Class | 160,977 | 674,898 |
Total | $ 3,813,705 | $ 16,151,065 |
From net realized gain |
|
|
Class A | $ 8,369,078 | $ 938,086 |
Class T | 3,332,444 | 417,804 |
Class B | 513,839 | 85,354 |
Class C | 2,835,863 | 362,483 |
Small Cap Value | 109,450,262 | 16,213,209 |
Class F | 18,207,376 | 1,278,822 |
Institutional Class | 6,261,999 | 755,301 |
Total | $ 148,970,861 | $ 20,051,059 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,745,502 | 4,641,222 | $ 23,503,323 | $ 70,784,911 |
Reinvestment of distributions | 639,382 | 98,821 | 7,957,626 | 1,412,739 |
Shares redeemed | (1,718,023) | (2,860,682) | (23,026,770) | (43,524,578) |
Net increase (decrease) | 666,861 | 1,879,361 | $ 8,434,179 | $ 28,673,072 |
Class T |
|
|
|
|
Shares sold | 570,970 | 1,830,956 | $ 7,714,081 | $ 27,619,849 |
Reinvestment of distributions | 264,657 | 40,370 | 3,258,576 | 573,649 |
Shares redeemed | (658,126) | (1,537,319) | (8,715,946) | (23,500,005) |
Net increase (decrease) | 177,501 | 334,007 | $ 2,256,711 | $ 4,693,493 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended | Year ended | |
Class B |
|
|
|
|
Shares sold | 9,521 | 84,331 | $ 123,316 | $ 1,230,023 |
Reinvestment of distributions | 36,117 | 5,817 | 433,889 | 79,168 |
Shares redeemed | (86,527) | (265,513) | (1,119,149) | (3,874,627) |
Net increase (decrease) | (40,889) | (175,365) | $ (561,944) | $ (2,565,436) |
Class C |
|
|
|
|
Shares sold | 362,479 | 1,131,174 | $ 4,727,316 | $ 16,672,873 |
Reinvestment of distributions | 202,948 | 25,779 | 2,439,209 | 354,104 |
Shares redeemed | (560,846) | (848,659) | (7,260,681) | (12,648,504) |
Net increase (decrease) | 4,581 | 308,294 | $ (94,156) | $ 4,378,473 |
Small Cap Value |
|
|
|
|
Shares sold | 12,059,271 | 35,677,635 | $ 165,030,055 | $ 541,990,483 |
Reinvestment of distributions | 8,564,707 | 1,987,755 | 107,820,739 | 28,460,668 |
Shares redeemed | (27,849,295) | (46,640,533) | (376,742,586) | (708,788,001) |
Net increase (decrease) | (7,225,317) | (8,975,143) | $ (103,891,792) | $ (138,336,850) |
Class F |
|
|
|
|
Shares sold | 9,433,667 | 11,644,633 | $ 127,817,009 | $ 177,097,711 |
Reinvestment of distributions | 1,506,337 | 192,943 | 19,066,009 | 2,781,462 |
Shares redeemed | (1,311,697) | (2,052,505) | (17,707,407) | (32,200,197) |
Net increase (decrease) | 9,628,307 | 9,785,071 | $ 129,175,611 | $ 147,678,976 |
Institutional Class |
|
|
|
|
Shares sold | 2,226,725 | 4,417,342 | $ 30,470,570 | $ 67,359,213 |
Reinvestment of distributions | 445,761 | 90,435 | 5,619,794 | 1,288,856 |
Shares redeemed | (1,449,234) | (3,788,938) | (19,640,455) | (58,540,522) |
Net increase (decrease) | 1,223,252 | 718,839 | $ 16,449,909 | $ 10,107,547 |
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.
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11. Other - continued
At the end of the period, the Fidelity Freedom Funds® and Fidelity Freedom K Funds® were the owners of record, in the aggregate, of approximately 40% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCVI-USAN-0312 1.803748.108
(Fidelity Investment logo)(registered trademark)
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Securities Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Securities Fund
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 23, 2012 |
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 23, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 23, 2012 |