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)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(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, 2013 |
Item 1. Reports to Stockholders
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,101.50 | $ 4.08 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class K | .63% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.30 | $ 3.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.03 | $ 3.21 |
Class F | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.50 | $ 3.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.28 | $ 2.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.9 | 10.4 |
Google, Inc. Class A | 5.9 | 5.4 |
Amazon.com, Inc. | 2.1 | 2.1 |
QUALCOMM, Inc. | 2.0 | 2.1 |
Home Depot, Inc. | 1.8 | 1.0 |
The Coca-Cola Co. | 1.8 | 2.1 |
Procter & Gamble Co. | 1.7 | 0.6 |
Gilead Sciences, Inc. | 1.7 | 0.9 |
Philip Morris International, Inc. | 1.5 | 1.6 |
MasterCard, Inc. Class A | 1.5 | 1.3 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 31.9 | 36.8 |
Consumer Discretionary | 20.9 | 21.1 |
Consumer Staples | 15.2 | 14.1 |
Industrials | 10.9 | 8.5 |
Health Care | 10.5 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.5% |
| ** Foreign investments | 9.7% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.4% | |||
Auto Components - 0.1% | |||
Lear Corp. | 180,500 | $ 8,845 | |
Automobiles - 1.0% | |||
Ford Motor Co. | 2,635,600 | 34,131 | |
General Motors Co. (a) | 403,100 | 11,323 | |
Tesla Motors, Inc. (a)(d) | 3,481,664 | 130,597 | |
| 176,051 | ||
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. | 33,635 | 942 | |
Kroton Educacional SA (a) | 590,000 | 14,488 | |
| 15,430 | ||
Hotels, Restaurants & Leisure - 2.9% | |||
Alsea SAB de CV | 1,558,700 | 3,614 | |
Chipotle Mexican Grill, Inc. (a) | 65,200 | 20,017 | |
Dunkin' Brands Group, Inc. | 693,900 | 25,334 | |
Hyatt Hotels Corp. Class A (a) | 395,297 | 15,840 | |
Jubilant Foodworks Ltd. (a) | 288,917 | 6,511 | |
Las Vegas Sands Corp. | 1,875,300 | 103,610 | |
McDonald's Corp. | 337,130 | 32,125 | |
Panera Bread Co. Class A (a) | 492,500 | 78,706 | |
Starbucks Corp. | 3,598,800 | 201,965 | |
Wyndham Worldwide Corp. | 491,627 | 27,428 | |
| 515,150 | ||
Household Durables - 1.1% | |||
D.R. Horton, Inc. | 318,000 | 7,524 | |
KB Home | 386,200 | 7,365 | |
SodaStream International Ltd. (a) | 286,400 | 13,773 | |
Toll Brothers, Inc. (a) | 422,700 | 15,830 | |
Whirlpool Corp. | 1,249,778 | 144,199 | |
| 188,691 | ||
Internet & Catalog Retail - 3.2% | |||
Amazon.com, Inc. (a) | 1,404,000 | 372,762 | |
Netflix, Inc. (a)(d) | 294,900 | 48,729 | |
priceline.com, Inc. (a) | 205,100 | 140,590 | |
TripAdvisor, Inc. (a) | 129,800 | 6,007 | |
| 568,088 | ||
Leisure Equipment & Products - 0.2% | |||
Brunswick Corp. | 788,900 | 28,527 | |
Media - 2.0% | |||
Comcast Corp. Class A | 4,866,000 | 185,297 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
News Corp. Class A | 2,196,200 | $ 60,923 | |
The Walt Disney Co. | 908,900 | 48,972 | |
Time Warner Cable, Inc. | 174,500 | 15,590 | |
Time Warner, Inc. | 930,800 | 47,024 | |
| 357,806 | ||
Multiline Retail - 0.8% | |||
J.C. Penney Co., Inc. | 3,855,400 | 78,380 | |
Macy's, Inc. | 1,685,100 | 66,578 | |
| 144,958 | ||
Specialty Retail - 5.8% | |||
Abercrombie & Fitch Co. Class A | 2,144,700 | 107,235 | |
AutoZone, Inc. (a) | 33,300 | 12,311 | |
CarMax, Inc. (a) | 810,200 | 31,938 | |
Five Below, Inc. | 138,422 | 5,122 | |
Foot Locker, Inc. | 248,700 | 8,543 | |
Home Depot, Inc. | 4,811,700 | 321,999 | |
Limited Brands, Inc. | 2,105,800 | 101,121 | |
Lowe's Companies, Inc. | 3,706,500 | 141,551 | |
Ross Stores, Inc. | 1,331,200 | 79,473 | |
Tile Shop Holdings, Inc. (a) | 198,300 | 3,647 | |
TJX Companies, Inc. | 2,882,680 | 130,239 | |
Urban Outfitters, Inc. (a) | 1,966,700 | 84,155 | |
| 1,027,334 | ||
Textiles, Apparel & Luxury Goods - 3.2% | |||
Arezzo Industria e Comercio SA | 1,646,000 | 30,997 | |
Fifth & Pacific Companies, Inc. (a) | 236,600 | 3,573 | |
Fossil, Inc. (a) | 644,319 | 68,027 | |
lululemon athletica, Inc. (a) | 451,780 | 31,173 | |
Michael Kors Holdings Ltd. (a) | 2,601,937 | 146,047 | |
NIKE, Inc. Class B | 1,771,400 | 95,744 | |
Prada SpA | 2,174,900 | 19,546 | |
PVH Corp. | 813,900 | 96,748 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 1,257,700 | 23,896 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 866,600 | 44,084 | |
| 559,835 | ||
TOTAL CONSUMER DISCRETIONARY | 3,590,715 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 15.2% | |||
Beverages - 3.4% | |||
Anheuser-Busch InBev SA NV ADR | 788,100 | $ 69,826 | |
Beam, Inc. | 285,100 | 17,488 | |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 716,400 | 23,183 | |
Heineken NV (Bearer) | 122,600 | 8,621 | |
Monster Beverage Corp. (a) | 706,100 | 33,822 | |
PepsiCo, Inc. | 1,766,300 | 128,675 | |
SABMiller PLC | 181,900 | 9,088 | |
The Coca-Cola Co. | 8,343,600 | 310,716 | |
| 601,419 | ||
Food & Staples Retailing - 3.3% | |||
Costco Wholesale Corp. | 1,411,700 | 144,473 | |
CVS Caremark Corp. | 3,018,600 | 154,552 | |
Wal-Mart Stores, Inc. | 1,289,600 | 90,208 | |
Walgreen Co. | 2,466,900 | 98,577 | |
Whole Foods Market, Inc. | 943,800 | 90,841 | |
| 578,651 | ||
Food Products - 3.5% | |||
Associated British Foods PLC | 592,900 | 16,447 | |
Bunge Ltd. | 412,100 | 32,828 | |
ConAgra Foods, Inc. | 1,012,900 | 33,112 | |
Danone SA | 658,200 | 45,615 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 5,106,564 | 232,502 | |
Hain Celestial Group, Inc. (a) | 160,300 | 9,135 | |
Ingredion, Inc. | 139,000 | 9,184 | |
Kellogg Co. | 926,400 | 54,194 | |
Mead Johnson Nutrition Co. Class A | 669,300 | 50,867 | |
Mondelez International, Inc. | 574,700 | 15,971 | |
The Hershey Co. | 993,500 | 78,934 | |
The J.M. Smucker Co. | 253,900 | 22,503 | |
Unilever NV (NY Reg.) | 531,700 | 21,523 | |
| 622,815 | ||
Household Products - 2.0% | |||
Colgate-Palmolive Co. | 316,200 | 33,950 | |
Procter & Gamble Co. | 3,920,100 | 294,635 | |
Reckitt Benckiser Group PLC | 387,351 | 25,815 | |
| 354,400 | ||
Personal Products - 0.4% | |||
Herbalife Ltd. | 1,918,991 | 69,698 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Tobacco - 2.6% | |||
Altria Group, Inc. | 2,069,500 | $ 69,701 | |
British American Tobacco PLC (United Kingdom) | 146,800 | 7,629 | |
Lorillard, Inc. | 2,868,900 | 112,088 | |
Philip Morris International, Inc. | 2,939,800 | 259,173 | |
| 448,591 | ||
TOTAL CONSUMER STAPLES | 2,675,574 | ||
ENERGY - 4.1% | |||
Energy Equipment & Services - 1.3% | |||
Cameron International Corp. (a) | 402,500 | 25,482 | |
Ensco PLC Class A | 591,100 | 37,576 | |
Halliburton Co. | 1,490,800 | 60,646 | |
Schlumberger Ltd. | 1,443,500 | 112,665 | |
| 236,369 | ||
Oil, Gas & Consumable Fuels - 2.8% | |||
Alpha Natural Resources, Inc. (a) | 396,500 | 3,513 | |
Anadarko Petroleum Corp. | 1,352,600 | 108,235 | |
Canadian Natural Resources Ltd. | 576,000 | 17,394 | |
Cobalt International Energy, Inc. (a) | 654,900 | 15,855 | |
Concho Resources, Inc. (a) | 296,400 | 27,038 | |
Continental Resources, Inc. (a) | 304,500 | 25,310 | |
EOG Resources, Inc. | 486,700 | 60,828 | |
Hess Corp. | 638,100 | 42,855 | |
Marathon Petroleum Corp. | 302,200 | 22,426 | |
Murphy Oil Corp. | 356,200 | 21,201 | |
Occidental Petroleum Corp. | 235,800 | 20,814 | |
Peabody Energy Corp. | 873,300 | 21,963 | |
Phillips 66 | 155,800 | 9,437 | |
Pioneer Natural Resources Co. | 578,400 | 67,985 | |
Rosetta Resources, Inc. (a) | 69,700 | 3,695 | |
Western Gas Equity Partners LP | 594,900 | 20,084 | |
| 488,633 | ||
TOTAL ENERGY | 725,002 | ||
FINANCIALS - 3.8% | |||
Capital Markets - 1.1% | |||
Ameriprise Financial, Inc. | 79,100 | 5,246 | |
Apollo Global Management LLC Class A | 591,100 | 13,164 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
BlackRock, Inc. Class A | 83,200 | $ 19,658 | |
E*TRADE Financial Corp. (a) | 533,500 | 5,660 | |
KKR & Co. LP | 1,117,800 | 18,868 | |
Morgan Stanley | 3,838,012 | 87,699 | |
Och-Ziff Capital Management Group LLC Class A | 373,000 | 3,693 | |
The Blackstone Group LP | 843,700 | 15,608 | |
UBS AG (NY Shares) | 887,300 | 15,412 | |
Walter Investment Management Corp. (a) | 259,100 | 11,610 | |
| 196,618 | ||
Commercial Banks - 0.1% | |||
Axis Bank Ltd. | 470,931 | 13,305 | |
ICICI Bank Ltd. | 588,272 | 13,116 | |
| 26,421 | ||
Diversified Financial Services - 1.9% | |||
Bank of America Corp. | 2,932,300 | 33,194 | |
Citigroup, Inc. | 4,422,720 | 186,462 | |
CME Group, Inc. | 165,100 | 9,549 | |
JPMorgan Chase & Co. | 2,182,900 | 102,705 | |
| 331,910 | ||
Insurance - 0.3% | |||
American Financial Group, Inc. | 77,000 | 3,277 | |
American International Group, Inc. (a) | 255,000 | 9,647 | |
Berkshire Hathaway, Inc. Class B (a) | 248,300 | 24,068 | |
Hartford Financial Services Group, Inc. | 587,800 | 14,577 | |
| 51,569 | ||
Real Estate Investment Trusts - 0.1% | |||
Weyerhaeuser Co. | 400,200 | 12,054 | |
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 16,755 | |
Realogy Holdings Corp. | 450,000 | 20,147 | |
| 36,902 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Housing Development Finance Corp. Ltd. (a) | 204,856 | 3,024 | |
Nationstar Mortgage Holdings, Inc. (d) | 285,200 | 10,293 | |
Ocwen Financial Corp. (a) | 99,600 | 3,881 | |
| 17,198 | ||
TOTAL FINANCIALS | 672,672 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 10.5% | |||
Biotechnology - 6.2% | |||
Alexion Pharmaceuticals, Inc. (a) | 665,000 | $ 62,503 | |
Alkermes PLC (a) | 917,100 | 21,139 | |
Alnylam Pharmaceuticals, Inc. (a) | 547,163 | 13,203 | |
Amgen, Inc. | 2,286,700 | 195,421 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,869,700 | 37,170 | |
Biogen Idec, Inc. (a) | 1,058,200 | 165,164 | |
BioMarin Pharmaceutical, Inc. (a) | 288,700 | 15,847 | |
Celgene Corp. (a) | 428,200 | 42,375 | |
Clovis Oncology, Inc. (a) | 195,300 | 3,855 | |
CSL Ltd. | 66,241 | 3,795 | |
Exelixis, Inc. (a) | 3,668,800 | 17,097 | |
Gilead Sciences, Inc. (a) | 7,354,200 | 290,123 | |
Grifols SA (a) | 330,400 | 11,238 | |
Grifols SA: | |||
ADR | 292,845 | 7,793 | |
Class B (a) | 16,520 | 438 | |
Infinity Pharmaceuticals, Inc. (a) | 431,000 | 14,848 | |
InterMune, Inc. (a)(d) | 2,356,200 | 23,209 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 473,000 | 6,064 | |
Medivation, Inc. (a) | 299,000 | 16,254 | |
Merrimack Pharmaceuticals, Inc. | 2,407,858 | 14,616 | |
Onyx Pharmaceuticals, Inc. (a) | 378,300 | 29,326 | |
Regeneron Pharmaceuticals, Inc. (a) | 349,800 | 60,844 | |
Seattle Genetics, Inc. (a) | 179,200 | 5,277 | |
Spectrum Pharmaceuticals, Inc. (d) | 1,675,200 | 21,124 | |
Synageva BioPharma Corp. (a) | 180,700 | 8,359 | |
ZIOPHARM Oncology, Inc. (a) | 1,626,700 | 6,458 | |
| 1,093,540 | ||
Health Care Equipment & Supplies - 1.1% | |||
Abbott Laboratories | 390,100 | 13,217 | |
Alere, Inc. (a) | 577,400 | 12,276 | |
Baxter International, Inc. | 403,900 | 27,401 | |
Boston Scientific Corp. (a) | 2,569,100 | 19,191 | |
Edwards Lifesciences Corp. (a) | 157,700 | 14,182 | |
Insulet Corp. (a) | 310,600 | 7,166 | |
Intuitive Surgical, Inc. (a) | 16,900 | 9,707 | |
The Cooper Companies, Inc. | 865,272 | 87,695 | |
| 190,835 | ||
Health Care Providers & Services - 0.2% | |||
Air Methods Corp. | 100,000 | 4,372 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Apollo Hospitals Enterprise Ltd. | 936,371 | $ 14,210 | |
Catamaran Corp. (a) | 226,100 | 11,732 | |
Qualicorp SA (a) | 1,151,000 | 11,907 | |
| 42,221 | ||
Health Care Technology - 0.2% | |||
athenahealth, Inc. (a)(d) | 154,575 | 13,366 | |
Cerner Corp. (a) | 168,400 | 13,901 | |
| 27,267 | ||
Life Sciences Tools & Services - 0.1% | |||
Agilent Technologies, Inc. | 282,400 | 12,646 | |
Pharmaceuticals - 2.7% | |||
AbbVie, Inc. | 390,100 | 14,313 | |
Actavis, Inc. (a) | 168,500 | 14,557 | |
Allergan, Inc. | 363,800 | 38,203 | |
AVANIR Pharmaceuticals Class A (a) | 2,885,556 | 8,426 | |
Hospira, Inc. (a) | 304,100 | 10,376 | |
Johnson & Johnson | 1,963,040 | 145,108 | |
Merck & Co., Inc. | 784,000 | 33,908 | |
Novo Nordisk A/S Series B sponsored ADR | 38,700 | 7,134 | |
Pfizer, Inc. | 3,393,700 | 92,580 | |
Questcor Pharmaceuticals, Inc. (d) | 611,352 | 15,577 | |
Sanofi SA sponsored ADR | 160,900 | 7,833 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 1,378,900 | 91,438 | |
Zoetis, Inc. Class A | 150,800 | 3,921 | |
| 483,374 | ||
TOTAL HEALTH CARE | 1,849,883 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.4% | |||
Honeywell International, Inc. | 814,900 | 55,609 | |
Precision Castparts Corp. | 624,800 | 114,588 | |
The Boeing Co. | 276,000 | 20,388 | |
United Technologies Corp. | 2,712,700 | 237,551 | |
| 428,136 | ||
Air Freight & Logistics - 0.8% | |||
C.H. Robinson Worldwide, Inc. | 131,500 | 8,699 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - continued | |||
FedEx Corp. | 472,400 | $ 47,925 | |
United Parcel Service, Inc. Class B | 1,131,300 | 89,701 | |
| 146,325 | ||
Airlines - 0.2% | |||
US Airways Group, Inc. (a) | 2,887,100 | 41,228 | |
Building Products - 0.7% | |||
Armstrong World Industries, Inc. | 1,119,400 | 61,556 | |
Masco Corp. | 3,298,300 | 60,656 | |
| 122,212 | ||
Commercial Services & Supplies - 0.0% | |||
Swisher Hygiene, Inc. (a) | 2,095,491 | 2,829 | |
Construction & Engineering - 0.2% | |||
Quanta Services, Inc. (a) | 823,800 | 23,865 | |
Electrical Equipment - 0.5% | |||
Eaton Corp. PLC | 1,295,800 | 73,796 | |
Hubbell, Inc. Class B | 40,000 | 3,642 | |
SolarCity Corp. (d) | 700,000 | 10,234 | |
| 87,672 | ||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 113,700 | 7,294 | |
Danaher Corp. | 2,729,200 | 163,561 | |
General Electric Co. | 1,893,200 | 42,180 | |
| 213,035 | ||
Machinery - 3.0% | |||
Briggs & Stratton Corp. | 1,173,100 | 27,838 | |
Caterpillar, Inc. | 1,064,000 | 104,687 | |
Cummins, Inc. | 1,450,700 | 166,584 | |
Harsco Corp. | 151,500 | 3,862 | |
Illinois Tool Works, Inc. | 1,341,216 | 84,269 | |
Ingersoll-Rand PLC | 1,271,400 | 65,337 | |
Manitowoc Co., Inc. | 1,227,900 | 21,611 | |
PACCAR, Inc. | 487,700 | 22,951 | |
SPX Corp. | 302,300 | 22,561 | |
| 519,700 | ||
Professional Services - 0.5% | |||
Equifax, Inc. | 626,800 | 36,793 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Manpower, Inc. | 745,377 | $ 38,387 | |
Verisk Analytics, Inc. (a) | 61,900 | 3,414 | |
| 78,594 | ||
Road & Rail - 1.2% | |||
Canadian Pacific | 569,200 | 65,714 | |
Con-way, Inc. | 384,300 | 12,059 | |
J.B. Hunt Transport Services, Inc. | 56,400 | 3,794 | |
Ryder System, Inc. | 228,000 | 12,946 | |
Union Pacific Corp. | 853,000 | 112,135 | |
| 206,648 | ||
Trading Companies & Distributors - 0.2% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 13,919 | |
United Rentals, Inc. (a) | 71,200 | 3,604 | |
WESCO International, Inc. (a) | 305,300 | 22,266 | |
| 39,789 | ||
TOTAL INDUSTRIALS | 1,910,033 | ||
INFORMATION TECHNOLOGY - 31.9% | |||
Communications Equipment - 2.8% | |||
Alcatel-Lucent SA (a)(d) | 12,103,095 | 20,225 | |
Alcatel-Lucent SA sponsored ADR (a)(d) | 6,075,605 | 10,086 | |
Cisco Systems, Inc. | 1,316,200 | 27,074 | |
Finisar Corp. (a) | 489,300 | 7,584 | |
Juniper Networks, Inc. (a) | 2,865,600 | 64,132 | |
Motorola Solutions, Inc. | 94,500 | 5,518 | |
QUALCOMM, Inc. | 5,409,100 | 357,163 | |
| 491,782 | ||
Computers & Peripherals - 7.0% | |||
3D Systems Corp. (a)(d) | 148,500 | 8,591 | |
Apple, Inc. | 2,281,600 | 1,038,832 | |
Dell, Inc. | 2,047,200 | 27,105 | |
EMC Corp. (a) | 2,624,100 | 64,579 | |
Fusion-io, Inc. (a) | 850,106 | 14,860 | |
Hewlett-Packard Co. | 1,165,300 | 19,239 | |
NetApp, Inc. (a) | 194,500 | 7,002 | |
SanDisk Corp. (a) | 794,600 | 39,722 | |
Stratasys Ltd. (a) | 93,000 | 7,299 | |
| 1,227,229 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 8.7% | |||
Cornerstone OnDemand, Inc. (a) | 149,200 | $ 4,876 | |
Dropbox, Inc. (f) | 1,003,814 | 9,084 | |
eBay, Inc. (a) | 3,425,200 | 191,571 | |
Facebook, Inc. Class A | 4,101,667 | 127,029 | |
Google, Inc. Class A (a) | 1,366,567 | 1,032,701 | |
LinkedIn Corp. (a) | 330,500 | 40,913 | |
Qihoo 360 Technology Co. Ltd. ADR (a) | 258,000 | 7,887 | |
SINA Corp. (a) | 199,492 | 10,958 | |
Tencent Holdings Ltd. | 1,171,500 | 40,997 | |
Yahoo!, Inc. (a) | 2,406,000 | 47,230 | |
Yelp, Inc. (d) | 525,200 | 11,155 | |
| 1,524,401 | ||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,759,900 | 137,589 | |
IBM Corp. | 39,900 | 8,102 | |
MasterCard, Inc. Class A | 497,800 | 258,060 | |
Visa, Inc. Class A | 1,475,300 | 232,965 | |
| 636,716 | ||
Semiconductors & Semiconductor Equipment - 4.7% | |||
Altera Corp. | 3,552,800 | 118,735 | |
Atmel Corp. (a) | 2,588,400 | 17,342 | |
Avago Technologies Ltd. | 1,903,500 | 68,088 | |
Broadcom Corp. Class A | 6,125,300 | 198,766 | |
Cavium, Inc. (a) | 325,700 | 10,891 | |
Cree, Inc. (a) | 581,000 | 25,070 | |
Freescale Semiconductor Holdings I Ltd. (a)(d) | 4,338,910 | 62,697 | |
Intersil Corp. Class A | 3,319,364 | 28,712 | |
Mellanox Technologies Ltd. (a) | 369,900 | 19,686 | |
Micron Technology, Inc. (a) | 2,089,200 | 15,794 | |
Monolithic Power Systems, Inc. | 1,036,860 | 24,159 | |
NXP Semiconductors NV (a) | 5,584,335 | 167,474 | |
PMC-Sierra, Inc. (a) | 2,524,300 | 14,590 | |
Samsung Electronics Co. Ltd. | 28,313 | 37,681 | |
STMicroelectronics NV | 1,024,500 | 8,857 | |
STMicroelectronics NV (NY Shares) unit (d) | 1,817,000 | 15,681 | |
| 834,223 | ||
Software - 5.1% | |||
Activision Blizzard, Inc. | 4,771,500 | 54,347 | |
Allot Communications Ltd. (a) | 200,000 | 2,758 | |
Check Point Software Technologies Ltd. (a) | 243,400 | 12,170 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Citrix Systems, Inc. (a) | 746,800 | $ 54,636 | |
Electronic Arts, Inc. (a) | 4,830,200 | 75,979 | |
Guidewire Software, Inc. | 248,300 | 8,224 | |
Microsoft Corp. | 5,246,689 | 144,127 | |
Oracle Corp. | 3,052,000 | 108,377 | |
QLIK Technologies, Inc. (a) | 767,063 | 17,036 | |
Qualys, Inc. | 585,400 | 7,669 | |
Red Hat, Inc. (a) | 1,115,700 | 61,988 | |
salesforce.com, Inc. (a) | 1,340,065 | 230,665 | |
ServiceNow, Inc. (d) | 522,500 | 14,484 | |
Splunk, Inc. | 196,000 | 6,460 | |
Take-Two Interactive Software, Inc. (a) | 1,728,900 | 21,041 | |
Ubisoft Entertainment SA (a) | 881,104 | 8,506 | |
VMware, Inc. Class A (a) | 681,500 | 52,121 | |
Workday, Inc. | 222,900 | 11,907 | |
Zynga, Inc. (a) | 1,073,100 | 2,908 | |
| 895,403 | ||
TOTAL INFORMATION TECHNOLOGY | 5,609,754 | ||
MATERIALS - 2.5% | |||
Chemicals - 2.2% | |||
Airgas, Inc. | 37,000 | 3,524 | |
Albemarle Corp. | 215,600 | 13,218 | |
Ashland, Inc. | 505,900 | 39,718 | |
Axiall Corp. (d) | 421,300 | 23,669 | |
Eastman Chemical Co. | 616,500 | 43,864 | |
LyondellBasell Industries NV Class A | 757,900 | 48,066 | |
Mexichem SAB de CV | 3,322,800 | 18,795 | |
Monsanto Co. | 1,754,600 | 177,829 | |
The Dow Chemical Co. | 403,800 | 13,002 | |
Westlake Chemical Corp. | 139,000 | 12,769 | |
| 394,454 | ||
Construction Materials - 0.2% | |||
Eagle Materials, Inc. | 103,200 | 6,684 | |
Vulcan Materials Co. | 393,700 | 22,268 | |
| 28,952 | ||
Metals & Mining - 0.1% | |||
Vale SA sponsored ADR | 842,500 | 16,993 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.0% | |||
International Paper Co. | 186,000 | $ 7,704 | |
TOTAL MATERIALS | 448,103 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 122,700 | 9,209 | |
TOTAL COMMON STOCKS (Cost $12,819,917) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Automobiles - 0.5% | |||
Volkswagen AG | 399,200 | 98,731 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $45,989) |
| ||
Money Market Funds - 2.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 56,139,834 | 56,140 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 362,846,828 | 362,847 | |
TOTAL MONEY MARKET FUNDS (Cost $418,987) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $13,284,893) | 18,008,663 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (406,939) | ||
NET ASSETS - 100% | $ 17,601,724 |
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 $9,084,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Dropbox, Inc. | 5/2/12 | $ 9,084 |
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 | $ 31 |
Fidelity Securities Lending Cash Central Fund | 4,596 |
Total | $ 4,627 |
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, |
Parsvnath Developers Ltd. | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Total | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 3,689,446 | $ 3,689,446 | $ - | $ - |
Consumer Staples | 2,675,574 | 2,667,945 | 7,629 | - |
Energy | 725,002 | 725,002 | - | - |
Financials | 672,672 | 659,556 | 13,116 | - |
Health Care | 1,849,883 | 1,849,883 | - | - |
Industrials | 1,910,033 | 1,907,204 | 2,829 | - |
Information Technology | 5,609,754 | 5,571,588 | 29,082 | 9,084 |
Materials | 448,103 | 448,103 | - | - |
Utilities | 9,209 | 9,209 | - | - |
Money Market Funds | 418,987 | 418,987 | - | - |
Total Investments in Securities: | $ 18,008,663 | $ 17,946,923 | $ 52,656 | $ 9,084 |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $357,634) - See accompanying schedule: Unaffiliated issuers (cost $12,835,055) | $ 17,572,921 |
|
Fidelity Central Funds (cost $418,987) | 418,987 |
|
Other affiliated issuers (cost $30,851) | 16,755 |
|
Total Investments (cost $13,284,893) |
| $ 18,008,663 |
Receivable for investments sold | 138,541 | |
Receivable for fund shares sold | 14,457 | |
Dividends receivable | 7,023 | |
Distributions receivable from Fidelity Central Funds | 926 | |
Prepaid expenses | 36 | |
Other receivables | 1,696 | |
Total assets | 18,171,342 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 10,901 | |
Payable for investments purchased | 161,492 | |
Payable for fund shares redeemed | 23,462 | |
Accrued management fee | 8,180 | |
Other affiliated payables | 2,104 | |
Other payables and accrued expenses | 632 | |
Collateral on securities loaned, at value | 362,847 | |
Total liabilities | 569,618 | |
|
|
|
Net Assets | $ 17,601,724 | |
Net Assets consist of: |
| |
Paid in capital | $ 12,695,247 | |
Undistributed net investment income | 3,237 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 179,372 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 4,723,868 | |
Net Assets | $ 17,601,724 |
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, 2013 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 51.23 | |
|
|
|
Class K: | $ 51.28 | |
|
|
|
Class F: | $ 51.32 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 128,876 |
Income from Fidelity Central Funds |
| 4,627 |
Total income |
| 133,503 |
|
|
|
Expenses | ||
Management fee | $ 44,197 | |
Performance adjustment | 256 | |
Transfer agent fees | 11,482 | |
Accounting and security lending fees | 785 | |
Custodian fees and expenses | 177 | |
Independent trustees' compensation | 52 | |
Registration fees | 71 | |
Audit | 58 | |
Legal | 43 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,185 | |
Expense reductions | (1,876) | 55,309 |
Net investment income (loss) | 78,194 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 493,970 | |
Foreign currency transactions | (404) | |
Total net realized gain (loss) |
| 493,566 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 999,259 | |
Assets and liabilities in foreign currencies | 126 | |
Total change in net unrealized appreciation (depreciation) |
| 999,385 |
Net gain (loss) | 1,492,951 | |
Net increase (decrease) in net assets resulting from operations | $ 1,571,145 |
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) | $ 78,194 | $ 35,383 |
Net realized gain (loss) | 493,566 | (37,431) |
Change in net unrealized appreciation (depreciation) | 999,385 | 271,789 |
Net increase (decrease) in net assets resulting | 1,571,145 | 269,741 |
Distributions to shareholders from net investment income | (85,342) | (15,666) |
Distributions to shareholders from net realized gain | (230,904) | (480,841) |
Total distributions | (316,246) | (496,507) |
Share transactions - net increase (decrease) | 1,527,111 | 656,032 |
Total increase (decrease) in net assets | 2,782,010 | 429,266 |
|
|
|
Net Assets | ||
Beginning of period | 14,819,714 | 14,390,448 |
End of period (including undistributed net investment income of $3,237 and undistributed net investment income of $10,385, respectively) | $ 17,601,724 | $ 14,819,714 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .23 | .10 | (.03) | .04 | .27 | .35 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.61 | 5.80 | (6.36) | (2.89) |
Total from investment operations | 4.76 | .85 | 10.58 | 5.84 | (6.09) | (2.54) |
Distributions from net investment income | (.23) | (.04) | (.00) H, I | (.18) | (.29) | (.33) |
Distributions from net realized gain | (.68) | (1.60) | (.04) I | - | (.71) | (4.95) |
Total distributions | (.91) | (1.64) | (.04) | (.18) | (1.00) | (5.28) |
Net asset value, end of period | $ 51.23 | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 |
Total Return B, C | 10.15% | 2.27% | 28.12% | 18.29% | (15.85)% | (6.30)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of fee waivers, if any | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of all reductions | .75% A | .89% | .92% | .93% | .76% | .57% |
Net investment income (loss) | .93% A | .21% | (.06)% | .10% | .93% | .81% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 11,682 | $ 10,595 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 |
Portfolio turnover rate F | 79% A | 95% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .27 | .17 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 4.80 | .92 | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.30) | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (.68) | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (.98) | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 51.28 | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 10.23% | 2.43% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .60% A | .73% | .76% | .74% | .52% | .41% A |
Net investment income (loss) | 1.08% A | .37% | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,860,076 | $ 2,467,455 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 79% A | 95% | 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 | Years ended July 31, | |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .28 | .19 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | 4.54 | .76 | 10.61 | 5.80 | 2.82 |
Total from investment operations | 4.82 | .95 | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.33) | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (.68) | (1.60) | (.08) K | - | - |
Total distributions | (1.01) | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 51.32 | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | 10.25% | 2.49% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of all reductions | .55% A | .68% | .71% | .68% | .51% A |
Net investment income (loss) | 1.13% A | .42% | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,059,840 | $ 1,756,916 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 79% A | 95% | 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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,869,022 |
Gross unrealized depreciation | (211,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,657,527 |
|
|
Tax cost | $ 13,351,136 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
No expiration |
|
Short-term | $ (7,155) |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $7,546,033 and $6,248,230, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. 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. 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 .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 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 | $ 10,821 | .20 |
Class K | 661 | .05 |
| $ 11,482 |
|
* 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 $140 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 9,561 | .42% | $ 4 |
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 valued at $1,605,000 in exchange for 32,348 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.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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.
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. The value of securities loaned to FCM at period end was $17,402. Security lending
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
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 $4,596, including $370 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 $1,876 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 51,844 | $ 10,644 |
Class K | 16,348 | 2,860 |
Class F | 17,150 | 2,162 |
Total | $ 85,342 | $ 15,666 |
From net realized gain |
|
|
Blue Chip Growth | $ 155,106 | $ 397,250 |
Class K | 36,829 | 51,295 |
Class F | 38,969 | 32,296 |
Total | $ 230,904 | $ 480,841 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 28,001 A | 42,825 | $ 1,389,860 A | $ 1,970,082 |
Reinvestment of distributions | 4,171 | 9,668 | 202,506 | 399,689 |
Shares redeemed | (27,772) | (78,498) | (1,376,422) | (3,530,347) |
Net increase (decrease) | 4,400 | (26,005) | $ 215,944 | $ (1,160,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class K |
|
|
|
|
Shares sold | 8,955 | 29,866 | $ 444,553 | $ 1,366,770 |
Reinvestment of distributions | 1,092 | 1,309 | 53,177 | 54,155 |
Shares redeemed | (6,262) | (9,363) | (310,869) | (426,597) |
Net increase (decrease) | 3,785 | 21,812 | $ 186,861 | $ 994,328 |
Class F |
|
|
|
|
Shares sold | 22,805 A | 19,170 | $ 1,133,822 A | $ 873,960 |
Reinvestment of distributions | 1,153 | 832 | 56,119 | 34,458 |
Shares redeemed | (1,318) | (1,918) | (65,635) | (86,138) |
Net increase (decrease) | 22,640 | 18,084 | $ 1,124,306 | $ 822,280 |
A Amount includes in-kind exchanges (see Note 5: 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, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record in the aggregate of approximately 33% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
BCF-USAN-0313 1.789282.110
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,101.50 | $ 4.08 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class K | .63% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.30 | $ 3.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.03 | $ 3.21 |
Class F | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.50 | $ 3.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.28 | $ 2.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.9 | 10.4 |
Google, Inc. Class A | 5.9 | 5.4 |
Amazon.com, Inc. | 2.1 | 2.1 |
QUALCOMM, Inc. | 2.0 | 2.1 |
Home Depot, Inc. | 1.8 | 1.0 |
The Coca-Cola Co. | 1.8 | 2.1 |
Procter & Gamble Co. | 1.7 | 0.6 |
Gilead Sciences, Inc. | 1.7 | 0.9 |
Philip Morris International, Inc. | 1.5 | 1.6 |
MasterCard, Inc. Class A | 1.5 | 1.3 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 31.9 | 36.8 |
Consumer Discretionary | 20.9 | 21.1 |
Consumer Staples | 15.2 | 14.1 |
Industrials | 10.9 | 8.5 |
Health Care | 10.5 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.5% |
| ** Foreign investments | 9.7% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.4% | |||
Auto Components - 0.1% | |||
Lear Corp. | 180,500 | $ 8,845 | |
Automobiles - 1.0% | |||
Ford Motor Co. | 2,635,600 | 34,131 | |
General Motors Co. (a) | 403,100 | 11,323 | |
Tesla Motors, Inc. (a)(d) | 3,481,664 | 130,597 | |
| 176,051 | ||
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. | 33,635 | 942 | |
Kroton Educacional SA (a) | 590,000 | 14,488 | |
| 15,430 | ||
Hotels, Restaurants & Leisure - 2.9% | |||
Alsea SAB de CV | 1,558,700 | 3,614 | |
Chipotle Mexican Grill, Inc. (a) | 65,200 | 20,017 | |
Dunkin' Brands Group, Inc. | 693,900 | 25,334 | |
Hyatt Hotels Corp. Class A (a) | 395,297 | 15,840 | |
Jubilant Foodworks Ltd. (a) | 288,917 | 6,511 | |
Las Vegas Sands Corp. | 1,875,300 | 103,610 | |
McDonald's Corp. | 337,130 | 32,125 | |
Panera Bread Co. Class A (a) | 492,500 | 78,706 | |
Starbucks Corp. | 3,598,800 | 201,965 | |
Wyndham Worldwide Corp. | 491,627 | 27,428 | |
| 515,150 | ||
Household Durables - 1.1% | |||
D.R. Horton, Inc. | 318,000 | 7,524 | |
KB Home | 386,200 | 7,365 | |
SodaStream International Ltd. (a) | 286,400 | 13,773 | |
Toll Brothers, Inc. (a) | 422,700 | 15,830 | |
Whirlpool Corp. | 1,249,778 | 144,199 | |
| 188,691 | ||
Internet & Catalog Retail - 3.2% | |||
Amazon.com, Inc. (a) | 1,404,000 | 372,762 | |
Netflix, Inc. (a)(d) | 294,900 | 48,729 | |
priceline.com, Inc. (a) | 205,100 | 140,590 | |
TripAdvisor, Inc. (a) | 129,800 | 6,007 | |
| 568,088 | ||
Leisure Equipment & Products - 0.2% | |||
Brunswick Corp. | 788,900 | 28,527 | |
Media - 2.0% | |||
Comcast Corp. Class A | 4,866,000 | 185,297 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
News Corp. Class A | 2,196,200 | $ 60,923 | |
The Walt Disney Co. | 908,900 | 48,972 | |
Time Warner Cable, Inc. | 174,500 | 15,590 | |
Time Warner, Inc. | 930,800 | 47,024 | |
| 357,806 | ||
Multiline Retail - 0.8% | |||
J.C. Penney Co., Inc. | 3,855,400 | 78,380 | |
Macy's, Inc. | 1,685,100 | 66,578 | |
| 144,958 | ||
Specialty Retail - 5.8% | |||
Abercrombie & Fitch Co. Class A | 2,144,700 | 107,235 | |
AutoZone, Inc. (a) | 33,300 | 12,311 | |
CarMax, Inc. (a) | 810,200 | 31,938 | |
Five Below, Inc. | 138,422 | 5,122 | |
Foot Locker, Inc. | 248,700 | 8,543 | |
Home Depot, Inc. | 4,811,700 | 321,999 | |
Limited Brands, Inc. | 2,105,800 | 101,121 | |
Lowe's Companies, Inc. | 3,706,500 | 141,551 | |
Ross Stores, Inc. | 1,331,200 | 79,473 | |
Tile Shop Holdings, Inc. (a) | 198,300 | 3,647 | |
TJX Companies, Inc. | 2,882,680 | 130,239 | |
Urban Outfitters, Inc. (a) | 1,966,700 | 84,155 | |
| 1,027,334 | ||
Textiles, Apparel & Luxury Goods - 3.2% | |||
Arezzo Industria e Comercio SA | 1,646,000 | 30,997 | |
Fifth & Pacific Companies, Inc. (a) | 236,600 | 3,573 | |
Fossil, Inc. (a) | 644,319 | 68,027 | |
lululemon athletica, Inc. (a) | 451,780 | 31,173 | |
Michael Kors Holdings Ltd. (a) | 2,601,937 | 146,047 | |
NIKE, Inc. Class B | 1,771,400 | 95,744 | |
Prada SpA | 2,174,900 | 19,546 | |
PVH Corp. | 813,900 | 96,748 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 1,257,700 | 23,896 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 866,600 | 44,084 | |
| 559,835 | ||
TOTAL CONSUMER DISCRETIONARY | 3,590,715 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 15.2% | |||
Beverages - 3.4% | |||
Anheuser-Busch InBev SA NV ADR | 788,100 | $ 69,826 | |
Beam, Inc. | 285,100 | 17,488 | |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 716,400 | 23,183 | |
Heineken NV (Bearer) | 122,600 | 8,621 | |
Monster Beverage Corp. (a) | 706,100 | 33,822 | |
PepsiCo, Inc. | 1,766,300 | 128,675 | |
SABMiller PLC | 181,900 | 9,088 | |
The Coca-Cola Co. | 8,343,600 | 310,716 | |
| 601,419 | ||
Food & Staples Retailing - 3.3% | |||
Costco Wholesale Corp. | 1,411,700 | 144,473 | |
CVS Caremark Corp. | 3,018,600 | 154,552 | |
Wal-Mart Stores, Inc. | 1,289,600 | 90,208 | |
Walgreen Co. | 2,466,900 | 98,577 | |
Whole Foods Market, Inc. | 943,800 | 90,841 | |
| 578,651 | ||
Food Products - 3.5% | |||
Associated British Foods PLC | 592,900 | 16,447 | |
Bunge Ltd. | 412,100 | 32,828 | |
ConAgra Foods, Inc. | 1,012,900 | 33,112 | |
Danone SA | 658,200 | 45,615 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 5,106,564 | 232,502 | |
Hain Celestial Group, Inc. (a) | 160,300 | 9,135 | |
Ingredion, Inc. | 139,000 | 9,184 | |
Kellogg Co. | 926,400 | 54,194 | |
Mead Johnson Nutrition Co. Class A | 669,300 | 50,867 | |
Mondelez International, Inc. | 574,700 | 15,971 | |
The Hershey Co. | 993,500 | 78,934 | |
The J.M. Smucker Co. | 253,900 | 22,503 | |
Unilever NV (NY Reg.) | 531,700 | 21,523 | |
| 622,815 | ||
Household Products - 2.0% | |||
Colgate-Palmolive Co. | 316,200 | 33,950 | |
Procter & Gamble Co. | 3,920,100 | 294,635 | |
Reckitt Benckiser Group PLC | 387,351 | 25,815 | |
| 354,400 | ||
Personal Products - 0.4% | |||
Herbalife Ltd. | 1,918,991 | 69,698 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Tobacco - 2.6% | |||
Altria Group, Inc. | 2,069,500 | $ 69,701 | |
British American Tobacco PLC (United Kingdom) | 146,800 | 7,629 | |
Lorillard, Inc. | 2,868,900 | 112,088 | |
Philip Morris International, Inc. | 2,939,800 | 259,173 | |
| 448,591 | ||
TOTAL CONSUMER STAPLES | 2,675,574 | ||
ENERGY - 4.1% | |||
Energy Equipment & Services - 1.3% | |||
Cameron International Corp. (a) | 402,500 | 25,482 | |
Ensco PLC Class A | 591,100 | 37,576 | |
Halliburton Co. | 1,490,800 | 60,646 | |
Schlumberger Ltd. | 1,443,500 | 112,665 | |
| 236,369 | ||
Oil, Gas & Consumable Fuels - 2.8% | |||
Alpha Natural Resources, Inc. (a) | 396,500 | 3,513 | |
Anadarko Petroleum Corp. | 1,352,600 | 108,235 | |
Canadian Natural Resources Ltd. | 576,000 | 17,394 | |
Cobalt International Energy, Inc. (a) | 654,900 | 15,855 | |
Concho Resources, Inc. (a) | 296,400 | 27,038 | |
Continental Resources, Inc. (a) | 304,500 | 25,310 | |
EOG Resources, Inc. | 486,700 | 60,828 | |
Hess Corp. | 638,100 | 42,855 | |
Marathon Petroleum Corp. | 302,200 | 22,426 | |
Murphy Oil Corp. | 356,200 | 21,201 | |
Occidental Petroleum Corp. | 235,800 | 20,814 | |
Peabody Energy Corp. | 873,300 | 21,963 | |
Phillips 66 | 155,800 | 9,437 | |
Pioneer Natural Resources Co. | 578,400 | 67,985 | |
Rosetta Resources, Inc. (a) | 69,700 | 3,695 | |
Western Gas Equity Partners LP | 594,900 | 20,084 | |
| 488,633 | ||
TOTAL ENERGY | 725,002 | ||
FINANCIALS - 3.8% | |||
Capital Markets - 1.1% | |||
Ameriprise Financial, Inc. | 79,100 | 5,246 | |
Apollo Global Management LLC Class A | 591,100 | 13,164 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
BlackRock, Inc. Class A | 83,200 | $ 19,658 | |
E*TRADE Financial Corp. (a) | 533,500 | 5,660 | |
KKR & Co. LP | 1,117,800 | 18,868 | |
Morgan Stanley | 3,838,012 | 87,699 | |
Och-Ziff Capital Management Group LLC Class A | 373,000 | 3,693 | |
The Blackstone Group LP | 843,700 | 15,608 | |
UBS AG (NY Shares) | 887,300 | 15,412 | |
Walter Investment Management Corp. (a) | 259,100 | 11,610 | |
| 196,618 | ||
Commercial Banks - 0.1% | |||
Axis Bank Ltd. | 470,931 | 13,305 | |
ICICI Bank Ltd. | 588,272 | 13,116 | |
| 26,421 | ||
Diversified Financial Services - 1.9% | |||
Bank of America Corp. | 2,932,300 | 33,194 | |
Citigroup, Inc. | 4,422,720 | 186,462 | |
CME Group, Inc. | 165,100 | 9,549 | |
JPMorgan Chase & Co. | 2,182,900 | 102,705 | |
| 331,910 | ||
Insurance - 0.3% | |||
American Financial Group, Inc. | 77,000 | 3,277 | |
American International Group, Inc. (a) | 255,000 | 9,647 | |
Berkshire Hathaway, Inc. Class B (a) | 248,300 | 24,068 | |
Hartford Financial Services Group, Inc. | 587,800 | 14,577 | |
| 51,569 | ||
Real Estate Investment Trusts - 0.1% | |||
Weyerhaeuser Co. | 400,200 | 12,054 | |
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 16,755 | |
Realogy Holdings Corp. | 450,000 | 20,147 | |
| 36,902 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Housing Development Finance Corp. Ltd. (a) | 204,856 | 3,024 | |
Nationstar Mortgage Holdings, Inc. (d) | 285,200 | 10,293 | |
Ocwen Financial Corp. (a) | 99,600 | 3,881 | |
| 17,198 | ||
TOTAL FINANCIALS | 672,672 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 10.5% | |||
Biotechnology - 6.2% | |||
Alexion Pharmaceuticals, Inc. (a) | 665,000 | $ 62,503 | |
Alkermes PLC (a) | 917,100 | 21,139 | |
Alnylam Pharmaceuticals, Inc. (a) | 547,163 | 13,203 | |
Amgen, Inc. | 2,286,700 | 195,421 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,869,700 | 37,170 | |
Biogen Idec, Inc. (a) | 1,058,200 | 165,164 | |
BioMarin Pharmaceutical, Inc. (a) | 288,700 | 15,847 | |
Celgene Corp. (a) | 428,200 | 42,375 | |
Clovis Oncology, Inc. (a) | 195,300 | 3,855 | |
CSL Ltd. | 66,241 | 3,795 | |
Exelixis, Inc. (a) | 3,668,800 | 17,097 | |
Gilead Sciences, Inc. (a) | 7,354,200 | 290,123 | |
Grifols SA (a) | 330,400 | 11,238 | |
Grifols SA: | |||
ADR | 292,845 | 7,793 | |
Class B (a) | 16,520 | 438 | |
Infinity Pharmaceuticals, Inc. (a) | 431,000 | 14,848 | |
InterMune, Inc. (a)(d) | 2,356,200 | 23,209 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 473,000 | 6,064 | |
Medivation, Inc. (a) | 299,000 | 16,254 | |
Merrimack Pharmaceuticals, Inc. | 2,407,858 | 14,616 | |
Onyx Pharmaceuticals, Inc. (a) | 378,300 | 29,326 | |
Regeneron Pharmaceuticals, Inc. (a) | 349,800 | 60,844 | |
Seattle Genetics, Inc. (a) | 179,200 | 5,277 | |
Spectrum Pharmaceuticals, Inc. (d) | 1,675,200 | 21,124 | |
Synageva BioPharma Corp. (a) | 180,700 | 8,359 | |
ZIOPHARM Oncology, Inc. (a) | 1,626,700 | 6,458 | |
| 1,093,540 | ||
Health Care Equipment & Supplies - 1.1% | |||
Abbott Laboratories | 390,100 | 13,217 | |
Alere, Inc. (a) | 577,400 | 12,276 | |
Baxter International, Inc. | 403,900 | 27,401 | |
Boston Scientific Corp. (a) | 2,569,100 | 19,191 | |
Edwards Lifesciences Corp. (a) | 157,700 | 14,182 | |
Insulet Corp. (a) | 310,600 | 7,166 | |
Intuitive Surgical, Inc. (a) | 16,900 | 9,707 | |
The Cooper Companies, Inc. | 865,272 | 87,695 | |
| 190,835 | ||
Health Care Providers & Services - 0.2% | |||
Air Methods Corp. | 100,000 | 4,372 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Apollo Hospitals Enterprise Ltd. | 936,371 | $ 14,210 | |
Catamaran Corp. (a) | 226,100 | 11,732 | |
Qualicorp SA (a) | 1,151,000 | 11,907 | |
| 42,221 | ||
Health Care Technology - 0.2% | |||
athenahealth, Inc. (a)(d) | 154,575 | 13,366 | |
Cerner Corp. (a) | 168,400 | 13,901 | |
| 27,267 | ||
Life Sciences Tools & Services - 0.1% | |||
Agilent Technologies, Inc. | 282,400 | 12,646 | |
Pharmaceuticals - 2.7% | |||
AbbVie, Inc. | 390,100 | 14,313 | |
Actavis, Inc. (a) | 168,500 | 14,557 | |
Allergan, Inc. | 363,800 | 38,203 | |
AVANIR Pharmaceuticals Class A (a) | 2,885,556 | 8,426 | |
Hospira, Inc. (a) | 304,100 | 10,376 | |
Johnson & Johnson | 1,963,040 | 145,108 | |
Merck & Co., Inc. | 784,000 | 33,908 | |
Novo Nordisk A/S Series B sponsored ADR | 38,700 | 7,134 | |
Pfizer, Inc. | 3,393,700 | 92,580 | |
Questcor Pharmaceuticals, Inc. (d) | 611,352 | 15,577 | |
Sanofi SA sponsored ADR | 160,900 | 7,833 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 1,378,900 | 91,438 | |
Zoetis, Inc. Class A | 150,800 | 3,921 | |
| 483,374 | ||
TOTAL HEALTH CARE | 1,849,883 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.4% | |||
Honeywell International, Inc. | 814,900 | 55,609 | |
Precision Castparts Corp. | 624,800 | 114,588 | |
The Boeing Co. | 276,000 | 20,388 | |
United Technologies Corp. | 2,712,700 | 237,551 | |
| 428,136 | ||
Air Freight & Logistics - 0.8% | |||
C.H. Robinson Worldwide, Inc. | 131,500 | 8,699 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - continued | |||
FedEx Corp. | 472,400 | $ 47,925 | |
United Parcel Service, Inc. Class B | 1,131,300 | 89,701 | |
| 146,325 | ||
Airlines - 0.2% | |||
US Airways Group, Inc. (a) | 2,887,100 | 41,228 | |
Building Products - 0.7% | |||
Armstrong World Industries, Inc. | 1,119,400 | 61,556 | |
Masco Corp. | 3,298,300 | 60,656 | |
| 122,212 | ||
Commercial Services & Supplies - 0.0% | |||
Swisher Hygiene, Inc. (a) | 2,095,491 | 2,829 | |
Construction & Engineering - 0.2% | |||
Quanta Services, Inc. (a) | 823,800 | 23,865 | |
Electrical Equipment - 0.5% | |||
Eaton Corp. PLC | 1,295,800 | 73,796 | |
Hubbell, Inc. Class B | 40,000 | 3,642 | |
SolarCity Corp. (d) | 700,000 | 10,234 | |
| 87,672 | ||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 113,700 | 7,294 | |
Danaher Corp. | 2,729,200 | 163,561 | |
General Electric Co. | 1,893,200 | 42,180 | |
| 213,035 | ||
Machinery - 3.0% | |||
Briggs & Stratton Corp. | 1,173,100 | 27,838 | |
Caterpillar, Inc. | 1,064,000 | 104,687 | |
Cummins, Inc. | 1,450,700 | 166,584 | |
Harsco Corp. | 151,500 | 3,862 | |
Illinois Tool Works, Inc. | 1,341,216 | 84,269 | |
Ingersoll-Rand PLC | 1,271,400 | 65,337 | |
Manitowoc Co., Inc. | 1,227,900 | 21,611 | |
PACCAR, Inc. | 487,700 | 22,951 | |
SPX Corp. | 302,300 | 22,561 | |
| 519,700 | ||
Professional Services - 0.5% | |||
Equifax, Inc. | 626,800 | 36,793 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Manpower, Inc. | 745,377 | $ 38,387 | |
Verisk Analytics, Inc. (a) | 61,900 | 3,414 | |
| 78,594 | ||
Road & Rail - 1.2% | |||
Canadian Pacific | 569,200 | 65,714 | |
Con-way, Inc. | 384,300 | 12,059 | |
J.B. Hunt Transport Services, Inc. | 56,400 | 3,794 | |
Ryder System, Inc. | 228,000 | 12,946 | |
Union Pacific Corp. | 853,000 | 112,135 | |
| 206,648 | ||
Trading Companies & Distributors - 0.2% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 13,919 | |
United Rentals, Inc. (a) | 71,200 | 3,604 | |
WESCO International, Inc. (a) | 305,300 | 22,266 | |
| 39,789 | ||
TOTAL INDUSTRIALS | 1,910,033 | ||
INFORMATION TECHNOLOGY - 31.9% | |||
Communications Equipment - 2.8% | |||
Alcatel-Lucent SA (a)(d) | 12,103,095 | 20,225 | |
Alcatel-Lucent SA sponsored ADR (a)(d) | 6,075,605 | 10,086 | |
Cisco Systems, Inc. | 1,316,200 | 27,074 | |
Finisar Corp. (a) | 489,300 | 7,584 | |
Juniper Networks, Inc. (a) | 2,865,600 | 64,132 | |
Motorola Solutions, Inc. | 94,500 | 5,518 | |
QUALCOMM, Inc. | 5,409,100 | 357,163 | |
| 491,782 | ||
Computers & Peripherals - 7.0% | |||
3D Systems Corp. (a)(d) | 148,500 | 8,591 | |
Apple, Inc. | 2,281,600 | 1,038,832 | |
Dell, Inc. | 2,047,200 | 27,105 | |
EMC Corp. (a) | 2,624,100 | 64,579 | |
Fusion-io, Inc. (a) | 850,106 | 14,860 | |
Hewlett-Packard Co. | 1,165,300 | 19,239 | |
NetApp, Inc. (a) | 194,500 | 7,002 | |
SanDisk Corp. (a) | 794,600 | 39,722 | |
Stratasys Ltd. (a) | 93,000 | 7,299 | |
| 1,227,229 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 8.7% | |||
Cornerstone OnDemand, Inc. (a) | 149,200 | $ 4,876 | |
Dropbox, Inc. (f) | 1,003,814 | 9,084 | |
eBay, Inc. (a) | 3,425,200 | 191,571 | |
Facebook, Inc. Class A | 4,101,667 | 127,029 | |
Google, Inc. Class A (a) | 1,366,567 | 1,032,701 | |
LinkedIn Corp. (a) | 330,500 | 40,913 | |
Qihoo 360 Technology Co. Ltd. ADR (a) | 258,000 | 7,887 | |
SINA Corp. (a) | 199,492 | 10,958 | |
Tencent Holdings Ltd. | 1,171,500 | 40,997 | |
Yahoo!, Inc. (a) | 2,406,000 | 47,230 | |
Yelp, Inc. (d) | 525,200 | 11,155 | |
| 1,524,401 | ||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,759,900 | 137,589 | |
IBM Corp. | 39,900 | 8,102 | |
MasterCard, Inc. Class A | 497,800 | 258,060 | |
Visa, Inc. Class A | 1,475,300 | 232,965 | |
| 636,716 | ||
Semiconductors & Semiconductor Equipment - 4.7% | |||
Altera Corp. | 3,552,800 | 118,735 | |
Atmel Corp. (a) | 2,588,400 | 17,342 | |
Avago Technologies Ltd. | 1,903,500 | 68,088 | |
Broadcom Corp. Class A | 6,125,300 | 198,766 | |
Cavium, Inc. (a) | 325,700 | 10,891 | |
Cree, Inc. (a) | 581,000 | 25,070 | |
Freescale Semiconductor Holdings I Ltd. (a)(d) | 4,338,910 | 62,697 | |
Intersil Corp. Class A | 3,319,364 | 28,712 | |
Mellanox Technologies Ltd. (a) | 369,900 | 19,686 | |
Micron Technology, Inc. (a) | 2,089,200 | 15,794 | |
Monolithic Power Systems, Inc. | 1,036,860 | 24,159 | |
NXP Semiconductors NV (a) | 5,584,335 | 167,474 | |
PMC-Sierra, Inc. (a) | 2,524,300 | 14,590 | |
Samsung Electronics Co. Ltd. | 28,313 | 37,681 | |
STMicroelectronics NV | 1,024,500 | 8,857 | |
STMicroelectronics NV (NY Shares) unit (d) | 1,817,000 | 15,681 | |
| 834,223 | ||
Software - 5.1% | |||
Activision Blizzard, Inc. | 4,771,500 | 54,347 | |
Allot Communications Ltd. (a) | 200,000 | 2,758 | |
Check Point Software Technologies Ltd. (a) | 243,400 | 12,170 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Citrix Systems, Inc. (a) | 746,800 | $ 54,636 | |
Electronic Arts, Inc. (a) | 4,830,200 | 75,979 | |
Guidewire Software, Inc. | 248,300 | 8,224 | |
Microsoft Corp. | 5,246,689 | 144,127 | |
Oracle Corp. | 3,052,000 | 108,377 | |
QLIK Technologies, Inc. (a) | 767,063 | 17,036 | |
Qualys, Inc. | 585,400 | 7,669 | |
Red Hat, Inc. (a) | 1,115,700 | 61,988 | |
salesforce.com, Inc. (a) | 1,340,065 | 230,665 | |
ServiceNow, Inc. (d) | 522,500 | 14,484 | |
Splunk, Inc. | 196,000 | 6,460 | |
Take-Two Interactive Software, Inc. (a) | 1,728,900 | 21,041 | |
Ubisoft Entertainment SA (a) | 881,104 | 8,506 | |
VMware, Inc. Class A (a) | 681,500 | 52,121 | |
Workday, Inc. | 222,900 | 11,907 | |
Zynga, Inc. (a) | 1,073,100 | 2,908 | |
| 895,403 | ||
TOTAL INFORMATION TECHNOLOGY | 5,609,754 | ||
MATERIALS - 2.5% | |||
Chemicals - 2.2% | |||
Airgas, Inc. | 37,000 | 3,524 | |
Albemarle Corp. | 215,600 | 13,218 | |
Ashland, Inc. | 505,900 | 39,718 | |
Axiall Corp. (d) | 421,300 | 23,669 | |
Eastman Chemical Co. | 616,500 | 43,864 | |
LyondellBasell Industries NV Class A | 757,900 | 48,066 | |
Mexichem SAB de CV | 3,322,800 | 18,795 | |
Monsanto Co. | 1,754,600 | 177,829 | |
The Dow Chemical Co. | 403,800 | 13,002 | |
Westlake Chemical Corp. | 139,000 | 12,769 | |
| 394,454 | ||
Construction Materials - 0.2% | |||
Eagle Materials, Inc. | 103,200 | 6,684 | |
Vulcan Materials Co. | 393,700 | 22,268 | |
| 28,952 | ||
Metals & Mining - 0.1% | |||
Vale SA sponsored ADR | 842,500 | 16,993 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.0% | |||
International Paper Co. | 186,000 | $ 7,704 | |
TOTAL MATERIALS | 448,103 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 122,700 | 9,209 | |
TOTAL COMMON STOCKS (Cost $12,819,917) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Automobiles - 0.5% | |||
Volkswagen AG | 399,200 | 98,731 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $45,989) |
| ||
Money Market Funds - 2.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 56,139,834 | 56,140 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 362,846,828 | 362,847 | |
TOTAL MONEY MARKET FUNDS (Cost $418,987) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $13,284,893) | 18,008,663 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (406,939) | ||
NET ASSETS - 100% | $ 17,601,724 |
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 $9,084,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Dropbox, Inc. | 5/2/12 | $ 9,084 |
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 | $ 31 |
Fidelity Securities Lending Cash Central Fund | 4,596 |
Total | $ 4,627 |
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, |
Parsvnath Developers Ltd. | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Total | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 3,689,446 | $ 3,689,446 | $ - | $ - |
Consumer Staples | 2,675,574 | 2,667,945 | 7,629 | - |
Energy | 725,002 | 725,002 | - | - |
Financials | 672,672 | 659,556 | 13,116 | - |
Health Care | 1,849,883 | 1,849,883 | - | - |
Industrials | 1,910,033 | 1,907,204 | 2,829 | - |
Information Technology | 5,609,754 | 5,571,588 | 29,082 | 9,084 |
Materials | 448,103 | 448,103 | - | - |
Utilities | 9,209 | 9,209 | - | - |
Money Market Funds | 418,987 | 418,987 | - | - |
Total Investments in Securities: | $ 18,008,663 | $ 17,946,923 | $ 52,656 | $ 9,084 |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $357,634) - See accompanying schedule: Unaffiliated issuers (cost $12,835,055) | $ 17,572,921 |
|
Fidelity Central Funds (cost $418,987) | 418,987 |
|
Other affiliated issuers (cost $30,851) | 16,755 |
|
Total Investments (cost $13,284,893) |
| $ 18,008,663 |
Receivable for investments sold | 138,541 | |
Receivable for fund shares sold | 14,457 | |
Dividends receivable | 7,023 | |
Distributions receivable from Fidelity Central Funds | 926 | |
Prepaid expenses | 36 | |
Other receivables | 1,696 | |
Total assets | 18,171,342 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 10,901 | |
Payable for investments purchased | 161,492 | |
Payable for fund shares redeemed | 23,462 | |
Accrued management fee | 8,180 | |
Other affiliated payables | 2,104 | |
Other payables and accrued expenses | 632 | |
Collateral on securities loaned, at value | 362,847 | |
Total liabilities | 569,618 | |
|
|
|
Net Assets | $ 17,601,724 | |
Net Assets consist of: |
| |
Paid in capital | $ 12,695,247 | |
Undistributed net investment income | 3,237 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 179,372 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 4,723,868 | |
Net Assets | $ 17,601,724 |
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, 2013 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 51.23 | |
|
|
|
Class K: | $ 51.28 | |
|
|
|
Class F: | $ 51.32 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 128,876 |
Income from Fidelity Central Funds |
| 4,627 |
Total income |
| 133,503 |
|
|
|
Expenses | ||
Management fee | $ 44,197 | |
Performance adjustment | 256 | |
Transfer agent fees | 11,482 | |
Accounting and security lending fees | 785 | |
Custodian fees and expenses | 177 | |
Independent trustees' compensation | 52 | |
Registration fees | 71 | |
Audit | 58 | |
Legal | 43 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,185 | |
Expense reductions | (1,876) | 55,309 |
Net investment income (loss) | 78,194 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 493,970 | |
Foreign currency transactions | (404) | |
Total net realized gain (loss) |
| 493,566 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 999,259 | |
Assets and liabilities in foreign currencies | 126 | |
Total change in net unrealized appreciation (depreciation) |
| 999,385 |
Net gain (loss) | 1,492,951 | |
Net increase (decrease) in net assets resulting from operations | $ 1,571,145 |
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) | $ 78,194 | $ 35,383 |
Net realized gain (loss) | 493,566 | (37,431) |
Change in net unrealized appreciation (depreciation) | 999,385 | 271,789 |
Net increase (decrease) in net assets resulting | 1,571,145 | 269,741 |
Distributions to shareholders from net investment income | (85,342) | (15,666) |
Distributions to shareholders from net realized gain | (230,904) | (480,841) |
Total distributions | (316,246) | (496,507) |
Share transactions - net increase (decrease) | 1,527,111 | 656,032 |
Total increase (decrease) in net assets | 2,782,010 | 429,266 |
|
|
|
Net Assets | ||
Beginning of period | 14,819,714 | 14,390,448 |
End of period (including undistributed net investment income of $3,237 and undistributed net investment income of $10,385, respectively) | $ 17,601,724 | $ 14,819,714 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .23 | .10 | (.03) | .04 | .27 | .35 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.61 | 5.80 | (6.36) | (2.89) |
Total from investment operations | 4.76 | .85 | 10.58 | 5.84 | (6.09) | (2.54) |
Distributions from net investment income | (.23) | (.04) | (.00) H, I | (.18) | (.29) | (.33) |
Distributions from net realized gain | (.68) | (1.60) | (.04) I | - | (.71) | (4.95) |
Total distributions | (.91) | (1.64) | (.04) | (.18) | (1.00) | (5.28) |
Net asset value, end of period | $ 51.23 | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 |
Total Return B, C | 10.15% | 2.27% | 28.12% | 18.29% | (15.85)% | (6.30)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of fee waivers, if any | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of all reductions | .75% A | .89% | .92% | .93% | .76% | .57% |
Net investment income (loss) | .93% A | .21% | (.06)% | .10% | .93% | .81% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 11,682 | $ 10,595 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 |
Portfolio turnover rate F | 79% A | 95% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .27 | .17 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 4.80 | .92 | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.30) | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (.68) | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (.98) | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 51.28 | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 10.23% | 2.43% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .60% A | .73% | .76% | .74% | .52% | .41% A |
Net investment income (loss) | 1.08% A | .37% | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,860,076 | $ 2,467,455 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 79% A | 95% | 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 | Years ended July 31, | |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .28 | .19 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | 4.54 | .76 | 10.61 | 5.80 | 2.82 |
Total from investment operations | 4.82 | .95 | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.33) | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (.68) | (1.60) | (.08) K | - | - |
Total distributions | (1.01) | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 51.32 | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | 10.25% | 2.49% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of all reductions | .55% A | .68% | .71% | .68% | .51% A |
Net investment income (loss) | 1.13% A | .42% | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,059,840 | $ 1,756,916 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 79% A | 95% | 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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,869,022 |
Gross unrealized depreciation | (211,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,657,527 |
|
|
Tax cost | $ 13,351,136 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
No expiration |
|
Short-term | $ (7,155) |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $7,546,033 and $6,248,230, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. 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. 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 .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 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 | $ 10,821 | .20 |
Class K | 661 | .05 |
| $ 11,482 |
|
* 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 $140 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 9,561 | .42% | $ 4 |
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 valued at $1,605,000 in exchange for 32,348 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.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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.
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. The value of securities loaned to FCM at period end was $17,402. Security lending
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
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 $4,596, including $370 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 $1,876 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 51,844 | $ 10,644 |
Class K | 16,348 | 2,860 |
Class F | 17,150 | 2,162 |
Total | $ 85,342 | $ 15,666 |
From net realized gain |
|
|
Blue Chip Growth | $ 155,106 | $ 397,250 |
Class K | 36,829 | 51,295 |
Class F | 38,969 | 32,296 |
Total | $ 230,904 | $ 480,841 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 28,001 A | 42,825 | $ 1,389,860 A | $ 1,970,082 |
Reinvestment of distributions | 4,171 | 9,668 | 202,506 | 399,689 |
Shares redeemed | (27,772) | (78,498) | (1,376,422) | (3,530,347) |
Net increase (decrease) | 4,400 | (26,005) | $ 215,944 | $ (1,160,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class K |
|
|
|
|
Shares sold | 8,955 | 29,866 | $ 444,553 | $ 1,366,770 |
Reinvestment of distributions | 1,092 | 1,309 | 53,177 | 54,155 |
Shares redeemed | (6,262) | (9,363) | (310,869) | (426,597) |
Net increase (decrease) | 3,785 | 21,812 | $ 186,861 | $ 994,328 |
Class F |
|
|
|
|
Shares sold | 22,805 A | 19,170 | $ 1,133,822 A | $ 873,960 |
Reinvestment of distributions | 1,153 | 832 | 56,119 | 34,458 |
Shares redeemed | (1,318) | (1,918) | (65,635) | (86,138) |
Net increase (decrease) | 22,640 | 18,084 | $ 1,124,306 | $ 822,280 |
A Amount includes in-kind exchanges (see Note 5: 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, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record in the aggregate of approximately 33% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
BCF-K-USAN-0313 1.863115.104
Fidelity®
Blue Chip Growth
Fund -
Class F
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .77% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,101.50 | $ 4.08 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class K | .63% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.30 | $ 3.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.03 | $ 3.21 |
Class F | .58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.50 | $ 3.07 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.28 | $ 2.96 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 5.9 | 10.4 |
Google, Inc. Class A | 5.9 | 5.4 |
Amazon.com, Inc. | 2.1 | 2.1 |
QUALCOMM, Inc. | 2.0 | 2.1 |
Home Depot, Inc. | 1.8 | 1.0 |
The Coca-Cola Co. | 1.8 | 2.1 |
Procter & Gamble Co. | 1.7 | 0.6 |
Gilead Sciences, Inc. | 1.7 | 0.9 |
Philip Morris International, Inc. | 1.5 | 1.6 |
MasterCard, Inc. Class A | 1.5 | 1.3 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 31.9 | 36.8 |
Consumer Discretionary | 20.9 | 21.1 |
Consumer Staples | 15.2 | 14.1 |
Industrials | 10.9 | 8.5 |
Health Care | 10.5 | 9.3 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 99.9% |
| ![]() | Stocks 99.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 9.5% |
| ** Foreign investments | 9.7% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 20.4% | |||
Auto Components - 0.1% | |||
Lear Corp. | 180,500 | $ 8,845 | |
Automobiles - 1.0% | |||
Ford Motor Co. | 2,635,600 | 34,131 | |
General Motors Co. (a) | 403,100 | 11,323 | |
Tesla Motors, Inc. (a)(d) | 3,481,664 | 130,597 | |
| 176,051 | ||
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. | 33,635 | 942 | |
Kroton Educacional SA (a) | 590,000 | 14,488 | |
| 15,430 | ||
Hotels, Restaurants & Leisure - 2.9% | |||
Alsea SAB de CV | 1,558,700 | 3,614 | |
Chipotle Mexican Grill, Inc. (a) | 65,200 | 20,017 | |
Dunkin' Brands Group, Inc. | 693,900 | 25,334 | |
Hyatt Hotels Corp. Class A (a) | 395,297 | 15,840 | |
Jubilant Foodworks Ltd. (a) | 288,917 | 6,511 | |
Las Vegas Sands Corp. | 1,875,300 | 103,610 | |
McDonald's Corp. | 337,130 | 32,125 | |
Panera Bread Co. Class A (a) | 492,500 | 78,706 | |
Starbucks Corp. | 3,598,800 | 201,965 | |
Wyndham Worldwide Corp. | 491,627 | 27,428 | |
| 515,150 | ||
Household Durables - 1.1% | |||
D.R. Horton, Inc. | 318,000 | 7,524 | |
KB Home | 386,200 | 7,365 | |
SodaStream International Ltd. (a) | 286,400 | 13,773 | |
Toll Brothers, Inc. (a) | 422,700 | 15,830 | |
Whirlpool Corp. | 1,249,778 | 144,199 | |
| 188,691 | ||
Internet & Catalog Retail - 3.2% | |||
Amazon.com, Inc. (a) | 1,404,000 | 372,762 | |
Netflix, Inc. (a)(d) | 294,900 | 48,729 | |
priceline.com, Inc. (a) | 205,100 | 140,590 | |
TripAdvisor, Inc. (a) | 129,800 | 6,007 | |
| 568,088 | ||
Leisure Equipment & Products - 0.2% | |||
Brunswick Corp. | 788,900 | 28,527 | |
Media - 2.0% | |||
Comcast Corp. Class A | 4,866,000 | 185,297 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Media - continued | |||
News Corp. Class A | 2,196,200 | $ 60,923 | |
The Walt Disney Co. | 908,900 | 48,972 | |
Time Warner Cable, Inc. | 174,500 | 15,590 | |
Time Warner, Inc. | 930,800 | 47,024 | |
| 357,806 | ||
Multiline Retail - 0.8% | |||
J.C. Penney Co., Inc. | 3,855,400 | 78,380 | |
Macy's, Inc. | 1,685,100 | 66,578 | |
| 144,958 | ||
Specialty Retail - 5.8% | |||
Abercrombie & Fitch Co. Class A | 2,144,700 | 107,235 | |
AutoZone, Inc. (a) | 33,300 | 12,311 | |
CarMax, Inc. (a) | 810,200 | 31,938 | |
Five Below, Inc. | 138,422 | 5,122 | |
Foot Locker, Inc. | 248,700 | 8,543 | |
Home Depot, Inc. | 4,811,700 | 321,999 | |
Limited Brands, Inc. | 2,105,800 | 101,121 | |
Lowe's Companies, Inc. | 3,706,500 | 141,551 | |
Ross Stores, Inc. | 1,331,200 | 79,473 | |
Tile Shop Holdings, Inc. (a) | 198,300 | 3,647 | |
TJX Companies, Inc. | 2,882,680 | 130,239 | |
Urban Outfitters, Inc. (a) | 1,966,700 | 84,155 | |
| 1,027,334 | ||
Textiles, Apparel & Luxury Goods - 3.2% | |||
Arezzo Industria e Comercio SA | 1,646,000 | 30,997 | |
Fifth & Pacific Companies, Inc. (a) | 236,600 | 3,573 | |
Fossil, Inc. (a) | 644,319 | 68,027 | |
lululemon athletica, Inc. (a) | 451,780 | 31,173 | |
Michael Kors Holdings Ltd. (a) | 2,601,937 | 146,047 | |
NIKE, Inc. Class B | 1,771,400 | 95,744 | |
Prada SpA | 2,174,900 | 19,546 | |
PVH Corp. | 813,900 | 96,748 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 1,257,700 | 23,896 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 866,600 | 44,084 | |
| 559,835 | ||
TOTAL CONSUMER DISCRETIONARY | 3,590,715 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 15.2% | |||
Beverages - 3.4% | |||
Anheuser-Busch InBev SA NV ADR | 788,100 | $ 69,826 | |
Beam, Inc. | 285,100 | 17,488 | |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 716,400 | 23,183 | |
Heineken NV (Bearer) | 122,600 | 8,621 | |
Monster Beverage Corp. (a) | 706,100 | 33,822 | |
PepsiCo, Inc. | 1,766,300 | 128,675 | |
SABMiller PLC | 181,900 | 9,088 | |
The Coca-Cola Co. | 8,343,600 | 310,716 | |
| 601,419 | ||
Food & Staples Retailing - 3.3% | |||
Costco Wholesale Corp. | 1,411,700 | 144,473 | |
CVS Caremark Corp. | 3,018,600 | 154,552 | |
Wal-Mart Stores, Inc. | 1,289,600 | 90,208 | |
Walgreen Co. | 2,466,900 | 98,577 | |
Whole Foods Market, Inc. | 943,800 | 90,841 | |
| 578,651 | ||
Food Products - 3.5% | |||
Associated British Foods PLC | 592,900 | 16,447 | |
Bunge Ltd. | 412,100 | 32,828 | |
ConAgra Foods, Inc. | 1,012,900 | 33,112 | |
Danone SA | 658,200 | 45,615 | |
Green Mountain Coffee Roasters, Inc. (a)(d) | 5,106,564 | 232,502 | |
Hain Celestial Group, Inc. (a) | 160,300 | 9,135 | |
Ingredion, Inc. | 139,000 | 9,184 | |
Kellogg Co. | 926,400 | 54,194 | |
Mead Johnson Nutrition Co. Class A | 669,300 | 50,867 | |
Mondelez International, Inc. | 574,700 | 15,971 | |
The Hershey Co. | 993,500 | 78,934 | |
The J.M. Smucker Co. | 253,900 | 22,503 | |
Unilever NV (NY Reg.) | 531,700 | 21,523 | |
| 622,815 | ||
Household Products - 2.0% | |||
Colgate-Palmolive Co. | 316,200 | 33,950 | |
Procter & Gamble Co. | 3,920,100 | 294,635 | |
Reckitt Benckiser Group PLC | 387,351 | 25,815 | |
| 354,400 | ||
Personal Products - 0.4% | |||
Herbalife Ltd. | 1,918,991 | 69,698 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Tobacco - 2.6% | |||
Altria Group, Inc. | 2,069,500 | $ 69,701 | |
British American Tobacco PLC (United Kingdom) | 146,800 | 7,629 | |
Lorillard, Inc. | 2,868,900 | 112,088 | |
Philip Morris International, Inc. | 2,939,800 | 259,173 | |
| 448,591 | ||
TOTAL CONSUMER STAPLES | 2,675,574 | ||
ENERGY - 4.1% | |||
Energy Equipment & Services - 1.3% | |||
Cameron International Corp. (a) | 402,500 | 25,482 | |
Ensco PLC Class A | 591,100 | 37,576 | |
Halliburton Co. | 1,490,800 | 60,646 | |
Schlumberger Ltd. | 1,443,500 | 112,665 | |
| 236,369 | ||
Oil, Gas & Consumable Fuels - 2.8% | |||
Alpha Natural Resources, Inc. (a) | 396,500 | 3,513 | |
Anadarko Petroleum Corp. | 1,352,600 | 108,235 | |
Canadian Natural Resources Ltd. | 576,000 | 17,394 | |
Cobalt International Energy, Inc. (a) | 654,900 | 15,855 | |
Concho Resources, Inc. (a) | 296,400 | 27,038 | |
Continental Resources, Inc. (a) | 304,500 | 25,310 | |
EOG Resources, Inc. | 486,700 | 60,828 | |
Hess Corp. | 638,100 | 42,855 | |
Marathon Petroleum Corp. | 302,200 | 22,426 | |
Murphy Oil Corp. | 356,200 | 21,201 | |
Occidental Petroleum Corp. | 235,800 | 20,814 | |
Peabody Energy Corp. | 873,300 | 21,963 | |
Phillips 66 | 155,800 | 9,437 | |
Pioneer Natural Resources Co. | 578,400 | 67,985 | |
Rosetta Resources, Inc. (a) | 69,700 | 3,695 | |
Western Gas Equity Partners LP | 594,900 | 20,084 | |
| 488,633 | ||
TOTAL ENERGY | 725,002 | ||
FINANCIALS - 3.8% | |||
Capital Markets - 1.1% | |||
Ameriprise Financial, Inc. | 79,100 | 5,246 | |
Apollo Global Management LLC Class A | 591,100 | 13,164 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
BlackRock, Inc. Class A | 83,200 | $ 19,658 | |
E*TRADE Financial Corp. (a) | 533,500 | 5,660 | |
KKR & Co. LP | 1,117,800 | 18,868 | |
Morgan Stanley | 3,838,012 | 87,699 | |
Och-Ziff Capital Management Group LLC Class A | 373,000 | 3,693 | |
The Blackstone Group LP | 843,700 | 15,608 | |
UBS AG (NY Shares) | 887,300 | 15,412 | |
Walter Investment Management Corp. (a) | 259,100 | 11,610 | |
| 196,618 | ||
Commercial Banks - 0.1% | |||
Axis Bank Ltd. | 470,931 | 13,305 | |
ICICI Bank Ltd. | 588,272 | 13,116 | |
| 26,421 | ||
Diversified Financial Services - 1.9% | |||
Bank of America Corp. | 2,932,300 | 33,194 | |
Citigroup, Inc. | 4,422,720 | 186,462 | |
CME Group, Inc. | 165,100 | 9,549 | |
JPMorgan Chase & Co. | 2,182,900 | 102,705 | |
| 331,910 | ||
Insurance - 0.3% | |||
American Financial Group, Inc. | 77,000 | 3,277 | |
American International Group, Inc. (a) | 255,000 | 9,647 | |
Berkshire Hathaway, Inc. Class B (a) | 248,300 | 24,068 | |
Hartford Financial Services Group, Inc. | 587,800 | 14,577 | |
| 51,569 | ||
Real Estate Investment Trusts - 0.1% | |||
Weyerhaeuser Co. | 400,200 | 12,054 | |
Real Estate Management & Development - 0.2% | |||
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | 16,755 | |
Realogy Holdings Corp. | 450,000 | 20,147 | |
| 36,902 | ||
Thrifts & Mortgage Finance - 0.1% | |||
Housing Development Finance Corp. Ltd. (a) | 204,856 | 3,024 | |
Nationstar Mortgage Holdings, Inc. (d) | 285,200 | 10,293 | |
Ocwen Financial Corp. (a) | 99,600 | 3,881 | |
| 17,198 | ||
TOTAL FINANCIALS | 672,672 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 10.5% | |||
Biotechnology - 6.2% | |||
Alexion Pharmaceuticals, Inc. (a) | 665,000 | $ 62,503 | |
Alkermes PLC (a) | 917,100 | 21,139 | |
Alnylam Pharmaceuticals, Inc. (a) | 547,163 | 13,203 | |
Amgen, Inc. | 2,286,700 | 195,421 | |
ARIAD Pharmaceuticals, Inc. (a) | 1,869,700 | 37,170 | |
Biogen Idec, Inc. (a) | 1,058,200 | 165,164 | |
BioMarin Pharmaceutical, Inc. (a) | 288,700 | 15,847 | |
Celgene Corp. (a) | 428,200 | 42,375 | |
Clovis Oncology, Inc. (a) | 195,300 | 3,855 | |
CSL Ltd. | 66,241 | 3,795 | |
Exelixis, Inc. (a) | 3,668,800 | 17,097 | |
Gilead Sciences, Inc. (a) | 7,354,200 | 290,123 | |
Grifols SA (a) | 330,400 | 11,238 | |
Grifols SA: | |||
ADR | 292,845 | 7,793 | |
Class B (a) | 16,520 | 438 | |
Infinity Pharmaceuticals, Inc. (a) | 431,000 | 14,848 | |
InterMune, Inc. (a)(d) | 2,356,200 | 23,209 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 473,000 | 6,064 | |
Medivation, Inc. (a) | 299,000 | 16,254 | |
Merrimack Pharmaceuticals, Inc. | 2,407,858 | 14,616 | |
Onyx Pharmaceuticals, Inc. (a) | 378,300 | 29,326 | |
Regeneron Pharmaceuticals, Inc. (a) | 349,800 | 60,844 | |
Seattle Genetics, Inc. (a) | 179,200 | 5,277 | |
Spectrum Pharmaceuticals, Inc. (d) | 1,675,200 | 21,124 | |
Synageva BioPharma Corp. (a) | 180,700 | 8,359 | |
ZIOPHARM Oncology, Inc. (a) | 1,626,700 | 6,458 | |
| 1,093,540 | ||
Health Care Equipment & Supplies - 1.1% | |||
Abbott Laboratories | 390,100 | 13,217 | |
Alere, Inc. (a) | 577,400 | 12,276 | |
Baxter International, Inc. | 403,900 | 27,401 | |
Boston Scientific Corp. (a) | 2,569,100 | 19,191 | |
Edwards Lifesciences Corp. (a) | 157,700 | 14,182 | |
Insulet Corp. (a) | 310,600 | 7,166 | |
Intuitive Surgical, Inc. (a) | 16,900 | 9,707 | |
The Cooper Companies, Inc. | 865,272 | 87,695 | |
| 190,835 | ||
Health Care Providers & Services - 0.2% | |||
Air Methods Corp. | 100,000 | 4,372 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Apollo Hospitals Enterprise Ltd. | 936,371 | $ 14,210 | |
Catamaran Corp. (a) | 226,100 | 11,732 | |
Qualicorp SA (a) | 1,151,000 | 11,907 | |
| 42,221 | ||
Health Care Technology - 0.2% | |||
athenahealth, Inc. (a)(d) | 154,575 | 13,366 | |
Cerner Corp. (a) | 168,400 | 13,901 | |
| 27,267 | ||
Life Sciences Tools & Services - 0.1% | |||
Agilent Technologies, Inc. | 282,400 | 12,646 | |
Pharmaceuticals - 2.7% | |||
AbbVie, Inc. | 390,100 | 14,313 | |
Actavis, Inc. (a) | 168,500 | 14,557 | |
Allergan, Inc. | 363,800 | 38,203 | |
AVANIR Pharmaceuticals Class A (a) | 2,885,556 | 8,426 | |
Hospira, Inc. (a) | 304,100 | 10,376 | |
Johnson & Johnson | 1,963,040 | 145,108 | |
Merck & Co., Inc. | 784,000 | 33,908 | |
Novo Nordisk A/S Series B sponsored ADR | 38,700 | 7,134 | |
Pfizer, Inc. | 3,393,700 | 92,580 | |
Questcor Pharmaceuticals, Inc. (d) | 611,352 | 15,577 | |
Sanofi SA sponsored ADR | 160,900 | 7,833 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 1,378,900 | 91,438 | |
Zoetis, Inc. Class A | 150,800 | 3,921 | |
| 483,374 | ||
TOTAL HEALTH CARE | 1,849,883 | ||
INDUSTRIALS - 10.9% | |||
Aerospace & Defense - 2.4% | |||
Honeywell International, Inc. | 814,900 | 55,609 | |
Precision Castparts Corp. | 624,800 | 114,588 | |
The Boeing Co. | 276,000 | 20,388 | |
United Technologies Corp. | 2,712,700 | 237,551 | |
| 428,136 | ||
Air Freight & Logistics - 0.8% | |||
C.H. Robinson Worldwide, Inc. | 131,500 | 8,699 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Air Freight & Logistics - continued | |||
FedEx Corp. | 472,400 | $ 47,925 | |
United Parcel Service, Inc. Class B | 1,131,300 | 89,701 | |
| 146,325 | ||
Airlines - 0.2% | |||
US Airways Group, Inc. (a) | 2,887,100 | 41,228 | |
Building Products - 0.7% | |||
Armstrong World Industries, Inc. | 1,119,400 | 61,556 | |
Masco Corp. | 3,298,300 | 60,656 | |
| 122,212 | ||
Commercial Services & Supplies - 0.0% | |||
Swisher Hygiene, Inc. (a) | 2,095,491 | 2,829 | |
Construction & Engineering - 0.2% | |||
Quanta Services, Inc. (a) | 823,800 | 23,865 | |
Electrical Equipment - 0.5% | |||
Eaton Corp. PLC | 1,295,800 | 73,796 | |
Hubbell, Inc. Class B | 40,000 | 3,642 | |
SolarCity Corp. (d) | 700,000 | 10,234 | |
| 87,672 | ||
Industrial Conglomerates - 1.2% | |||
Carlisle Companies, Inc. | 113,700 | 7,294 | |
Danaher Corp. | 2,729,200 | 163,561 | |
General Electric Co. | 1,893,200 | 42,180 | |
| 213,035 | ||
Machinery - 3.0% | |||
Briggs & Stratton Corp. | 1,173,100 | 27,838 | |
Caterpillar, Inc. | 1,064,000 | 104,687 | |
Cummins, Inc. | 1,450,700 | 166,584 | |
Harsco Corp. | 151,500 | 3,862 | |
Illinois Tool Works, Inc. | 1,341,216 | 84,269 | |
Ingersoll-Rand PLC | 1,271,400 | 65,337 | |
Manitowoc Co., Inc. | 1,227,900 | 21,611 | |
PACCAR, Inc. | 487,700 | 22,951 | |
SPX Corp. | 302,300 | 22,561 | |
| 519,700 | ||
Professional Services - 0.5% | |||
Equifax, Inc. | 626,800 | 36,793 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Manpower, Inc. | 745,377 | $ 38,387 | |
Verisk Analytics, Inc. (a) | 61,900 | 3,414 | |
| 78,594 | ||
Road & Rail - 1.2% | |||
Canadian Pacific | 569,200 | 65,714 | |
Con-way, Inc. | 384,300 | 12,059 | |
J.B. Hunt Transport Services, Inc. | 56,400 | 3,794 | |
Ryder System, Inc. | 228,000 | 12,946 | |
Union Pacific Corp. | 853,000 | 112,135 | |
| 206,648 | ||
Trading Companies & Distributors - 0.2% | |||
Mills Estruturas e Servicos de Engenharia SA | 827,400 | 13,919 | |
United Rentals, Inc. (a) | 71,200 | 3,604 | |
WESCO International, Inc. (a) | 305,300 | 22,266 | |
| 39,789 | ||
TOTAL INDUSTRIALS | 1,910,033 | ||
INFORMATION TECHNOLOGY - 31.9% | |||
Communications Equipment - 2.8% | |||
Alcatel-Lucent SA (a)(d) | 12,103,095 | 20,225 | |
Alcatel-Lucent SA sponsored ADR (a)(d) | 6,075,605 | 10,086 | |
Cisco Systems, Inc. | 1,316,200 | 27,074 | |
Finisar Corp. (a) | 489,300 | 7,584 | |
Juniper Networks, Inc. (a) | 2,865,600 | 64,132 | |
Motorola Solutions, Inc. | 94,500 | 5,518 | |
QUALCOMM, Inc. | 5,409,100 | 357,163 | |
| 491,782 | ||
Computers & Peripherals - 7.0% | |||
3D Systems Corp. (a)(d) | 148,500 | 8,591 | |
Apple, Inc. | 2,281,600 | 1,038,832 | |
Dell, Inc. | 2,047,200 | 27,105 | |
EMC Corp. (a) | 2,624,100 | 64,579 | |
Fusion-io, Inc. (a) | 850,106 | 14,860 | |
Hewlett-Packard Co. | 1,165,300 | 19,239 | |
NetApp, Inc. (a) | 194,500 | 7,002 | |
SanDisk Corp. (a) | 794,600 | 39,722 | |
Stratasys Ltd. (a) | 93,000 | 7,299 | |
| 1,227,229 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 8.7% | |||
Cornerstone OnDemand, Inc. (a) | 149,200 | $ 4,876 | |
Dropbox, Inc. (f) | 1,003,814 | 9,084 | |
eBay, Inc. (a) | 3,425,200 | 191,571 | |
Facebook, Inc. Class A | 4,101,667 | 127,029 | |
Google, Inc. Class A (a) | 1,366,567 | 1,032,701 | |
LinkedIn Corp. (a) | 330,500 | 40,913 | |
Qihoo 360 Technology Co. Ltd. ADR (a) | 258,000 | 7,887 | |
SINA Corp. (a) | 199,492 | 10,958 | |
Tencent Holdings Ltd. | 1,171,500 | 40,997 | |
Yahoo!, Inc. (a) | 2,406,000 | 47,230 | |
Yelp, Inc. (d) | 525,200 | 11,155 | |
| 1,524,401 | ||
IT Services - 3.6% | |||
Cognizant Technology Solutions Corp. Class A (a) | 1,759,900 | 137,589 | |
IBM Corp. | 39,900 | 8,102 | |
MasterCard, Inc. Class A | 497,800 | 258,060 | |
Visa, Inc. Class A | 1,475,300 | 232,965 | |
| 636,716 | ||
Semiconductors & Semiconductor Equipment - 4.7% | |||
Altera Corp. | 3,552,800 | 118,735 | |
Atmel Corp. (a) | 2,588,400 | 17,342 | |
Avago Technologies Ltd. | 1,903,500 | 68,088 | |
Broadcom Corp. Class A | 6,125,300 | 198,766 | |
Cavium, Inc. (a) | 325,700 | 10,891 | |
Cree, Inc. (a) | 581,000 | 25,070 | |
Freescale Semiconductor Holdings I Ltd. (a)(d) | 4,338,910 | 62,697 | |
Intersil Corp. Class A | 3,319,364 | 28,712 | |
Mellanox Technologies Ltd. (a) | 369,900 | 19,686 | |
Micron Technology, Inc. (a) | 2,089,200 | 15,794 | |
Monolithic Power Systems, Inc. | 1,036,860 | 24,159 | |
NXP Semiconductors NV (a) | 5,584,335 | 167,474 | |
PMC-Sierra, Inc. (a) | 2,524,300 | 14,590 | |
Samsung Electronics Co. Ltd. | 28,313 | 37,681 | |
STMicroelectronics NV | 1,024,500 | 8,857 | |
STMicroelectronics NV (NY Shares) unit (d) | 1,817,000 | 15,681 | |
| 834,223 | ||
Software - 5.1% | |||
Activision Blizzard, Inc. | 4,771,500 | 54,347 | |
Allot Communications Ltd. (a) | 200,000 | 2,758 | |
Check Point Software Technologies Ltd. (a) | 243,400 | 12,170 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Citrix Systems, Inc. (a) | 746,800 | $ 54,636 | |
Electronic Arts, Inc. (a) | 4,830,200 | 75,979 | |
Guidewire Software, Inc. | 248,300 | 8,224 | |
Microsoft Corp. | 5,246,689 | 144,127 | |
Oracle Corp. | 3,052,000 | 108,377 | |
QLIK Technologies, Inc. (a) | 767,063 | 17,036 | |
Qualys, Inc. | 585,400 | 7,669 | |
Red Hat, Inc. (a) | 1,115,700 | 61,988 | |
salesforce.com, Inc. (a) | 1,340,065 | 230,665 | |
ServiceNow, Inc. (d) | 522,500 | 14,484 | |
Splunk, Inc. | 196,000 | 6,460 | |
Take-Two Interactive Software, Inc. (a) | 1,728,900 | 21,041 | |
Ubisoft Entertainment SA (a) | 881,104 | 8,506 | |
VMware, Inc. Class A (a) | 681,500 | 52,121 | |
Workday, Inc. | 222,900 | 11,907 | |
Zynga, Inc. (a) | 1,073,100 | 2,908 | |
| 895,403 | ||
TOTAL INFORMATION TECHNOLOGY | 5,609,754 | ||
MATERIALS - 2.5% | |||
Chemicals - 2.2% | |||
Airgas, Inc. | 37,000 | 3,524 | |
Albemarle Corp. | 215,600 | 13,218 | |
Ashland, Inc. | 505,900 | 39,718 | |
Axiall Corp. (d) | 421,300 | 23,669 | |
Eastman Chemical Co. | 616,500 | 43,864 | |
LyondellBasell Industries NV Class A | 757,900 | 48,066 | |
Mexichem SAB de CV | 3,322,800 | 18,795 | |
Monsanto Co. | 1,754,600 | 177,829 | |
The Dow Chemical Co. | 403,800 | 13,002 | |
Westlake Chemical Corp. | 139,000 | 12,769 | |
| 394,454 | ||
Construction Materials - 0.2% | |||
Eagle Materials, Inc. | 103,200 | 6,684 | |
Vulcan Materials Co. | 393,700 | 22,268 | |
| 28,952 | ||
Metals & Mining - 0.1% | |||
Vale SA sponsored ADR | 842,500 | 16,993 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Paper & Forest Products - 0.0% | |||
International Paper Co. | 186,000 | $ 7,704 | |
TOTAL MATERIALS | 448,103 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 122,700 | 9,209 | |
TOTAL COMMON STOCKS (Cost $12,819,917) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Automobiles - 0.5% | |||
Volkswagen AG | 399,200 | 98,731 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $45,989) |
| ||
Money Market Funds - 2.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 56,139,834 | 56,140 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 362,846,828 | 362,847 | |
TOTAL MONEY MARKET FUNDS (Cost $418,987) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $13,284,893) | 18,008,663 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (406,939) | ||
NET ASSETS - 100% | $ 17,601,724 |
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 $9,084,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Dropbox, Inc. | 5/2/12 | $ 9,084 |
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 | $ 31 |
Fidelity Securities Lending Cash Central Fund | 4,596 |
Total | $ 4,627 |
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, |
Parsvnath Developers Ltd. | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Total | $ 15,302 | $ - | $ - | $ - | $ 16,755 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 3,689,446 | $ 3,689,446 | $ - | $ - |
Consumer Staples | 2,675,574 | 2,667,945 | 7,629 | - |
Energy | 725,002 | 725,002 | - | - |
Financials | 672,672 | 659,556 | 13,116 | - |
Health Care | 1,849,883 | 1,849,883 | - | - |
Industrials | 1,910,033 | 1,907,204 | 2,829 | - |
Information Technology | 5,609,754 | 5,571,588 | 29,082 | 9,084 |
Materials | 448,103 | 448,103 | - | - |
Utilities | 9,209 | 9,209 | - | - |
Money Market Funds | 418,987 | 418,987 | - | - |
Total Investments in Securities: | $ 18,008,663 | $ 17,946,923 | $ 52,656 | $ 9,084 |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $357,634) - See accompanying schedule: Unaffiliated issuers (cost $12,835,055) | $ 17,572,921 |
|
Fidelity Central Funds (cost $418,987) | 418,987 |
|
Other affiliated issuers (cost $30,851) | 16,755 |
|
Total Investments (cost $13,284,893) |
| $ 18,008,663 |
Receivable for investments sold | 138,541 | |
Receivable for fund shares sold | 14,457 | |
Dividends receivable | 7,023 | |
Distributions receivable from Fidelity Central Funds | 926 | |
Prepaid expenses | 36 | |
Other receivables | 1,696 | |
Total assets | 18,171,342 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 10,901 | |
Payable for investments purchased | 161,492 | |
Payable for fund shares redeemed | 23,462 | |
Accrued management fee | 8,180 | |
Other affiliated payables | 2,104 | |
Other payables and accrued expenses | 632 | |
Collateral on securities loaned, at value | 362,847 | |
Total liabilities | 569,618 | |
|
|
|
Net Assets | $ 17,601,724 | |
Net Assets consist of: |
| |
Paid in capital | $ 12,695,247 | |
Undistributed net investment income | 3,237 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 179,372 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 4,723,868 | |
Net Assets | $ 17,601,724 |
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, 2013 (Unaudited) | |
|
|
|
Blue Chip Growth: | $ 51.23 | |
|
|
|
Class K: | $ 51.28 | |
|
|
|
Class F: | $ 51.32 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 128,876 |
Income from Fidelity Central Funds |
| 4,627 |
Total income |
| 133,503 |
|
|
|
Expenses | ||
Management fee | $ 44,197 | |
Performance adjustment | 256 | |
Transfer agent fees | 11,482 | |
Accounting and security lending fees | 785 | |
Custodian fees and expenses | 177 | |
Independent trustees' compensation | 52 | |
Registration fees | 71 | |
Audit | 58 | |
Legal | 43 | |
Interest | 4 | |
Miscellaneous | 60 | |
Total expenses before reductions | 57,185 | |
Expense reductions | (1,876) | 55,309 |
Net investment income (loss) | 78,194 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 493,970 | |
Foreign currency transactions | (404) | |
Total net realized gain (loss) |
| 493,566 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 999,259 | |
Assets and liabilities in foreign currencies | 126 | |
Total change in net unrealized appreciation (depreciation) |
| 999,385 |
Net gain (loss) | 1,492,951 | |
Net increase (decrease) in net assets resulting from operations | $ 1,571,145 |
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) | $ 78,194 | $ 35,383 |
Net realized gain (loss) | 493,566 | (37,431) |
Change in net unrealized appreciation (depreciation) | 999,385 | 271,789 |
Net increase (decrease) in net assets resulting | 1,571,145 | 269,741 |
Distributions to shareholders from net investment income | (85,342) | (15,666) |
Distributions to shareholders from net realized gain | (230,904) | (480,841) |
Total distributions | (316,246) | (496,507) |
Share transactions - net increase (decrease) | 1,527,111 | 656,032 |
Total increase (decrease) in net assets | 2,782,010 | 429,266 |
|
|
|
Net Assets | ||
Beginning of period | 14,819,714 | 14,390,448 |
End of period (including undistributed net investment income of $3,237 and undistributed net investment income of $10,385, respectively) | $ 17,601,724 | $ 14,819,714 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 | $ 46.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .23 | .10 | (.03) | .04 | .27 | .35 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.61 | 5.80 | (6.36) | (2.89) |
Total from investment operations | 4.76 | .85 | 10.58 | 5.84 | (6.09) | (2.54) |
Distributions from net investment income | (.23) | (.04) | (.00) H, I | (.18) | (.29) | (.33) |
Distributions from net realized gain | (.68) | (1.60) | (.04) I | - | (.71) | (4.95) |
Total distributions | (.91) | (1.64) | (.04) | (.18) | (1.00) | (5.28) |
Net asset value, end of period | $ 51.23 | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 | $ 39.06 |
Total Return B, C | 10.15% | 2.27% | 28.12% | 18.29% | (15.85)% | (6.30)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of fee waivers, if any | .77% A | .90% | .94% | .94% | .76% | .58% |
Expenses net of all reductions | .75% A | .89% | .92% | .93% | .76% | .57% |
Net investment income (loss) | .93% A | .21% | (.06)% | .10% | .93% | .81% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 11,682 | $ 10,595 | $ 12,024 | $ 10,295 | $ 9,691 | $ 13,349 |
Portfolio turnover rate F | 79% A | 95% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 | $ 41.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .27 | .17 | .05 | .11 | .32 | .10 |
Net realized and unrealized gain (loss) | 4.53 | .75 | 10.62 | 5.79 | (6.33) | (2.84) |
Total from investment operations | 4.80 | .92 | 10.67 | 5.90 | (6.01) | (2.74) |
Distributions from net investment income | (.30) | (.08) | (.05) J | (.25) | (.34) | - |
Distributions from net realized gain | (.68) | (1.60) | (.07) J | - | (.71) | - |
Total distributions | (.98) | (1.67) I | (.12) | (.25) | (1.05) | - |
Net asset value, end of period | $ 51.28 | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 | $ 39.07 |
Total Return B, C | 10.23% | 2.43% | 28.37% | 18.48% | (15.61)% | (6.55)% |
Ratios to Average Net Assets E, H |
|
|
|
|
| |
Expenses before reductions | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of fee waivers, if any | .63% A | .74% | .77% | .75% | .53% | .41% A |
Expenses net of all reductions | .60% A | .73% | .76% | .74% | .52% | .41% A |
Net investment income (loss) | 1.08% A | .37% | .11% | .30% | 1.16% | 1.09% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,860,076 | $ 2,467,455 | $ 1,454,854 | $ 931,601 | $ 590,673 | $ 93 |
Portfolio turnover rate F | 79% A | 95% | 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 | Years ended July 31, | |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 G |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 | $ 29.16 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .28 | .19 | .07 | .13 | - I |
Net realized and unrealized gain (loss) | 4.54 | .76 | 10.61 | 5.80 | 2.82 |
Total from investment operations | 4.82 | .95 | 10.68 | 5.93 | 2.82 |
Distributions from net investment income | (.33) | (.08) | (.06) K | (.22) | - |
Distributions from net realized gain | (.68) | (1.60) | (.08) K | - | - |
Total distributions | (1.01) | (1.68) | (.13) J | (.22) | - |
Net asset value, end of period | $ 51.32 | $ 47.51 | $ 48.24 | $ 37.69 | $ 31.98 |
Total Return B, C | 10.25% | 2.49% | 28.41% | 18.59% | 9.67% |
Ratios to Average Net Assets E, H |
|
|
|
| |
Expenses before reductions | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of fee waivers, if any | .58% A | .69% | .72% | .70% | .51% A |
Expenses net of all reductions | .55% A | .68% | .71% | .68% | .51% A |
Net investment income (loss) | 1.13% A | .42% | .16% | .35% | (.05)% A |
Supplemental Data |
|
|
|
| |
Net assets, end of period (000 omitted) | $ 3,059,840 | $ 1,756,916 | $ 911,556 | $ 321,409 | $ 261 |
Portfolio turnover rate F | 79% A | 95% | 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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,869,022 |
Gross unrealized depreciation | (211,495) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,657,527 |
|
|
Tax cost | $ 13,351,136 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
No expiration |
|
Short-term | $ (7,155) |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $7,546,033 and $6,248,230, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. 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. 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 .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 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 | $ 10,821 | .20 |
Class K | 661 | .05 |
| $ 11,482 |
|
* 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 $140 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 9,561 | .42% | $ 4 |
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 valued at $1,605,000 in exchange for 32,348 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.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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.
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. The value of securities loaned to FCM at period end was $17,402. Security lending
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
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 $4,596, including $370 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 $1,876 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Blue Chip Growth | $ 51,844 | $ 10,644 |
Class K | 16,348 | 2,860 |
Class F | 17,150 | 2,162 |
Total | $ 85,342 | $ 15,666 |
From net realized gain |
|
|
Blue Chip Growth | $ 155,106 | $ 397,250 |
Class K | 36,829 | 51,295 |
Class F | 38,969 | 32,296 |
Total | $ 230,904 | $ 480,841 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Blue Chip Growth |
|
|
|
|
Shares sold | 28,001 A | 42,825 | $ 1,389,860 A | $ 1,970,082 |
Reinvestment of distributions | 4,171 | 9,668 | 202,506 | 399,689 |
Shares redeemed | (27,772) | (78,498) | (1,376,422) | (3,530,347) |
Net increase (decrease) | 4,400 | (26,005) | $ 215,944 | $ (1,160,576) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class K |
|
|
|
|
Shares sold | 8,955 | 29,866 | $ 444,553 | $ 1,366,770 |
Reinvestment of distributions | 1,092 | 1,309 | 53,177 | 54,155 |
Shares redeemed | (6,262) | (9,363) | (310,869) | (426,597) |
Net increase (decrease) | 3,785 | 21,812 | $ 186,861 | $ 994,328 |
Class F |
|
|
|
|
Shares sold | 22,805 A | 19,170 | $ 1,133,822 A | $ 873,960 |
Reinvestment of distributions | 1,153 | 832 | 56,119 | 34,458 |
Shares redeemed | (1,318) | (1,918) | (65,635) | (86,138) |
Net increase (decrease) | 22,640 | 18,084 | $ 1,124,306 | $ 822,280 |
A Amount includes in-kind exchanges (see Note 5: 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, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record in the aggregate of approximately 33% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
BCF-F-SANN-0313 1.891666.103
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .64% | $ 1,000.00 | $ 1,158.10 | $ 3.48 |
Hypothetical (5% return per year before expenses) |
| $ 1,000.00 | $ 1,021.98 | $ 3.26 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
General Electric Co. | 4.4 | 4.0 |
Pfizer, Inc. | 4.3 | 4.4 |
Merck & Co., Inc. | 4.3 | 3.5 |
Citigroup, Inc. | 3.5 | 2.7 |
Chevron Corp. | 3.0 | 3.3 |
Exxon Mobil Corp. | 2.8 | 4.3 |
Anadarko Petroleum Corp. | 2.6 | 2.4 |
Aozora Bank Ltd. | 2.6 | 2.6 |
Textron, Inc. | 2.3 | 1.9 |
Procter & Gamble Co. | 2.3 | 1.2 |
| 32.1 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 26.4 | 24.3 |
Energy | 14.3 | 15.7 |
Health Care | 11.9 | 15.2 |
Information Technology | 10.7 | 9.8 |
Industrials | 7.8 | 6.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 95.6% |
| ![]() | Stocks 96.6% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.9% |
| ** Foreign investments | 9.3% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.6% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 6.9% | |||
Diversified Consumer Services - 2.3% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 154,380 | $ 3,121,564 | |
DeVry, Inc. (d) | 111,831 | 2,814,786 | |
| 5,936,350 | ||
Household Durables - 1.1% | |||
Garmin Ltd. (d) | 70,974 | 2,689,205 | |
Media - 2.5% | |||
DISH Network Corp. Class A | 65,052 | 2,424,488 | |
Washington Post Co. Class B (d) | 10,575 | 4,078,566 | |
| 6,503,054 | ||
Multiline Retail - 1.0% | |||
J.C. Penney Co., Inc. (d) | 128,736 | 2,617,203 | |
TOTAL CONSUMER DISCRETIONARY | 17,745,812 | ||
CONSUMER STAPLES - 7.5% | |||
Beverages - 0.2% | |||
PepsiCo, Inc. | 8,736 | 636,418 | |
Food & Staples Retailing - 1.9% | |||
CVS Caremark Corp. | 51,113 | 2,616,986 | |
Wal-Mart Stores, Inc. | 33,081 | 2,314,016 | |
| 4,931,002 | ||
Food Products - 3.1% | |||
Kraft Foods Group, Inc. | 73,975 | 3,419,125 | |
Mondelez International, Inc. | 162,631 | 4,519,515 | |
| 7,938,640 | ||
Household Products - 2.3% | |||
Procter & Gamble Co. | 77,508 | 5,825,501 | |
TOTAL CONSUMER STAPLES | 19,331,561 | ||
ENERGY - 14.3% | |||
Energy Equipment & Services - 3.4% | |||
Cameron International Corp. (a) | 57,859 | 3,663,053 | |
Halliburton Co. | 100,152 | 4,074,183 | |
Weatherford International Ltd. (a) | 70,640 | 943,044 | |
| 8,680,280 | ||
Oil, Gas & Consumable Fuels - 10.9% | |||
Anadarko Petroleum Corp. | 83,234 | 6,660,385 | |
Apache Corp. | 14,700 | 1,231,272 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Chevron Corp. | 67,533 | $ 7,776,425 | |
Exxon Mobil Corp. | 80,675 | 7,258,330 | |
Occidental Petroleum Corp. | 47,953 | 4,232,811 | |
The Williams Companies, Inc. | 19,400 | 679,970 | |
| 27,839,193 | ||
TOTAL ENERGY | 36,519,473 | ||
FINANCIALS - 26.4% | |||
Capital Markets - 4.5% | |||
Bank of New York Mellon Corp. | 63,000 | 1,711,080 | |
E*TRADE Financial Corp. (a) | 477,215 | 5,063,251 | |
Goldman Sachs Group, Inc. | 11,547 | 1,707,339 | |
State Street Corp. | 55,151 | 3,069,153 | |
| 11,550,823 | ||
Commercial Banks - 9.0% | |||
Aozora Bank Ltd. | 2,345,000 | 6,590,464 | |
Comerica, Inc. | 15,900 | 546,324 | |
Fifth Third Bancorp | 143,200 | 2,332,728 | |
KeyCorp | 556,759 | 5,233,535 | |
PNC Financial Services Group, Inc. | 7,803 | 482,225 | |
U.S. Bancorp | 45,897 | 1,519,191 | |
Wells Fargo & Co. | 132,798 | 4,625,354 | |
Zions Bancorporation | 70,837 | 1,651,919 | |
| 22,981,740 | ||
Consumer Finance - 1.4% | |||
Capital One Financial Corp. | 61,500 | 3,463,680 | |
Diversified Financial Services - 6.2% | |||
Bank of America Corp. | 182,635 | 2,067,428 | |
Citigroup, Inc. | 211,937 | 8,935,264 | |
JPMorgan Chase & Co. | 99,216 | 4,668,113 | |
| 15,670,805 | ||
Insurance - 4.5% | |||
Allstate Corp. | 36,400 | 1,597,960 | |
Assurant, Inc. | 28,279 | 1,081,389 | |
MetLife, Inc. | 27,291 | 1,019,046 | |
RenaissanceRe Holdings Ltd. | 29,052 | 2,488,013 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
The Chubb Corp. | 24,016 | $ 1,928,725 | |
XL Group PLC Class A | 122,726 | 3,401,965 | |
| 11,517,098 | ||
Real Estate Investment Trusts - 0.6% | |||
Weyerhaeuser Co. | 53,394 | 1,608,227 | |
Thrifts & Mortgage Finance - 0.2% | |||
Radian Group, Inc. | 87,999 | 565,834 | |
TOTAL FINANCIALS | 67,358,207 | ||
HEALTH CARE - 11.9% | |||
Health Care Providers & Services - 0.3% | |||
HCA Holdings, Inc. | 21,842 | 822,351 | |
Pharmaceuticals - 11.6% | |||
Bristol-Myers Squibb Co. | 34,191 | 1,235,663 | |
Eli Lilly & Co. | 18,363 | 985,909 | |
Johnson & Johnson | 56,028 | 4,141,590 | |
Merck & Co., Inc. | 252,508 | 10,920,971 | |
Pfizer, Inc. | 401,653 | 10,957,094 | |
Sanofi SA sponsored ADR | 25,221 | 1,227,758 | |
Zoetis, Inc. Class A | 2,700 | 70,200 | |
| 29,539,185 | ||
TOTAL HEALTH CARE | 30,361,536 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 2.3% | |||
Textron, Inc. | 207,919 | 5,979,750 | |
Construction & Engineering - 1.1% | |||
Jacobs Engineering Group, Inc. (a) | 59,949 | 2,884,146 | |
Industrial Conglomerates - 4.4% | |||
General Electric Co. | 501,531 | 11,174,111 | |
TOTAL INDUSTRIALS | 20,038,007 | ||
INFORMATION TECHNOLOGY - 10.7% | |||
Communications Equipment - 1.0% | |||
Cisco Systems, Inc. | 122,700 | 2,523,939 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - 2.2% | |||
Dell, Inc. | 54,100 | $ 716,284 | |
Hewlett-Packard Co. | 301,064 | 4,970,567 | |
| 5,686,851 | ||
Internet Software & Services - 1.9% | |||
Yahoo!, Inc. (a) | 244,086 | 4,791,408 | |
Office Electronics - 1.1% | |||
Xerox Corp. | 345,075 | 2,764,051 | |
Semiconductors & Semiconductor Equipment - 1.3% | |||
Advanced Micro Devices, Inc. (a)(d) | 145,214 | 377,556 | |
Intel Corp. | 31,015 | 652,556 | |
Micron Technology, Inc. (a) | 296,053 | 2,238,161 | |
| 3,268,273 | ||
Software - 3.2% | |||
Comverse Technology, Inc. | 806,121 | 3,514,688 | |
Comverse, Inc. | 93,732 | 2,706,980 | |
Microsoft Corp. | 30,158 | 828,440 | |
Symantec Corp. (a) | 54,190 | 1,179,716 | |
| 8,229,824 | ||
TOTAL INFORMATION TECHNOLOGY | 27,264,346 | ||
MATERIALS - 4.2% | |||
Chemicals - 1.0% | |||
The Dow Chemical Co. | 80,016 | 2,576,515 | |
Metals & Mining - 2.4% | |||
Freeport-McMoRan Copper & Gold, Inc. | 32,645 | 1,150,736 | |
Newmont Mining Corp. | 114,400 | 4,914,624 | |
| 6,065,360 | ||
Paper & Forest Products - 0.8% | |||
International Paper Co. | 53,461 | 2,214,355 | |
TOTAL MATERIALS | 10,856,230 | ||
TELECOMMUNICATION SERVICES - 2.4% | |||
Diversified Telecommunication Services - 0.1% | |||
AT&T, Inc. | 6,535 | 227,353 | |
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - continued | |||
Wireless Telecommunication Services - 2.3% | |||
Sprint Nextel Corp. (a) | 1,034,130 | $ 5,822,152 | |
TOTAL TELECOMMUNICATION SERVICES | 6,049,505 | ||
UTILITIES - 3.5% | |||
Electric Utilities - 2.3% | |||
Edison International | 75,969 | 3,660,946 | |
FirstEnergy Corp. | 15,403 | 623,667 | |
NextEra Energy, Inc. | 21,017 | 1,514,275 | |
| 5,798,888 | ||
Multi-Utilities - 1.2% | |||
Sempra Energy | 40,800 | 3,062,040 | |
TOTAL UTILITIES | 8,860,928 | ||
TOTAL COMMON STOCKS (Cost $241,450,452) |
| ||
Money Market Funds - 7.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 10,123,891 | 10,123,891 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 9,234,064 | 9,234,064 | |
TOTAL MONEY MARKET FUNDS (Cost $19,357,955) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $260,808,407) | 263,743,560 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (8,286,270) | ||
NET ASSETS - 100% | $ 255,457,290 |
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 | $ 7,967 |
Fidelity Securities Lending Cash Central Fund | 74,053 |
Total | $ 82,020 |
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 Investment Valuation section in the accompanying Notes to Financial Statements. |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2013. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 6,089,898 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $8,763,066) - See accompanying schedule: Unaffiliated issuers (cost $241,450,452) | $ 244,385,605 |
|
Fidelity Central Funds (cost $19,357,955) | 19,357,955 |
|
Total Investments (cost $260,808,407) |
| $ 263,743,560 |
Receivable for investments sold | 9,459,170 | |
Receivable for fund shares sold | 253,343 | |
Dividends receivable | 256,537 | |
Distributions receivable from Fidelity Central Funds | 23,239 | |
Prepaid expenses | 248 | |
Other receivables | 33,205 | |
Total assets | 273,769,302 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 8,563,910 | |
Payable for fund shares redeemed | 355,370 | |
Accrued management fee | 59,571 | |
Other affiliated payables | 65,051 | |
Other payables and accrued expenses | 34,046 | |
Collateral on securities loaned, at value | 9,234,064 | |
Total liabilities | 18,312,012 | |
|
|
|
Net Assets | $ 255,457,290 | |
Net Assets consist of: |
| |
Paid in capital | $ 416,549,487 | |
Distributions in excess of net investment income | (1,207,765) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (162,819,359) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,934,927 | |
Net Assets, for 22,078,983 shares outstanding | $ 255,457,290 | |
Net Asset Value, offering price and redemption price per share ($255,457,290 ÷ 22,078,983 shares) | $ 11.57 |
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, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,030,802 |
Interest |
| 52 |
Income from Fidelity Central Funds |
| 82,020 |
Total income |
| 3,112,874 |
|
|
|
Expenses | ||
Management fee | $ 681,761 | |
Performance adjustment | (348,590) | |
Transfer agent fees | 349,492 | |
Accounting and security lending fees | 48,868 | |
Custodian fees and expenses | 13,328 | |
Independent trustees' compensation | 804 | |
Registration fees | 6,442 | |
Audit | 29,871 | |
Legal | 901 | |
Miscellaneous | 1,267 | |
Total expenses before reductions | 784,144 | |
Expense reductions | (54,517) | 729,627 |
Net investment income (loss) | 2,383,247 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 6,994,318 | |
Foreign currency transactions | 5,508 | |
Futures contracts | (39,149) | |
Total net realized gain (loss) |
| 6,960,677 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 26,570,798 | |
Assets and liabilities in foreign currencies | (224) | |
Total change in net unrealized appreciation (depreciation) |
| 26,570,574 |
Net gain (loss) | 33,531,251 | |
Net increase (decrease) in net assets resulting from operations | $ 35,914,498 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,383,247 | $ 5,880,195 |
Net realized gain (loss) | 6,960,677 | (30,053,867) |
Change in net unrealized appreciation (depreciation) | 26,570,574 | 4,531,869 |
Net increase (decrease) in net assets resulting | 35,914,498 | (19,641,803) |
Distributions to shareholders from net investment income | (6,479,162) | (6,210,896) |
Share transactions | 16,661,048 | 50,616,788 |
Reinvestment of distributions | 6,279,261 | 6,061,422 |
Cost of shares redeemed | (35,050,447) | (225,740,112) |
Net increase (decrease) in net assets resulting from share transactions | (12,110,138) | (169,061,902) |
Total increase (decrease) in net assets | 17,325,198 | (194,914,601) |
|
|
|
Net Assets | ||
Beginning of period | 238,132,092 | 433,046,693 |
End of period (including distribution in excess of net investment income of $1,207,765 and undistributed net investment income of $2,888,150, respectively) | $ 255,457,290 | $ 238,132,092 |
Other Information Shares | ||
Sold | 1,524,959 | 5,083,409 |
Issued in reinvestment of distributions | 585,069 | 639,450 |
Redeemed | (3,232,363) | (22,414,922) |
Net increase (decrease) | (1,122,335) | (16,692,063) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 10.26 | $ 10.86 | $ 9.82 | $ 8.95 | $ 12.15 | $ 15.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .11 | .18 | .14 | .10 | .16 | .21 |
Net realized and unrealized gain (loss) | 1.49 | (.62) | 1.04 | .90 | (3.17) | (2.68) |
Total from investment operations | 1.60 | (.44) | 1.18 | 1.00 | (3.01) | (2.47) |
Distributions from net investment income | (.29) | (.16) | (.14) | (.13) | (.18) | (.16) |
Distributions from net realized gain | - | - | (.01) | - | (.01) | (.68) |
Total distributions | (.29) | (.16) | (.14) H | (.13) | (.19) | (.84) |
Net asset value, end of period | $ 11.57 | $ 10.26 | $ 10.86 | $ 9.82 | $ 8.95 | $ 12.15 |
Total Return B, C | 15.81% | (3.95)% | 12.14% | 11.20% | (24.89)% | (16.86)% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .64% A | .77% | .75% | .87% | .77% | .92% |
Expenses net of fee waivers, if any | .64% A | .77% | .75% | .87% | .77% | .92% |
Expenses net of all reductions | .60% A | .76% | .74% | .86% | .77% | .91% |
Net investment income (loss) | 1.94% A | 1.76% | 1.31% | 1.05% | 1.87% | 1.46% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 255,457 | $ 238,132 | $ 433,047 | $ 324,913 | $ 332,765 | $ 517,730 |
Portfolio turnover rate F | 96% A | 102% | 141% | 59% | 69% | 61% |
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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Semiannual Report
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 rates 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 futures transaction, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 21,263,259 |
Gross unrealized depreciation | (24,700,969) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (3,437,710) |
|
|
Tax cost | $ 267,181,270 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
|
|
2017 | $ (76,906,749) |
2018 | (55,500,128) |
Total with expiration | (132,406,877) |
No expiration |
|
Short-term | (15,176,947) |
Long-term | (3,825,520) |
Total no expiration | (19,002,467) |
Total capital loss carryforward | $ (151,409,344) |
The Fund intends to elect to defer to its fiscal year ending July 31, 2013, approximately $11,785,043 of capital losses recognized during the period November 1, 2011 to July 31, 2012.
New Accounting Pronouncement. 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, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund used 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 mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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, if any, 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.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of ($39,149) related to its investment in futures contracts. This amount is 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 $112,566,298 and $129,153,043, 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 Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .27% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .29% of average net assets.
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 $8,696 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $298 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
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 $500,148. 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 $74,053, including $10,114 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 $54,514 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
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
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
BCV-USAN-0313 1.789732.110
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Growth and Income | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.60 | $ 3.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Class K | .53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.90 | $ 2.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.53 | $ 2.70 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.8 | 3.6 |
Apple, Inc. | 3.4 | 5.2 |
Chevron Corp. | 3.1 | 3.5 |
Wells Fargo & Co. | 3.0 | 3.6 |
General Electric Co. | 2.8 | 2.5 |
Procter & Gamble Co. | 2.3 | 2.1 |
Microsoft Corp. | 2.0 | 1.9 |
Merck & Co., Inc. | 1.9 | 2.0 |
Comcast Corp. Class A | 1.8 | 2.1 |
Exxon Mobil Corp. | 1.8 | 2.5 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 19.8 | 16.8 |
Information Technology | 15.9 | 17.5 |
Industrials | 12.3 | 12.8 |
Health Care | 12.0 | 11.6 |
Energy | 11.9 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 98.5% |
| ![]() | Stocks 98.4% |
| ||
![]() | Bonds 0.0% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term Investments and Net Other Assets (Liabilities) 0.3% |
| ![]() | Short-Term Investments and Net Other Assets (Liabilities) 0.6% |
| ||
* Foreign investments | 10.8% |
| ** Foreign investments | 11.8% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.7% | |||
Auto Components - 0.5% | |||
Gentex Corp. | 884,902 | $ 16,928 | |
Johnson Controls, Inc. | 481,080 | 14,957 | |
| 31,885 | ||
Automobiles - 0.2% | |||
Ford Motor Co. | 1,177,600 | 15,250 | |
Distributors - 0.1% | |||
Genuine Parts Co. | 6,712 | 457 | |
Li & Fung Ltd. | 1,174,000 | 1,650 | |
LKQ Corp. (a) | 133,700 | 2,994 | |
| 5,101 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
McDonald's Corp. | 604,646 | 57,617 | |
Wyndham Worldwide Corp. | 162,900 | 9,088 | |
Wynn Resorts Ltd. | 2,500 | 313 | |
Yum! Brands, Inc. | 294,088 | 19,098 | |
| 86,116 | ||
Media - 4.6% | |||
Comcast Corp. Class A | 2,899,000 | 110,394 | |
McGraw-Hill Companies, Inc. | 69,200 | 3,980 | |
Scripps Networks Interactive, Inc. Class A | 217,825 | 13,455 | |
The Walt Disney Co. | 303,368 | 16,345 | |
Thomson Reuters Corp. | 391,400 | 11,988 | |
Time Warner, Inc. | 1,818,082 | 91,850 | |
Viacom, Inc. Class B (non-vtg.) | 456,218 | 27,533 | |
| 275,545 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. | 229,536 | 10,625 | |
Target Corp. | 1,698,865 | 102,628 | |
| 113,253 | ||
Specialty Retail - 2.0% | |||
Lowe's Companies, Inc. | 2,726,995 | 104,144 | |
Staples, Inc. | 1,098,032 | 14,801 | |
| 118,945 | ||
TOTAL CONSUMER DISCRETIONARY | 646,095 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 3.1% | |||
Dr. Pepper Snapple Group, Inc. | 639,670 | 28,830 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
Molson Coors Brewing Co. Class B | 236,582 | $ 10,689 | |
PepsiCo, Inc. | 893,380 | 65,083 | |
The Coca-Cola Co. | 2,285,101 | 85,097 | |
| 189,699 | ||
Food & Staples Retailing - 2.2% | |||
CVS Caremark Corp. | 606,104 | 31,033 | |
Kroger Co. | 411,021 | 11,385 | |
Safeway, Inc. | 771,196 | 14,846 | |
Walgreen Co. | 1,863,789 | 74,477 | |
| 131,741 | ||
Food Products - 1.1% | |||
Bunge Ltd. | 45,000 | 3,585 | |
Danone SA | 221,479 | 15,349 | |
Kellogg Co. | 695,461 | 40,684 | |
Mead Johnson Nutrition Co. Class A | 116,194 | 8,831 | |
| 68,449 | ||
Household Products - 3.3% | |||
Kimberly-Clark Corp. | 692,204 | 61,959 | |
Procter & Gamble Co. | 1,835,992 | 137,993 | |
| 199,952 | ||
Tobacco - 1.9% | |||
British American Tobacco PLC sponsored ADR | 654,959 | 68,050 | |
Lorillard, Inc. | 1,123,807 | 43,907 | |
| 111,957 | ||
TOTAL CONSUMER STAPLES | 701,798 | ||
ENERGY - 11.7% | |||
Energy Equipment & Services - 1.5% | |||
Canadian Energy Services & Tech Credit | 41,700 | 489 | |
Core Laboratories NV (d) | 55,256 | 7,053 | |
Ensco PLC Class A | 77,993 | 4,958 | |
Exterran Partners LP | 233,521 | 5,483 | |
Halliburton Co. | 1,096,004 | 44,585 | |
Pason Systems, Inc. | 48,400 | 825 | |
Schlumberger Ltd. | 359,719 | 28,076 | |
| 91,469 | ||
Oil, Gas & Consumable Fuels - 10.2% | |||
Apache Corp. | 170,871 | 14,312 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Atlas Pipeline Partners LP | 333,824 | $ 11,530 | |
BG Group PLC | 337,500 | 5,995 | |
BP PLC sponsored ADR | 656,784 | 29,240 | |
Canadian Natural Resources Ltd. | 840,900 | 25,394 | |
Chevron Corp. | 1,612,489 | 185,678 | |
Exxon Mobil Corp. | 1,197,194 | 107,712 | |
Legacy Reserves LP | 138,330 | 3,479 | |
Markwest Energy Partners LP | 412,635 | 22,786 | |
Occidental Petroleum Corp. | 676,703 | 59,733 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 2,018,233 | 71,544 | |
Southcross Energy Partners LP | 76,500 | 1,799 | |
Suncor Energy, Inc. | 1,329,100 | 45,174 | |
Tesoro Logistics LP | 59,900 | 2,636 | |
The Williams Companies, Inc. | 693,380 | 24,303 | |
| 611,315 | ||
TOTAL ENERGY | 702,784 | ||
FINANCIALS - 19.8% | |||
Capital Markets - 4.9% | |||
Apollo Investment Corp. | 545,530 | 4,910 | |
Ashmore Group PLC | 2,016,200 | 11,419 | |
BlackRock, Inc. Class A | 86,336 | 20,399 | |
Charles Schwab Corp. | 4,007,697 | 66,247 | |
KKR & Co. LP | 1,931,863 | 32,610 | |
Morgan Stanley | 2,799,981 | 63,980 | |
Northern Trust Corp. | 548,251 | 28,218 | |
State Street Corp. | 463,948 | 25,819 | |
TD Ameritrade Holding Corp. | 624,523 | 12,110 | |
The Blackstone Group LP | 1,187,017 | 21,960 | |
UBS AG | 305,392 | 5,304 | |
| 292,976 | ||
Commercial Banks - 5.4% | |||
City National Corp. | 140,089 | 7,419 | |
Comerica, Inc. | 139,629 | 4,798 | |
PNC Financial Services Group, Inc. | 575,532 | 35,568 | |
Standard Chartered PLC (United Kingdom) | 641,858 | 17,077 | |
SunTrust Banks, Inc. | 835,337 | 23,699 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
U.S. Bancorp | 1,727,312 | $ 57,174 | |
Wells Fargo & Co. | 5,189,158 | 180,738 | |
| 326,473 | ||
Consumer Finance - 0.1% | |||
SLM Corp. | 350,118 | 5,913 | |
Diversified Financial Services - 7.4% | |||
Bank of America Corp. | 2,684,106 | 30,384 | |
Citigroup, Inc. | 2,534,698 | 106,863 | |
CME Group, Inc. | 374,845 | 21,681 | |
JPMorgan Chase & Co. | 4,860,093 | 228,667 | |
KKR Financial Holdings LLC | 3,897,718 | 42,836 | |
MSCI, Inc. Class A (a) | 83,580 | 2,820 | |
NYSE Euronext | 233,350 | 8,067 | |
The NASDAQ Stock Market, Inc. | 94,700 | 2,682 | |
| 444,000 | ||
Insurance - 1.4% | |||
AFLAC, Inc. | 75,146 | 3,987 | |
MetLife, Inc. | 1,366,209 | 51,014 | |
MetLife, Inc. unit | 364,100 | 17,724 | |
Prudential Financial, Inc. | 207,268 | 11,997 | |
| 84,722 | ||
Real Estate Investment Trusts - 0.3% | |||
MFA Financial, Inc. | 486,977 | 4,378 | |
Sun Communities, Inc. | 392,785 | 16,870 | |
| 21,248 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (e) | 254,400 | 5,088 | |
Thrifts & Mortgage Finance - 0.2% | |||
MGIC Investment Corp. (a) | 175,288 | 487 | |
Radian Group, Inc. | 1,691,631 | 10,877 | |
| 11,364 | ||
TOTAL FINANCIALS | 1,191,784 | ||
HEALTH CARE - 11.5% | |||
Biotechnology - 0.8% | |||
Amgen, Inc. | 566,904 | 48,448 | |
Health Care Equipment & Supplies - 1.0% | |||
Abbott Laboratories | 518,604 | 17,570 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Baxter International, Inc. | 85,190 | $ 5,779 | |
ResMed, Inc. | 62,282 | 2,728 | |
St. Jude Medical, Inc. | 234,847 | 9,558 | |
Stryker Corp. | 360,488 | 22,585 | |
| 58,220 | ||
Health Care Providers & Services - 2.7% | |||
Aetna, Inc. | 521,690 | 25,161 | |
Cardinal Health, Inc. | 270,669 | 11,858 | |
Fresenius Medical Care AG & Co. KGaA | 80,000 | 5,639 | |
McKesson Corp. | 528,664 | 55,631 | |
Quest Diagnostics, Inc. | 139,670 | 8,094 | |
UnitedHealth Group, Inc. | 233,700 | 12,903 | |
WellPoint, Inc. | 714,369 | 46,305 | |
| 165,591 | ||
Health Care Technology - 0.2% | |||
Quality Systems, Inc. | 516,315 | 9,418 | |
Life Sciences Tools & Services - 0.0% | |||
Lonza Group AG | 44,627 | 2,628 | |
Pharmaceuticals - 6.8% | |||
AbbVie, Inc. | 909,352 | 33,364 | |
AstraZeneca PLC sponsored ADR | 270,100 | 13,013 | |
Cardiome Pharma Corp. (a) | 935,300 | 450 | |
Eli Lilly & Co. | 334,402 | 17,954 | |
GlaxoSmithKline PLC sponsored ADR | 774,825 | 35,340 | |
Johnson & Johnson | 1,282,897 | 94,832 | |
Merck & Co., Inc. | 2,633,094 | 113,881 | |
Novartis AG sponsored ADR | 303,500 | 20,583 | |
Pfizer, Inc. | 1,956,016 | 53,360 | |
Sanofi SA | 163,292 | 15,919 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 247,355 | 9,397 | |
| 408,093 | ||
TOTAL HEALTH CARE | 692,398 | ||
INDUSTRIALS - 12.2% | |||
Aerospace & Defense - 2.7% | |||
Honeywell International, Inc. | 203,435 | 13,882 | |
Raytheon Co. | 334,374 | 17,615 | |
Rockwell Collins, Inc. | 647,462 | 38,123 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
The Boeing Co. | 595,436 | $ 43,985 | |
United Technologies Corp. | 555,300 | 48,628 | |
| 162,233 | ||
Air Freight & Logistics - 1.7% | |||
C.H. Robinson Worldwide, Inc. | 348,359 | 23,044 | |
United Parcel Service, Inc. Class B | 962,245 | 76,296 | |
| 99,340 | ||
Commercial Services & Supplies - 0.9% | |||
Aggreko PLC | 113,000 | 2,862 | |
Interface, Inc. | 648,199 | 10,877 | |
Pitney Bowes, Inc. (d) | 495,338 | 7,138 | |
Republic Services, Inc. | 1,010,376 | 32,221 | |
Ritchie Brothers Auctioneers, Inc. | 97,800 | 2,134 | |
| 55,232 | ||
Electrical Equipment - 0.6% | |||
Emerson Electric Co. | 241,348 | 13,817 | |
Hubbell, Inc. Class B | 257,093 | 23,408 | |
| 37,225 | ||
Industrial Conglomerates - 2.8% | |||
General Electric Co. | 7,665,176 | 170,780 | |
Machinery - 1.7% | |||
Cummins, Inc. | 48,061 | 5,519 | |
Douglas Dynamics, Inc. | 932,328 | 12,288 | |
Graco, Inc. | 144,566 | 8,269 | |
Illinois Tool Works, Inc. | 120,986 | 7,602 | |
Ingersoll-Rand PLC | 528,663 | 27,168 | |
ITT Corp. | 136,297 | 3,500 | |
Lincoln Electric Holdings, Inc. | 11,588 | 625 | |
Morgan Crucible Co. PLC | 941,354 | 4,151 | |
PACCAR, Inc. | 12,884 | 606 | |
Schindler Holding AG (participation certificate) | 20,660 | 3,065 | |
Stanley Black & Decker, Inc. | 349,144 | 26,825 | |
| 99,618 | ||
Marine - 0.2% | |||
Irish Continental Group PLC unit | 107,193 | 2,885 | |
Kuehne & Nagel International AG | 64,487 | 7,575 | |
| 10,460 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - 0.5% | |||
Amadeus Fire AG | 71,043 | $ 4,052 | |
Bureau Veritas SA | 75,100 | 8,995 | |
Dun & Bradstreet Corp. | 20,800 | 1,696 | |
Michael Page International PLC | 1,636,163 | 10,567 | |
Randstad Holding NV | 60,900 | 2,525 | |
Towers Watson & Co. | 62,716 | 3,831 | |
| 31,666 | ||
Road & Rail - 0.6% | |||
J.B. Hunt Transport Services, Inc. | 262,630 | 17,667 | |
Kansas City Southern | 31,938 | 2,974 | |
Norfolk Southern Corp. | 225,875 | 15,556 | |
| 36,197 | ||
Trading Companies & Distributors - 0.5% | |||
MSC Industrial Direct Co., Inc. Class A | 65,166 | 5,156 | |
W.W. Grainger, Inc. | 84,872 | 18,487 | |
Watsco, Inc. | 75,159 | 5,663 | |
| 29,306 | ||
TOTAL INDUSTRIALS | 732,057 | ||
INFORMATION TECHNOLOGY - 15.9% | |||
Communications Equipment - 1.7% | |||
Cisco Systems, Inc. | 3,434,939 | 70,657 | |
QUALCOMM, Inc. | 492,404 | 32,513 | |
| 103,170 | ||
Computers & Peripherals - 3.7% | |||
Apple, Inc. | 453,662 | 206,557 | |
Dell, Inc. | 910,818 | 12,059 | |
EMC Corp. (a) | 316,824 | 7,797 | |
| 226,413 | ||
Electronic Equipment & Components - 0.1% | |||
Arrow Electronics, Inc. (a) | 137,363 | 5,277 | |
Internet Software & Services - 1.8% | |||
Google, Inc. Class A (a) | 141,689 | 107,073 | |
IT Services - 5.8% | |||
Accenture PLC Class A | 110,345 | 7,933 | |
Cognizant Technology Solutions Corp. Class A (a) | 367,604 | 28,739 | |
Fidelity National Information Services, Inc. | 870,637 | 32,309 | |
IBM Corp. | 128,050 | 26,003 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
MasterCard, Inc. Class A | 114,750 | $ 59,486 | |
Paychex, Inc. | 2,972,416 | 96,990 | |
The Western Union Co. | 2,396,451 | 34,101 | |
Total System Services, Inc. | 302,718 | 7,038 | |
Visa, Inc. Class A | 343,174 | 54,191 | |
| 346,790 | ||
Semiconductors & Semiconductor Equipment - 0.8% | |||
Altera Corp. | 257,352 | 8,601 | |
Analog Devices, Inc. | 366,065 | 15,975 | |
Applied Materials, Inc. | 1,721,628 | 22,226 | |
| 46,802 | ||
Software - 2.0% | |||
Microsoft Corp. | 4,343,429 | 119,314 | |
TOTAL INFORMATION TECHNOLOGY | 954,839 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
Air Products & Chemicals, Inc. | 195,995 | 17,136 | |
Airgas, Inc. | 175,583 | 16,723 | |
E.I. du Pont de Nemours & Co. | 302,246 | 14,342 | |
Sigma Aldrich Corp. | 57,304 | 4,431 | |
Syngenta AG (Switzerland) | 63,206 | 27,181 | |
The Scotts Miracle-Gro Co. Class A | 66,500 | 2,907 | |
| 82,720 | ||
TELECOMMUNICATION SERVICES - 1.7% | |||
Diversified Telecommunication Services - 1.0% | |||
Verizon Communications, Inc. | 1,387,950 | 60,528 | |
Wireless Telecommunication Services - 0.7% | |||
Vodafone Group PLC sponsored ADR | 1,560,142 | 42,623 | |
TOTAL TELECOMMUNICATION SERVICES | 103,151 | ||
UTILITIES - 2.0% | |||
Electric Utilities - 1.6% | |||
American Electric Power Co., Inc. | 135,121 | 6,120 | |
Duke Energy Corp. | 181,572 | 12,481 | |
EDF SA | 153,600 | 2,950 | |
Edison International | 170,300 | 8,207 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
FirstEnergy Corp. | 867,880 | $ 35,140 | |
ITC Holdings Corp. | 81,200 | 6,577 | |
NextEra Energy, Inc. | 152,464 | 10,985 | |
Northeast Utilities | 57,374 | 2,337 | |
PPL Corp. | 290,153 | 8,789 | |
| 93,586 | ||
Multi-Utilities - 0.4% | |||
National Grid PLC | 54,854 | 601 | |
PG&E Corp. | 287,055 | 12,240 | |
Sempra Energy | 162,309 | 12,181 | |
| 25,022 | ||
TOTAL UTILITIES | 118,608 | ||
TOTAL COMMON STOCKS (Cost $5,128,815) |
| ||
Convertible Preferred Stocks - 1.1% | |||
|
|
|
|
CONSUMER STAPLES - 0.1% | |||
Food Products - 0.1% | |||
Bunge Ltd. 4.875% | 52,200 | 5,637 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Apache Corp. 6.00% | 85,000 | 4,023 | |
HEALTH CARE - 0.5% | |||
Health Care Equipment & Supplies - 0.5% | |||
Alere, Inc. 3.00% | 160,907 | 32,770 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
United Technologies Corp. 7.50% | 110,600 | 6,298 | |
MATERIALS - 0.2% | |||
Metals & Mining - 0.2% | |||
ArcelorMittal SA 6.00% (a) | 465,500 | 12,042 | |
Convertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 8.75% | 104,300 | $ 5,715 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $71,669) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 (Cost $5,615) | $ 5,615 |
|
Money Market Funds - 0.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 4,074,080 | 4,074 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 4,846,575 | 4,847 | |
TOTAL MONEY MARKET FUNDS (Cost $8,921) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $5,215,020) | 6,005,540 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 12,684 | ||
NET ASSETS - 100% | $ 6,018,224 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $5,088,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 5,088 |
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 | $ 15 |
Fidelity Securities Lending Cash Central Fund | 183 |
Total | $ 198 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 646,095 | $ 646,095 | $ - | $ - |
Consumer Staples | 707,435 | 701,798 | 5,637 | - |
Energy | 706,807 | 635,263 | 71,544 | - |
Financials | 1,191,784 | 1,163,668 | 23,028 | 5,088 |
Health Care | 725,168 | 703,610 | 21,558 | - |
Industrials | 738,355 | 738,355 | - | - |
Information Technology | 954,839 | 954,839 | - | - |
Materials | 94,762 | 55,539 | 39,223 | - |
Telecommunication Services | 103,151 | 103,151 | - | - |
Utilities | 124,323 | 118,007 | 6,316 | - |
Corporate Bonds | 3,900 | - | 3,900 | - |
Money Market Funds | 8,921 | 8,921 | - | - |
Total Investments in Securities: | $ 6,005,540 | $ 5,829,246 | $ 171,206 | $ 5,088 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.2% |
United Kingdom | 5.5% |
Canada | 1.4% |
Switzerland | 1.1% |
Others (Individually Less Than 1%) | 2.8% |
| 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,251) - See accompanying schedule: Unaffiliated issuers (cost $5,206,099) | $ 5,996,619 |
|
Fidelity Central Funds (cost $8,921) | 8,921 |
|
Total Investments (cost $5,215,020) |
| $ 6,005,540 |
Foreign currency held at value (cost $1) | 1 | |
Receivable for investments sold | 79,279 | |
Receivable for fund shares sold | 2,877 | |
Dividends receivable | 7,136 | |
Interest receivable | 103 | |
Distributions receivable from Fidelity Central Funds | 4 | |
Prepaid expenses | 13 | |
Other receivables | 925 | |
Total assets | 6,095,878 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 57,272 | |
Payable for fund shares redeemed | 11,603 | |
Accrued management fee | 2,262 | |
Other affiliated payables | 974 | |
Other payables and accrued expenses | 696 | |
Collateral on securities loaned, at value | 4,847 | |
Total liabilities | 77,654 | |
|
|
|
Net Assets | $ 6,018,224 | |
Net Assets consist of: |
| |
Paid in capital | $ 9,759,080 | |
Undistributed net investment income | 3,469 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,534,887) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 790,562 | |
Net Assets | $ 6,018,224 |
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, 2013 (Unaudited) | |
|
|
|
Growth and Income: | $ 22.36 | |
|
|
|
Class K: | $ 22.34 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 80,681 |
Interest |
| 795 |
Income from Fidelity Central Funds |
| 198 |
Total income |
| 81,674 |
|
|
|
Expenses | ||
Management fee | $ 13,274 | |
Transfer agent fees | 5,330 | |
Accounting and security lending fees | 561 | |
Custodian fees and expenses | 88 | |
Independent trustees' compensation | 21 | |
Registration fees | 66 | |
Audit | 46 | |
Legal | 24 | |
Interest | 1 | |
Miscellaneous | 22 | |
Total expenses before reductions | 19,433 | |
Expense reductions | (548) | 18,885 |
Net investment income (loss) | 62,789 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 230,578 | |
Foreign currency transactions | 144 | |
Total net realized gain (loss) |
| 230,722 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 386,827 | |
Assets and liabilities in foreign currencies | 45 | |
Total change in net unrealized appreciation (depreciation) |
| 386,872 |
Net gain (loss) | 617,594 | |
Net increase (decrease) in net assets resulting from operations | $ 680,383 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 62,789 | $ 102,946 |
Net realized gain (loss) | 230,722 | 104,201 |
Change in net unrealized appreciation (depreciation) | 386,872 | 318,127 |
Net increase (decrease) in net assets resulting | 680,383 | 525,274 |
Distributions to shareholders from net investment income | (64,752) | (98,353) |
Distributions to shareholders from net realized gain | (7,383) | (2,799) |
Total distributions | (72,135) | (101,152) |
Share transactions - net increase (decrease) | (204,633) | (265,023) |
Total increase (decrease) in net assets | 403,615 | 159,099 |
|
|
|
Net Assets | ||
Beginning of period | 5,614,609 | 5,455,510 |
End of period (including undistributed net investment income of $3,469 and undistributed net investment income of $5,432, respectively) | $ 6,018,224 | $ 5,614,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth and Income
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .23 | .36 | .20 | .10 | .15 | .35 |
Net realized and unrealized gain (loss) | 2.26 | 1.55 | 2.82 | 1.37 | (7.43) | (6.25) |
Total from investment operations | 2.49 | 1.91 | 3.02 | 1.47 | (7.28) | (5.90) |
Distributions from net investment income | (.24) | (.35) | (.19) | (.10) | (.19) | (.33) |
Distributions from net realized gain | (.03) | (.01) | - | (.01) | (.03) | (3.81) |
Total distributions | (.26) H | (.36) | (.19) | (.10) I | (.22) | (4.14) |
Net asset value, end of period | $ 22.36 | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 |
Total Return B,C | 12.46% | 10.45% | 19.16% | 10.25% | (33.32)% | (20.91)% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .69% A | .71% | .72% | .75% | .78% | .68% |
Expenses net of fee waivers, if any | .69% A | .71% | .72% | .75% | .78% | .68% |
Expenses net of all reductions | .67% A | .71% | .71% | .74% | .78% | .67% |
Net investment income (loss) | 2.14% A | 1.95% | 1.09% | .63% | 1.07% | 1.29% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,159 | $ 4,863 | $ 5,052 | $ 5,417 | $ 5,993 | $ 12,552 |
Portfolio turnover rate F | 51% A | 62% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 $.26 per share is comprised of distributions from net investment income of $.235 and distributions from net realized gain of $.027 per share.
I 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) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .24 | .40 | .23 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | 2.26 | 1.54 | 2.82 | 1.37 | (7.40) | (3.45) |
Total from investment operations | 2.50 | 1.94 | 3.05 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.25) | (.38) | (.22) | (.13) | (.23) | (.10) |
Distributions from net realized gain | (.03) | (.01) | - | (.01) | (.03) | - |
Total distributions | (.28) | (.39) | (.22) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 22.34 | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B,C | 12.49% | 10.66% | 19.40% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .53% A | .54% | .54% | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .53% A | .54% | .54% | .54% | .56% | .55% A |
Expenses net of all reductions | .52% A | .54% | .53% | .53% | .55% | .55% A |
Net investment income (loss) | 2.29% A | 2.13% | 1.27% | .84% | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 859 | $ 752 | $ 403 | $ 292 | $ 349 | $ 87 |
Portfolio turnover rate F | 51% A | 62% | 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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
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 futures transactions, foreign currency transactions, 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 | $ 861,677 |
Gross unrealized depreciation | (99,167) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 762,510 |
|
|
Tax cost | $ 5,243,030 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (1,560,027) |
2018 | (3,168,341) |
Total capital loss carryforward | $ (4,728,368) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,466,595 and $1,626,917, 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 .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 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 and Income | $ 5,128 | .21 |
Class K | 202 | .05 |
| $ 5,330 |
|
* 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 $42 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
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 | $ 6,293 | .39% | $ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $7 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. The value of securities loaned to FCM at period end was $558. 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
Semiannual Report
7. Security Lending - continued
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 $183, including $10 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 $548 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth & Income | $ 55,112 | $ 87,366 |
Class K | 9,640 | 10,987 |
Total | $ 64,752 | $ 98,353 |
From net realized gain |
|
|
Growth & Income | $ 6,338 | $ 2,563 |
Class K | 1,045 | 236 |
Total | $ 7,383 | $ 2,799 |
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 | 10,730 | 21,066 | $ 228,411 | $ 402,515 |
Reinvestment of distributions | 2,787 | 4,651 | 58,994 | 86,309 |
Shares redeemed | (24,270) | (56,062) | (513,931) | (1,053,524) |
Net increase (decrease) | (10,753) | (30,345) | $ (226,526) | $ (564,700) |
Class K |
|
|
|
|
Shares sold | 6,573 | 20,227 | $ 138,560 | $ 386,187 |
Reinvestment of distributions | 505 | 596 | 10,684 | 11,223 |
Shares redeemed | (6,010) | (5,182) | (127,351) | (97,733) |
Net increase (decrease) | 1,068 | 15,641 | $ 21,893 | $ 299,677 |
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
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
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Northern Trust Company
Chicago, IL
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 ®)
1-800-544-8544
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
GAI-USAN-0313 1.789285.110
Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Growth and Income | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.60 | $ 3.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
Class K | .53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.90 | $ 2.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.53 | $ 2.70 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 3.8 | 3.6 |
Apple, Inc. | 3.4 | 5.2 |
Chevron Corp. | 3.1 | 3.5 |
Wells Fargo & Co. | 3.0 | 3.6 |
General Electric Co. | 2.8 | 2.5 |
Procter & Gamble Co. | 2.3 | 2.1 |
Microsoft Corp. | 2.0 | 1.9 |
Merck & Co., Inc. | 1.9 | 2.0 |
Comcast Corp. Class A | 1.8 | 2.1 |
Exxon Mobil Corp. | 1.8 | 2.5 |
| 25.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 19.8 | 16.8 |
Information Technology | 15.9 | 17.5 |
Industrials | 12.3 | 12.8 |
Health Care | 12.0 | 11.6 |
Energy | 11.9 | 12.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 98.5% |
| ![]() | Stocks 98.4% |
| ||
![]() | Bonds 0.0% |
| ![]() | Bonds 0.2% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term Investments and Net Other Assets (Liabilities) 0.3% |
| ![]() | Short-Term Investments and Net Other Assets (Liabilities) 0.6% |
| ||
* Foreign investments | 10.8% |
| ** Foreign investments | 11.8% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 10.7% | |||
Auto Components - 0.5% | |||
Gentex Corp. | 884,902 | $ 16,928 | |
Johnson Controls, Inc. | 481,080 | 14,957 | |
| 31,885 | ||
Automobiles - 0.2% | |||
Ford Motor Co. | 1,177,600 | 15,250 | |
Distributors - 0.1% | |||
Genuine Parts Co. | 6,712 | 457 | |
Li & Fung Ltd. | 1,174,000 | 1,650 | |
LKQ Corp. (a) | 133,700 | 2,994 | |
| 5,101 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
McDonald's Corp. | 604,646 | 57,617 | |
Wyndham Worldwide Corp. | 162,900 | 9,088 | |
Wynn Resorts Ltd. | 2,500 | 313 | |
Yum! Brands, Inc. | 294,088 | 19,098 | |
| 86,116 | ||
Media - 4.6% | |||
Comcast Corp. Class A | 2,899,000 | 110,394 | |
McGraw-Hill Companies, Inc. | 69,200 | 3,980 | |
Scripps Networks Interactive, Inc. Class A | 217,825 | 13,455 | |
The Walt Disney Co. | 303,368 | 16,345 | |
Thomson Reuters Corp. | 391,400 | 11,988 | |
Time Warner, Inc. | 1,818,082 | 91,850 | |
Viacom, Inc. Class B (non-vtg.) | 456,218 | 27,533 | |
| 275,545 | ||
Multiline Retail - 1.9% | |||
Kohl's Corp. | 229,536 | 10,625 | |
Target Corp. | 1,698,865 | 102,628 | |
| 113,253 | ||
Specialty Retail - 2.0% | |||
Lowe's Companies, Inc. | 2,726,995 | 104,144 | |
Staples, Inc. | 1,098,032 | 14,801 | |
| 118,945 | ||
TOTAL CONSUMER DISCRETIONARY | 646,095 | ||
CONSUMER STAPLES - 11.6% | |||
Beverages - 3.1% | |||
Dr. Pepper Snapple Group, Inc. | 639,670 | 28,830 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
Molson Coors Brewing Co. Class B | 236,582 | $ 10,689 | |
PepsiCo, Inc. | 893,380 | 65,083 | |
The Coca-Cola Co. | 2,285,101 | 85,097 | |
| 189,699 | ||
Food & Staples Retailing - 2.2% | |||
CVS Caremark Corp. | 606,104 | 31,033 | |
Kroger Co. | 411,021 | 11,385 | |
Safeway, Inc. | 771,196 | 14,846 | |
Walgreen Co. | 1,863,789 | 74,477 | |
| 131,741 | ||
Food Products - 1.1% | |||
Bunge Ltd. | 45,000 | 3,585 | |
Danone SA | 221,479 | 15,349 | |
Kellogg Co. | 695,461 | 40,684 | |
Mead Johnson Nutrition Co. Class A | 116,194 | 8,831 | |
| 68,449 | ||
Household Products - 3.3% | |||
Kimberly-Clark Corp. | 692,204 | 61,959 | |
Procter & Gamble Co. | 1,835,992 | 137,993 | |
| 199,952 | ||
Tobacco - 1.9% | |||
British American Tobacco PLC sponsored ADR | 654,959 | 68,050 | |
Lorillard, Inc. | 1,123,807 | 43,907 | |
| 111,957 | ||
TOTAL CONSUMER STAPLES | 701,798 | ||
ENERGY - 11.7% | |||
Energy Equipment & Services - 1.5% | |||
Canadian Energy Services & Tech Credit | 41,700 | 489 | |
Core Laboratories NV (d) | 55,256 | 7,053 | |
Ensco PLC Class A | 77,993 | 4,958 | |
Exterran Partners LP | 233,521 | 5,483 | |
Halliburton Co. | 1,096,004 | 44,585 | |
Pason Systems, Inc. | 48,400 | 825 | |
Schlumberger Ltd. | 359,719 | 28,076 | |
| 91,469 | ||
Oil, Gas & Consumable Fuels - 10.2% | |||
Apache Corp. | 170,871 | 14,312 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Atlas Pipeline Partners LP | 333,824 | $ 11,530 | |
BG Group PLC | 337,500 | 5,995 | |
BP PLC sponsored ADR | 656,784 | 29,240 | |
Canadian Natural Resources Ltd. | 840,900 | 25,394 | |
Chevron Corp. | 1,612,489 | 185,678 | |
Exxon Mobil Corp. | 1,197,194 | 107,712 | |
Legacy Reserves LP | 138,330 | 3,479 | |
Markwest Energy Partners LP | 412,635 | 22,786 | |
Occidental Petroleum Corp. | 676,703 | 59,733 | |
Royal Dutch Shell PLC Class A (United Kingdom) | 2,018,233 | 71,544 | |
Southcross Energy Partners LP | 76,500 | 1,799 | |
Suncor Energy, Inc. | 1,329,100 | 45,174 | |
Tesoro Logistics LP | 59,900 | 2,636 | |
The Williams Companies, Inc. | 693,380 | 24,303 | |
| 611,315 | ||
TOTAL ENERGY | 702,784 | ||
FINANCIALS - 19.8% | |||
Capital Markets - 4.9% | |||
Apollo Investment Corp. | 545,530 | 4,910 | |
Ashmore Group PLC | 2,016,200 | 11,419 | |
BlackRock, Inc. Class A | 86,336 | 20,399 | |
Charles Schwab Corp. | 4,007,697 | 66,247 | |
KKR & Co. LP | 1,931,863 | 32,610 | |
Morgan Stanley | 2,799,981 | 63,980 | |
Northern Trust Corp. | 548,251 | 28,218 | |
State Street Corp. | 463,948 | 25,819 | |
TD Ameritrade Holding Corp. | 624,523 | 12,110 | |
The Blackstone Group LP | 1,187,017 | 21,960 | |
UBS AG | 305,392 | 5,304 | |
| 292,976 | ||
Commercial Banks - 5.4% | |||
City National Corp. | 140,089 | 7,419 | |
Comerica, Inc. | 139,629 | 4,798 | |
PNC Financial Services Group, Inc. | 575,532 | 35,568 | |
Standard Chartered PLC (United Kingdom) | 641,858 | 17,077 | |
SunTrust Banks, Inc. | 835,337 | 23,699 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
U.S. Bancorp | 1,727,312 | $ 57,174 | |
Wells Fargo & Co. | 5,189,158 | 180,738 | |
| 326,473 | ||
Consumer Finance - 0.1% | |||
SLM Corp. | 350,118 | 5,913 | |
Diversified Financial Services - 7.4% | |||
Bank of America Corp. | 2,684,106 | 30,384 | |
Citigroup, Inc. | 2,534,698 | 106,863 | |
CME Group, Inc. | 374,845 | 21,681 | |
JPMorgan Chase & Co. | 4,860,093 | 228,667 | |
KKR Financial Holdings LLC | 3,897,718 | 42,836 | |
MSCI, Inc. Class A (a) | 83,580 | 2,820 | |
NYSE Euronext | 233,350 | 8,067 | |
The NASDAQ Stock Market, Inc. | 94,700 | 2,682 | |
| 444,000 | ||
Insurance - 1.4% | |||
AFLAC, Inc. | 75,146 | 3,987 | |
MetLife, Inc. | 1,366,209 | 51,014 | |
MetLife, Inc. unit | 364,100 | 17,724 | |
Prudential Financial, Inc. | 207,268 | 11,997 | |
| 84,722 | ||
Real Estate Investment Trusts - 0.3% | |||
MFA Financial, Inc. | 486,977 | 4,378 | |
Sun Communities, Inc. | 392,785 | 16,870 | |
| 21,248 | ||
Real Estate Management & Development - 0.1% | |||
Beazer Pre-Owned Rental Homes, Inc. (e) | 254,400 | 5,088 | |
Thrifts & Mortgage Finance - 0.2% | |||
MGIC Investment Corp. (a) | 175,288 | 487 | |
Radian Group, Inc. | 1,691,631 | 10,877 | |
| 11,364 | ||
TOTAL FINANCIALS | 1,191,784 | ||
HEALTH CARE - 11.5% | |||
Biotechnology - 0.8% | |||
Amgen, Inc. | 566,904 | 48,448 | |
Health Care Equipment & Supplies - 1.0% | |||
Abbott Laboratories | 518,604 | 17,570 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Baxter International, Inc. | 85,190 | $ 5,779 | |
ResMed, Inc. | 62,282 | 2,728 | |
St. Jude Medical, Inc. | 234,847 | 9,558 | |
Stryker Corp. | 360,488 | 22,585 | |
| 58,220 | ||
Health Care Providers & Services - 2.7% | |||
Aetna, Inc. | 521,690 | 25,161 | |
Cardinal Health, Inc. | 270,669 | 11,858 | |
Fresenius Medical Care AG & Co. KGaA | 80,000 | 5,639 | |
McKesson Corp. | 528,664 | 55,631 | |
Quest Diagnostics, Inc. | 139,670 | 8,094 | |
UnitedHealth Group, Inc. | 233,700 | 12,903 | |
WellPoint, Inc. | 714,369 | 46,305 | |
| 165,591 | ||
Health Care Technology - 0.2% | |||
Quality Systems, Inc. | 516,315 | 9,418 | |
Life Sciences Tools & Services - 0.0% | |||
Lonza Group AG | 44,627 | 2,628 | |
Pharmaceuticals - 6.8% | |||
AbbVie, Inc. | 909,352 | 33,364 | |
AstraZeneca PLC sponsored ADR | 270,100 | 13,013 | |
Cardiome Pharma Corp. (a) | 935,300 | 450 | |
Eli Lilly & Co. | 334,402 | 17,954 | |
GlaxoSmithKline PLC sponsored ADR | 774,825 | 35,340 | |
Johnson & Johnson | 1,282,897 | 94,832 | |
Merck & Co., Inc. | 2,633,094 | 113,881 | |
Novartis AG sponsored ADR | 303,500 | 20,583 | |
Pfizer, Inc. | 1,956,016 | 53,360 | |
Sanofi SA | 163,292 | 15,919 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 247,355 | 9,397 | |
| 408,093 | ||
TOTAL HEALTH CARE | 692,398 | ||
INDUSTRIALS - 12.2% | |||
Aerospace & Defense - 2.7% | |||
Honeywell International, Inc. | 203,435 | 13,882 | |
Raytheon Co. | 334,374 | 17,615 | |
Rockwell Collins, Inc. | 647,462 | 38,123 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
The Boeing Co. | 595,436 | $ 43,985 | |
United Technologies Corp. | 555,300 | 48,628 | |
| 162,233 | ||
Air Freight & Logistics - 1.7% | |||
C.H. Robinson Worldwide, Inc. | 348,359 | 23,044 | |
United Parcel Service, Inc. Class B | 962,245 | 76,296 | |
| 99,340 | ||
Commercial Services & Supplies - 0.9% | |||
Aggreko PLC | 113,000 | 2,862 | |
Interface, Inc. | 648,199 | 10,877 | |
Pitney Bowes, Inc. (d) | 495,338 | 7,138 | |
Republic Services, Inc. | 1,010,376 | 32,221 | |
Ritchie Brothers Auctioneers, Inc. | 97,800 | 2,134 | |
| 55,232 | ||
Electrical Equipment - 0.6% | |||
Emerson Electric Co. | 241,348 | 13,817 | |
Hubbell, Inc. Class B | 257,093 | 23,408 | |
| 37,225 | ||
Industrial Conglomerates - 2.8% | |||
General Electric Co. | 7,665,176 | 170,780 | |
Machinery - 1.7% | |||
Cummins, Inc. | 48,061 | 5,519 | |
Douglas Dynamics, Inc. | 932,328 | 12,288 | |
Graco, Inc. | 144,566 | 8,269 | |
Illinois Tool Works, Inc. | 120,986 | 7,602 | |
Ingersoll-Rand PLC | 528,663 | 27,168 | |
ITT Corp. | 136,297 | 3,500 | |
Lincoln Electric Holdings, Inc. | 11,588 | 625 | |
Morgan Crucible Co. PLC | 941,354 | 4,151 | |
PACCAR, Inc. | 12,884 | 606 | |
Schindler Holding AG (participation certificate) | 20,660 | 3,065 | |
Stanley Black & Decker, Inc. | 349,144 | 26,825 | |
| 99,618 | ||
Marine - 0.2% | |||
Irish Continental Group PLC unit | 107,193 | 2,885 | |
Kuehne & Nagel International AG | 64,487 | 7,575 | |
| 10,460 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - 0.5% | |||
Amadeus Fire AG | 71,043 | $ 4,052 | |
Bureau Veritas SA | 75,100 | 8,995 | |
Dun & Bradstreet Corp. | 20,800 | 1,696 | |
Michael Page International PLC | 1,636,163 | 10,567 | |
Randstad Holding NV | 60,900 | 2,525 | |
Towers Watson & Co. | 62,716 | 3,831 | |
| 31,666 | ||
Road & Rail - 0.6% | |||
J.B. Hunt Transport Services, Inc. | 262,630 | 17,667 | |
Kansas City Southern | 31,938 | 2,974 | |
Norfolk Southern Corp. | 225,875 | 15,556 | |
| 36,197 | ||
Trading Companies & Distributors - 0.5% | |||
MSC Industrial Direct Co., Inc. Class A | 65,166 | 5,156 | |
W.W. Grainger, Inc. | 84,872 | 18,487 | |
Watsco, Inc. | 75,159 | 5,663 | |
| 29,306 | ||
TOTAL INDUSTRIALS | 732,057 | ||
INFORMATION TECHNOLOGY - 15.9% | |||
Communications Equipment - 1.7% | |||
Cisco Systems, Inc. | 3,434,939 | 70,657 | |
QUALCOMM, Inc. | 492,404 | 32,513 | |
| 103,170 | ||
Computers & Peripherals - 3.7% | |||
Apple, Inc. | 453,662 | 206,557 | |
Dell, Inc. | 910,818 | 12,059 | |
EMC Corp. (a) | 316,824 | 7,797 | |
| 226,413 | ||
Electronic Equipment & Components - 0.1% | |||
Arrow Electronics, Inc. (a) | 137,363 | 5,277 | |
Internet Software & Services - 1.8% | |||
Google, Inc. Class A (a) | 141,689 | 107,073 | |
IT Services - 5.8% | |||
Accenture PLC Class A | 110,345 | 7,933 | |
Cognizant Technology Solutions Corp. Class A (a) | 367,604 | 28,739 | |
Fidelity National Information Services, Inc. | 870,637 | 32,309 | |
IBM Corp. | 128,050 | 26,003 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
MasterCard, Inc. Class A | 114,750 | $ 59,486 | |
Paychex, Inc. | 2,972,416 | 96,990 | |
The Western Union Co. | 2,396,451 | 34,101 | |
Total System Services, Inc. | 302,718 | 7,038 | |
Visa, Inc. Class A | 343,174 | 54,191 | |
| 346,790 | ||
Semiconductors & Semiconductor Equipment - 0.8% | |||
Altera Corp. | 257,352 | 8,601 | |
Analog Devices, Inc. | 366,065 | 15,975 | |
Applied Materials, Inc. | 1,721,628 | 22,226 | |
| 46,802 | ||
Software - 2.0% | |||
Microsoft Corp. | 4,343,429 | 119,314 | |
TOTAL INFORMATION TECHNOLOGY | 954,839 | ||
MATERIALS - 1.4% | |||
Chemicals - 1.4% | |||
Air Products & Chemicals, Inc. | 195,995 | 17,136 | |
Airgas, Inc. | 175,583 | 16,723 | |
E.I. du Pont de Nemours & Co. | 302,246 | 14,342 | |
Sigma Aldrich Corp. | 57,304 | 4,431 | |
Syngenta AG (Switzerland) | 63,206 | 27,181 | |
The Scotts Miracle-Gro Co. Class A | 66,500 | 2,907 | |
| 82,720 | ||
TELECOMMUNICATION SERVICES - 1.7% | |||
Diversified Telecommunication Services - 1.0% | |||
Verizon Communications, Inc. | 1,387,950 | 60,528 | |
Wireless Telecommunication Services - 0.7% | |||
Vodafone Group PLC sponsored ADR | 1,560,142 | 42,623 | |
TOTAL TELECOMMUNICATION SERVICES | 103,151 | ||
UTILITIES - 2.0% | |||
Electric Utilities - 1.6% | |||
American Electric Power Co., Inc. | 135,121 | 6,120 | |
Duke Energy Corp. | 181,572 | 12,481 | |
EDF SA | 153,600 | 2,950 | |
Edison International | 170,300 | 8,207 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
FirstEnergy Corp. | 867,880 | $ 35,140 | |
ITC Holdings Corp. | 81,200 | 6,577 | |
NextEra Energy, Inc. | 152,464 | 10,985 | |
Northeast Utilities | 57,374 | 2,337 | |
PPL Corp. | 290,153 | 8,789 | |
| 93,586 | ||
Multi-Utilities - 0.4% | |||
National Grid PLC | 54,854 | 601 | |
PG&E Corp. | 287,055 | 12,240 | |
Sempra Energy | 162,309 | 12,181 | |
| 25,022 | ||
TOTAL UTILITIES | 118,608 | ||
TOTAL COMMON STOCKS (Cost $5,128,815) |
| ||
Convertible Preferred Stocks - 1.1% | |||
|
|
|
|
CONSUMER STAPLES - 0.1% | |||
Food Products - 0.1% | |||
Bunge Ltd. 4.875% | 52,200 | 5,637 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Apache Corp. 6.00% | 85,000 | 4,023 | |
HEALTH CARE - 0.5% | |||
Health Care Equipment & Supplies - 0.5% | |||
Alere, Inc. 3.00% | 160,907 | 32,770 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
United Technologies Corp. 7.50% | 110,600 | 6,298 | |
MATERIALS - 0.2% | |||
Metals & Mining - 0.2% | |||
ArcelorMittal SA 6.00% (a) | 465,500 | 12,042 | |
Convertible Preferred Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.1% | |||
PPL Corp. 8.75% | 104,300 | $ 5,715 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $71,669) |
|
Convertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
ENERGY - 0.1% | ||||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 (Cost $5,615) | $ 5,615 |
|
Money Market Funds - 0.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 4,074,080 | 4,074 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 4,846,575 | 4,847 | |
TOTAL MONEY MARKET FUNDS (Cost $8,921) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $5,215,020) | 6,005,540 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 12,684 | ||
NET ASSETS - 100% | $ 6,018,224 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $5,088,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. | 5/3/12 - 10/23/12 | $ 5,088 |
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 | $ 15 |
Fidelity Securities Lending Cash Central Fund | 183 |
Total | $ 198 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 646,095 | $ 646,095 | $ - | $ - |
Consumer Staples | 707,435 | 701,798 | 5,637 | - |
Energy | 706,807 | 635,263 | 71,544 | - |
Financials | 1,191,784 | 1,163,668 | 23,028 | 5,088 |
Health Care | 725,168 | 703,610 | 21,558 | - |
Industrials | 738,355 | 738,355 | - | - |
Information Technology | 954,839 | 954,839 | - | - |
Materials | 94,762 | 55,539 | 39,223 | - |
Telecommunication Services | 103,151 | 103,151 | - | - |
Utilities | 124,323 | 118,007 | 6,316 | - |
Corporate Bonds | 3,900 | - | 3,900 | - |
Money Market Funds | 8,921 | 8,921 | - | - |
Total Investments in Securities: | $ 6,005,540 | $ 5,829,246 | $ 171,206 | $ 5,088 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 89.2% |
United Kingdom | 5.5% |
Canada | 1.4% |
Switzerland | 1.1% |
Others (Individually Less Than 1%) | 2.8% |
| 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,251) - See accompanying schedule: Unaffiliated issuers (cost $5,206,099) | $ 5,996,619 |
|
Fidelity Central Funds (cost $8,921) | 8,921 |
|
Total Investments (cost $5,215,020) |
| $ 6,005,540 |
Foreign currency held at value (cost $1) | 1 | |
Receivable for investments sold | 79,279 | |
Receivable for fund shares sold | 2,877 | |
Dividends receivable | 7,136 | |
Interest receivable | 103 | |
Distributions receivable from Fidelity Central Funds | 4 | |
Prepaid expenses | 13 | |
Other receivables | 925 | |
Total assets | 6,095,878 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 57,272 | |
Payable for fund shares redeemed | 11,603 | |
Accrued management fee | 2,262 | |
Other affiliated payables | 974 | |
Other payables and accrued expenses | 696 | |
Collateral on securities loaned, at value | 4,847 | |
Total liabilities | 77,654 | |
|
|
|
Net Assets | $ 6,018,224 | |
Net Assets consist of: |
| |
Paid in capital | $ 9,759,080 | |
Undistributed net investment income | 3,469 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,534,887) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 790,562 | |
Net Assets | $ 6,018,224 |
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, 2013 (Unaudited) | |
|
|
|
Growth and Income: | $ 22.36 | |
|
|
|
Class K: | $ 22.34 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 80,681 |
Interest |
| 795 |
Income from Fidelity Central Funds |
| 198 |
Total income |
| 81,674 |
|
|
|
Expenses | ||
Management fee | $ 13,274 | |
Transfer agent fees | 5,330 | |
Accounting and security lending fees | 561 | |
Custodian fees and expenses | 88 | |
Independent trustees' compensation | 21 | |
Registration fees | 66 | |
Audit | 46 | |
Legal | 24 | |
Interest | 1 | |
Miscellaneous | 22 | |
Total expenses before reductions | 19,433 | |
Expense reductions | (548) | 18,885 |
Net investment income (loss) | 62,789 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 230,578 | |
Foreign currency transactions | 144 | |
Total net realized gain (loss) |
| 230,722 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 386,827 | |
Assets and liabilities in foreign currencies | 45 | |
Total change in net unrealized appreciation (depreciation) |
| 386,872 |
Net gain (loss) | 617,594 | |
Net increase (decrease) in net assets resulting from operations | $ 680,383 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 62,789 | $ 102,946 |
Net realized gain (loss) | 230,722 | 104,201 |
Change in net unrealized appreciation (depreciation) | 386,872 | 318,127 |
Net increase (decrease) in net assets resulting | 680,383 | 525,274 |
Distributions to shareholders from net investment income | (64,752) | (98,353) |
Distributions to shareholders from net realized gain | (7,383) | (2,799) |
Total distributions | (72,135) | (101,152) |
Share transactions - net increase (decrease) | (204,633) | (265,023) |
Total increase (decrease) in net assets | 403,615 | 159,099 |
|
|
|
Net Assets | ||
Beginning of period | 5,614,609 | 5,455,510 |
End of period (including undistributed net investment income of $3,469 and undistributed net investment income of $5,432, respectively) | $ 6,018,224 | $ 5,614,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth and Income
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 | $ 31.92 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .23 | .36 | .20 | .10 | .15 | .35 |
Net realized and unrealized gain (loss) | 2.26 | 1.55 | 2.82 | 1.37 | (7.43) | (6.25) |
Total from investment operations | 2.49 | 1.91 | 3.02 | 1.47 | (7.28) | (5.90) |
Distributions from net investment income | (.24) | (.35) | (.19) | (.10) | (.19) | (.33) |
Distributions from net realized gain | (.03) | (.01) | - | (.01) | (.03) | (3.81) |
Total distributions | (.26) H | (.36) | (.19) | (.10) I | (.22) | (4.14) |
Net asset value, end of period | $ 22.36 | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 | $ 21.88 |
Total Return B,C | 12.46% | 10.45% | 19.16% | 10.25% | (33.32)% | (20.91)% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | .69% A | .71% | .72% | .75% | .78% | .68% |
Expenses net of fee waivers, if any | .69% A | .71% | .72% | .75% | .78% | .68% |
Expenses net of all reductions | .67% A | .71% | .71% | .74% | .78% | .67% |
Net investment income (loss) | 2.14% A | 1.95% | 1.09% | .63% | 1.07% | 1.29% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,159 | $ 4,863 | $ 5,052 | $ 5,417 | $ 5,993 | $ 12,552 |
Portfolio turnover rate F | 51% A | 62% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 $.26 per share is comprised of distributions from net investment income of $.235 and distributions from net realized gain of $.027 per share.
I 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) | 2012 | 2011 | 2010 | 2009 | 2008 G |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 | $ 25.34 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .24 | .40 | .23 | .13 | .16 | .09 |
Net realized and unrealized gain (loss) | 2.26 | 1.54 | 2.82 | 1.37 | (7.40) | (3.45) |
Total from investment operations | 2.50 | 1.94 | 3.05 | 1.50 | (7.24) | (3.36) |
Distributions from net investment income | (.25) | (.38) | (.22) | (.13) | (.23) | (.10) |
Distributions from net realized gain | (.03) | (.01) | - | (.01) | (.03) | - |
Total distributions | (.28) | (.39) | (.22) | (.14) I | (.26) | (.10) |
Net asset value, end of period | $ 22.34 | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 | $ 21.88 |
Total Return B,C | 12.49% | 10.66% | 19.40% | 10.41% | (33.12)% | (13.22)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .53% A | .54% | .54% | .54% | .56% | .55% A |
Expenses net of fee waivers, if any | .53% A | .54% | .54% | .54% | .56% | .55% A |
Expenses net of all reductions | .52% A | .54% | .53% | .53% | .55% | .55% A |
Net investment income (loss) | 2.29% A | 2.13% | 1.27% | .84% | 1.29% | 1.73% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 859 | $ 752 | $ 403 | $ 292 | $ 349 | $ 87 |
Portfolio turnover rate F | 51% A | 62% | 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, 2013 (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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
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 futures transactions, foreign currency transactions, 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 | $ 861,677 |
Gross unrealized depreciation | (99,167) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 762,510 |
|
|
Tax cost | $ 5,243,030 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
2017 | $ (1,560,027) |
2018 | (3,168,341) |
Total capital loss carryforward | $ (4,728,368) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,466,595 and $1,626,917, 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 .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 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 and Income | $ 5,128 | .21 |
Class K | 202 | .05 |
| $ 5,330 |
|
* 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 $42 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
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 | $ 6,293 | .39% | $ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $7 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. The value of securities loaned to FCM at period end was $558. 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
Semiannual Report
7. Security Lending - continued
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 $183, including $10 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 $548 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Growth & Income | $ 55,112 | $ 87,366 |
Class K | 9,640 | 10,987 |
Total | $ 64,752 | $ 98,353 |
From net realized gain |
|
|
Growth & Income | $ 6,338 | $ 2,563 |
Class K | 1,045 | 236 |
Total | $ 7,383 | $ 2,799 |
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 | 10,730 | 21,066 | $ 228,411 | $ 402,515 |
Reinvestment of distributions | 2,787 | 4,651 | 58,994 | 86,309 |
Shares redeemed | (24,270) | (56,062) | (513,931) | (1,053,524) |
Net increase (decrease) | (10,753) | (30,345) | $ (226,526) | $ (564,700) |
Class K |
|
|
|
|
Shares sold | 6,573 | 20,227 | $ 138,560 | $ 386,187 |
Reinvestment of distributions | 505 | 596 | 10,684 | 11,223 |
Shares redeemed | (6,010) | (5,182) | (127,351) | (97,733) |
Net increase (decrease) | 1,068 | 15,641 | $ 21,893 | $ 299,677 |
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
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
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
GAI-K-USAN-0313 1.863232.104
Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Dividend Growth | .68% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.10 | $ 3.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.78 | $ 3.47 |
Class K | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.30 | $ 2.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 3.1 | 5.2 |
Wells Fargo & Co. | 1.7 | 1.8 |
Berkshire Hathaway, Inc. Class B | 1.6 | 1.6 |
Google, Inc. Class A | 1.5 | 0.2 |
Johnson & Johnson | 1.4 | 1.3 |
Citigroup, Inc. | 1.3 | 0.5 |
The Coca-Cola Co. | 1.2 | 1.5 |
Procter & Gamble Co. | 1.2 | 1.1 |
Merck & Co., Inc. | 1.1 | 1.2 |
Philip Morris International, Inc. | 1.1 | 1.1 |
| 15.2 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 18.5 | 20.9 |
Financials | 14.1 | 13.0 |
Health Care | 12.7 | 11.9 |
Industrials | 12.6 | 11.6 |
Consumer Discretionary | 12.3 | 11.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 98.6% |
| ![]() | Stocks 97.3% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 18.8% |
| ** Foreign investments | 17.8% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.3% | |||
Auto Components - 0.3% | |||
Delphi Automotive PLC (a) | 298,580 | $ 11,543 | |
Tenneco, Inc. (a) | 309,026 | 10,804 | |
| 22,347 | ||
Automobiles - 0.2% | |||
Harley-Davidson, Inc. | 219,356 | 11,499 | |
Tesla Motors, Inc. (a) | 132,500 | 4,970 | |
| 16,469 | ||
Diversified Consumer Services - 0.6% | |||
American Public Education, Inc. (a) | 39,900 | 1,537 | |
Anhanguera Educacional Participacoes SA | 698,500 | 13,592 | |
DeVry, Inc. | 319,028 | 8,030 | |
Kroton Educacional SA (a) | 344,900 | 8,469 | |
Weight Watchers International, Inc. (e) | 198,172 | 10,596 | |
| 42,224 | ||
Hotels, Restaurants & Leisure - 1.9% | |||
Bloomin' Brands, Inc. | 401,165 | 7,450 | |
Bravo Brio Restaurant Group, Inc. (a) | 493,378 | 7,351 | |
Brinker International, Inc. | 678,931 | 22,228 | |
Club Mediterranee SA (a) | 531,223 | 10,055 | |
Denny's Corp. (a) | 2,943,632 | 14,895 | |
Hyatt Hotels Corp. Class A (a) | 327,801 | 13,135 | |
Icahn Enterprises LP rights | 1,067,316 | 0 | |
Las Vegas Sands Corp. | 420,036 | 23,207 | |
Penn National Gaming, Inc. (a) | 21,700 | 1,056 | |
Ruth's Hospitality Group, Inc. (a) | 804,200 | 6,241 | |
Spur Corp. Ltd. | 1,579,113 | 4,766 | |
Starbucks Corp. | 105,099 | 5,898 | |
Texas Roadhouse, Inc. Class A | 621,764 | 10,937 | |
Yum! Brands, Inc. | 311,624 | 20,237 | |
| 147,456 | ||
Household Durables - 0.6% | |||
KB Home | 264,357 | 5,041 | |
PulteGroup, Inc. (a) | 616,307 | 12,782 | |
Taylor Wimpey PLC | 6,955,149 | 7,848 | |
Whirlpool Corp. | 188,031 | 21,695 | |
| 47,366 | ||
Internet & Catalog Retail - 1.0% | |||
Amazon.com, Inc. (a) | 164,745 | 43,740 | |
Liberty Media Corp. Interactive Series A (a) | 677,279 | 14,399 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Ocado Group PLC (a)(e) | 6,278,905 | $ 10,536 | |
priceline.com, Inc. (a) | 13,030 | 8,932 | |
| 77,607 | ||
Leisure Equipment & Products - 0.3% | |||
Amer Group PLC (A Shares) | 268,761 | 4,284 | |
Brunswick Corp. | 344,623 | 12,462 | |
Fenix Outdoor AB | 7,246 | 207 | |
Polaris Industries, Inc. | 43,439 | 3,783 | |
| 20,736 | ||
Media - 2.0% | |||
CBS Corp. Class B | 159,409 | 6,651 | |
Comcast Corp. Class A | 1,651,478 | 62,888 | |
McGraw-Hill Companies, Inc. | 233,731 | 13,444 | |
MDC Partners, Inc. Class A (sub. vtg.) | 958,939 | 12,207 | |
Mood Media Corp. (a)(h) | 2,002,900 | 3,735 | |
The Walt Disney Co. | 672,212 | 36,219 | |
Time Warner, Inc. | 182,245 | 9,207 | |
Valassis Communications, Inc. | 152,155 | 4,269 | |
Viacom, Inc. Class B (non-vtg.) | 94,201 | 5,685 | |
| 154,305 | ||
Multiline Retail - 0.3% | |||
PPR SA | 60,754 | 13,067 | |
Target Corp. | 193,123 | 11,667 | |
The Bon-Ton Stores, Inc. | 178,200 | 2,236 | |
| 26,970 | ||
Specialty Retail - 4.1% | |||
Advance Auto Parts, Inc. | 326,785 | 24,025 | |
American Eagle Outfitters, Inc. | 141,248 | 2,855 | |
Ascena Retail Group, Inc. (a) | 743,616 | 12,604 | |
AutoZone, Inc. (a) | 51,240 | 18,943 | |
Bed Bath & Beyond, Inc. (a) | 164,172 | 9,637 | |
Body Central Corp. (a)(f) | 1,045,408 | 8,311 | |
CarMax, Inc. (a) | 225,068 | 8,872 | |
Express, Inc. (a) | 1,027,026 | 18,877 | |
Fast Retailing Co. Ltd. | 17,400 | 4,582 | |
Foot Locker, Inc. | 304,618 | 10,464 | |
GNC Holdings, Inc. | 206,500 | 7,422 | |
Home Depot, Inc. | 1,023,464 | 68,490 | |
Kingfisher PLC | 1,703,600 | 7,287 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Limited Brands, Inc. | 256,318 | $ 12,308 | |
Lowe's Companies, Inc. | 1,119,308 | 42,746 | |
MarineMax, Inc. (a) | 116,329 | 1,359 | |
Rent-A-Center, Inc. | 229,469 | 8,187 | |
Ross Stores, Inc. | 137,491 | 8,208 | |
SuperGroup PLC (a)(e) | 1,372,787 | 13,249 | |
TJX Companies, Inc. | 427,454 | 19,312 | |
| 307,738 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Deckers Outdoor Corp. (a)(e) | 58,000 | 2,317 | |
lululemon athletica, Inc. (a) | 86,929 | 5,998 | |
NIKE, Inc. Class B | 422,768 | 22,851 | |
PVH Corp. | 228,456 | 27,157 | |
Steven Madden Ltd. (a) | 7,200 | 332 | |
Vera Bradley, Inc. (a)(e) | 385,499 | 9,749 | |
VF Corp. | 27,931 | 4,122 | |
| 72,526 | ||
TOTAL CONSUMER DISCRETIONARY | 935,744 | ||
CONSUMER STAPLES - 9.5% | |||
Beverages - 2.2% | |||
Anheuser-Busch InBev SA NV | 21,800 | 1,918 | |
Beam, Inc. | 86,974 | 5,335 | |
Cott Corp. | 984,100 | 8,929 | |
Dr. Pepper Snapple Group, Inc. | 655,178 | 29,529 | |
Monster Beverage Corp. (a) | 405,808 | 19,438 | |
Remy Cointreau SA | 3,600 | 459 | |
SABMiller PLC | 184,500 | 9,217 | |
The Coca-Cola Co. | 2,382,131 | 88,711 | |
| 163,536 | ||
Food & Staples Retailing - 1.3% | |||
CVS Caremark Corp. | 1,009,037 | 51,663 | |
Eurocash SA | 126,595 | 2,060 | |
Kroger Co. | 278,994 | 7,728 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 170,260 | 6,206 | |
Wal-Mart Stores, Inc. | 494,991 | 34,625 | |
| 102,282 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - 1.9% | |||
Bunge Ltd. | 217,217 | $ 17,304 | |
D.E. Master Blenders 1753 NV (a) | 282,500 | 3,485 | |
Danone SA | 126,900 | 8,794 | |
Flowers Foods, Inc. | 619,507 | 16,652 | |
Green Mountain Coffee Roasters, Inc. (a) | 325,837 | 14,835 | |
Hilton Food Group PLC | 412,902 | 2,067 | |
Ingredion, Inc. | 58,220 | 3,847 | |
Kellogg Co. | 242,720 | 14,199 | |
Marine Harvest ASA (a) | 8,615,478 | 8,627 | |
Mead Johnson Nutrition Co. Class A | 155,644 | 11,829 | |
Mondelez International, Inc. | 1,344,744 | 37,370 | |
The J.M. Smucker Co. | 61,318 | 5,435 | |
| 144,444 | ||
Household Products - 1.7% | |||
Procter & Gamble Co. | 1,161,394 | 87,290 | |
Reckitt Benckiser Group PLC | 427,600 | 28,497 | |
Unicharm Corp. | 214,600 | 11,382 | |
| 127,169 | ||
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 99,550 | 6,066 | |
Hengan International Group Co. Ltd. | 692,000 | 6,942 | |
Herbalife Ltd. | 199,300 | 7,239 | |
Nu Skin Enterprises, Inc. Class A | 14,500 | 614 | |
| 20,861 | ||
Tobacco - 2.1% | |||
Altria Group, Inc. | 758,285 | 25,539 | |
British American Tobacco PLC (United Kingdom) | 271,700 | 14,121 | |
Imperial Tobacco Group PLC | 307,049 | 11,420 | |
Japan Tobacco, Inc. | 7,200 | 224 | |
Lorillard, Inc. | 654,333 | 25,565 | |
Philip Morris International, Inc. | 945,713 | 83,374 | |
| 160,243 | ||
TOTAL CONSUMER STAPLES | 718,535 | ||
ENERGY - 11.2% | |||
Energy Equipment & Services - 4.2% | |||
BW Offshore Ltd. | 8,883,298 | 9,155 | |
Cal Dive International, Inc. (a)(e) | 1,703,683 | 3,237 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Cameron International Corp. (a) | 1,077,932 | $ 68,244 | |
Cathedral Energy Services Ltd. | 1,181,800 | 6,552 | |
Ensco PLC Class A | 217,298 | 13,814 | |
Essential Energy Services Ltd. | 3,835,400 | 8,191 | |
Fugro NV (Certificaten Van Aandelen) | 63,755 | 3,864 | |
Halliburton Co. | 680,459 | 27,681 | |
Helix Energy Solutions Group, Inc. (a) | 7,253 | 172 | |
McDermott International, Inc. (a) | 899,079 | 10,942 | |
National Oilwell Varco, Inc. | 938,275 | 69,564 | |
Noble Corp. | 535,708 | 21,696 | |
Schlumberger Ltd. | 751,691 | 58,669 | |
Tuscany International Drilling, Inc. (a) | 4,471,471 | 1,076 | |
Vantage Drilling Co. (a) | 5,837,278 | 10,916 | |
Xtreme Drilling & Coil Services Corp. (a) | 3,427,560 | 5,327 | |
Xtreme Drilling & Coil Services Corp. (g) | 1,117,800 | 1,737 | |
| 320,837 | ||
Oil, Gas & Consumable Fuels - 7.0% | |||
Americas Petrogas, Inc. (a) | 2,225,900 | 5,624 | |
Americas Petrogas, Inc. (a)(g) | 2,665,500 | 6,735 | |
Amyris, Inc. (a)(e) | 750,192 | 2,281 | |
Anadarko Petroleum Corp. | 346,709 | 27,744 | |
Apache Corp. | 228,946 | 19,177 | |
BPZ Energy, Inc. (a)(e) | 2,730,178 | 8,600 | |
Cabot Oil & Gas Corp. | 197,500 | 10,424 | |
Canadian Natural Resources Ltd. | 213,676 | 6,453 | |
Cobalt International Energy, Inc. (a) | 455,100 | 11,018 | |
Concho Resources, Inc. (a) | 128,607 | 11,732 | |
Crew Energy, Inc. (a) | 887,100 | 5,292 | |
Crown Point Energy, Inc. (a) | 942,800 | 350 | |
Crown Point Energy, Inc. (g) | 4,157,416 | 1,542 | |
Double Eagle Petroleum Co. (a)(f) | 912,603 | 4,636 | |
Emerald Oil, Inc. (a) | 491,459 | 2,924 | |
Emerald Oil, Inc. warrants 2/4/16 (a) | 171,198 | 0 | |
Energen Corp. | 36,230 | 1,744 | |
EOG Resources, Inc. | 79,195 | 9,898 | |
EQT Corp. | 263,850 | 15,675 | |
EV Energy Partners LP | 71,892 | 4,227 | |
Gran Tierra Energy, Inc. (Canada) (a) | 1,347,400 | 7,187 | |
Halcon Resources Corp. | 910,000 | 6,952 | |
Hess Corp. | 179,956 | 12,086 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
InterOil Corp. (a)(e) | 513,928 | $ 30,671 | |
Madalena Ventures, Inc. (a) | 5,491,500 | 2,175 | |
Marathon Petroleum Corp. | 402,322 | 29,856 | |
Markwest Energy Partners LP | 179,613 | 9,918 | |
Murphy Oil Corp. | 206,567 | 12,295 | |
Noble Energy, Inc. | 19,700 | 2,123 | |
Northern Oil & Gas, Inc. (a)(e) | 2,112,390 | 34,939 | |
Occidental Petroleum Corp. | 459,837 | 40,590 | |
Painted Pony Petroleum Ltd. (a)(g) | 456,400 | 4,576 | |
Painted Pony Petroleum Ltd. Class A (a) | 630,500 | 6,321 | |
Pan Orient Energy Corp. | 739,800 | 2,811 | |
PBF Energy, Inc. Class A (e) | 78,750 | 2,630 | |
Peabody Energy Corp. | 751,654 | 18,904 | |
Petrominerales Ltd. | 1,017,100 | 9,055 | |
Phillips 66 | 400,163 | 24,238 | |
Pioneer Natural Resources Co. | 89,233 | 10,488 | |
Royal Dutch Shell PLC Class A sponsored ADR | 319,398 | 22,524 | |
Southcross Energy Partners LP | 95,500 | 2,246 | |
Suncor Energy, Inc. | 229,900 | 7,814 | |
TAG Oil Ltd. (a)(f) | 3,127,900 | 14,645 | |
TAG Oil Ltd. (f)(g) | 146,900 | 688 | |
Targa Resources Corp. | 122,408 | 7,389 | |
The Williams Companies, Inc. | 973,192 | 34,110 | |
Valero Energy Corp. | 232,400 | 10,163 | |
Western Gas Equity Partners LP | 94,857 | 3,202 | |
| 526,672 | ||
TOTAL ENERGY | 847,509 | ||
FINANCIALS - 13.9% | |||
Capital Markets - 1.4% | |||
AllianceBernstein Holding LP | 115,800 | 2,358 | |
Ares Capital Corp. | 507,443 | 9,088 | |
BlackRock, Inc. Class A | 72,832 | 17,209 | |
Goldman Sachs Group, Inc. | 3,600 | 532 | |
GP Investments Ltd. (depositary receipt) (a) | 3,963,079 | 10,488 | |
ICAP PLC | 697,300 | 3,608 | |
ICG Group, Inc. (a) | 512,336 | 6,148 | |
Invesco Ltd. | 538,787 | 14,682 | |
KKR & Co. LP | 585,055 | 9,876 | |
MLP AG | 68,820 | 597 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 21,021 | $ 6,151 | |
Morgan Stanley | 670,361 | 15,318 | |
The Blackstone Group LP | 550,463 | 10,184 | |
UBS AG (NY Shares) | 127,500 | 2,215 | |
| 108,454 | ||
Commercial Banks - 3.2% | |||
Axis Bank Ltd. | 7,241 | 205 | |
Bank of Ireland (a) | 124,509 | 24 | |
CIT Group, Inc. (a) | 438,108 | 18,554 | |
Comerica, Inc. | 227,800 | 7,827 | |
Commerce Bancshares, Inc. | 190,143 | 7,140 | |
Cullen/Frost Bankers, Inc. | 65,253 | 3,843 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 751,323 | 6,011 | |
KeyCorp | 789,200 | 7,418 | |
M&T Bank Corp. | 32,797 | 3,368 | |
PNC Financial Services Group, Inc. | 134,000 | 8,281 | |
PT Bank Rakyat Indonesia Tbk | 414,500 | 340 | |
Regions Financial Corp. | 946,017 | 7,360 | |
U.S. Bancorp | 1,215,325 | 40,227 | |
Wells Fargo & Co. | 3,780,941 | 131,690 | |
| 242,288 | ||
Consumer Finance - 0.5% | |||
Capital One Financial Corp. | 607,215 | 34,198 | |
Diversified Financial Services - 2.7% | |||
Citigroup, Inc. | 2,282,691 | 96,238 | |
IntercontinentalExchange, Inc. (a) | 45,449 | 6,306 | |
JPMorgan Chase & Co. | 1,495,240 | 70,351 | |
PICO Holdings, Inc. (a)(f) | 1,408,113 | 29,613 | |
The NASDAQ Stock Market, Inc. | 170,808 | 4,837 | |
| 207,345 | ||
Insurance - 3.6% | |||
ACE Ltd. | 119,937 | 10,234 | |
AEGON NV | 576,860 | 3,851 | |
AFLAC, Inc. | 343,551 | 18,229 | |
Allied World Assurance Co. Holdings Ltd. | 111,470 | 9,456 | |
American International Group, Inc. (a) | 432,200 | 16,350 | |
Assured Guaranty Ltd. | 2,199,077 | 39,869 | |
Axis Capital Holdings Ltd. | 98,429 | 3,767 | |
Berkshire Hathaway, Inc. Class B (a) | 1,256,056 | 121,750 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 19,400 | 6,963 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Insurance - continued | |||
MetLife, Inc. | 171,086 | $ 6,388 | |
Prudential Financial, Inc. | 245,016 | 14,182 | |
The Travelers Companies, Inc. | 218,196 | 17,120 | |
Validus Holdings Ltd. | 225,852 | 8,223 | |
| 276,382 | ||
Real Estate Investment Trusts - 2.0% | |||
American Campus Communities, Inc. | 83,300 | 3,879 | |
American Tower Corp. | 325,513 | 24,788 | |
Beni Stabili SpA SIIQ | 14,178,600 | 9,799 | |
CBL & Associates Properties, Inc. | 1,047,564 | 22,512 | |
Cousins Properties, Inc. | 662,800 | 5,899 | |
Douglas Emmett, Inc. | 463,359 | 10,806 | |
Education Realty Trust, Inc. | 1,040,600 | 11,186 | |
Lexington Corporate Properties Trust | 819,900 | 9,019 | |
Prologis, Inc. | 404,324 | 16,133 | |
SL Green Realty Corp. | 191,742 | 15,412 | |
Sovran Self Storage, Inc. | 47,117 | 3,074 | |
Westfield Group unit | 268,749 | 3,133 | |
Weyerhaeuser Co. | 410,926 | 12,377 | |
| 148,017 | ||
Real Estate Management & Development - 0.5% | |||
CBRE Group, Inc. (a) | 1,699,361 | 36,672 | |
TOTAL FINANCIALS | 1,053,356 | ||
HEALTH CARE - 12.5% | |||
Biotechnology - 3.7% | |||
Alnylam Pharmaceuticals, Inc. (a) | 805,000 | 19,425 | |
Amgen, Inc. | 486,809 | 41,603 | |
ARIAD Pharmaceuticals, Inc. (a) | 782,940 | 15,565 | |
AVEO Pharmaceuticals, Inc. (a)(e) | 995,409 | 7,874 | |
Biogen Idec, Inc. (a) | 139,000 | 21,695 | |
Biovitrum AB (a) | 1,889,028 | 11,320 | |
Dynavax Technologies Corp. (a) | 3,874,970 | 11,974 | |
Elan Corp. PLC sponsored ADR (a) | 1,663,500 | 17,483 | |
Gentium SpA sponsored ADR (a) | 364,345 | 4,365 | |
Gilead Sciences, Inc. (a) | 915,508 | 36,117 | |
Grifols SA ADR | 566,897 | 15,085 | |
Infinity Pharmaceuticals, Inc. (a) | 546,320 | 18,821 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Insmed, Inc. (a) | 131,000 | $ 766 | |
Intercept Pharmaceuticals, Inc. | 77,600 | 3,134 | |
InterMune, Inc. (a) | 470,422 | 4,634 | |
Isis Pharmaceuticals, Inc. (a) | 331,000 | 4,809 | |
KaloBios Pharmaceuticals, Inc. | 445,149 | 3,205 | |
KaloBios Pharmaceuticals, Inc. | 150,700 | 1,206 | |
KYTHERA Biopharmaceuticals, Inc. | 217,869 | 6,094 | |
Merrimack Pharmaceuticals, Inc. | 391,800 | 2,378 | |
Synageva BioPharma Corp. (a) | 80,900 | 3,742 | |
Theravance, Inc. (a) | 910,761 | 20,264 | |
ZIOPHARM Oncology, Inc. (a)(e) | 2,189,550 | 8,693 | |
| 280,252 | ||
Health Care Equipment & Supplies - 1.0% | |||
Align Technology, Inc. (a) | 50,689 | 1,590 | |
Baxter International, Inc. | 64,773 | 4,394 | |
Boston Scientific Corp. (a) | 1,595,338 | 11,917 | |
CareFusion Corp. (a) | 119,642 | 3,714 | |
Covidien PLC | 202,184 | 12,604 | |
Genmark Diagnostics, Inc. (a) | 807,700 | 8,691 | |
Nakanishi, Inc. | 38,300 | 4,440 | |
Opto Circuits India Ltd. | 727,896 | 1,085 | |
Sirona Dental Systems, Inc. (a) | 118,404 | 7,870 | |
Stryker Corp. | 192,720 | 12,074 | |
Syneron Medical Ltd. (a) | 311,522 | 3,184 | |
The Cooper Companies, Inc. | 38,300 | 3,882 | |
Trinity Biotech PLC sponsored ADR | 48,840 | 788 | |
| 76,233 | ||
Health Care Providers & Services - 3.0% | |||
Accretive Health, Inc. (a) | 1,066,744 | 13,772 | |
Apollo Hospitals Enterprise Ltd. | 251,291 | 3,814 | |
BioScrip, Inc. (a) | 299,466 | 3,363 | |
Brookdale Senior Living, Inc. (a) | 2,066,960 | 55,829 | |
CIGNA Corp. | 228,645 | 13,339 | |
DaVita, Inc. (a) | 140,079 | 16,167 | |
Emeritus Corp. (a) | 603,933 | 16,355 | |
Express Scripts Holding Co. (a) | 588,144 | 31,419 | |
McKesson Corp. | 138,876 | 14,614 | |
MEDNAX, Inc. (a) | 81,104 | 6,939 | |
Qualicorp SA (a) | 949,200 | 9,819 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Quest Diagnostics, Inc. | 131,047 | $ 7,594 | |
UnitedHealth Group, Inc. | 650,273 | 35,902 | |
| 228,926 | ||
Life Sciences Tools & Services - 0.3% | |||
Agilent Technologies, Inc. | 416,259 | 18,640 | |
Pharmaceuticals - 4.5% | |||
Actavis, Inc. (a) | 181,773 | 15,703 | |
Allergan, Inc. | 54,337 | 5,706 | |
AVANIR Pharmaceuticals Class A (a)(e) | 1,416,095 | 4,135 | |
Biodelivery Sciences International, Inc. (a) | 1,299,603 | 5,666 | |
Cadence Pharmaceuticals, Inc. (a)(e) | 3,743,120 | 17,705 | |
Dechra Pharmaceuticals PLC | 347,617 | 3,421 | |
Endo Pharmaceuticals Holdings, Inc. (a) | 460,000 | 14,564 | |
Hi-Tech Pharmacal Co., Inc. | 68,465 | 2,506 | |
Horizon Pharma, Inc. (e) | 3,196,305 | 6,808 | |
Horizon Pharma, Inc: | |||
warrants 2/28/17 (a) | 253,903 | 0 * | |
warrants 9/25/17 (a) | 932,200 | 0* | |
Impax Laboratories, Inc. (a) | 211,789 | 4,270 | |
Jazz Pharmaceuticals PLC (a) | 186,400 | 10,511 | |
Johnson & Johnson | 1,458,226 | 107,792 | |
Merck & Co., Inc. | 1,968,653 | 85,144 | |
Mylan, Inc. (a) | 247,032 | 6,984 | |
Novo Nordisk A/S Series B | 132,737 | 24,436 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 137,100 | 9,091 | |
Warner Chilcott PLC | 663,286 | 9,399 | |
XenoPort, Inc. (a) | 643,046 | 5,395 | |
Zoetis, Inc. Class A | 124,300 | 3,232 | |
| 342,468 | ||
TOTAL HEALTH CARE | 946,519 | ||
INDUSTRIALS - 12.5% | |||
Aerospace & Defense - 2.3% | |||
DigitalGlobe, Inc. (a) | 655,425 | 18,332 | |
Finmeccanica SpA (a) | 326,000 | 2,142 | |
General Dynamics Corp. | 14,500 | 961 | |
Honeywell International, Inc. | 441,530 | 30,130 | |
Meggitt PLC | 2,825,241 | 19,492 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Precision Castparts Corp. | 103,611 | $ 19,002 | |
Raytheon Co. | 225,788 | 11,895 | |
Textron, Inc. | 783,732 | 22,540 | |
United Technologies Corp. | 558,426 | 48,901 | |
| 173,395 | ||
Air Freight & Logistics - 0.5% | |||
FedEx Corp. | 18,252 | 1,852 | |
Hub Group, Inc. Class A (a) | 83,691 | 3,081 | |
Pacer International, Inc. (a) | 597,557 | 2,432 | |
United Parcel Service, Inc. Class B | 402,512 | 31,915 | |
| 39,280 | ||
Airlines - 0.1% | |||
Copa Holdings SA Class A | 21,733 | 2,382 | |
easyJet PLC | 123,200 | 1,819 | |
| 4,201 | ||
Building Products - 0.9% | |||
Armstrong World Industries, Inc. | 89,140 | 4,902 | |
Lennox International, Inc. | 104,986 | 6,038 | |
Masco Corp. | 893,081 | 16,424 | |
Owens Corning (a) | 788,007 | 32,836 | |
Quanex Building Products Corp. | 387,839 | 8,013 | |
| 68,213 | ||
Commercial Services & Supplies - 0.5% | |||
Corrections Corp. of America | 382,821 | 14,505 | |
Multiplus SA | 521,800 | 11,215 | |
Republic Services, Inc. | 281,605 | 8,980 | |
Swisher Hygiene, Inc. (a) | 2,081,064 | 2,809 | |
Swisher Hygiene, Inc. (Canada) (a)(e) | 1,367,162 | 2,051 | |
| 39,560 | ||
Construction & Engineering - 0.9% | |||
AECOM Technology Corp. (a) | 611,919 | 15,647 | |
Fluor Corp. | 191,625 | 12,423 | |
Foster Wheeler AG (a) | 682,107 | 17,810 | |
MasTec, Inc. (a) | 572,914 | 16,213 | |
URS Corp. | 105,036 | 4,357 | |
| 66,450 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - 1.6% | |||
Alstom SA | 369,562 | $ 16,404 | |
AMETEK, Inc. | 297,842 | 12,209 | |
Emerson Electric Co. | 492,505 | 28,196 | |
Hubbell, Inc. Class B | 99,942 | 9,100 | |
Prysmian SpA | 742,600 | 15,891 | |
Regal-Beloit Corp. | 362,422 | 26,877 | |
Roper Industries, Inc. | 93,558 | 10,988 | |
| 119,665 | ||
Industrial Conglomerates - 1.3% | |||
Carlisle Companies, Inc. | 130,923 | 8,399 | |
Danaher Corp. | 221,684 | 13,286 | |
General Electric Co. | 3,422,868 | 76,261 | |
Reunert Ltd. | 124,060 | 1,035 | |
| 98,981 | ||
Machinery - 2.7% | |||
Actuant Corp. Class A | 457,661 | 13,492 | |
Colfax Corp. (a) | 189,642 | 8,460 | |
Cummins, Inc. | 166,284 | 19,094 | |
Dover Corp. | 115,195 | 7,969 | |
Fiat Industrial SpA | 1,474,205 | 18,986 | |
GEA Group AG | 108,804 | 3,944 | |
Harsco Corp. | 442,669 | 11,284 | |
Illinois Tool Works, Inc. | 292,048 | 18,349 | |
Ingersoll-Rand PLC | 547,161 | 28,119 | |
Manitowoc Co., Inc. | 1,112,442 | 19,579 | |
Oshkosh Truck Corp. (a) | 108,783 | 4,262 | |
Pentair Ltd. | 80,100 | 4,059 | |
SPX Corp. | 126,984 | 9,477 | |
Stanley Black & Decker, Inc. | 318,981 | 24,507 | |
Timken Co. | 203,681 | 10,919 | |
| 202,500 | ||
Marine - 0.0% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 1,465,347 | 3,107 | |
Professional Services - 0.4% | |||
CRA International, Inc. (a) | 268,080 | 4,984 | |
Korn/Ferry International (a) | 97,755 | 1,679 | |
Manpower, Inc. | 14,500 | 747 | |
Randstad Holding NV | 425,100 | 17,628 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Towers Watson & Co. | 90,672 | $ 5,538 | |
Verisk Analytics, Inc. (a) | 14,500 | 800 | |
| 31,376 | ||
Road & Rail - 0.8% | |||
Con-way, Inc. | 32,800 | 1,029 | |
J.B. Hunt Transport Services, Inc. | 147,481 | 9,921 | |
Union Pacific Corp. | 403,165 | 53,000 | |
| 63,950 | ||
Trading Companies & Distributors - 0.5% | |||
Houston Wire & Cable Co. | 624,888 | 7,467 | |
Watsco, Inc. | 151,925 | 11,448 | |
WESCO International, Inc. (a) | 223,076 | 16,269 | |
| 35,184 | ||
TOTAL INDUSTRIALS | 945,862 | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Communications Equipment - 1.4% | |||
Brocade Communications Systems, Inc. (a) | 708,786 | 4,054 | |
Cisco Systems, Inc. | 2,649,642 | 54,503 | |
Motorola Solutions, Inc. | 284,997 | 16,641 | |
QUALCOMM, Inc. | 412,790 | 27,257 | |
| 102,455 | ||
Computers & Peripherals - 3.8% | |||
Apple, Inc. | 520,003 | 236,759 | |
Gemalto NV | 83,742 | 7,457 | |
NCR Corp. (a) | 601,863 | 16,714 | |
Seagate Technology | 333,268 | 11,324 | |
Western Digital Corp. | 278,963 | 13,111 | |
| 285,365 | ||
Electronic Equipment & Components - 0.6% | |||
Arrow Electronics, Inc. (a) | 382,925 | 14,712 | |
Corning, Inc. | 872,662 | 10,472 | |
Flextronics International Ltd. (a) | 677,351 | 4,206 | |
InvenSense, Inc. (a) | 36,400 | 531 | |
Jabil Circuit, Inc. | 416,424 | 7,875 | |
TE Connectivity Ltd. | 133,451 | 5,189 | |
Yokogawa Electric Corp. | 217,300 | 2,421 | |
| 45,406 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
Active Network, Inc. (a) | 705,080 | $ 3,899 | |
Baidu.com, Inc. sponsored ADR (a) | 21,365 | 2,314 | |
Cornerstone OnDemand, Inc. (a) | 105,543 | 3,449 | |
Demandware, Inc. | 145,490 | 4,625 | |
eBay, Inc. (a) | 142,507 | 7,970 | |
Facebook, Inc. Class A | 453,426 | 14,043 | |
Google, Inc. Class A (a) | 152,402 | 115,169 | |
Mail.ru Group Ltd. GDR (Reg. S) | 246,600 | 8,204 | |
QuinStreet, Inc. (a) | 661,811 | 3,733 | |
Velti PLC (a)(e) | 2,120,929 | 7,890 | |
VeriSign, Inc. (a) | 160,050 | 6,948 | |
| 178,244 | ||
IT Services - 3.5% | |||
Accenture PLC Class A | 264,967 | 19,048 | |
Amdocs Ltd. | 260,154 | 9,285 | |
Cognizant Technology Solutions Corp. Class A (a) | 447,720 | 35,003 | |
EPAM Systems, Inc. | 514,005 | 10,650 | |
ExlService Holdings, Inc. (a) | 325,959 | 9,668 | |
Fidelity National Information Services, Inc. | 495,835 | 18,400 | |
Fiserv, Inc. (a) | 158,268 | 12,711 | |
Gartner, Inc. Class A (a) | 50,702 | 2,612 | |
Global Payments, Inc. | 43,494 | 2,143 | |
MasterCard, Inc. Class A | 61,523 | 31,894 | |
Sapient Corp. (a) | 707,419 | 8,567 | |
ServiceSource International, Inc. (a) | 968,125 | 5,857 | |
Unisys Corp. (a) | 791,684 | 17,583 | |
Virtusa Corp. (a) | 335,942 | 6,957 | |
Visa, Inc. Class A | 492,628 | 77,791 | |
| 268,169 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 2,863,581 | 22,937 | |
Semiconductors & Semiconductor Equipment - 3.8% | |||
Altera Corp. | 218,117 | 7,289 | |
ANADIGICS, Inc. (a) | 507,076 | 1,308 | |
Analog Devices, Inc. | 387,459 | 16,909 | |
Applied Micro Circuits Corp. (a) | 364,735 | 3,126 | |
ASML Holding NV | 782,736 | 58,776 | |
Avago Technologies Ltd. | 410,959 | 14,700 | |
Broadcom Corp. Class A | 319,610 | 10,371 | |
Cirrus Logic, Inc. (a) | 586,684 | 16,562 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Cymer, Inc. (a) | 29,215 | $ 3,008 | |
Freescale Semiconductor Holdings I Ltd. (a) | 1,531,015 | 22,123 | |
LTX-Credence Corp. (a) | 2,307,912 | 14,171 | |
MagnaChip Semiconductor Corp. (a) | 347,200 | 5,562 | |
Maxim Integrated Products, Inc. | 639,151 | 20,101 | |
Micron Technology, Inc. (a) | 796,796 | 6,024 | |
Monolithic Power Systems, Inc. | 351,731 | 8,195 | |
NXP Semiconductors NV (a) | 767,732 | 23,024 | |
Samsung Electronics Co. Ltd. | 24,424 | 32,505 | |
Skyworks Solutions, Inc. (a) | 1,131,699 | 27,093 | |
| 290,847 | ||
Software - 2.6% | |||
Activision Blizzard, Inc. | 891,000 | 10,148 | |
Adobe Systems, Inc. (a) | 195,067 | 7,379 | |
Autodesk, Inc. (a) | 251,305 | 9,771 | |
Check Point Software Technologies Ltd. (a) | 371,309 | 18,565 | |
Citrix Systems, Inc. (a) | 373,711 | 27,341 | |
Comverse Technology, Inc. | 3,632,060 | 15,836 | |
Comverse, Inc. | 363,206 | 10,489 | |
Electronic Arts, Inc. (a) | 1,321,705 | 20,790 | |
Jive Software, Inc. (a) | 170,202 | 2,609 | |
MICROS Systems, Inc. (a) | 65,300 | 3,006 | |
Nuance Communications, Inc. (a) | 453,131 | 10,898 | |
Oracle Corp. | 1,129,083 | 40,094 | |
Progress Software Corp. (a) | 51,000 | 1,197 | |
Sourcefire, Inc. (a) | 90,564 | 3,858 | |
Symantec Corp. (a) | 304,263 | 6,624 | |
VMware, Inc. Class A (a) | 73,162 | 5,595 | |
Workday, Inc. | 85,000 | 4,541 | |
| 198,741 | ||
TOTAL INFORMATION TECHNOLOGY | 1,392,164 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.9% | |||
Albemarle Corp. | 133,766 | 8,201 | |
Ashland, Inc. | 177,615 | 13,945 | |
Axiall Corp. (e) | 229,226 | 12,878 | |
Eastman Chemical Co. | 57,950 | 4,123 | |
Innospec, Inc. | 133,005 | 5,353 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
LyondellBasell Industries NV Class A | 168,037 | $ 10,657 | |
Monsanto Co. | 155,008 | 15,710 | |
PetroLogistics LP | 542,757 | 8,396 | |
PPG Industries, Inc. | 33,326 | 4,595 | |
Praxair, Inc. | 39,800 | 4,393 | |
Spartech Corp. (a) | 858,507 | 8,182 | |
W.R. Grace & Co. (a) | 687,929 | 49,393 | |
| 145,826 | ||
Construction Materials - 0.4% | |||
HeidelbergCement Finance AG | 107,913 | 6,797 | |
Lafarge SA (Bearer) | 72,700 | 4,445 | |
Martin Marietta Materials, Inc. | 21,825 | 2,155 | |
Vulcan Materials Co. | 290,494 | 16,430 | |
| 29,827 | ||
Containers & Packaging - 0.2% | |||
Nampak Ltd. | 2,534,100 | 8,893 | |
Rock-Tenn Co. Class A | 131,957 | 10,418 | |
| 19,311 | ||
Metals & Mining - 2.1% | |||
Agnico-Eagle Mines Ltd. (Canada) | 174,400 | 7,979 | |
ArcelorMittal SA Class A unit | 329,900 | 5,661 | |
Commercial Metals Co. | 1,119,644 | 18,642 | |
Copper Mountain Mining Corp. (a) | 477,400 | 1,680 | |
First Quantum Minerals Ltd. | 278,840 | 5,622 | |
Freeport-McMoRan Copper & Gold, Inc. | 439,795 | 15,503 | |
Goldcorp, Inc. | 357,000 | 12,574 | |
Iluka Resources Ltd. (e) | 471,048 | 4,775 | |
Ivanplats Ltd. (g) | 665,000 | 3,200 | |
Ivanplats Ltd. Class A (h) | 6,810,028 | 29,496 | |
POSCO | 8,693 | 2,844 | |
Randgold Resources Ltd. sponsored ADR | 253,423 | 23,862 | |
Turquoise Hill Resources Ltd. (a) | 3,324,736 | 25,601 | |
| 157,439 | ||
Paper & Forest Products - 0.1% | |||
Canfor Corp. (a) | 242,700 | 4,472 | |
International Paper Co. | 72,539 | 3,005 | |
| 7,477 | ||
TOTAL MATERIALS | 359,880 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - 0.9% | |||
Diversified Telecommunication Services - 0.5% | |||
CenturyLink, Inc. | 549,300 | $ 22,219 | |
Frontier Communications Corp. (e) | 1,038,889 | 4,748 | |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 252,541 | 10,013 | |
| 36,980 | ||
Wireless Telecommunication Services - 0.4% | |||
Crown Castle International Corp. (a) | 18,400 | 1,298 | |
SBA Communications Corp. Class A (a) | 377,311 | 26,283 | |
Vodafone Group PLC | 2,535,100 | 6,919 | |
| 34,500 | ||
TOTAL TELECOMMUNICATION SERVICES | 71,480 | ||
UTILITIES - 2.7% | |||
Electric Utilities - 1.4% | |||
Edison International | 401,924 | 19,369 | |
ITC Holdings Corp. | 249,927 | 20,244 | |
NextEra Energy, Inc. | 505,556 | 36,425 | |
Northeast Utilities | 707,580 | 28,820 | |
OGE Energy Corp. | 39,848 | 2,339 | |
| 107,197 | ||
Gas Utilities - 0.1% | |||
Atmos Energy Corp. | 104,257 | 3,895 | |
ONEOK, Inc. | 160,267 | 7,534 | |
| 11,429 | ||
Independent Power Producers & Energy Traders - 0.4% | |||
The AES Corp. | 2,484,093 | 26,928 | |
Multi-Utilities - 0.8% | |||
CenterPoint Energy, Inc. | 246,662 | 5,042 | |
PG&E Corp. | 251,671 | 10,731 | |
Sempra Energy | 557,849 | 41,867 | |
| 57,640 | ||
TOTAL UTILITIES | 203,194 | ||
TOTAL COMMON STOCKS (Cost $6,025,765) |
| ||
Preferred Stocks - 0.1% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 92,200 | $ 5,939 | |
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Commercial Banks - 0.0% | |||
Banco Pine SA | 406,444 | 2,974 | |
HEALTH CARE - 0.0% | |||
Health Care Equipment & Supplies - 0.0% | |||
Sartorius AG (non-vtg.) | 2,200 | 226 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 3,200 | ||
TOTAL PREFERRED STOCKS (Cost $9,108) |
|
Corporate Bonds - 0.7% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.6% | ||||
ENERGY - 0.1% | ||||
Energy Equipment & Services - 0.0% | ||||
Cal Dive International, Inc. 5% 7/15/17 (g) | $ 3,660 | 3,898 | ||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | 7,356 | 5,109 | ||
TOTAL ENERGY | 9,007 | |||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (d)(g) | 16,623 | 7,127 | ||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.2% | ||||
Exelixis, Inc. 4.25% 8/15/19 | 9,070 | 9,087 | ||
InterMune, Inc. 2.5% 12/15/17 | 2,810 | 3,015 | ||
Theravance, Inc. 2.125% 1/15/23 | 3,620 | 3,747 | ||
| 15,849 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - continued | ||||
INDUSTRIALS - 0.1% | ||||
Building Products - 0.1% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (h) | $ 4,085 | $ 4,085 | ||
INFORMATION TECHNOLOGY - 0.0% | ||||
Semiconductors & Semiconductor Equipment - 0.0% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 4,830 | 3,665 | ||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (g) | 3,730 | 4,047 | ||
TOTAL CONVERTIBLE BONDS | 43,780 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Bank of Ireland 10% 7/30/16 | EUR | 5,542 | 7,722 | |
TOTAL CORPORATE BONDS (Cost $53,353) |
|
Money Market Funds - 1.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 31,926,564 | 31,927 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 83,726,256 | 83,726 | |
TOTAL MONEY MARKET FUNDS (Cost $115,653) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $6,203,879) | 7,650,537 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (68,143) | ||
NET ASSETS - 100% | $ 7,582,394 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
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) 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 $33,550,000 or 0.4% of net assets. |
(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 $37,316,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 | $ 4,085 |
Ivanplats Ltd. Class A | 10/23/12 | $ 32,981 |
Mood Media Corp. | 2/2/11 | $ 4,054 |
* 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 | $ 38 |
Fidelity Securities Lending Cash Central Fund | 1,404 |
Total | $ 1,442 |
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, |
Body Central Corp. | $ 10,585 | $ 228 | $ - | $ - | $ 8,311 |
Double Eagle Petroleum Co. | 3,787 | - | - | - | 4,636 |
Emerald Oil, Inc. | - | 4,260 | 3,456 | - | - |
Emerald Oil, Inc. warrants 2/4/16 | - | - | - | - | - |
GeoEye, Inc. | 31,912 | - | 19,530 | - | - |
LTX-Credence Corp. | 14,900 | 898 | 2,352 | - | - |
PICO Holdings, Inc. | 33,875 | 57 | - | - | 29,613 |
TAG Oil Ltd. | 11,208 | 7,233 | - | - | 14,645 |
TAG Oil Ltd. (144A) | 1,027 | - | - | - | 688 |
Total | $ 107,294 | $ 12,676 | $ 25,338 | $ - | $ 57,893 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 935,744 | $ 935,744 | $ - | $ - |
Consumer Staples | 718,535 | 702,496 | 16,039 | - |
Energy | 847,509 | 847,509 | - | - |
Financials | 1,056,330 | 1,052,455 | 3,875 | - |
Health Care | 946,745 | 919,104 | 27,641 | - |
Industrials | 945,862 | 943,053 | 2,809 | - |
Information Technology | 1,398,103 | 1,398,103 | - | - |
Materials | 359,880 | 327,540 | 32,340 | - |
Telecommunication Services | 71,480 | 64,561 | 6,919 | - |
Utilities | 203,194 | 203,194 | - | - |
Corporate Bonds | 51,502 | - | 47,417 | 4,085 |
Money Market Funds | 115,653 | 115,653 | - | - |
Total Investments in Securities: | $ 7,650,537 | $ 7,509,412 | $ 137,040 | $ 4,085 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 81.2% |
Canada | 3.4% |
United Kingdom | 2.5% |
Netherlands | 1.7% |
Bermuda | 1.7% |
Ireland | 1.6% |
Others (Individually Less Than 1%) | 7.9% |
| 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $81,150) - See accompanying schedule: Unaffiliated issuers (cost $5,994,235) | $ 7,476,991 |
|
Fidelity Central Funds (cost $115,653) | 115,653 |
|
Other affiliated issuers (cost $93,991) | 57,893 |
|
Total Investments (cost $6,203,879) |
| $ 7,650,537 |
Cash |
| 841 |
Foreign currency held at value (cost $369) | 369 | |
Receivable for investments sold: |
| 86,970 |
Delayed delivery |
| 2,094 |
Receivable for fund shares sold | 3,849 | |
Dividends receivable | 4,484 | |
Interest receivable | 1,316 | |
Distributions receivable from Fidelity Central Funds | 310 | |
Prepaid expenses | 13 | |
Other receivables | 874 | |
Total assets | 7,751,657 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 74,673 | |
Payable for fund shares redeemed | 6,577 | |
Accrued management fee | 2,711 | |
Other affiliated payables | 1,161 | |
Other payables and accrued expenses | 415 | |
Collateral on securities loaned, at value | 83,726 | |
Total liabilities | 169,263 | |
|
|
|
Net Assets | $ 7,582,394 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,104,803 | |
Distributions in excess of net investment income | (11,424) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 42,363 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,446,652 | |
Net Assets | $ 7,582,394 |
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, 2013 (Unaudited) | |
|
|
|
Dividend Growth: | $ 31.48 | |
|
|
|
Class K: | $ 31.47 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 62,978 |
Interest |
| 972 |
Income from Fidelity Central Funds |
| 1,442 |
Total income |
| 65,392 |
|
|
|
Expenses | ||
Management fee | $ 20,379 | |
Performance adjustment | (3,890) | |
Transfer agent fees | 6,372 | |
Accounting and security lending fees | 601 | |
Custodian fees and expenses | 135 | |
Independent trustees' compensation | 25 | |
Registration fees | 40 | |
Audit | 52 | |
Legal | 25 | |
Miscellaneous | 33 | |
Total expenses before reductions | 23,772 | |
Expense reductions | (720) | 23,052 |
Net investment income (loss) | 42,340 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 171,815 | |
Other affiliated issuers | (11,738) |
|
Foreign currency transactions | (76) | |
Total net realized gain (loss) |
| 160,001 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 695,039 | |
Assets and liabilities in foreign currencies | 30 | |
Total change in net unrealized appreciation (depreciation) |
| 695,069 |
Net gain (loss) | 855,070 | |
Net increase (decrease) in net assets resulting from operations | $ 897,410 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 42,340 | $ 62,998 |
Net realized gain (loss) | 160,001 | 282,332 |
Change in net unrealized appreciation (depreciation) | 695,069 | (523,395) |
Net increase (decrease) in net assets resulting | 897,410 | (178,065) |
Distributions to shareholders from net investment income | (73,780) | (42,120) |
Distributions to shareholders from net realized gain | (120,845) | (5,141) |
Total distributions | (194,625) | (47,261) |
Share transactions - net increase (decrease) | (246,583) | (2,591,197) |
Total increase (decrease) in net assets | 456,202 | (2,816,523) |
|
|
|
Net Assets | ||
Beginning of period | 7,126,192 | 9,942,715 |
End of period (including distributions in excess of net investment income of $11,424 and undistributed net investment income of $20,016, respectively) | $ 7,582,394 | $ 7,126,192 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.61 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .17 | .20 | .12 | .13 G | .24 | .43 |
Net realized and unrealized gain (loss) | 3.50 | (.41) | 5.23 | 3.63 | (4.01) | (5.08) |
Total from investment operations | 3.67 | (.21) | 5.35 | 3.76 | (3.77) | (4.65) |
Distributions from net investment income | (.30) | (.12) | (.15) | (.12) | (.37) | (.45) |
Distributions from net realized gain | (.50) | (.02) | (.08) | (.05) | (1.01) | (2.23) |
Total distributions | (.80) | (.14) | (.23) | (.17) | (1.38) J | (2.68) |
Net asset value, end of period | $ 31.48 | $ 28.61 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 |
Total Return B,C | 13.01% | (.67)% | 22.57% | 18.59% | (15.33)% | (15.45)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .68% A | .91% | .93% | .93% | .62% | .64% |
Expenses net of fee waivers, if any | .68% A | .91% | .93% | .93% | .62% | .64% |
Expenses net of all reductions | .66% A | .91% | .93% | .92% | .62% | .63% |
Net investment income (loss) | 1.13% A | .75% | .44% | .56% G | 1.34% | 1.47% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 6,223 | $ 5,905 | $ 9,309 | $ 7,730 | $ 6,603 | $ 9,502 |
Portfolio turnover rate F | 54% A | 63% I | 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 .40%.
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 Portfolio turnover rate excludes securities received or delivered in-kind.
J Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.62 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .19 | .25 | .17 | .18 G | .26 | .10 |
Net realized and unrealized gain (loss) | 3.51 | (.43) | 5.22 | 3.63 | (4.00) | (2.41) |
Total from investment operations | 3.70 | (.18) | 5.39 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.35) | (.17) | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.50) | (.02) | (.08) | (.05) | (1.01) | - |
Total distributions | (.85) | (.18) M | (.27) L | (.21) | (1.41) K | - |
Net asset value, end of period | $ 31.47 | $ 28.62 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B,C | 13.13% | (.52)% | 22.79% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .52% A | .75% | .78% | .72% | .40% | .47% A |
Expenses net of fee waivers, if any | .52% A | .75% | .78% | .72% | .40% | .47% A |
Expenses net of all reductions | .50% A | .75% | .77% | .71% | .39% | .47% A |
Net investment income (loss) F | 1.28% A | .91% | .60% | .76% G | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,359,113 | $ 1,220,737 | $ 633,935 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 54% A | 63% 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, 2013 (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, as an investment of the Fund, but do 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
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 futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, redemptions in kind, 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 | $ 1,661,716 |
Gross unrealized depreciation | (223,220) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,438,496 |
|
|
Tax cost | $ 6,212,041 |
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. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,964,030 and $2,285,393, 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 .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 .45% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of |
Dividend Growth | $ 6,054 | .20 |
Class K | 318 | .05 |
| $ 6,372 |
|
* 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 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous 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. The value of securities loaned to FCM at period end was $3,920. 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 $1,404, including $99 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 $720 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
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 58,843 | $ 37,592 |
Class K | 14,937 | 4,528 |
Total | $ 73,780 | $ 42,120 |
From net realized gain |
|
|
Dividend Growth | $ 99,451 | $ 4,761 |
Class K | 21,394 | 380 |
Total | $ 120,845 | $ 5,141 |
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 | |
Dividend Growth |
|
|
|
|
Shares sold | 9,636 | 28,017 | $ 289,351 | $ 753,110 |
Reinvestment of distributions | 4,994 | 1,596 | 147,845 | 40,357 |
Shares redeemed | (23,392) | (144,643)A | (699,625) | (3,948,966)A |
Net increase (decrease) | (8,762) | (115,030) | $ (262,429) | $ (3,155,499) |
Class K |
|
|
|
|
Shares sold | 5,028 | 29,433 | $ 150,801 | $ 801,392 |
Reinvestment of distributions | 1,228 | 194 | 36,331 | 4,908 |
Shares redeemed | (5,716) | (8,851) | (171,286) | (241,998) |
Net increase (decrease) | 540 | 20,776 | $ 15,846 | $ 564,302 |
A Amount includes in-kind redemptions
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
DGF-K-USAN-0313 1.863067.104
Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Dividend Growth | .68% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.10 | $ 3.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.78 | $ 3.47 |
Class K | .52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.30 | $ 2.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 3.1 | 5.2 |
Wells Fargo & Co. | 1.7 | 1.8 |
Berkshire Hathaway, Inc. Class B | 1.6 | 1.6 |
Google, Inc. Class A | 1.5 | 0.2 |
Johnson & Johnson | 1.4 | 1.3 |
Citigroup, Inc. | 1.3 | 0.5 |
The Coca-Cola Co. | 1.2 | 1.5 |
Procter & Gamble Co. | 1.2 | 1.1 |
Merck & Co., Inc. | 1.1 | 1.2 |
Philip Morris International, Inc. | 1.1 | 1.1 |
| 15.2 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 18.5 | 20.9 |
Financials | 14.1 | 13.0 |
Health Care | 12.7 | 11.9 |
Industrials | 12.6 | 11.6 |
Consumer Discretionary | 12.3 | 11.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 98.6% |
| ![]() | Stocks 97.3% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.0% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 18.8% |
| ** Foreign investments | 17.8% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 12.3% | |||
Auto Components - 0.3% | |||
Delphi Automotive PLC (a) | 298,580 | $ 11,543 | |
Tenneco, Inc. (a) | 309,026 | 10,804 | |
| 22,347 | ||
Automobiles - 0.2% | |||
Harley-Davidson, Inc. | 219,356 | 11,499 | |
Tesla Motors, Inc. (a) | 132,500 | 4,970 | |
| 16,469 | ||
Diversified Consumer Services - 0.6% | |||
American Public Education, Inc. (a) | 39,900 | 1,537 | |
Anhanguera Educacional Participacoes SA | 698,500 | 13,592 | |
DeVry, Inc. | 319,028 | 8,030 | |
Kroton Educacional SA (a) | 344,900 | 8,469 | |
Weight Watchers International, Inc. (e) | 198,172 | 10,596 | |
| 42,224 | ||
Hotels, Restaurants & Leisure - 1.9% | |||
Bloomin' Brands, Inc. | 401,165 | 7,450 | |
Bravo Brio Restaurant Group, Inc. (a) | 493,378 | 7,351 | |
Brinker International, Inc. | 678,931 | 22,228 | |
Club Mediterranee SA (a) | 531,223 | 10,055 | |
Denny's Corp. (a) | 2,943,632 | 14,895 | |
Hyatt Hotels Corp. Class A (a) | 327,801 | 13,135 | |
Icahn Enterprises LP rights | 1,067,316 | 0 | |
Las Vegas Sands Corp. | 420,036 | 23,207 | |
Penn National Gaming, Inc. (a) | 21,700 | 1,056 | |
Ruth's Hospitality Group, Inc. (a) | 804,200 | 6,241 | |
Spur Corp. Ltd. | 1,579,113 | 4,766 | |
Starbucks Corp. | 105,099 | 5,898 | |
Texas Roadhouse, Inc. Class A | 621,764 | 10,937 | |
Yum! Brands, Inc. | 311,624 | 20,237 | |
| 147,456 | ||
Household Durables - 0.6% | |||
KB Home | 264,357 | 5,041 | |
PulteGroup, Inc. (a) | 616,307 | 12,782 | |
Taylor Wimpey PLC | 6,955,149 | 7,848 | |
Whirlpool Corp. | 188,031 | 21,695 | |
| 47,366 | ||
Internet & Catalog Retail - 1.0% | |||
Amazon.com, Inc. (a) | 164,745 | 43,740 | |
Liberty Media Corp. Interactive Series A (a) | 677,279 | 14,399 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Ocado Group PLC (a)(e) | 6,278,905 | $ 10,536 | |
priceline.com, Inc. (a) | 13,030 | 8,932 | |
| 77,607 | ||
Leisure Equipment & Products - 0.3% | |||
Amer Group PLC (A Shares) | 268,761 | 4,284 | |
Brunswick Corp. | 344,623 | 12,462 | |
Fenix Outdoor AB | 7,246 | 207 | |
Polaris Industries, Inc. | 43,439 | 3,783 | |
| 20,736 | ||
Media - 2.0% | |||
CBS Corp. Class B | 159,409 | 6,651 | |
Comcast Corp. Class A | 1,651,478 | 62,888 | |
McGraw-Hill Companies, Inc. | 233,731 | 13,444 | |
MDC Partners, Inc. Class A (sub. vtg.) | 958,939 | 12,207 | |
Mood Media Corp. (a)(h) | 2,002,900 | 3,735 | |
The Walt Disney Co. | 672,212 | 36,219 | |
Time Warner, Inc. | 182,245 | 9,207 | |
Valassis Communications, Inc. | 152,155 | 4,269 | |
Viacom, Inc. Class B (non-vtg.) | 94,201 | 5,685 | |
| 154,305 | ||
Multiline Retail - 0.3% | |||
PPR SA | 60,754 | 13,067 | |
Target Corp. | 193,123 | 11,667 | |
The Bon-Ton Stores, Inc. | 178,200 | 2,236 | |
| 26,970 | ||
Specialty Retail - 4.1% | |||
Advance Auto Parts, Inc. | 326,785 | 24,025 | |
American Eagle Outfitters, Inc. | 141,248 | 2,855 | |
Ascena Retail Group, Inc. (a) | 743,616 | 12,604 | |
AutoZone, Inc. (a) | 51,240 | 18,943 | |
Bed Bath & Beyond, Inc. (a) | 164,172 | 9,637 | |
Body Central Corp. (a)(f) | 1,045,408 | 8,311 | |
CarMax, Inc. (a) | 225,068 | 8,872 | |
Express, Inc. (a) | 1,027,026 | 18,877 | |
Fast Retailing Co. Ltd. | 17,400 | 4,582 | |
Foot Locker, Inc. | 304,618 | 10,464 | |
GNC Holdings, Inc. | 206,500 | 7,422 | |
Home Depot, Inc. | 1,023,464 | 68,490 | |
Kingfisher PLC | 1,703,600 | 7,287 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Limited Brands, Inc. | 256,318 | $ 12,308 | |
Lowe's Companies, Inc. | 1,119,308 | 42,746 | |
MarineMax, Inc. (a) | 116,329 | 1,359 | |
Rent-A-Center, Inc. | 229,469 | 8,187 | |
Ross Stores, Inc. | 137,491 | 8,208 | |
SuperGroup PLC (a)(e) | 1,372,787 | 13,249 | |
TJX Companies, Inc. | 427,454 | 19,312 | |
| 307,738 | ||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Deckers Outdoor Corp. (a)(e) | 58,000 | 2,317 | |
lululemon athletica, Inc. (a) | 86,929 | 5,998 | |
NIKE, Inc. Class B | 422,768 | 22,851 | |
PVH Corp. | 228,456 | 27,157 | |
Steven Madden Ltd. (a) | 7,200 | 332 | |
Vera Bradley, Inc. (a)(e) | 385,499 | 9,749 | |
VF Corp. | 27,931 | 4,122 | |
| 72,526 | ||
TOTAL CONSUMER DISCRETIONARY | 935,744 | ||
CONSUMER STAPLES - 9.5% | |||
Beverages - 2.2% | |||
Anheuser-Busch InBev SA NV | 21,800 | 1,918 | |
Beam, Inc. | 86,974 | 5,335 | |
Cott Corp. | 984,100 | 8,929 | |
Dr. Pepper Snapple Group, Inc. | 655,178 | 29,529 | |
Monster Beverage Corp. (a) | 405,808 | 19,438 | |
Remy Cointreau SA | 3,600 | 459 | |
SABMiller PLC | 184,500 | 9,217 | |
The Coca-Cola Co. | 2,382,131 | 88,711 | |
| 163,536 | ||
Food & Staples Retailing - 1.3% | |||
CVS Caremark Corp. | 1,009,037 | 51,663 | |
Eurocash SA | 126,595 | 2,060 | |
Kroger Co. | 278,994 | 7,728 | |
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 170,260 | 6,206 | |
Wal-Mart Stores, Inc. | 494,991 | 34,625 | |
| 102,282 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Food Products - 1.9% | |||
Bunge Ltd. | 217,217 | $ 17,304 | |
D.E. Master Blenders 1753 NV (a) | 282,500 | 3,485 | |
Danone SA | 126,900 | 8,794 | |
Flowers Foods, Inc. | 619,507 | 16,652 | |
Green Mountain Coffee Roasters, Inc. (a) | 325,837 | 14,835 | |
Hilton Food Group PLC | 412,902 | 2,067 | |
Ingredion, Inc. | 58,220 | 3,847 | |
Kellogg Co. | 242,720 | 14,199 | |
Marine Harvest ASA (a) | 8,615,478 | 8,627 | |
Mead Johnson Nutrition Co. Class A | 155,644 | 11,829 | |
Mondelez International, Inc. | 1,344,744 | 37,370 | |
The J.M. Smucker Co. | 61,318 | 5,435 | |
| 144,444 | ||
Household Products - 1.7% | |||
Procter & Gamble Co. | 1,161,394 | 87,290 | |
Reckitt Benckiser Group PLC | 427,600 | 28,497 | |
Unicharm Corp. | 214,600 | 11,382 | |
| 127,169 | ||
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 99,550 | 6,066 | |
Hengan International Group Co. Ltd. | 692,000 | 6,942 | |
Herbalife Ltd. | 199,300 | 7,239 | |
Nu Skin Enterprises, Inc. Class A | 14,500 | 614 | |
| 20,861 | ||
Tobacco - 2.1% | |||
Altria Group, Inc. | 758,285 | 25,539 | |
British American Tobacco PLC (United Kingdom) | 271,700 | 14,121 | |
Imperial Tobacco Group PLC | 307,049 | 11,420 | |
Japan Tobacco, Inc. | 7,200 | 224 | |
Lorillard, Inc. | 654,333 | 25,565 | |
Philip Morris International, Inc. | 945,713 | 83,374 | |
| 160,243 | ||
TOTAL CONSUMER STAPLES | 718,535 | ||
ENERGY - 11.2% | |||
Energy Equipment & Services - 4.2% | |||
BW Offshore Ltd. | 8,883,298 | 9,155 | |
Cal Dive International, Inc. (a)(e) | 1,703,683 | 3,237 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Cameron International Corp. (a) | 1,077,932 | $ 68,244 | |
Cathedral Energy Services Ltd. | 1,181,800 | 6,552 | |
Ensco PLC Class A | 217,298 | 13,814 | |
Essential Energy Services Ltd. | 3,835,400 | 8,191 | |
Fugro NV (Certificaten Van Aandelen) | 63,755 | 3,864 | |
Halliburton Co. | 680,459 | 27,681 | |
Helix Energy Solutions Group, Inc. (a) | 7,253 | 172 | |
McDermott International, Inc. (a) | 899,079 | 10,942 | |
National Oilwell Varco, Inc. | 938,275 | 69,564 | |
Noble Corp. | 535,708 | 21,696 | |
Schlumberger Ltd. | 751,691 | 58,669 | |
Tuscany International Drilling, Inc. (a) | 4,471,471 | 1,076 | |
Vantage Drilling Co. (a) | 5,837,278 | 10,916 | |
Xtreme Drilling & Coil Services Corp. (a) | 3,427,560 | 5,327 | |
Xtreme Drilling & Coil Services Corp. (g) | 1,117,800 | 1,737 | |
| 320,837 | ||
Oil, Gas & Consumable Fuels - 7.0% | |||
Americas Petrogas, Inc. (a) | 2,225,900 | 5,624 | |
Americas Petrogas, Inc. (a)(g) | 2,665,500 | 6,735 | |
Amyris, Inc. (a)(e) | 750,192 | 2,281 | |
Anadarko Petroleum Corp. | 346,709 | 27,744 | |
Apache Corp. | 228,946 | 19,177 | |
BPZ Energy, Inc. (a)(e) | 2,730,178 | 8,600 | |
Cabot Oil & Gas Corp. | 197,500 | 10,424 | |
Canadian Natural Resources Ltd. | 213,676 | 6,453 | |
Cobalt International Energy, Inc. (a) | 455,100 | 11,018 | |
Concho Resources, Inc. (a) | 128,607 | 11,732 | |
Crew Energy, Inc. (a) | 887,100 | 5,292 | |
Crown Point Energy, Inc. (a) | 942,800 | 350 | |
Crown Point Energy, Inc. (g) | 4,157,416 | 1,542 | |
Double Eagle Petroleum Co. (a)(f) | 912,603 | 4,636 | |
Emerald Oil, Inc. (a) | 491,459 | 2,924 | |
Emerald Oil, Inc. warrants 2/4/16 (a) | 171,198 | 0 | |
Energen Corp. | 36,230 | 1,744 | |
EOG Resources, Inc. | 79,195 | 9,898 | |
EQT Corp. | 263,850 | 15,675 | |
EV Energy Partners LP | 71,892 | 4,227 | |
Gran Tierra Energy, Inc. (Canada) (a) | 1,347,400 | 7,187 | |
Halcon Resources Corp. | 910,000 | 6,952 | |
Hess Corp. | 179,956 | 12,086 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
InterOil Corp. (a)(e) | 513,928 | $ 30,671 | |
Madalena Ventures, Inc. (a) | 5,491,500 | 2,175 | |
Marathon Petroleum Corp. | 402,322 | 29,856 | |
Markwest Energy Partners LP | 179,613 | 9,918 | |
Murphy Oil Corp. | 206,567 | 12,295 | |
Noble Energy, Inc. | 19,700 | 2,123 | |
Northern Oil & Gas, Inc. (a)(e) | 2,112,390 | 34,939 | |
Occidental Petroleum Corp. | 459,837 | 40,590 | |
Painted Pony Petroleum Ltd. (a)(g) | 456,400 | 4,576 | |
Painted Pony Petroleum Ltd. Class A (a) | 630,500 | 6,321 | |
Pan Orient Energy Corp. | 739,800 | 2,811 | |
PBF Energy, Inc. Class A (e) | 78,750 | 2,630 | |
Peabody Energy Corp. | 751,654 | 18,904 | |
Petrominerales Ltd. | 1,017,100 | 9,055 | |
Phillips 66 | 400,163 | 24,238 | |
Pioneer Natural Resources Co. | 89,233 | 10,488 | |
Royal Dutch Shell PLC Class A sponsored ADR | 319,398 | 22,524 | |
Southcross Energy Partners LP | 95,500 | 2,246 | |
Suncor Energy, Inc. | 229,900 | 7,814 | |
TAG Oil Ltd. (a)(f) | 3,127,900 | 14,645 | |
TAG Oil Ltd. (f)(g) | 146,900 | 688 | |
Targa Resources Corp. | 122,408 | 7,389 | |
The Williams Companies, Inc. | 973,192 | 34,110 | |
Valero Energy Corp. | 232,400 | 10,163 | |
Western Gas Equity Partners LP | 94,857 | 3,202 | |
| 526,672 | ||
TOTAL ENERGY | 847,509 | ||
FINANCIALS - 13.9% | |||
Capital Markets - 1.4% | |||
AllianceBernstein Holding LP | 115,800 | 2,358 | |
Ares Capital Corp. | 507,443 | 9,088 | |
BlackRock, Inc. Class A | 72,832 | 17,209 | |
Goldman Sachs Group, Inc. | 3,600 | 532 | |
GP Investments Ltd. (depositary receipt) (a) | 3,963,079 | 10,488 | |
ICAP PLC | 697,300 | 3,608 | |
ICG Group, Inc. (a) | 512,336 | 6,148 | |
Invesco Ltd. | 538,787 | 14,682 | |
KKR & Co. LP | 585,055 | 9,876 | |
MLP AG | 68,820 | 597 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 21,021 | $ 6,151 | |
Morgan Stanley | 670,361 | 15,318 | |
The Blackstone Group LP | 550,463 | 10,184 | |
UBS AG (NY Shares) | 127,500 | 2,215 | |
| 108,454 | ||
Commercial Banks - 3.2% | |||
Axis Bank Ltd. | 7,241 | 205 | |
Bank of Ireland (a) | 124,509 | 24 | |
CIT Group, Inc. (a) | 438,108 | 18,554 | |
Comerica, Inc. | 227,800 | 7,827 | |
Commerce Bancshares, Inc. | 190,143 | 7,140 | |
Cullen/Frost Bankers, Inc. | 65,253 | 3,843 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 751,323 | 6,011 | |
KeyCorp | 789,200 | 7,418 | |
M&T Bank Corp. | 32,797 | 3,368 | |
PNC Financial Services Group, Inc. | 134,000 | 8,281 | |
PT Bank Rakyat Indonesia Tbk | 414,500 | 340 | |
Regions Financial Corp. | 946,017 | 7,360 | |
U.S. Bancorp | 1,215,325 | 40,227 | |
Wells Fargo & Co. | 3,780,941 | 131,690 | |
| 242,288 | ||
Consumer Finance - 0.5% | |||
Capital One Financial Corp. | 607,215 | 34,198 | |
Diversified Financial Services - 2.7% | |||
Citigroup, Inc. | 2,282,691 | 96,238 | |
IntercontinentalExchange, Inc. (a) | 45,449 | 6,306 | |
JPMorgan Chase & Co. | 1,495,240 | 70,351 | |
PICO Holdings, Inc. (a)(f) | 1,408,113 | 29,613 | |
The NASDAQ Stock Market, Inc. | 170,808 | 4,837 | |
| 207,345 | ||
Insurance - 3.6% | |||
ACE Ltd. | 119,937 | 10,234 | |
AEGON NV | 576,860 | 3,851 | |
AFLAC, Inc. | 343,551 | 18,229 | |
Allied World Assurance Co. Holdings Ltd. | 111,470 | 9,456 | |
American International Group, Inc. (a) | 432,200 | 16,350 | |
Assured Guaranty Ltd. | 2,199,077 | 39,869 | |
Axis Capital Holdings Ltd. | 98,429 | 3,767 | |
Berkshire Hathaway, Inc. Class B (a) | 1,256,056 | 121,750 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 19,400 | 6,963 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Insurance - continued | |||
MetLife, Inc. | 171,086 | $ 6,388 | |
Prudential Financial, Inc. | 245,016 | 14,182 | |
The Travelers Companies, Inc. | 218,196 | 17,120 | |
Validus Holdings Ltd. | 225,852 | 8,223 | |
| 276,382 | ||
Real Estate Investment Trusts - 2.0% | |||
American Campus Communities, Inc. | 83,300 | 3,879 | |
American Tower Corp. | 325,513 | 24,788 | |
Beni Stabili SpA SIIQ | 14,178,600 | 9,799 | |
CBL & Associates Properties, Inc. | 1,047,564 | 22,512 | |
Cousins Properties, Inc. | 662,800 | 5,899 | |
Douglas Emmett, Inc. | 463,359 | 10,806 | |
Education Realty Trust, Inc. | 1,040,600 | 11,186 | |
Lexington Corporate Properties Trust | 819,900 | 9,019 | |
Prologis, Inc. | 404,324 | 16,133 | |
SL Green Realty Corp. | 191,742 | 15,412 | |
Sovran Self Storage, Inc. | 47,117 | 3,074 | |
Westfield Group unit | 268,749 | 3,133 | |
Weyerhaeuser Co. | 410,926 | 12,377 | |
| 148,017 | ||
Real Estate Management & Development - 0.5% | |||
CBRE Group, Inc. (a) | 1,699,361 | 36,672 | |
TOTAL FINANCIALS | 1,053,356 | ||
HEALTH CARE - 12.5% | |||
Biotechnology - 3.7% | |||
Alnylam Pharmaceuticals, Inc. (a) | 805,000 | 19,425 | |
Amgen, Inc. | 486,809 | 41,603 | |
ARIAD Pharmaceuticals, Inc. (a) | 782,940 | 15,565 | |
AVEO Pharmaceuticals, Inc. (a)(e) | 995,409 | 7,874 | |
Biogen Idec, Inc. (a) | 139,000 | 21,695 | |
Biovitrum AB (a) | 1,889,028 | 11,320 | |
Dynavax Technologies Corp. (a) | 3,874,970 | 11,974 | |
Elan Corp. PLC sponsored ADR (a) | 1,663,500 | 17,483 | |
Gentium SpA sponsored ADR (a) | 364,345 | 4,365 | |
Gilead Sciences, Inc. (a) | 915,508 | 36,117 | |
Grifols SA ADR | 566,897 | 15,085 | |
Infinity Pharmaceuticals, Inc. (a) | 546,320 | 18,821 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Insmed, Inc. (a) | 131,000 | $ 766 | |
Intercept Pharmaceuticals, Inc. | 77,600 | 3,134 | |
InterMune, Inc. (a) | 470,422 | 4,634 | |
Isis Pharmaceuticals, Inc. (a) | 331,000 | 4,809 | |
KaloBios Pharmaceuticals, Inc. | 445,149 | 3,205 | |
KaloBios Pharmaceuticals, Inc. | 150,700 | 1,206 | |
KYTHERA Biopharmaceuticals, Inc. | 217,869 | 6,094 | |
Merrimack Pharmaceuticals, Inc. | 391,800 | 2,378 | |
Synageva BioPharma Corp. (a) | 80,900 | 3,742 | |
Theravance, Inc. (a) | 910,761 | 20,264 | |
ZIOPHARM Oncology, Inc. (a)(e) | 2,189,550 | 8,693 | |
| 280,252 | ||
Health Care Equipment & Supplies - 1.0% | |||
Align Technology, Inc. (a) | 50,689 | 1,590 | |
Baxter International, Inc. | 64,773 | 4,394 | |
Boston Scientific Corp. (a) | 1,595,338 | 11,917 | |
CareFusion Corp. (a) | 119,642 | 3,714 | |
Covidien PLC | 202,184 | 12,604 | |
Genmark Diagnostics, Inc. (a) | 807,700 | 8,691 | |
Nakanishi, Inc. | 38,300 | 4,440 | |
Opto Circuits India Ltd. | 727,896 | 1,085 | |
Sirona Dental Systems, Inc. (a) | 118,404 | 7,870 | |
Stryker Corp. | 192,720 | 12,074 | |
Syneron Medical Ltd. (a) | 311,522 | 3,184 | |
The Cooper Companies, Inc. | 38,300 | 3,882 | |
Trinity Biotech PLC sponsored ADR | 48,840 | 788 | |
| 76,233 | ||
Health Care Providers & Services - 3.0% | |||
Accretive Health, Inc. (a) | 1,066,744 | 13,772 | |
Apollo Hospitals Enterprise Ltd. | 251,291 | 3,814 | |
BioScrip, Inc. (a) | 299,466 | 3,363 | |
Brookdale Senior Living, Inc. (a) | 2,066,960 | 55,829 | |
CIGNA Corp. | 228,645 | 13,339 | |
DaVita, Inc. (a) | 140,079 | 16,167 | |
Emeritus Corp. (a) | 603,933 | 16,355 | |
Express Scripts Holding Co. (a) | 588,144 | 31,419 | |
McKesson Corp. | 138,876 | 14,614 | |
MEDNAX, Inc. (a) | 81,104 | 6,939 | |
Qualicorp SA (a) | 949,200 | 9,819 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Quest Diagnostics, Inc. | 131,047 | $ 7,594 | |
UnitedHealth Group, Inc. | 650,273 | 35,902 | |
| 228,926 | ||
Life Sciences Tools & Services - 0.3% | |||
Agilent Technologies, Inc. | 416,259 | 18,640 | |
Pharmaceuticals - 4.5% | |||
Actavis, Inc. (a) | 181,773 | 15,703 | |
Allergan, Inc. | 54,337 | 5,706 | |
AVANIR Pharmaceuticals Class A (a)(e) | 1,416,095 | 4,135 | |
Biodelivery Sciences International, Inc. (a) | 1,299,603 | 5,666 | |
Cadence Pharmaceuticals, Inc. (a)(e) | 3,743,120 | 17,705 | |
Dechra Pharmaceuticals PLC | 347,617 | 3,421 | |
Endo Pharmaceuticals Holdings, Inc. (a) | 460,000 | 14,564 | |
Hi-Tech Pharmacal Co., Inc. | 68,465 | 2,506 | |
Horizon Pharma, Inc. (e) | 3,196,305 | 6,808 | |
Horizon Pharma, Inc: | |||
warrants 2/28/17 (a) | 253,903 | 0 * | |
warrants 9/25/17 (a) | 932,200 | 0* | |
Impax Laboratories, Inc. (a) | 211,789 | 4,270 | |
Jazz Pharmaceuticals PLC (a) | 186,400 | 10,511 | |
Johnson & Johnson | 1,458,226 | 107,792 | |
Merck & Co., Inc. | 1,968,653 | 85,144 | |
Mylan, Inc. (a) | 247,032 | 6,984 | |
Novo Nordisk A/S Series B | 132,737 | 24,436 | |
Valeant Pharmaceuticals International, Inc. (Canada) (a) | 137,100 | 9,091 | |
Warner Chilcott PLC | 663,286 | 9,399 | |
XenoPort, Inc. (a) | 643,046 | 5,395 | |
Zoetis, Inc. Class A | 124,300 | 3,232 | |
| 342,468 | ||
TOTAL HEALTH CARE | 946,519 | ||
INDUSTRIALS - 12.5% | |||
Aerospace & Defense - 2.3% | |||
DigitalGlobe, Inc. (a) | 655,425 | 18,332 | |
Finmeccanica SpA (a) | 326,000 | 2,142 | |
General Dynamics Corp. | 14,500 | 961 | |
Honeywell International, Inc. | 441,530 | 30,130 | |
Meggitt PLC | 2,825,241 | 19,492 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Precision Castparts Corp. | 103,611 | $ 19,002 | |
Raytheon Co. | 225,788 | 11,895 | |
Textron, Inc. | 783,732 | 22,540 | |
United Technologies Corp. | 558,426 | 48,901 | |
| 173,395 | ||
Air Freight & Logistics - 0.5% | |||
FedEx Corp. | 18,252 | 1,852 | |
Hub Group, Inc. Class A (a) | 83,691 | 3,081 | |
Pacer International, Inc. (a) | 597,557 | 2,432 | |
United Parcel Service, Inc. Class B | 402,512 | 31,915 | |
| 39,280 | ||
Airlines - 0.1% | |||
Copa Holdings SA Class A | 21,733 | 2,382 | |
easyJet PLC | 123,200 | 1,819 | |
| 4,201 | ||
Building Products - 0.9% | |||
Armstrong World Industries, Inc. | 89,140 | 4,902 | |
Lennox International, Inc. | 104,986 | 6,038 | |
Masco Corp. | 893,081 | 16,424 | |
Owens Corning (a) | 788,007 | 32,836 | |
Quanex Building Products Corp. | 387,839 | 8,013 | |
| 68,213 | ||
Commercial Services & Supplies - 0.5% | |||
Corrections Corp. of America | 382,821 | 14,505 | |
Multiplus SA | 521,800 | 11,215 | |
Republic Services, Inc. | 281,605 | 8,980 | |
Swisher Hygiene, Inc. (a) | 2,081,064 | 2,809 | |
Swisher Hygiene, Inc. (Canada) (a)(e) | 1,367,162 | 2,051 | |
| 39,560 | ||
Construction & Engineering - 0.9% | |||
AECOM Technology Corp. (a) | 611,919 | 15,647 | |
Fluor Corp. | 191,625 | 12,423 | |
Foster Wheeler AG (a) | 682,107 | 17,810 | |
MasTec, Inc. (a) | 572,914 | 16,213 | |
URS Corp. | 105,036 | 4,357 | |
| 66,450 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - 1.6% | |||
Alstom SA | 369,562 | $ 16,404 | |
AMETEK, Inc. | 297,842 | 12,209 | |
Emerson Electric Co. | 492,505 | 28,196 | |
Hubbell, Inc. Class B | 99,942 | 9,100 | |
Prysmian SpA | 742,600 | 15,891 | |
Regal-Beloit Corp. | 362,422 | 26,877 | |
Roper Industries, Inc. | 93,558 | 10,988 | |
| 119,665 | ||
Industrial Conglomerates - 1.3% | |||
Carlisle Companies, Inc. | 130,923 | 8,399 | |
Danaher Corp. | 221,684 | 13,286 | |
General Electric Co. | 3,422,868 | 76,261 | |
Reunert Ltd. | 124,060 | 1,035 | |
| 98,981 | ||
Machinery - 2.7% | |||
Actuant Corp. Class A | 457,661 | 13,492 | |
Colfax Corp. (a) | 189,642 | 8,460 | |
Cummins, Inc. | 166,284 | 19,094 | |
Dover Corp. | 115,195 | 7,969 | |
Fiat Industrial SpA | 1,474,205 | 18,986 | |
GEA Group AG | 108,804 | 3,944 | |
Harsco Corp. | 442,669 | 11,284 | |
Illinois Tool Works, Inc. | 292,048 | 18,349 | |
Ingersoll-Rand PLC | 547,161 | 28,119 | |
Manitowoc Co., Inc. | 1,112,442 | 19,579 | |
Oshkosh Truck Corp. (a) | 108,783 | 4,262 | |
Pentair Ltd. | 80,100 | 4,059 | |
SPX Corp. | 126,984 | 9,477 | |
Stanley Black & Decker, Inc. | 318,981 | 24,507 | |
Timken Co. | 203,681 | 10,919 | |
| 202,500 | ||
Marine - 0.0% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 1,465,347 | 3,107 | |
Professional Services - 0.4% | |||
CRA International, Inc. (a) | 268,080 | 4,984 | |
Korn/Ferry International (a) | 97,755 | 1,679 | |
Manpower, Inc. | 14,500 | 747 | |
Randstad Holding NV | 425,100 | 17,628 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - continued | |||
Towers Watson & Co. | 90,672 | $ 5,538 | |
Verisk Analytics, Inc. (a) | 14,500 | 800 | |
| 31,376 | ||
Road & Rail - 0.8% | |||
Con-way, Inc. | 32,800 | 1,029 | |
J.B. Hunt Transport Services, Inc. | 147,481 | 9,921 | |
Union Pacific Corp. | 403,165 | 53,000 | |
| 63,950 | ||
Trading Companies & Distributors - 0.5% | |||
Houston Wire & Cable Co. | 624,888 | 7,467 | |
Watsco, Inc. | 151,925 | 11,448 | |
WESCO International, Inc. (a) | 223,076 | 16,269 | |
| 35,184 | ||
TOTAL INDUSTRIALS | 945,862 | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Communications Equipment - 1.4% | |||
Brocade Communications Systems, Inc. (a) | 708,786 | 4,054 | |
Cisco Systems, Inc. | 2,649,642 | 54,503 | |
Motorola Solutions, Inc. | 284,997 | 16,641 | |
QUALCOMM, Inc. | 412,790 | 27,257 | |
| 102,455 | ||
Computers & Peripherals - 3.8% | |||
Apple, Inc. | 520,003 | 236,759 | |
Gemalto NV | 83,742 | 7,457 | |
NCR Corp. (a) | 601,863 | 16,714 | |
Seagate Technology | 333,268 | 11,324 | |
Western Digital Corp. | 278,963 | 13,111 | |
| 285,365 | ||
Electronic Equipment & Components - 0.6% | |||
Arrow Electronics, Inc. (a) | 382,925 | 14,712 | |
Corning, Inc. | 872,662 | 10,472 | |
Flextronics International Ltd. (a) | 677,351 | 4,206 | |
InvenSense, Inc. (a) | 36,400 | 531 | |
Jabil Circuit, Inc. | 416,424 | 7,875 | |
TE Connectivity Ltd. | 133,451 | 5,189 | |
Yokogawa Electric Corp. | 217,300 | 2,421 | |
| 45,406 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
Active Network, Inc. (a) | 705,080 | $ 3,899 | |
Baidu.com, Inc. sponsored ADR (a) | 21,365 | 2,314 | |
Cornerstone OnDemand, Inc. (a) | 105,543 | 3,449 | |
Demandware, Inc. | 145,490 | 4,625 | |
eBay, Inc. (a) | 142,507 | 7,970 | |
Facebook, Inc. Class A | 453,426 | 14,043 | |
Google, Inc. Class A (a) | 152,402 | 115,169 | |
Mail.ru Group Ltd. GDR (Reg. S) | 246,600 | 8,204 | |
QuinStreet, Inc. (a) | 661,811 | 3,733 | |
Velti PLC (a)(e) | 2,120,929 | 7,890 | |
VeriSign, Inc. (a) | 160,050 | 6,948 | |
| 178,244 | ||
IT Services - 3.5% | |||
Accenture PLC Class A | 264,967 | 19,048 | |
Amdocs Ltd. | 260,154 | 9,285 | |
Cognizant Technology Solutions Corp. Class A (a) | 447,720 | 35,003 | |
EPAM Systems, Inc. | 514,005 | 10,650 | |
ExlService Holdings, Inc. (a) | 325,959 | 9,668 | |
Fidelity National Information Services, Inc. | 495,835 | 18,400 | |
Fiserv, Inc. (a) | 158,268 | 12,711 | |
Gartner, Inc. Class A (a) | 50,702 | 2,612 | |
Global Payments, Inc. | 43,494 | 2,143 | |
MasterCard, Inc. Class A | 61,523 | 31,894 | |
Sapient Corp. (a) | 707,419 | 8,567 | |
ServiceSource International, Inc. (a) | 968,125 | 5,857 | |
Unisys Corp. (a) | 791,684 | 17,583 | |
Virtusa Corp. (a) | 335,942 | 6,957 | |
Visa, Inc. Class A | 492,628 | 77,791 | |
| 268,169 | ||
Office Electronics - 0.3% | |||
Xerox Corp. | 2,863,581 | 22,937 | |
Semiconductors & Semiconductor Equipment - 3.8% | |||
Altera Corp. | 218,117 | 7,289 | |
ANADIGICS, Inc. (a) | 507,076 | 1,308 | |
Analog Devices, Inc. | 387,459 | 16,909 | |
Applied Micro Circuits Corp. (a) | 364,735 | 3,126 | |
ASML Holding NV | 782,736 | 58,776 | |
Avago Technologies Ltd. | 410,959 | 14,700 | |
Broadcom Corp. Class A | 319,610 | 10,371 | |
Cirrus Logic, Inc. (a) | 586,684 | 16,562 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
Cymer, Inc. (a) | 29,215 | $ 3,008 | |
Freescale Semiconductor Holdings I Ltd. (a) | 1,531,015 | 22,123 | |
LTX-Credence Corp. (a) | 2,307,912 | 14,171 | |
MagnaChip Semiconductor Corp. (a) | 347,200 | 5,562 | |
Maxim Integrated Products, Inc. | 639,151 | 20,101 | |
Micron Technology, Inc. (a) | 796,796 | 6,024 | |
Monolithic Power Systems, Inc. | 351,731 | 8,195 | |
NXP Semiconductors NV (a) | 767,732 | 23,024 | |
Samsung Electronics Co. Ltd. | 24,424 | 32,505 | |
Skyworks Solutions, Inc. (a) | 1,131,699 | 27,093 | |
| 290,847 | ||
Software - 2.6% | |||
Activision Blizzard, Inc. | 891,000 | 10,148 | |
Adobe Systems, Inc. (a) | 195,067 | 7,379 | |
Autodesk, Inc. (a) | 251,305 | 9,771 | |
Check Point Software Technologies Ltd. (a) | 371,309 | 18,565 | |
Citrix Systems, Inc. (a) | 373,711 | 27,341 | |
Comverse Technology, Inc. | 3,632,060 | 15,836 | |
Comverse, Inc. | 363,206 | 10,489 | |
Electronic Arts, Inc. (a) | 1,321,705 | 20,790 | |
Jive Software, Inc. (a) | 170,202 | 2,609 | |
MICROS Systems, Inc. (a) | 65,300 | 3,006 | |
Nuance Communications, Inc. (a) | 453,131 | 10,898 | |
Oracle Corp. | 1,129,083 | 40,094 | |
Progress Software Corp. (a) | 51,000 | 1,197 | |
Sourcefire, Inc. (a) | 90,564 | 3,858 | |
Symantec Corp. (a) | 304,263 | 6,624 | |
VMware, Inc. Class A (a) | 73,162 | 5,595 | |
Workday, Inc. | 85,000 | 4,541 | |
| 198,741 | ||
TOTAL INFORMATION TECHNOLOGY | 1,392,164 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.9% | |||
Albemarle Corp. | 133,766 | 8,201 | |
Ashland, Inc. | 177,615 | 13,945 | |
Axiall Corp. (e) | 229,226 | 12,878 | |
Eastman Chemical Co. | 57,950 | 4,123 | |
Innospec, Inc. | 133,005 | 5,353 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
LyondellBasell Industries NV Class A | 168,037 | $ 10,657 | |
Monsanto Co. | 155,008 | 15,710 | |
PetroLogistics LP | 542,757 | 8,396 | |
PPG Industries, Inc. | 33,326 | 4,595 | |
Praxair, Inc. | 39,800 | 4,393 | |
Spartech Corp. (a) | 858,507 | 8,182 | |
W.R. Grace & Co. (a) | 687,929 | 49,393 | |
| 145,826 | ||
Construction Materials - 0.4% | |||
HeidelbergCement Finance AG | 107,913 | 6,797 | |
Lafarge SA (Bearer) | 72,700 | 4,445 | |
Martin Marietta Materials, Inc. | 21,825 | 2,155 | |
Vulcan Materials Co. | 290,494 | 16,430 | |
| 29,827 | ||
Containers & Packaging - 0.2% | |||
Nampak Ltd. | 2,534,100 | 8,893 | |
Rock-Tenn Co. Class A | 131,957 | 10,418 | |
| 19,311 | ||
Metals & Mining - 2.1% | |||
Agnico-Eagle Mines Ltd. (Canada) | 174,400 | 7,979 | |
ArcelorMittal SA Class A unit | 329,900 | 5,661 | |
Commercial Metals Co. | 1,119,644 | 18,642 | |
Copper Mountain Mining Corp. (a) | 477,400 | 1,680 | |
First Quantum Minerals Ltd. | 278,840 | 5,622 | |
Freeport-McMoRan Copper & Gold, Inc. | 439,795 | 15,503 | |
Goldcorp, Inc. | 357,000 | 12,574 | |
Iluka Resources Ltd. (e) | 471,048 | 4,775 | |
Ivanplats Ltd. (g) | 665,000 | 3,200 | |
Ivanplats Ltd. Class A (h) | 6,810,028 | 29,496 | |
POSCO | 8,693 | 2,844 | |
Randgold Resources Ltd. sponsored ADR | 253,423 | 23,862 | |
Turquoise Hill Resources Ltd. (a) | 3,324,736 | 25,601 | |
| 157,439 | ||
Paper & Forest Products - 0.1% | |||
Canfor Corp. (a) | 242,700 | 4,472 | |
International Paper Co. | 72,539 | 3,005 | |
| 7,477 | ||
TOTAL MATERIALS | 359,880 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
TELECOMMUNICATION SERVICES - 0.9% | |||
Diversified Telecommunication Services - 0.5% | |||
CenturyLink, Inc. | 549,300 | $ 22,219 | |
Frontier Communications Corp. (e) | 1,038,889 | 4,748 | |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 252,541 | 10,013 | |
| 36,980 | ||
Wireless Telecommunication Services - 0.4% | |||
Crown Castle International Corp. (a) | 18,400 | 1,298 | |
SBA Communications Corp. Class A (a) | 377,311 | 26,283 | |
Vodafone Group PLC | 2,535,100 | 6,919 | |
| 34,500 | ||
TOTAL TELECOMMUNICATION SERVICES | 71,480 | ||
UTILITIES - 2.7% | |||
Electric Utilities - 1.4% | |||
Edison International | 401,924 | 19,369 | |
ITC Holdings Corp. | 249,927 | 20,244 | |
NextEra Energy, Inc. | 505,556 | 36,425 | |
Northeast Utilities | 707,580 | 28,820 | |
OGE Energy Corp. | 39,848 | 2,339 | |
| 107,197 | ||
Gas Utilities - 0.1% | |||
Atmos Energy Corp. | 104,257 | 3,895 | |
ONEOK, Inc. | 160,267 | 7,534 | |
| 11,429 | ||
Independent Power Producers & Energy Traders - 0.4% | |||
The AES Corp. | 2,484,093 | 26,928 | |
Multi-Utilities - 0.8% | |||
CenterPoint Energy, Inc. | 246,662 | 5,042 | |
PG&E Corp. | 251,671 | 10,731 | |
Sempra Energy | 557,849 | 41,867 | |
| 57,640 | ||
TOTAL UTILITIES | 203,194 | ||
TOTAL COMMON STOCKS (Cost $6,025,765) |
| ||
Preferred Stocks - 0.1% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.1% | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Unisys Corp. Series A, 6.25% | 92,200 | $ 5,939 | |
Nonconvertible Preferred Stocks - 0.0% | |||
FINANCIALS - 0.0% | |||
Commercial Banks - 0.0% | |||
Banco Pine SA | 406,444 | 2,974 | |
HEALTH CARE - 0.0% | |||
Health Care Equipment & Supplies - 0.0% | |||
Sartorius AG (non-vtg.) | 2,200 | 226 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 3,200 | ||
TOTAL PREFERRED STOCKS (Cost $9,108) |
|
Corporate Bonds - 0.7% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.6% | ||||
ENERGY - 0.1% | ||||
Energy Equipment & Services - 0.0% | ||||
Cal Dive International, Inc. 5% 7/15/17 (g) | $ 3,660 | 3,898 | ||
Oil, Gas & Consumable Fuels - 0.1% | ||||
Amyris, Inc. 3% 2/27/17 | 7,356 | 5,109 | ||
TOTAL ENERGY | 9,007 | |||
FINANCIALS - 0.1% | ||||
Thrifts & Mortgage Finance - 0.1% | ||||
MGIC Investment Corp. 9% 4/1/63 (d)(g) | 16,623 | 7,127 | ||
HEALTH CARE - 0.2% | ||||
Biotechnology - 0.2% | ||||
Exelixis, Inc. 4.25% 8/15/19 | 9,070 | 9,087 | ||
InterMune, Inc. 2.5% 12/15/17 | 2,810 | 3,015 | ||
Theravance, Inc. 2.125% 1/15/23 | 3,620 | 3,747 | ||
| 15,849 | |||
Corporate Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - continued | ||||
INDUSTRIALS - 0.1% | ||||
Building Products - 0.1% | ||||
Aspen Aerogels, Inc. 8% 6/1/14 (h) | $ 4,085 | $ 4,085 | ||
INFORMATION TECHNOLOGY - 0.0% | ||||
Semiconductors & Semiconductor Equipment - 0.0% | ||||
GT Advanced Technologies, Inc. 3% 10/1/17 | 4,830 | 3,665 | ||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (g) | 3,730 | 4,047 | ||
TOTAL CONVERTIBLE BONDS | 43,780 | |||
Nonconvertible Bonds - 0.1% | ||||
FINANCIALS - 0.1% | ||||
Commercial Banks - 0.1% | ||||
Bank of Ireland 10% 7/30/16 | EUR | 5,542 | 7,722 | |
TOTAL CORPORATE BONDS (Cost $53,353) |
|
Money Market Funds - 1.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 31,926,564 | 31,927 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 83,726,256 | 83,726 | |
TOTAL MONEY MARKET FUNDS (Cost $115,653) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $6,203,879) | 7,650,537 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (68,143) | ||
NET ASSETS - 100% | $ 7,582,394 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
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) 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 $33,550,000 or 0.4% of net assets. |
(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 $37,316,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aspen Aerogels, Inc. 8% 6/1/14 | 6/1/11 | $ 4,085 |
Ivanplats Ltd. Class A | 10/23/12 | $ 32,981 |
Mood Media Corp. | 2/2/11 | $ 4,054 |
* 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 | $ 38 |
Fidelity Securities Lending Cash Central Fund | 1,404 |
Total | $ 1,442 |
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, |
Body Central Corp. | $ 10,585 | $ 228 | $ - | $ - | $ 8,311 |
Double Eagle Petroleum Co. | 3,787 | - | - | - | 4,636 |
Emerald Oil, Inc. | - | 4,260 | 3,456 | - | - |
Emerald Oil, Inc. warrants 2/4/16 | - | - | - | - | - |
GeoEye, Inc. | 31,912 | - | 19,530 | - | - |
LTX-Credence Corp. | 14,900 | 898 | 2,352 | - | - |
PICO Holdings, Inc. | 33,875 | 57 | - | - | 29,613 |
TAG Oil Ltd. | 11,208 | 7,233 | - | - | 14,645 |
TAG Oil Ltd. (144A) | 1,027 | - | - | - | 688 |
Total | $ 107,294 | $ 12,676 | $ 25,338 | $ - | $ 57,893 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 935,744 | $ 935,744 | $ - | $ - |
Consumer Staples | 718,535 | 702,496 | 16,039 | - |
Energy | 847,509 | 847,509 | - | - |
Financials | 1,056,330 | 1,052,455 | 3,875 | - |
Health Care | 946,745 | 919,104 | 27,641 | - |
Industrials | 945,862 | 943,053 | 2,809 | - |
Information Technology | 1,398,103 | 1,398,103 | - | - |
Materials | 359,880 | 327,540 | 32,340 | - |
Telecommunication Services | 71,480 | 64,561 | 6,919 | - |
Utilities | 203,194 | 203,194 | - | - |
Corporate Bonds | 51,502 | - | 47,417 | 4,085 |
Money Market Funds | 115,653 | 115,653 | - | - |
Total Investments in Securities: | $ 7,650,537 | $ 7,509,412 | $ 137,040 | $ 4,085 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 81.2% |
Canada | 3.4% |
United Kingdom | 2.5% |
Netherlands | 1.7% |
Bermuda | 1.7% |
Ireland | 1.6% |
Others (Individually Less Than 1%) | 7.9% |
| 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $81,150) - See accompanying schedule: Unaffiliated issuers (cost $5,994,235) | $ 7,476,991 |
|
Fidelity Central Funds (cost $115,653) | 115,653 |
|
Other affiliated issuers (cost $93,991) | 57,893 |
|
Total Investments (cost $6,203,879) |
| $ 7,650,537 |
Cash |
| 841 |
Foreign currency held at value (cost $369) | 369 | |
Receivable for investments sold: |
| 86,970 |
Delayed delivery |
| 2,094 |
Receivable for fund shares sold | 3,849 | |
Dividends receivable | 4,484 | |
Interest receivable | 1,316 | |
Distributions receivable from Fidelity Central Funds | 310 | |
Prepaid expenses | 13 | |
Other receivables | 874 | |
Total assets | 7,751,657 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 74,673 | |
Payable for fund shares redeemed | 6,577 | |
Accrued management fee | 2,711 | |
Other affiliated payables | 1,161 | |
Other payables and accrued expenses | 415 | |
Collateral on securities loaned, at value | 83,726 | |
Total liabilities | 169,263 | |
|
|
|
Net Assets | $ 7,582,394 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,104,803 | |
Distributions in excess of net investment income | (11,424) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 42,363 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,446,652 | |
Net Assets | $ 7,582,394 |
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, 2013 (Unaudited) | |
|
|
|
Dividend Growth: | $ 31.48 | |
|
|
|
Class K: | $ 31.47 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 62,978 |
Interest |
| 972 |
Income from Fidelity Central Funds |
| 1,442 |
Total income |
| 65,392 |
|
|
|
Expenses | ||
Management fee | $ 20,379 | |
Performance adjustment | (3,890) | |
Transfer agent fees | 6,372 | |
Accounting and security lending fees | 601 | |
Custodian fees and expenses | 135 | |
Independent trustees' compensation | 25 | |
Registration fees | 40 | |
Audit | 52 | |
Legal | 25 | |
Miscellaneous | 33 | |
Total expenses before reductions | 23,772 | |
Expense reductions | (720) | 23,052 |
Net investment income (loss) | 42,340 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 171,815 | |
Other affiliated issuers | (11,738) |
|
Foreign currency transactions | (76) | |
Total net realized gain (loss) |
| 160,001 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 695,039 | |
Assets and liabilities in foreign currencies | 30 | |
Total change in net unrealized appreciation (depreciation) |
| 695,069 |
Net gain (loss) | 855,070 | |
Net increase (decrease) in net assets resulting from operations | $ 897,410 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 42,340 | $ 62,998 |
Net realized gain (loss) | 160,001 | 282,332 |
Change in net unrealized appreciation (depreciation) | 695,069 | (523,395) |
Net increase (decrease) in net assets resulting | 897,410 | (178,065) |
Distributions to shareholders from net investment income | (73,780) | (42,120) |
Distributions to shareholders from net realized gain | (120,845) | (5,141) |
Total distributions | (194,625) | (47,261) |
Share transactions - net increase (decrease) | (246,583) | (2,591,197) |
Total increase (decrease) in net assets | 456,202 | (2,816,523) |
|
|
|
Net Assets | ||
Beginning of period | 7,126,192 | 9,942,715 |
End of period (including distributions in excess of net investment income of $11,424 and undistributed net investment income of $20,016, respectively) | $ 7,582,394 | $ 7,126,192 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.61 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 | $ 32.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .17 | .20 | .12 | .13 G | .24 | .43 |
Net realized and unrealized gain (loss) | 3.50 | (.41) | 5.23 | 3.63 | (4.01) | (5.08) |
Total from investment operations | 3.67 | (.21) | 5.35 | 3.76 | (3.77) | (4.65) |
Distributions from net investment income | (.30) | (.12) | (.15) | (.12) | (.37) | (.45) |
Distributions from net realized gain | (.50) | (.02) | (.08) | (.05) | (1.01) | (2.23) |
Total distributions | (.80) | (.14) | (.23) | (.17) | (1.38) J | (2.68) |
Net asset value, end of period | $ 31.48 | $ 28.61 | $ 28.96 | $ 23.84 | $ 20.25 | $ 25.40 |
Total Return B,C | 13.01% | (.67)% | 22.57% | 18.59% | (15.33)% | (15.45)% |
Ratios to Average Net Assets E,H |
|
|
|
|
| |
Expenses before reductions | .68% A | .91% | .93% | .93% | .62% | .64% |
Expenses net of fee waivers, if any | .68% A | .91% | .93% | .93% | .62% | .64% |
Expenses net of all reductions | .66% A | .91% | .93% | .92% | .62% | .63% |
Net investment income (loss) | 1.13% A | .75% | .44% | .56% G | 1.34% | 1.47% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (in millions) | $ 6,223 | $ 5,905 | $ 9,309 | $ 7,730 | $ 6,603 | $ 9,502 |
Portfolio turnover rate F | 54% A | 63% I | 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 .40%.
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 Portfolio turnover rate excludes securities received or delivered in-kind.
J Total distributions of $1.38 per share is comprised of distributions from net investment income of $.374 and distributions from net realized gain of $1.005 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 28.62 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 | $ 27.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .19 | .25 | .17 | .18 G | .26 | .10 |
Net realized and unrealized gain (loss) | 3.51 | (.43) | 5.22 | 3.63 | (4.00) | (2.41) |
Total from investment operations | 3.70 | (.18) | 5.39 | 3.81 | (3.74) | (2.31) |
Distributions from net investment income | (.35) | (.17) | (.20) | (.16) | (.41) | - |
Distributions from net realized gain | (.50) | (.02) | (.08) | (.05) | (1.01) | - |
Total distributions | (.85) | (.18) M | (.27) L | (.21) | (1.41) K | - |
Net asset value, end of period | $ 31.47 | $ 28.62 | $ 28.98 | $ 23.86 | $ 20.26 | $ 25.41 |
Total Return B,C | 13.13% | (.52)% | 22.79% | 18.86% | (15.16)% | (8.33)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .52% A | .75% | .78% | .72% | .40% | .47% A |
Expenses net of fee waivers, if any | .52% A | .75% | .78% | .72% | .40% | .47% A |
Expenses net of all reductions | .50% A | .75% | .77% | .71% | .39% | .47% A |
Net investment income (loss) F | 1.28% A | .91% | .60% | .76% G | 1.57% | 1.66% A |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,359,113 | $ 1,220,737 | $ 633,935 | $ 355,463 | $ 201,625 | $ 92 |
Portfolio turnover rate F | 54% A | 63% 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, 2013 (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, as an investment of the Fund, but do 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
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 futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, redemptions in kind, 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 | $ 1,661,716 |
Gross unrealized depreciation | (223,220) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,438,496 |
|
|
Tax cost | $ 6,212,041 |
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. 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,964,030 and $2,285,393, 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 .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 .45% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of |
Dividend Growth | $ 6,054 | .20 |
Class K | 318 | .05 |
| $ 6,372 |
|
* 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 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous 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. The value of securities loaned to FCM at period end was $3,920. 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 $1,404, including $99 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 $720 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
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Dividend Growth | $ 58,843 | $ 37,592 |
Class K | 14,937 | 4,528 |
Total | $ 73,780 | $ 42,120 |
From net realized gain |
|
|
Dividend Growth | $ 99,451 | $ 4,761 |
Class K | 21,394 | 380 |
Total | $ 120,845 | $ 5,141 |
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 | |
Dividend Growth |
|
|
|
|
Shares sold | 9,636 | 28,017 | $ 289,351 | $ 753,110 |
Reinvestment of distributions | 4,994 | 1,596 | 147,845 | 40,357 |
Shares redeemed | (23,392) | (144,643)A | (699,625) | (3,948,966)A |
Net increase (decrease) | (8,762) | (115,030) | $ (262,429) | $ (3,155,499) |
Class K |
|
|
|
|
Shares sold | 5,028 | 29,433 | $ 150,801 | $ 801,392 |
Reinvestment of distributions | 1,228 | 194 | 36,331 | 4,908 |
Shares redeemed | (5,716) | (8,851) | (171,286) | (241,998) |
Net increase (decrease) | 540 | 20,776 | $ 15,846 | $ 564,302 |
A Amount includes in-kind redemptions
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
DGF-USAN-0313 1.789283.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Class A, Class T, Class B
and Class C are classes of
Fidelity® Small Cap Value Fund
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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.35% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,203.50 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class T | 1.58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.90 | $ 8.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.24 | $ 8.03 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.90 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Class C | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.30 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Small Cap Value | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.80 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
Class F | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,206.30 | $ 4.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.07 | $ 4.18 |
Institutional Class | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Superior Energy Services, Inc. | 3.1 | 3.0 |
TCF Financial Corp. | 2.9 | 2.7 |
Berry Petroleum Co. Class A | 2.7 | 2.6 |
Hanesbrands, Inc. | 2.5 | 2.6 |
HNI Corp. | 2.5 | 2.7 |
DCT Industrial Trust, Inc. | 2.5 | 2.8 |
WESCO International, Inc. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.4 | 2.4 |
Tech Data Corp. | 2.2 | 1.9 |
Ingram Micro, Inc. Class A | 2.1 | 0.9 |
| 25.3 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 36.2 | 35.8 |
Industrials | 14.6 | 14.1 |
Consumer Discretionary | 13.1 | 14.0 |
Information Technology | 11.7 | 11.0 |
Health Care | 6.0 | 6.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 98.8% |
| ![]() | Stocks 100.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 8.9% |
| ** Foreign investments | 9.8% |
|
† Amount represents less than 0.1%
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 1.7% | |||
Regis Corp. (e) | 3,400,000 | $ 60,350,000 | |
Household Durables - 4.2% | |||
KB Home (d) | 2,400,000 | 45,768,000 | |
Ryland Group, Inc. | 750,000 | 29,790,000 | |
Tempur-Pedic International, Inc. (a)(d) | 1,800,000 | 70,128,000 | |
| 145,686,000 | ||
Media - 1.7% | |||
Valassis Communications, Inc. (d)(e) | 2,102,541 | 58,997,300 | |
Specialty Retail - 2.5% | |||
Asbury Automotive Group, Inc. (a) | 800,000 | 28,448,000 | |
Genesco, Inc. (a) | 632,300 | 39,411,259 | |
Tsutsumi Jewelry Co. Ltd. | 800,000 | 19,657,718 | |
| 87,516,977 | ||
Textiles, Apparel & Luxury Goods - 2.5% | |||
Hanesbrands, Inc. (a) | 2,300,000 | 86,204,000 | |
TOTAL CONSUMER DISCRETIONARY | 438,754,277 | ||
CONSUMER STAPLES - 2.7% | |||
Food Products - 1.8% | |||
Chiquita Brands International, Inc. (a)(e) | 3,375,000 | 24,806,250 | |
Post Holdings, Inc. (a) | 984,700 | 37,408,753 | |
| 62,215,003 | ||
Household Products - 0.9% | |||
Spectrum Brands Holdings, Inc. | 600,000 | 30,384,000 | |
TOTAL CONSUMER STAPLES | 92,599,003 | ||
ENERGY - 5.8% | |||
Energy Equipment & Services - 3.1% | |||
Superior Energy Services, Inc. (a) | 4,250,000 | 106,122,498 | |
Oil, Gas & Consumable Fuels - 2.7% | |||
Berry Petroleum Co. Class A | 2,575,000 | 94,811,500 | |
TOTAL ENERGY | 200,933,998 | ||
FINANCIALS - 36.2% | |||
Capital Markets - 3.8% | |||
Federated Investors, Inc. Class B (non-vtg.) (d) | 882,860 | 20,888,468 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 149,703 | $ 43,808,325 | |
Waddell & Reed Financial, Inc. Class A | 1,700,000 | 67,490,000 | |
| 132,186,793 | ||
Commercial Banks - 11.9% | |||
Associated Banc-Corp. | 4,500,000 | 64,215,000 | |
CapitalSource, Inc. | 8,350,000 | 67,718,500 | |
City National Corp. | 1,044,642 | 55,324,240 | |
First Citizen Bancshares, Inc. | 19,046 | 3,320,861 | |
First Citizen Bancshares, Inc. (f) | 180,954 | 28,396,026 | |
National Penn Bancshares, Inc. | 4,400,000 | 42,900,000 | |
PacWest Bancorp (e) | 1,900,000 | 52,212,000 | |
TCF Financial Corp. | 7,303,000 | 99,758,980 | |
| 413,845,607 | ||
Consumer Finance - 2.6% | |||
Cash America International, Inc. | 377,700 | 18,095,607 | |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,600,000 | 35,520,000 | |
World Acceptance Corp. (a)(d) | 475,000 | 36,836,250 | |
| 90,451,857 | ||
Insurance - 6.7% | |||
Alterra Capital Holdings Ltd. | 1,385,995 | 42,231,268 | |
Aspen Insurance Holdings Ltd. | 2,100,000 | 71,631,000 | |
Platinum Underwriters Holdings Ltd. (e) | 1,694,139 | 82,555,393 | |
ProAssurance Corp. | 808,239 | 36,403,085 | |
| 232,820,746 | ||
Real Estate Investment Trusts - 6.9% | |||
DCT Industrial Trust, Inc. (d) | 11,980,586 | 84,582,937 | |
Franklin Street Properties Corp. (e) | 4,800,000 | 62,400,000 | |
Highwoods Properties, Inc. (SBI) | 1,720,330 | 61,931,880 | |
National Retail Properties, Inc. (d) | 900,000 | 28,818,000 | |
| 237,732,817 | ||
Real Estate Management & Development - 0.9% | |||
Forestar Group, Inc. (a) | 1,606,087 | 30,563,836 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 3.4% | |||
Astoria Financial Corp. (e) | 5,404,051 | $ 52,635,457 | |
Washington Federal, Inc. | 3,715,000 | 65,346,850 | |
| 117,982,307 | ||
TOTAL FINANCIALS | 1,255,583,963 | ||
HEALTH CARE - 6.0% | |||
Health Care Equipment & Supplies - 1.2% | |||
Integra LifeSciences Holdings Corp. (a) | 950,000 | 40,042,500 | |
Health Care Providers & Services - 4.8% | |||
Chemed Corp. | 465,200 | 35,145,860 | |
MEDNAX, Inc. (a) | 779,700 | 66,711,132 | |
Team Health Holdings, Inc. (a) | 1,927,580 | 65,287,135 | |
| 167,144,127 | ||
TOTAL HEALTH CARE | 207,186,627 | ||
INDUSTRIALS - 14.6% | |||
Commercial Services & Supplies - 8.1% | |||
ACCO Brands Corp. | 5,000,000 | 41,650,000 | |
HNI Corp. (e) | 2,700,000 | 85,239,000 | |
Knoll, Inc. | 1,750,000 | 29,015,000 | |
Quad/Graphics, Inc. (d)(e) | 2,675,000 | 58,047,500 | |
United Stationers, Inc. | 1,980,800 | 66,039,872 | |
| 279,991,372 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a)(e) | 7,600,000 | 72,960,000 | |
Machinery - 2.0% | |||
Blount International, Inc. (a)(e) | 2,975,000 | 50,723,750 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,050,000 | 19,866,000 | |
| 70,589,750 | ||
Trading Companies & Distributors - 2.4% | |||
WESCO International, Inc. (a) | 1,153,633 | 84,134,455 | |
TOTAL INDUSTRIALS | 507,675,577 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 2.6% | |||
Polycom, Inc. (a) | 3,600,000 | $ 39,708,000 | |
ViaSat, Inc. (a)(d) | 1,325,000 | 50,893,250 | |
| 90,601,250 | ||
Electronic Equipment & Components - 6.0% | |||
Ingram Micro, Inc. Class A (a) | 4,050,000 | 73,629,000 | |
Macnica, Inc. | 677,400 | 13,237,616 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 17,948,345 | |
SYNNEX Corp. (a) | 790,000 | 28,400,500 | |
Tech Data Corp. (a) | 1,479,500 | 75,321,345 | |
| 208,536,806 | ||
Internet Software & Services - 1.3% | |||
j2 Global, Inc. (d) | 1,350,000 | 42,957,000 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (e) | 720,200 | 14,081,881 | |
Software - 1.4% | |||
Monotype Imaging Holdings, Inc. (e) | 2,671,431 | 48,299,472 | |
TOTAL INFORMATION TECHNOLOGY | 404,476,409 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.7% | |||
PolyOne Corp. | 2,800,000 | 61,152,000 | |
Metals & Mining - 3.0% | |||
Carpenter Technology Corp. | 409,380 | 21,422,855 | |
Haynes International, Inc. | 550,000 | 28,116,000 | |
RTI International Metals, Inc. $$ (a)(e) | 1,880,000 | 53,392,000 | |
| 102,930,855 | ||
TOTAL MATERIALS | 164,082,855 | ||
UTILITIES - 4.0% | |||
Electric Utilities - 2.9% | |||
UIL Holdings Corp. | 1,350,000 | 50,233,500 | |
UNS Energy Corp. | 1,150,000 | 52,083,500 | |
| 102,317,000 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Gas Utilities - 1.1% | |||
Southwest Gas Corp. | 836,756 | $ 37,269,112 | |
TOTAL UTILITIES | 139,586,112 | ||
TOTAL COMMON STOCKS (Cost $2,590,471,098) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Household Durables - 0.5% | |||
M/I Homes, Inc. Series A, 9.75% (a) (Cost $11,958,450) | 750,400 |
| |
Money Market Funds - 3.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 38,138,759 | 38,138,759 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 73,365,025 | 73,365,025 | |
TOTAL MONEY MARKET FUNDS (Cost $111,503,784) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $2,713,933,332) | 3,540,347,181 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (69,372,572) | ||
NET ASSETS - 100% | $ 3,470,974,609 |
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 $28,396,026 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
First Citizen Bancshares, Inc. | 12/21/12 | $ 25,333,560 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,325 |
Fidelity Securities Lending Cash Central Fund | 237,848 |
Total | $ 248,173 |
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, |
Astoria Financial Corp. | $ 51,038,992 | $ - | $ 134,410 | $ 432,324 | $ 52,635,457 |
Blount International, Inc. | 37,039,161 | 4,861,737 | - | - | 50,723,750 |
Chiquita Brands International, Inc. | 17,482,500 | - | - | - | 24,806,250 |
Columbus McKinnon Corp. (NY Shares) | 15,414,197 | 33,512 | - | - | 19,866,000 |
Forestar Group, Inc. | 22,724,438 | - | 7,503,701 | - | - |
Franklin Street Properties Corp. | 32,769,200 | 18,353,991 | - | 679,443 | 62,400,000 |
GrafTech International Ltd. | 62,334,250 | 14,832,304 | - | - | 72,960,000 |
HNI Corp. | 71,739,000 | - | - | 1,296,000 | 85,239,000 |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Miraial Co. Ltd. | $ 10,410,478 | $ - | $ - | $ 294,642 | $ 14,081,881 |
Monotype Imaging Holdings, Inc. | 38,936,219 | 295,917 | - | 212,950 | 48,299,472 |
PacWest Bancorp | 42,557,616 | 917,960 | - | 809,368 | 52,212,000 |
Platinum Underwriters Holdings Ltd. | 64,411,165 | - | - | 271,062 | 82,555,393 |
Quad/Graphics, Inc. | 28,908,484 | 12,835,355 | - | 6,556,250 | 58,047,500 |
Regis Corp. | 52,452,000 | 4,787,419 | - | 390,000 | 60,350,000 |
RTI International Metals, Inc. | 42,206,000 | - | - | - | 53,392,000 |
Ryoyo Electro Corp. | 20,552,790 | - | - | 302,646 | 17,948,345 |
Valassis Communications, Inc. | 35,733,655 | 13,465,583 | - | 651,788 | 58,997,300 |
Western Liberty Bancorp | 2,879,407 | - | 3,071,972 | - | - |
Total | $ 649,589,552 | $ 70,383,778 | $ 10,710,083 | $ 11,896,473 | $ 814,514,348 |
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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2013. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 88,107,038 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $72,724,657) - See accompanying schedule: Unaffiliated issuers (cost $1,949,633,701) | $ 2,614,329,049 |
|
Fidelity Central Funds (cost $111,503,784) | 111,503,784 |
|
Other affiliated issuers (cost $652,795,847) | 814,514,348 |
|
Total Investments (cost $2,713,933,332) |
| $ 3,540,347,181 |
Cash |
| 484,367 |
Receivable for investments sold | 12,199,775 | |
Receivable for fund shares sold | 7,744,111 | |
Dividends receivable | 2,336,477 | |
Distributions receivable from Fidelity Central Funds | 47,059 | |
Prepaid expenses | 6,802 | |
Other receivables | 115,575 | |
Total assets | 3,563,281,347 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,668,778 | |
Payable for fund shares redeemed | 3,390,243 | |
Accrued management fee | 2,161,173 | |
Distribution and service plan fees payable | 125,883 | |
Other affiliated payables | 554,408 | |
Other payables and accrued expenses | 41,228 | |
Collateral on securities loaned, at value | 73,365,025 | |
Total liabilities | 92,306,738 | |
|
|
|
Net Assets | $ 3,470,974,609 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,575,966,501 | |
Undistributed net investment income | 3,202,777 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 65,395,793 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 826,409,538 | |
Net Assets | $ 3,470,974,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.27 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.27) | $ 18.32 | |
Class T: | $ 17.07 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.07) | $ 17.69 | |
Class B: | $ 16.55 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Small Cap Value: | $ 17.47 | |
|
|
|
Class F: | $ 17.50 | |
|
|
|
Institutional Class: | $ 17.48 |
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, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $11,896,473 earned from other affiliated issuers) |
| $ 35,108,998 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 248,173 |
Total income |
| 35,357,210 |
|
|
|
Expenses | ||
Management fee | $ 10,395,105 | |
Performance adjustment | 1,044,295 | |
Transfer agent fees | 2,768,811 | |
Distribution and service plan fees | 668,112 | |
Accounting and security lending fees | 436,044 | |
Custodian fees and expenses | 32,616 | |
Independent trustees' compensation | 9,382 | |
Registration fees | 115,672 | |
Audit | 33,160 | |
Legal | 7,171 | |
Interest | 218 | |
Miscellaneous | 11,233 | |
Total expenses before reductions | 15,521,819 | |
Expense reductions | (183,042) | 15,338,777 |
Net investment income (loss) | 20,018,433 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 81,698,979 | |
Other affiliated issuers | (3,822,586) |
|
Foreign currency transactions | (25,388) | |
Total net realized gain (loss) |
| 77,851,005 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 471,122,048 | |
Assets and liabilities in foreign currencies | (4,934) | |
Total change in net unrealized appreciation (depreciation) |
| 471,117,114 |
Net gain (loss) | 548,968,119 | |
Net increase (decrease) in net assets resulting from operations | $ 568,986,552 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 20,018,433 | $ 9,490,811 |
Net realized gain (loss) | 77,851,005 | 99,657,152 |
Change in net unrealized appreciation (depreciation) | 471,117,114 | (37,724,900) |
Net increase (decrease) in net assets resulting | 568,986,552 | 71,423,063 |
Distributions to shareholders from net investment income | (21,412,007) | (3,813,704) |
Distributions to shareholders from net realized gain | (85,195,351) | (148,970,854) |
Total distributions | (106,607,358) | (152,784,558) |
Share transactions - net increase (decrease) | 324,724,498 | 230,904,084 |
Redemption fees | 178,167 | 569,163 |
Total increase (decrease) in net assets | 787,281,859 | 150,111,752 |
|
|
|
Net Assets | ||
Beginning of period | 2,683,692,750 | 2,533,580,998 |
End of period (including undistributed net investment income of $3,202,777 and undistributed net investment income of $4,596,351, respectively) | $ 3,470,974,609 | $ 2,683,692,750 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .08 | .01 | .01 H | .02 I | .08 | (.01) |
Net realized and unrealized gain (loss) | 2.87 | .30 | 2.22 | 2.33 | (.60) | (1.98) |
Total from investment operations | 2.95 | .31 | 2.23 | 2.35 | (.52) | (1.99) |
Distributions from net investment income | (.07) | (.01) | (.08) | (.03) | (.06) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.54) | (.93) L | (.20) | (.03) | (.17) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.27 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 |
Total Return B, C, D | 20.35% | 3.24% | 16.72% | 21.16% | (4.37)% | (14.35)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.44% | 1.44% | 1.47% | 1.45% | 1.43% |
Expenses net of fee waivers, if any | 1.35% A | 1.44% | 1.43% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.34% A | 1.44% | 1.43% | 1.39% | 1.40% | 1.40% |
Net investment income (loss) | 1.06% A | .09% | .06% H | .17% I | .81% | (.05)% |
Supplemental Data |
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|
|
|
|
|
Net assets, end of period (000 omitted) | $ 203,918 | $ 150,285 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 (.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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Income from Investment |
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|
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|
| |
Net investment income (loss) E | .06 | (.02) | (.03) H | (.01) I | .05 | (.04) |
Net realized and unrealized gain (loss) | 2.84 | .31 | 2.20 | 2.31 | (.59) | (1.97) |
Total from investment operations | 2.90 | .29 | 2.17 | 2.30 | (.54) | (2.01) |
Distributions from net investment income | (.06) | - | (.05) | (.01) | (.04) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.53) | (.93) | (.17) | (.01) | (.15) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.07 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 |
Total Return B, C, D | 20.19% | 3.08% | 16.36% | 20.87% | (4.57)% | (14.58)% |
Ratios to Average Net Assets F, J |
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|
| |
Expenses before reductions | 1.58% A | 1.67% | 1.70% | 1.72% | 1.70% | 1.68% |
Expenses net of fee waivers, if any | 1.58% A | 1.67% | 1.69% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.57% A | 1.67% | 1.69% | 1.64% | 1.65% | 1.65% |
Net investment income (loss) | .84% A | (.14)% | (.19)% H | (.08)% I | .56% | (.30)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 78,144 | $ 57,514 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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|
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|
| |
Net asset value, beginning of period | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Income from Investment |
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|
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|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.15 | 2.27 | (.59) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.05 | 2.20 | (.58) | (2.06) |
Distributions from net investment income | (.02) | - | (.01) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.49) | (.93) | (.13) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 |
Total Return B, C, D | 19.89% | 2.51% | 15.80% | 20.22% | (5.05)% | (15.04)% |
Ratios to Average Net Assets F, J |
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|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.20% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.19% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.19% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.69)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 7,283 | $ 6,675 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
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|
|
|
| |
Net asset value, beginning of period | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Income from Investment |
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|
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|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.17 | 2.26 | (.58) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.07 | 2.19 | (.57) | (2.06) |
Distributions from net investment income | (.03) | - | (.02) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.50) | (.93) | (.14) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 |
Total Return B, C, D | 19.83% | 2.52% | 15.91% | 20.11% | (4.98)% | (15.04)% |
Ratios to Average Net Assets F, J |
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| |
Expenses before reductions | 2.12% A | 2.19% | 2.18% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.18% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.18% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.68)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
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|
|
Net assets, end of period (000 omitted) | $ 62,707 | $ 47,265 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Income from Investment Operations |
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|
|
|
| |
Net investment income (loss) D | .11 | .06 | .06 G | .05 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.89 | .32 | 2.23 | 2.34 | (.60) | (1.99) |
Total from investment operations | 3.00 | .38 | 2.29 | 2.39 | (.50) | (1.96) |
Distributions from net investment income | (.11) | (.02) | (.10) | (.05) | (.08) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.58) | (.95) | (.23) | (.05) | (.19) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 |
Total Return B, C | 20.48% | 3.67% | 17.03% | 21.32% | (4.15)% | (14.10)% |
Ratios to Average Net Assets E, I |
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| ||
Expenses before reductions | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of fee waivers, if any | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of all reductions | 1.04% A | 1.13% | 1.13% | 1.17% | 1.20% | 1.13% |
Net investment income (loss) | 1.36% A | .41% | .37% G | .39% H | 1.01% | .22% |
Supplemental Data |
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|
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|
| |
Net assets, end of period (000 omitted) | $ 2,177,394 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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. |
Annual 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) | 2012 | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
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|
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|
|
Net investment income (loss) D | .13 | .09 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.90 | .32 | 2.23 | 2.34 | .94 |
Total from investment operations | 3.03 | .41 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.15) | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | - |
Total distributions | (.62) | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - |
Net asset value, end of period | $ 17.50 | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 20.63% | 3.90% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
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|
| ||
Expenses before reductions | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of all reductions | .81% A | .89% | .88% | .89% | .86% A |
Net investment income (loss) | 1.59% A | .64% | .61% G | .67% H | .64% A |
Supplemental Data |
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|
|
|
Net assets, end of period (000 omitted) | $ 693,677 | $ 526,009 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 25% A | 27% | 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
| ||
Net asset value, beginning of period | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Income from Investment |
|
|
|
| ||
Net investment income (loss) D | .11 | .06 | .06 G | .06 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.91 | .31 | 2.23 | 2.34 | (.59) | (1.99) |
Total from investment operations | 3.02 | .37 | 2.29 | 2.40 | (.49) | (1.96) |
Distributions from net investment income | (.12) | (.02) | (.11) | (.06) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.59) | (.95) | (.24) | (.06) | (.18) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.48 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 |
Total Return B, C | 20.57% | 3.59% | 17.02% | 21.42% | (4.04)% | (14.10)% |
Ratios to Average Net Assets E, I |
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|
|
| ||
Expenses before reductions | 1.05% A | 1.14% | 1.10% | 1.12% | 1.20% | 1.13% |
Expenses net of fee waivers, if any | 1.05% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Expenses net of all reductions | 1.04% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Net investment income (loss) | 1.37% A | .39% | .39% G | .45% H | 1.06% | .22% |
Supplemental Data |
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|
|
|
| |
Net assets, end of period (000 omitted) | $ 247,852 | $ 138,981 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on March 1, 2013, the Fund's other share classes were closed to new accounts with certain exceptions. 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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
(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. 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 these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 889,453,857 |
Gross unrealized depreciation | (64,221,272) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 825,232,585 |
|
|
Tax cost | $ 2,715,114,596 |
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.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $570,111,322 and $369,664,182, 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
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .78% 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% | $ 212,815 | $ 3,146 |
Class T | .25% | .25% | 158,668 | - |
Class B | .75% | .25% | 33,254 | 24,957 |
Class C | .75% | .25% | 263,375 | 56,848 |
|
|
| $ 668,112 | $ 84,951 |
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 shares, 1.00% for Class C shares, 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 | 25,043 |
Class T | 4,894 |
Class B* | 3,893 |
Class C* | 2,139 |
| $ 35,969 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 238,785 | .28 |
Class T | 81,145 | .26 |
Class B | 9,903 | .30 |
Class C | 78,295 | .30 |
Small Cap Value | 2,162,495 | .23 |
Institutional Class | 198,188 | .23 |
| $ 2,768,811 |
|
* 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 $18,734 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,473 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
Semiannual Report
7. Security Lending - continued
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 $7,675,502. 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 $237,848, including $97,539 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 $183,015 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 $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 785,340 | $ 57,416 |
Class T | 231,402 | - |
Class B | 9,411 | - |
Class C | 90,527 | - |
Small Cap Value | 13,318,853 | 2,736,678 |
Class F | 5,669,081 | 858,633 |
Institutional Class | 1,307,393 | 160,977 |
Total | $ 21,412,007 | $ 3,813,704 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 5,001,900 | $ 8,369,079 |
Class T | 1,871,336 | 3,332,444 |
Class B | 211,601 | 513,839 |
Class C | 1,589,586 | 2,835,863 |
Small Cap Value | 54,759,308 | 109,450,254 |
Class F | 17,097,966 | 18,207,376 |
Institutional Class | 4,663,654 | 6,261,999 |
Total | $ 85,195,351 | $ 148,970,854 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 3,058,797 | 3,582,114 | $ 48,203,768 | $ 51,112,084 |
Reinvestment of distributions | 357,180 | 639,382 | 5,478,627 | 7,957,627 |
Shares redeemed | (1,721,528) | (3,203,028) | (26,814,337) | (45,298,282) |
Net increase (decrease) | 1,694,449 | 1,018,468 | $ 26,868,058 | $ 13,771,429 |
Class T |
|
|
|
|
Shares sold | 995,193 | 1,074,645 | $ 15,726,379 | $ 15,238,625 |
Reinvestment of distributions | 135,952 | 264,657 | 2,060,454 | 3,258,576 |
Shares redeemed | (466,339) | (1,066,289) | (7,147,583) | (14,773,000) |
Net increase (decrease) | 664,806 | 273,013 | $ 10,639,250 | $ 3,724,201 |
Class B |
|
|
|
|
Shares sold | 36,755 | 17,886 | $ 571,256 | $ 244,464 |
Reinvestment of distributions | 12,922 | 36,117 | 189,673 | 433,889 |
Shares redeemed | (77,345) | (156,185) | (1,150,416) | (2,129,294) |
Net increase (decrease) | (27,668) | (102,182) | $ (389,487) | $ (1,450,941) |
Class C |
|
|
|
|
Shares sold | 744,380 | 840,854 | $ 11,242,361 | $ 11,606,643 |
Reinvestment of distributions | 98,556 | 202,948 | 1,448,324 | 2,439,209 |
Shares redeemed | (365,370) | (895,789) | (5,407,978) | (12,102,998) |
Net increase (decrease) | 477,566 | 148,013 | $ 7,282,707 | $ 1,942,854 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Small Cap Value |
|
|
|
|
Shares sold | 19,275,449 | 27,786,966 | $ 309,642,218 | $ 403,227,336 |
Reinvestment of distributions | 4,065,017 | 8,564,707 | 63,037,497 | 107,820,730 |
Shares redeemed | (15,480,758) | (41,177,942) | (245,658,599) | (579,334,071) |
Net increase (decrease) | 7,859,708 | (4,826,269) | $ 127,021,116 | $ (68,286,005) |
Class F |
|
|
|
|
Shares sold | 4,993,295 | 17,383,615 | $ 78,947,712 | $ 249,495,726 |
Reinvestment of distributions | 1,465,154 | 1,506,337 | 22,767,047 | 19,066,009 |
Shares redeemed | (1,687,652) | (1,906,027) | (28,007,441) | (26,618,099) |
Net increase (decrease) | 4,770,797 | 16,983,925 | $ 73,707,318 | $ 241,943,636 |
Institutional Class |
|
|
|
|
Shares sold | 6,136,752 | 4,662,732 | $ 98,547,228 | $ 67,294,175 |
Reinvestment of distributions | 337,968 | 445,761 | 5,246,517 | 5,619,794 |
Shares redeemed | (1,525,598) | (2,373,514) | (24,198,209) | (33,655,059) |
Net increase (decrease) | 4,949,122 | 2,734,979 | $ 79,595,536 | $ 39,258,910 |
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, Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ASCV-USAN-0313 1.803737.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Institutional Class
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
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 1-877-208-0098 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.35% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,203.50 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class T | 1.58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.90 | $ 8.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.24 | $ 8.03 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.90 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Class C | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.30 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Small Cap Value | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.80 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
Class F | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,206.30 | $ 4.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.07 | $ 4.18 |
Institutional Class | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Superior Energy Services, Inc. | 3.1 | 3.0 |
TCF Financial Corp. | 2.9 | 2.7 |
Berry Petroleum Co. Class A | 2.7 | 2.6 |
Hanesbrands, Inc. | 2.5 | 2.6 |
HNI Corp. | 2.5 | 2.7 |
DCT Industrial Trust, Inc. | 2.5 | 2.8 |
WESCO International, Inc. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.4 | 2.4 |
Tech Data Corp. | 2.2 | 1.9 |
Ingram Micro, Inc. Class A | 2.1 | 0.9 |
| 25.3 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 36.2 | 35.8 |
Industrials | 14.6 | 14.1 |
Consumer Discretionary | 13.1 | 14.0 |
Information Technology | 11.7 | 11.0 |
Health Care | 6.0 | 6.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 98.8% |
| ![]() | Stocks 100.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 8.9% |
| ** Foreign investments | 9.8% |
|
† Amount represents less than 0.1%
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 1.7% | |||
Regis Corp. (e) | 3,400,000 | $ 60,350,000 | |
Household Durables - 4.2% | |||
KB Home (d) | 2,400,000 | 45,768,000 | |
Ryland Group, Inc. | 750,000 | 29,790,000 | |
Tempur-Pedic International, Inc. (a)(d) | 1,800,000 | 70,128,000 | |
| 145,686,000 | ||
Media - 1.7% | |||
Valassis Communications, Inc. (d)(e) | 2,102,541 | 58,997,300 | |
Specialty Retail - 2.5% | |||
Asbury Automotive Group, Inc. (a) | 800,000 | 28,448,000 | |
Genesco, Inc. (a) | 632,300 | 39,411,259 | |
Tsutsumi Jewelry Co. Ltd. | 800,000 | 19,657,718 | |
| 87,516,977 | ||
Textiles, Apparel & Luxury Goods - 2.5% | |||
Hanesbrands, Inc. (a) | 2,300,000 | 86,204,000 | |
TOTAL CONSUMER DISCRETIONARY | 438,754,277 | ||
CONSUMER STAPLES - 2.7% | |||
Food Products - 1.8% | |||
Chiquita Brands International, Inc. (a)(e) | 3,375,000 | 24,806,250 | |
Post Holdings, Inc. (a) | 984,700 | 37,408,753 | |
| 62,215,003 | ||
Household Products - 0.9% | |||
Spectrum Brands Holdings, Inc. | 600,000 | 30,384,000 | |
TOTAL CONSUMER STAPLES | 92,599,003 | ||
ENERGY - 5.8% | |||
Energy Equipment & Services - 3.1% | |||
Superior Energy Services, Inc. (a) | 4,250,000 | 106,122,498 | |
Oil, Gas & Consumable Fuels - 2.7% | |||
Berry Petroleum Co. Class A | 2,575,000 | 94,811,500 | |
TOTAL ENERGY | 200,933,998 | ||
FINANCIALS - 36.2% | |||
Capital Markets - 3.8% | |||
Federated Investors, Inc. Class B (non-vtg.) (d) | 882,860 | 20,888,468 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 149,703 | $ 43,808,325 | |
Waddell & Reed Financial, Inc. Class A | 1,700,000 | 67,490,000 | |
| 132,186,793 | ||
Commercial Banks - 11.9% | |||
Associated Banc-Corp. | 4,500,000 | 64,215,000 | |
CapitalSource, Inc. | 8,350,000 | 67,718,500 | |
City National Corp. | 1,044,642 | 55,324,240 | |
First Citizen Bancshares, Inc. | 19,046 | 3,320,861 | |
First Citizen Bancshares, Inc. (f) | 180,954 | 28,396,026 | |
National Penn Bancshares, Inc. | 4,400,000 | 42,900,000 | |
PacWest Bancorp (e) | 1,900,000 | 52,212,000 | |
TCF Financial Corp. | 7,303,000 | 99,758,980 | |
| 413,845,607 | ||
Consumer Finance - 2.6% | |||
Cash America International, Inc. | 377,700 | 18,095,607 | |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,600,000 | 35,520,000 | |
World Acceptance Corp. (a)(d) | 475,000 | 36,836,250 | |
| 90,451,857 | ||
Insurance - 6.7% | |||
Alterra Capital Holdings Ltd. | 1,385,995 | 42,231,268 | |
Aspen Insurance Holdings Ltd. | 2,100,000 | 71,631,000 | |
Platinum Underwriters Holdings Ltd. (e) | 1,694,139 | 82,555,393 | |
ProAssurance Corp. | 808,239 | 36,403,085 | |
| 232,820,746 | ||
Real Estate Investment Trusts - 6.9% | |||
DCT Industrial Trust, Inc. (d) | 11,980,586 | 84,582,937 | |
Franklin Street Properties Corp. (e) | 4,800,000 | 62,400,000 | |
Highwoods Properties, Inc. (SBI) | 1,720,330 | 61,931,880 | |
National Retail Properties, Inc. (d) | 900,000 | 28,818,000 | |
| 237,732,817 | ||
Real Estate Management & Development - 0.9% | |||
Forestar Group, Inc. (a) | 1,606,087 | 30,563,836 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 3.4% | |||
Astoria Financial Corp. (e) | 5,404,051 | $ 52,635,457 | |
Washington Federal, Inc. | 3,715,000 | 65,346,850 | |
| 117,982,307 | ||
TOTAL FINANCIALS | 1,255,583,963 | ||
HEALTH CARE - 6.0% | |||
Health Care Equipment & Supplies - 1.2% | |||
Integra LifeSciences Holdings Corp. (a) | 950,000 | 40,042,500 | |
Health Care Providers & Services - 4.8% | |||
Chemed Corp. | 465,200 | 35,145,860 | |
MEDNAX, Inc. (a) | 779,700 | 66,711,132 | |
Team Health Holdings, Inc. (a) | 1,927,580 | 65,287,135 | |
| 167,144,127 | ||
TOTAL HEALTH CARE | 207,186,627 | ||
INDUSTRIALS - 14.6% | |||
Commercial Services & Supplies - 8.1% | |||
ACCO Brands Corp. | 5,000,000 | 41,650,000 | |
HNI Corp. (e) | 2,700,000 | 85,239,000 | |
Knoll, Inc. | 1,750,000 | 29,015,000 | |
Quad/Graphics, Inc. (d)(e) | 2,675,000 | 58,047,500 | |
United Stationers, Inc. | 1,980,800 | 66,039,872 | |
| 279,991,372 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a)(e) | 7,600,000 | 72,960,000 | |
Machinery - 2.0% | |||
Blount International, Inc. (a)(e) | 2,975,000 | 50,723,750 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,050,000 | 19,866,000 | |
| 70,589,750 | ||
Trading Companies & Distributors - 2.4% | |||
WESCO International, Inc. (a) | 1,153,633 | 84,134,455 | |
TOTAL INDUSTRIALS | 507,675,577 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 2.6% | |||
Polycom, Inc. (a) | 3,600,000 | $ 39,708,000 | |
ViaSat, Inc. (a)(d) | 1,325,000 | 50,893,250 | |
| 90,601,250 | ||
Electronic Equipment & Components - 6.0% | |||
Ingram Micro, Inc. Class A (a) | 4,050,000 | 73,629,000 | |
Macnica, Inc. | 677,400 | 13,237,616 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 17,948,345 | |
SYNNEX Corp. (a) | 790,000 | 28,400,500 | |
Tech Data Corp. (a) | 1,479,500 | 75,321,345 | |
| 208,536,806 | ||
Internet Software & Services - 1.3% | |||
j2 Global, Inc. (d) | 1,350,000 | 42,957,000 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (e) | 720,200 | 14,081,881 | |
Software - 1.4% | |||
Monotype Imaging Holdings, Inc. (e) | 2,671,431 | 48,299,472 | |
TOTAL INFORMATION TECHNOLOGY | 404,476,409 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.7% | |||
PolyOne Corp. | 2,800,000 | 61,152,000 | |
Metals & Mining - 3.0% | |||
Carpenter Technology Corp. | 409,380 | 21,422,855 | |
Haynes International, Inc. | 550,000 | 28,116,000 | |
RTI International Metals, Inc. $$ (a)(e) | 1,880,000 | 53,392,000 | |
| 102,930,855 | ||
TOTAL MATERIALS | 164,082,855 | ||
UTILITIES - 4.0% | |||
Electric Utilities - 2.9% | |||
UIL Holdings Corp. | 1,350,000 | 50,233,500 | |
UNS Energy Corp. | 1,150,000 | 52,083,500 | |
| 102,317,000 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Gas Utilities - 1.1% | |||
Southwest Gas Corp. | 836,756 | $ 37,269,112 | |
TOTAL UTILITIES | 139,586,112 | ||
TOTAL COMMON STOCKS (Cost $2,590,471,098) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Household Durables - 0.5% | |||
M/I Homes, Inc. Series A, 9.75% (a) (Cost $11,958,450) | 750,400 |
| |
Money Market Funds - 3.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 38,138,759 | 38,138,759 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 73,365,025 | 73,365,025 | |
TOTAL MONEY MARKET FUNDS (Cost $111,503,784) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $2,713,933,332) | 3,540,347,181 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (69,372,572) | ||
NET ASSETS - 100% | $ 3,470,974,609 |
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 $28,396,026 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
First Citizen Bancshares, Inc. | 12/21/12 | $ 25,333,560 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,325 |
Fidelity Securities Lending Cash Central Fund | 237,848 |
Total | $ 248,173 |
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, |
Astoria Financial Corp. | $ 51,038,992 | $ - | $ 134,410 | $ 432,324 | $ 52,635,457 |
Blount International, Inc. | 37,039,161 | 4,861,737 | - | - | 50,723,750 |
Chiquita Brands International, Inc. | 17,482,500 | - | - | - | 24,806,250 |
Columbus McKinnon Corp. (NY Shares) | 15,414,197 | 33,512 | - | - | 19,866,000 |
Forestar Group, Inc. | 22,724,438 | - | 7,503,701 | - | - |
Franklin Street Properties Corp. | 32,769,200 | 18,353,991 | - | 679,443 | 62,400,000 |
GrafTech International Ltd. | 62,334,250 | 14,832,304 | - | - | 72,960,000 |
HNI Corp. | 71,739,000 | - | - | 1,296,000 | 85,239,000 |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Miraial Co. Ltd. | $ 10,410,478 | $ - | $ - | $ 294,642 | $ 14,081,881 |
Monotype Imaging Holdings, Inc. | 38,936,219 | 295,917 | - | 212,950 | 48,299,472 |
PacWest Bancorp | 42,557,616 | 917,960 | - | 809,368 | 52,212,000 |
Platinum Underwriters Holdings Ltd. | 64,411,165 | - | - | 271,062 | 82,555,393 |
Quad/Graphics, Inc. | 28,908,484 | 12,835,355 | - | 6,556,250 | 58,047,500 |
Regis Corp. | 52,452,000 | 4,787,419 | - | 390,000 | 60,350,000 |
RTI International Metals, Inc. | 42,206,000 | - | - | - | 53,392,000 |
Ryoyo Electro Corp. | 20,552,790 | - | - | 302,646 | 17,948,345 |
Valassis Communications, Inc. | 35,733,655 | 13,465,583 | - | 651,788 | 58,997,300 |
Western Liberty Bancorp | 2,879,407 | - | 3,071,972 | - | - |
Total | $ 649,589,552 | $ 70,383,778 | $ 10,710,083 | $ 11,896,473 | $ 814,514,348 |
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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2013. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 88,107,038 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $72,724,657) - See accompanying schedule: Unaffiliated issuers (cost $1,949,633,701) | $ 2,614,329,049 |
|
Fidelity Central Funds (cost $111,503,784) | 111,503,784 |
|
Other affiliated issuers (cost $652,795,847) | 814,514,348 |
|
Total Investments (cost $2,713,933,332) |
| $ 3,540,347,181 |
Cash |
| 484,367 |
Receivable for investments sold | 12,199,775 | |
Receivable for fund shares sold | 7,744,111 | |
Dividends receivable | 2,336,477 | |
Distributions receivable from Fidelity Central Funds | 47,059 | |
Prepaid expenses | 6,802 | |
Other receivables | 115,575 | |
Total assets | 3,563,281,347 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,668,778 | |
Payable for fund shares redeemed | 3,390,243 | |
Accrued management fee | 2,161,173 | |
Distribution and service plan fees payable | 125,883 | |
Other affiliated payables | 554,408 | |
Other payables and accrued expenses | 41,228 | |
Collateral on securities loaned, at value | 73,365,025 | |
Total liabilities | 92,306,738 | |
|
|
|
Net Assets | $ 3,470,974,609 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,575,966,501 | |
Undistributed net investment income | 3,202,777 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 65,395,793 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 826,409,538 | |
Net Assets | $ 3,470,974,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.27 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.27) | $ 18.32 | |
Class T: | $ 17.07 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.07) | $ 17.69 | |
Class B: | $ 16.55 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Small Cap Value: | $ 17.47 | |
|
|
|
Class F: | $ 17.50 | |
|
|
|
Institutional Class: | $ 17.48 |
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, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $11,896,473 earned from other affiliated issuers) |
| $ 35,108,998 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 248,173 |
Total income |
| 35,357,210 |
|
|
|
Expenses | ||
Management fee | $ 10,395,105 | |
Performance adjustment | 1,044,295 | |
Transfer agent fees | 2,768,811 | |
Distribution and service plan fees | 668,112 | |
Accounting and security lending fees | 436,044 | |
Custodian fees and expenses | 32,616 | |
Independent trustees' compensation | 9,382 | |
Registration fees | 115,672 | |
Audit | 33,160 | |
Legal | 7,171 | |
Interest | 218 | |
Miscellaneous | 11,233 | |
Total expenses before reductions | 15,521,819 | |
Expense reductions | (183,042) | 15,338,777 |
Net investment income (loss) | 20,018,433 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 81,698,979 | |
Other affiliated issuers | (3,822,586) |
|
Foreign currency transactions | (25,388) | |
Total net realized gain (loss) |
| 77,851,005 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 471,122,048 | |
Assets and liabilities in foreign currencies | (4,934) | |
Total change in net unrealized appreciation (depreciation) |
| 471,117,114 |
Net gain (loss) | 548,968,119 | |
Net increase (decrease) in net assets resulting from operations | $ 568,986,552 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 20,018,433 | $ 9,490,811 |
Net realized gain (loss) | 77,851,005 | 99,657,152 |
Change in net unrealized appreciation (depreciation) | 471,117,114 | (37,724,900) |
Net increase (decrease) in net assets resulting | 568,986,552 | 71,423,063 |
Distributions to shareholders from net investment income | (21,412,007) | (3,813,704) |
Distributions to shareholders from net realized gain | (85,195,351) | (148,970,854) |
Total distributions | (106,607,358) | (152,784,558) |
Share transactions - net increase (decrease) | 324,724,498 | 230,904,084 |
Redemption fees | 178,167 | 569,163 |
Total increase (decrease) in net assets | 787,281,859 | 150,111,752 |
|
|
|
Net Assets | ||
Beginning of period | 2,683,692,750 | 2,533,580,998 |
End of period (including undistributed net investment income of $3,202,777 and undistributed net investment income of $4,596,351, respectively) | $ 3,470,974,609 | $ 2,683,692,750 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .08 | .01 | .01 H | .02 I | .08 | (.01) |
Net realized and unrealized gain (loss) | 2.87 | .30 | 2.22 | 2.33 | (.60) | (1.98) |
Total from investment operations | 2.95 | .31 | 2.23 | 2.35 | (.52) | (1.99) |
Distributions from net investment income | (.07) | (.01) | (.08) | (.03) | (.06) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.54) | (.93) L | (.20) | (.03) | (.17) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.27 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 |
Total Return B, C, D | 20.35% | 3.24% | 16.72% | 21.16% | (4.37)% | (14.35)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.44% | 1.44% | 1.47% | 1.45% | 1.43% |
Expenses net of fee waivers, if any | 1.35% A | 1.44% | 1.43% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.34% A | 1.44% | 1.43% | 1.39% | 1.40% | 1.40% |
Net investment income (loss) | 1.06% A | .09% | .06% H | .17% I | .81% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 203,918 | $ 150,285 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 (.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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .06 | (.02) | (.03) H | (.01) I | .05 | (.04) |
Net realized and unrealized gain (loss) | 2.84 | .31 | 2.20 | �� 2.31 | (.59) | (1.97) |
Total from investment operations | 2.90 | .29 | 2.17 | 2.30 | (.54) | (2.01) |
Distributions from net investment income | (.06) | - | (.05) | (.01) | (.04) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.53) | (.93) | (.17) | (.01) | (.15) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.07 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 |
Total Return B, C, D | 20.19% | 3.08% | 16.36% | 20.87% | (4.57)% | (14.58)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.58% A | 1.67% | 1.70% | 1.72% | 1.70% | 1.68% |
Expenses net of fee waivers, if any | 1.58% A | 1.67% | 1.69% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.57% A | 1.67% | 1.69% | 1.64% | 1.65% | 1.65% |
Net investment income (loss) | .84% A | (.14)% | (.19)% H | (.08)% I | .56% | (.30)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 78,144 | $ 57,514 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.15 | 2.27 | (.59) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.05 | 2.20 | (.58) | (2.06) |
Distributions from net investment income | (.02) | - | (.01) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.49) | (.93) | (.13) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 |
Total Return B, C, D | 19.89% | 2.51% | 15.80% | 20.22% | (5.05)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.20% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.19% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.19% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.69)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,283 | $ 6,675 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.17 | 2.26 | (.58) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.07 | 2.19 | (.57) | (2.06) |
Distributions from net investment income | (.03) | - | (.02) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.50) | (.93) | (.14) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 |
Total Return B, C, D | 19.83% | 2.52% | 15.91% | 20.11% | (4.98)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.18% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.18% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.18% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.68)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,707 | $ 47,265 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .11 | .06 | .06 G | .05 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.89 | .32 | 2.23 | 2.34 | (.60) | (1.99) |
Total from investment operations | 3.00 | .38 | 2.29 | 2.39 | (.50) | (1.96) |
Distributions from net investment income | (.11) | (.02) | (.10) | (.05) | (.08) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.58) | (.95) | (.23) | (.05) | (.19) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 |
Total Return B, C | 20.48% | 3.67% | 17.03% | 21.32% | (4.15)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of fee waivers, if any | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of all reductions | 1.04% A | 1.13% | 1.13% | 1.17% | 1.20% | 1.13% |
Net investment income (loss) | 1.36% A | .41% | .37% G | .39% H | 1.01% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,177,394 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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. |
Annual 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) | 2012 | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .13 | .09 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.90 | .32 | 2.23 | 2.34 | .94 |
Total from investment operations | 3.03 | .41 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.15) | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | - |
Total distributions | (.62) | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - |
Net asset value, end of period | $ 17.50 | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 20.63% | 3.90% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
| ||
Expenses before reductions | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of all reductions | .81% A | .89% | .88% | .89% | .86% A |
Net investment income (loss) | 1.59% A | .64% | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 693,677 | $ 526,009 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 25% A | 27% | 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
| ||
Net asset value, beginning of period | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Income from Investment |
|
|
|
| ||
Net investment income (loss) D | .11 | .06 | .06 G | .06 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.91 | .31 | 2.23 | 2.34 | (.59) | (1.99) |
Total from investment operations | 3.02 | .37 | 2.29 | 2.40 | (.49) | (1.96) |
Distributions from net investment income | (.12) | (.02) | (.11) | (.06) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.59) | (.95) | (.24) | (.06) | (.18) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.48 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 |
Total Return B, C | 20.57% | 3.59% | 17.02% | 21.42% | (4.04)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.14% | 1.10% | 1.12% | 1.20% | 1.13% |
Expenses net of fee waivers, if any | 1.05% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Expenses net of all reductions | 1.04% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Net investment income (loss) | 1.37% A | .39% | .39% G | .45% H | 1.06% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 247,852 | $ 138,981 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on March 1, 2013, the Fund's other share classes were closed to new accounts with certain exceptions. 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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
(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. 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 these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 889,453,857 |
Gross unrealized depreciation | (64,221,272) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 825,232,585 |
|
|
Tax cost | $ 2,715,114,596 |
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.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $570,111,322 and $369,664,182, 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
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .78% 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% | $ 212,815 | $ 3,146 |
Class T | .25% | .25% | 158,668 | - |
Class B | .75% | .25% | 33,254 | 24,957 |
Class C | .75% | .25% | 263,375 | 56,848 |
|
|
| $ 668,112 | $ 84,951 |
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 shares, 1.00% for Class C shares, 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 | 25,043 |
Class T | 4,894 |
Class B* | 3,893 |
Class C* | 2,139 |
| $ 35,969 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 238,785 | .28 |
Class T | 81,145 | .26 |
Class B | 9,903 | .30 |
Class C | 78,295 | .30 |
Small Cap Value | 2,162,495 | .23 |
Institutional Class | 198,188 | .23 |
| $ 2,768,811 |
|
* 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 $18,734 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,473 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
Semiannual Report
7. Security Lending - continued
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 $7,675,502. 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 $237,848, including $97,539 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 $183,015 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 $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 785,340 | $ 57,416 |
Class T | 231,402 | - |
Class B | 9,411 | - |
Class C | 90,527 | - |
Small Cap Value | 13,318,853 | 2,736,678 |
Class F | 5,669,081 | 858,633 |
Institutional Class | 1,307,393 | 160,977 |
Total | $ 21,412,007 | $ 3,813,704 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 5,001,900 | $ 8,369,079 |
Class T | 1,871,336 | 3,332,444 |
Class B | 211,601 | 513,839 |
Class C | 1,589,586 | 2,835,863 |
Small Cap Value | 54,759,308 | 109,450,254 |
Class F | 17,097,966 | 18,207,376 |
Institutional Class | 4,663,654 | 6,261,999 |
Total | $ 85,195,351 | $ 148,970,854 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 3,058,797 | 3,582,114 | $ 48,203,768 | $ 51,112,084 |
Reinvestment of distributions | 357,180 | 639,382 | 5,478,627 | 7,957,627 |
Shares redeemed | (1,721,528) | (3,203,028) | (26,814,337) | (45,298,282) |
Net increase (decrease) | 1,694,449 | 1,018,468 | $ 26,868,058 | $ 13,771,429 |
Class T |
|
|
|
|
Shares sold | 995,193 | 1,074,645 | $ 15,726,379 | $ 15,238,625 |
Reinvestment of distributions | 135,952 | 264,657 | 2,060,454 | 3,258,576 |
Shares redeemed | (466,339) | (1,066,289) | (7,147,583) | (14,773,000) |
Net increase (decrease) | 664,806 | 273,013 | $ 10,639,250 | $ 3,724,201 |
Class B |
|
|
|
|
Shares sold | 36,755 | 17,886 | $ 571,256 | $ 244,464 |
Reinvestment of distributions | 12,922 | 36,117 | 189,673 | 433,889 |
Shares redeemed | (77,345) | (156,185) | (1,150,416) | (2,129,294) |
Net increase (decrease) | (27,668) | (102,182) | $ (389,487) | $ (1,450,941) |
Class C |
|
|
|
|
Shares sold | 744,380 | 840,854 | $ 11,242,361 | $ 11,606,643 |
Reinvestment of distributions | 98,556 | 202,948 | 1,448,324 | 2,439,209 |
Shares redeemed | (365,370) | (895,789) | (5,407,978) | (12,102,998) |
Net increase (decrease) | 477,566 | 148,013 | $ 7,282,707 | $ 1,942,854 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Small Cap Value |
|
|
|
|
Shares sold | 19,275,449 | 27,786,966 | $ 309,642,218 | $ 403,227,336 |
Reinvestment of distributions | 4,065,017 | 8,564,707 | 63,037,497 | 107,820,730 |
Shares redeemed | (15,480,758) | (41,177,942) | (245,658,599) | (579,334,071) |
Net increase (decrease) | 7,859,708 | (4,826,269) | $ 127,021,116 | $ (68,286,005) |
Class F |
|
|
|
|
Shares sold | 4,993,295 | 17,383,615 | $ 78,947,712 | $ 249,495,726 |
Reinvestment of distributions | 1,465,154 | 1,506,337 | 22,767,047 | 19,066,009 |
Shares redeemed | (1,687,652) | (1,906,027) | (28,007,441) | (26,618,099) |
Net increase (decrease) | 4,770,797 | 16,983,925 | $ 73,707,318 | $ 241,943,636 |
Institutional Class |
|
|
|
|
Shares sold | 6,136,752 | 4,662,732 | $ 98,547,228 | $ 67,294,175 |
Reinvestment of distributions | 337,968 | 445,761 | 5,246,517 | 5,619,794 |
Shares redeemed | (1,525,598) | (2,373,514) | (24,198,209) | (33,655,059) |
Net increase (decrease) | 4,949,122 | 2,734,979 | $ 79,595,536 | $ 39,258,910 |
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, Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ASCVI-USAN-0313 1.803748.109
Fidelity®
Small Cap Value
Fund
Class F
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.35% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,203.50 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class T | 1.58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.90 | $ 8.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.24 | $ 8.03 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.90 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Class C | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.30 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Small Cap Value | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.80 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
Class F | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,206.30 | $ 4.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.07 | $ 4.18 |
Institutional Class | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Superior Energy Services, Inc. | 3.1 | 3.0 |
TCF Financial Corp. | 2.9 | 2.7 |
Berry Petroleum Co. Class A | 2.7 | 2.6 |
Hanesbrands, Inc. | 2.5 | 2.6 |
HNI Corp. | 2.5 | 2.7 |
DCT Industrial Trust, Inc. | 2.5 | 2.8 |
WESCO International, Inc. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.4 | 2.4 |
Tech Data Corp. | 2.2 | 1.9 |
Ingram Micro, Inc. Class A | 2.1 | 0.9 |
| 25.3 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 36.2 | 35.8 |
Industrials | 14.6 | 14.1 |
Consumer Discretionary | 13.1 | 14.0 |
Information Technology | 11.7 | 11.0 |
Health Care | 6.0 | 6.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 98.8% |
| ![]() | Stocks 100.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 8.9% |
| ** Foreign investments | 9.8% |
|
† Amount represents less than 0.1%
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 1.7% | |||
Regis Corp. (e) | 3,400,000 | $ 60,350,000 | |
Household Durables - 4.2% | |||
KB Home (d) | 2,400,000 | 45,768,000 | |
Ryland Group, Inc. | 750,000 | 29,790,000 | |
Tempur-Pedic International, Inc. (a)(d) | 1,800,000 | 70,128,000 | |
| 145,686,000 | ||
Media - 1.7% | |||
Valassis Communications, Inc. (d)(e) | 2,102,541 | 58,997,300 | |
Specialty Retail - 2.5% | |||
Asbury Automotive Group, Inc. (a) | 800,000 | 28,448,000 | |
Genesco, Inc. (a) | 632,300 | 39,411,259 | |
Tsutsumi Jewelry Co. Ltd. | 800,000 | 19,657,718 | |
| 87,516,977 | ||
Textiles, Apparel & Luxury Goods - 2.5% | |||
Hanesbrands, Inc. (a) | 2,300,000 | 86,204,000 | |
TOTAL CONSUMER DISCRETIONARY | 438,754,277 | ||
CONSUMER STAPLES - 2.7% | |||
Food Products - 1.8% | |||
Chiquita Brands International, Inc. (a)(e) | 3,375,000 | 24,806,250 | |
Post Holdings, Inc. (a) | 984,700 | 37,408,753 | |
| 62,215,003 | ||
Household Products - 0.9% | |||
Spectrum Brands Holdings, Inc. | 600,000 | 30,384,000 | |
TOTAL CONSUMER STAPLES | 92,599,003 | ||
ENERGY - 5.8% | |||
Energy Equipment & Services - 3.1% | |||
Superior Energy Services, Inc. (a) | 4,250,000 | 106,122,498 | |
Oil, Gas & Consumable Fuels - 2.7% | |||
Berry Petroleum Co. Class A | 2,575,000 | 94,811,500 | |
TOTAL ENERGY | 200,933,998 | ||
FINANCIALS - 36.2% | |||
Capital Markets - 3.8% | |||
Federated Investors, Inc. Class B (non-vtg.) (d) | 882,860 | 20,888,468 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 149,703 | $ 43,808,325 | |
Waddell & Reed Financial, Inc. Class A | 1,700,000 | 67,490,000 | |
| 132,186,793 | ||
Commercial Banks - 11.9% | |||
Associated Banc-Corp. | 4,500,000 | 64,215,000 | |
CapitalSource, Inc. | 8,350,000 | 67,718,500 | |
City National Corp. | 1,044,642 | 55,324,240 | |
First Citizen Bancshares, Inc. | 19,046 | 3,320,861 | |
First Citizen Bancshares, Inc. (f) | 180,954 | 28,396,026 | |
National Penn Bancshares, Inc. | 4,400,000 | 42,900,000 | |
PacWest Bancorp (e) | 1,900,000 | 52,212,000 | |
TCF Financial Corp. | 7,303,000 | 99,758,980 | |
| 413,845,607 | ||
Consumer Finance - 2.6% | |||
Cash America International, Inc. | 377,700 | 18,095,607 | |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,600,000 | 35,520,000 | |
World Acceptance Corp. (a)(d) | 475,000 | 36,836,250 | |
| 90,451,857 | ||
Insurance - 6.7% | |||
Alterra Capital Holdings Ltd. | 1,385,995 | 42,231,268 | |
Aspen Insurance Holdings Ltd. | 2,100,000 | 71,631,000 | |
Platinum Underwriters Holdings Ltd. (e) | 1,694,139 | 82,555,393 | |
ProAssurance Corp. | 808,239 | 36,403,085 | |
| 232,820,746 | ||
Real Estate Investment Trusts - 6.9% | |||
DCT Industrial Trust, Inc. (d) | 11,980,586 | 84,582,937 | |
Franklin Street Properties Corp. (e) | 4,800,000 | 62,400,000 | |
Highwoods Properties, Inc. (SBI) | 1,720,330 | 61,931,880 | |
National Retail Properties, Inc. (d) | 900,000 | 28,818,000 | |
| 237,732,817 | ||
Real Estate Management & Development - 0.9% | |||
Forestar Group, Inc. (a) | 1,606,087 | 30,563,836 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 3.4% | |||
Astoria Financial Corp. (e) | 5,404,051 | $ 52,635,457 | |
Washington Federal, Inc. | 3,715,000 | 65,346,850 | |
| 117,982,307 | ||
TOTAL FINANCIALS | 1,255,583,963 | ||
HEALTH CARE - 6.0% | |||
Health Care Equipment & Supplies - 1.2% | |||
Integra LifeSciences Holdings Corp. (a) | 950,000 | 40,042,500 | |
Health Care Providers & Services - 4.8% | |||
Chemed Corp. | 465,200 | 35,145,860 | |
MEDNAX, Inc. (a) | 779,700 | 66,711,132 | |
Team Health Holdings, Inc. (a) | 1,927,580 | 65,287,135 | |
| 167,144,127 | ||
TOTAL HEALTH CARE | 207,186,627 | ||
INDUSTRIALS - 14.6% | |||
Commercial Services & Supplies - 8.1% | |||
ACCO Brands Corp. | 5,000,000 | 41,650,000 | |
HNI Corp. (e) | 2,700,000 | 85,239,000 | |
Knoll, Inc. | 1,750,000 | 29,015,000 | |
Quad/Graphics, Inc. (d)(e) | 2,675,000 | 58,047,500 | |
United Stationers, Inc. | 1,980,800 | 66,039,872 | |
| 279,991,372 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a)(e) | 7,600,000 | 72,960,000 | |
Machinery - 2.0% | |||
Blount International, Inc. (a)(e) | 2,975,000 | 50,723,750 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,050,000 | 19,866,000 | |
| 70,589,750 | ||
Trading Companies & Distributors - 2.4% | |||
WESCO International, Inc. (a) | 1,153,633 | 84,134,455 | |
TOTAL INDUSTRIALS | 507,675,577 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 2.6% | |||
Polycom, Inc. (a) | 3,600,000 | $ 39,708,000 | |
ViaSat, Inc. (a)(d) | 1,325,000 | 50,893,250 | |
| 90,601,250 | ||
Electronic Equipment & Components - 6.0% | |||
Ingram Micro, Inc. Class A (a) | 4,050,000 | 73,629,000 | |
Macnica, Inc. | 677,400 | 13,237,616 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 17,948,345 | |
SYNNEX Corp. (a) | 790,000 | 28,400,500 | |
Tech Data Corp. (a) | 1,479,500 | 75,321,345 | |
| 208,536,806 | ||
Internet Software & Services - 1.3% | |||
j2 Global, Inc. (d) | 1,350,000 | 42,957,000 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (e) | 720,200 | 14,081,881 | |
Software - 1.4% | |||
Monotype Imaging Holdings, Inc. (e) | 2,671,431 | 48,299,472 | |
TOTAL INFORMATION TECHNOLOGY | 404,476,409 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.7% | |||
PolyOne Corp. | 2,800,000 | 61,152,000 | |
Metals & Mining - 3.0% | |||
Carpenter Technology Corp. | 409,380 | 21,422,855 | |
Haynes International, Inc. | 550,000 | 28,116,000 | |
RTI International Metals, Inc. $$ (a)(e) | 1,880,000 | 53,392,000 | |
| 102,930,855 | ||
TOTAL MATERIALS | 164,082,855 | ||
UTILITIES - 4.0% | |||
Electric Utilities - 2.9% | |||
UIL Holdings Corp. | 1,350,000 | 50,233,500 | |
UNS Energy Corp. | 1,150,000 | 52,083,500 | |
| 102,317,000 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Gas Utilities - 1.1% | |||
Southwest Gas Corp. | 836,756 | $ 37,269,112 | |
TOTAL UTILITIES | 139,586,112 | ||
TOTAL COMMON STOCKS (Cost $2,590,471,098) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Household Durables - 0.5% | |||
M/I Homes, Inc. Series A, 9.75% (a) (Cost $11,958,450) | 750,400 |
| |
Money Market Funds - 3.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 38,138,759 | 38,138,759 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 73,365,025 | 73,365,025 | |
TOTAL MONEY MARKET FUNDS (Cost $111,503,784) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $2,713,933,332) | 3,540,347,181 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (69,372,572) | ||
NET ASSETS - 100% | $ 3,470,974,609 |
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 $28,396,026 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
First Citizen Bancshares, Inc. | 12/21/12 | $ 25,333,560 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,325 |
Fidelity Securities Lending Cash Central Fund | 237,848 |
Total | $ 248,173 |
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, |
Astoria Financial Corp. | $ 51,038,992 | $ - | $ 134,410 | $ 432,324 | $ 52,635,457 |
Blount International, Inc. | 37,039,161 | 4,861,737 | - | - | 50,723,750 |
Chiquita Brands International, Inc. | 17,482,500 | - | - | - | 24,806,250 |
Columbus McKinnon Corp. (NY Shares) | 15,414,197 | 33,512 | - | - | 19,866,000 |
Forestar Group, Inc. | 22,724,438 | - | 7,503,701 | - | - |
Franklin Street Properties Corp. | 32,769,200 | 18,353,991 | - | 679,443 | 62,400,000 |
GrafTech International Ltd. | 62,334,250 | 14,832,304 | - | - | 72,960,000 |
HNI Corp. | 71,739,000 | - | - | 1,296,000 | 85,239,000 |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Miraial Co. Ltd. | $ 10,410,478 | $ - | $ - | $ 294,642 | $ 14,081,881 |
Monotype Imaging Holdings, Inc. | 38,936,219 | 295,917 | - | 212,950 | 48,299,472 |
PacWest Bancorp | 42,557,616 | 917,960 | - | 809,368 | 52,212,000 |
Platinum Underwriters Holdings Ltd. | 64,411,165 | - | - | 271,062 | 82,555,393 |
Quad/Graphics, Inc. | 28,908,484 | 12,835,355 | - | 6,556,250 | 58,047,500 |
Regis Corp. | 52,452,000 | 4,787,419 | - | 390,000 | 60,350,000 |
RTI International Metals, Inc. | 42,206,000 | - | - | - | 53,392,000 |
Ryoyo Electro Corp. | 20,552,790 | - | - | 302,646 | 17,948,345 |
Valassis Communications, Inc. | 35,733,655 | 13,465,583 | - | 651,788 | 58,997,300 |
Western Liberty Bancorp | 2,879,407 | - | 3,071,972 | - | - |
Total | $ 649,589,552 | $ 70,383,778 | $ 10,710,083 | $ 11,896,473 | $ 814,514,348 |
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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2013. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 88,107,038 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $72,724,657) - See accompanying schedule: Unaffiliated issuers (cost $1,949,633,701) | $ 2,614,329,049 |
|
Fidelity Central Funds (cost $111,503,784) | 111,503,784 |
|
Other affiliated issuers (cost $652,795,847) | 814,514,348 |
|
Total Investments (cost $2,713,933,332) |
| $ 3,540,347,181 |
Cash |
| 484,367 |
Receivable for investments sold | 12,199,775 | |
Receivable for fund shares sold | 7,744,111 | |
Dividends receivable | 2,336,477 | |
Distributions receivable from Fidelity Central Funds | 47,059 | |
Prepaid expenses | 6,802 | |
Other receivables | 115,575 | |
Total assets | 3,563,281,347 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,668,778 | |
Payable for fund shares redeemed | 3,390,243 | |
Accrued management fee | 2,161,173 | |
Distribution and service plan fees payable | 125,883 | |
Other affiliated payables | 554,408 | |
Other payables and accrued expenses | 41,228 | |
Collateral on securities loaned, at value | 73,365,025 | |
Total liabilities | 92,306,738 | |
|
|
|
Net Assets | $ 3,470,974,609 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,575,966,501 | |
Undistributed net investment income | 3,202,777 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 65,395,793 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 826,409,538 | |
Net Assets | $ 3,470,974,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.27 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.27) | $ 18.32 | |
Class T: | $ 17.07 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.07) | $ 17.69 | |
Class B: | $ 16.55 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Small Cap Value: | $ 17.47 | |
|
|
|
Class F: | $ 17.50 | |
|
|
|
Institutional Class: | $ 17.48 |
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, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $11,896,473 earned from other affiliated issuers) |
| $ 35,108,998 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 248,173 |
Total income |
| 35,357,210 |
|
|
|
Expenses | ||
Management fee | $ 10,395,105 | |
Performance adjustment | 1,044,295 | |
Transfer agent fees | 2,768,811 | |
Distribution and service plan fees | 668,112 | |
Accounting and security lending fees | 436,044 | |
Custodian fees and expenses | 32,616 | |
Independent trustees' compensation | 9,382 | |
Registration fees | 115,672 | |
Audit | 33,160 | |
Legal | 7,171 | |
Interest | 218 | |
Miscellaneous | 11,233 | |
Total expenses before reductions | 15,521,819 | |
Expense reductions | (183,042) | 15,338,777 |
Net investment income (loss) | 20,018,433 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 81,698,979 | |
Other affiliated issuers | (3,822,586) |
|
Foreign currency transactions | (25,388) | |
Total net realized gain (loss) |
| 77,851,005 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 471,122,048 | |
Assets and liabilities in foreign currencies | (4,934) | |
Total change in net unrealized appreciation (depreciation) |
| 471,117,114 |
Net gain (loss) | 548,968,119 | |
Net increase (decrease) in net assets resulting from operations | $ 568,986,552 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 20,018,433 | $ 9,490,811 |
Net realized gain (loss) | 77,851,005 | 99,657,152 |
Change in net unrealized appreciation (depreciation) | 471,117,114 | (37,724,900) |
Net increase (decrease) in net assets resulting | 568,986,552 | 71,423,063 |
Distributions to shareholders from net investment income | (21,412,007) | (3,813,704) |
Distributions to shareholders from net realized gain | (85,195,351) | (148,970,854) |
Total distributions | (106,607,358) | (152,784,558) |
Share transactions - net increase (decrease) | 324,724,498 | 230,904,084 |
Redemption fees | 178,167 | 569,163 |
Total increase (decrease) in net assets | 787,281,859 | 150,111,752 |
|
|
|
Net Assets | ||
Beginning of period | 2,683,692,750 | 2,533,580,998 |
End of period (including undistributed net investment income of $3,202,777 and undistributed net investment income of $4,596,351, respectively) | $ 3,470,974,609 | $ 2,683,692,750 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .08 | .01 | .01 H | .02 I | .08 | (.01) |
Net realized and unrealized gain (loss) | 2.87 | .30 | 2.22 | 2.33 | (.60) | (1.98) |
Total from investment operations | 2.95 | .31 | 2.23 | 2.35 | (.52) | (1.99) |
Distributions from net investment income | (.07) | (.01) | (.08) | (.03) | (.06) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.54) | (.93) L | (.20) | (.03) | (.17) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.27 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 |
Total Return B, C, D | 20.35% | 3.24% | 16.72% | 21.16% | (4.37)% | (14.35)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.44% | 1.44% | 1.47% | 1.45% | 1.43% |
Expenses net of fee waivers, if any | 1.35% A | 1.44% | 1.43% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.34% A | 1.44% | 1.43% | 1.39% | 1.40% | 1.40% |
Net investment income (loss) | 1.06% A | .09% | .06% H | .17% I | .81% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 203,918 | $ 150,285 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 (.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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .06 | (.02) | (.03) H | (.01) I | .05 | (.04) |
Net realized and unrealized gain (loss) | 2.84 | .31 | 2.20 | 2.31 | (.59) | (1.97) |
Total from investment operations | 2.90 | .29 | 2.17 | 2.30 | (.54) | (2.01) |
Distributions from net investment income | (.06) | - | (.05) | (.01) | (.04) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.53) | (.93) | (.17) | (.01) | (.15) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.07 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 |
Total Return B, C, D | 20.19% | 3.08% | 16.36% | 20.87% | (4.57)% | (14.58)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.58% A | 1.67% | 1.70% | 1.72% | 1.70% | 1.68% |
Expenses net of fee waivers, if any | 1.58% A | 1.67% | 1.69% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.57% A | 1.67% | 1.69% | 1.64% | 1.65% | 1.65% |
Net investment income (loss) | .84% A | (.14)% | (.19)% H | (.08)% I | .56% | (.30)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 78,144 | $ 57,514 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.15 | 2.27 | (.59) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.05 | 2.20 | (.58) | (2.06) |
Distributions from net investment income | (.02) | - | (.01) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.49) | (.93) | (.13) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 |
Total Return B, C, D | 19.89% | 2.51% | 15.80% | 20.22% | (5.05)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.20% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.19% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.19% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.69)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,283 | $ 6,675 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.17 | 2.26 | (.58) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.07 | 2.19 | (.57) | (2.06) |
Distributions from net investment income | (.03) | - | (.02) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.50) | (.93) | (.14) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 |
Total Return B, C, D | 19.83% | 2.52% | 15.91% | 20.11% | (4.98)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.18% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.18% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.18% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.68)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,707 | $ 47,265 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .11 | .06 | .06 G | .05 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.89 | .32 | 2.23 | 2.34 | (.60) | (1.99) |
Total from investment operations | 3.00 | .38 | 2.29 | 2.39 | (.50) | (1.96) |
Distributions from net investment income | (.11) | (.02) | (.10) | (.05) | (.08) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.58) | (.95) | (.23) | (.05) | (.19) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 |
Total Return B, C | 20.48% | 3.67% | 17.03% | 21.32% | (4.15)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of fee waivers, if any | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of all reductions | 1.04% A | 1.13% | 1.13% | 1.17% | 1.20% | 1.13% |
Net investment income (loss) | 1.36% A | .41% | .37% G | .39% H | 1.01% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,177,394 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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. |
Annual 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) | 2012 | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .13 | .09 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.90 | .32 | 2.23 | 2.34 | .94 |
Total from investment operations | 3.03 | .41 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.15) | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | - |
Total distributions | (.62) | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - |
Net asset value, end of period | $ 17.50 | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 20.63% | 3.90% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
| ||
Expenses before reductions | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of all reductions | .81% A | .89% | .88% | .89% | .86% A |
Net investment income (loss) | 1.59% A | .64% | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 693,677 | $ 526,009 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 25% A | 27% | 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
| ||
Net asset value, beginning of period | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Income from Investment |
|
|
|
| ||
Net investment income (loss) D | .11 | .06 | .06 G | .06 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.91 | .31 | 2.23 | 2.34 | (.59) | (1.99) |
Total from investment operations | 3.02 | .37 | 2.29 | 2.40 | (.49) | (1.96) |
Distributions from net investment income | (.12) | (.02) | (.11) | (.06) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.59) | (.95) | (.24) | (.06) | (.18) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.48 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 |
Total Return B, C | 20.57% | 3.59% | 17.02% | 21.42% | (4.04)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.14% | 1.10% | 1.12% | 1.20% | 1.13% |
Expenses net of fee waivers, if any | 1.05% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Expenses net of all reductions | 1.04% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Net investment income (loss) | 1.37% A | .39% | .39% G | .45% H | 1.06% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 247,852 | $ 138,981 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on March 1, 2013, the Fund's other share classes were closed to new accounts with certain exceptions. 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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
(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. 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 these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 889,453,857 |
Gross unrealized depreciation | (64,221,272) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 825,232,585 |
|
|
Tax cost | $ 2,715,114,596 |
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.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $570,111,322 and $369,664,182, 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
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .78% 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% | $ 212,815 | $ 3,146 |
Class T | .25% | .25% | 158,668 | - |
Class B | .75% | .25% | 33,254 | 24,957 |
Class C | .75% | .25% | 263,375 | 56,848 |
|
|
| $ 668,112 | $ 84,951 |
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 shares, 1.00% for Class C shares, 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 | 25,043 |
Class T | 4,894 |
Class B* | 3,893 |
Class C* | 2,139 |
| $ 35,969 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 238,785 | .28 |
Class T | 81,145 | .26 |
Class B | 9,903 | .30 |
Class C | 78,295 | .30 |
Small Cap Value | 2,162,495 | .23 |
Institutional Class | 198,188 | .23 |
| $ 2,768,811 |
|
* 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 $18,734 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,473 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
Semiannual Report
7. Security Lending - continued
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 $7,675,502. 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 $237,848, including $97,539 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 $183,015 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 $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 785,340 | $ 57,416 |
Class T | 231,402 | - |
Class B | 9,411 | - |
Class C | 90,527 | - |
Small Cap Value | 13,318,853 | 2,736,678 |
Class F | 5,669,081 | 858,633 |
Institutional Class | 1,307,393 | 160,977 |
Total | $ 21,412,007 | $ 3,813,704 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 5,001,900 | $ 8,369,079 |
Class T | 1,871,336 | 3,332,444 |
Class B | 211,601 | 513,839 |
Class C | 1,589,586 | 2,835,863 |
Small Cap Value | 54,759,308 | 109,450,254 |
Class F | 17,097,966 | 18,207,376 |
Institutional Class | 4,663,654 | 6,261,999 |
Total | $ 85,195,351 | $ 148,970,854 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 3,058,797 | 3,582,114 | $ 48,203,768 | $ 51,112,084 |
Reinvestment of distributions | 357,180 | 639,382 | 5,478,627 | 7,957,627 |
Shares redeemed | (1,721,528) | (3,203,028) | (26,814,337) | (45,298,282) |
Net increase (decrease) | 1,694,449 | 1,018,468 | $ 26,868,058 | $ 13,771,429 |
Class T |
|
|
|
|
Shares sold | 995,193 | 1,074,645 | $ 15,726,379 | $ 15,238,625 |
Reinvestment of distributions | 135,952 | 264,657 | 2,060,454 | 3,258,576 |
Shares redeemed | (466,339) | (1,066,289) | (7,147,583) | (14,773,000) |
Net increase (decrease) | 664,806 | 273,013 | $ 10,639,250 | $ 3,724,201 |
Class B |
|
|
|
|
Shares sold | 36,755 | 17,886 | $ 571,256 | $ 244,464 |
Reinvestment of distributions | 12,922 | 36,117 | 189,673 | 433,889 |
Shares redeemed | (77,345) | (156,185) | (1,150,416) | (2,129,294) |
Net increase (decrease) | (27,668) | (102,182) | $ (389,487) | $ (1,450,941) |
Class C |
|
|
|
|
Shares sold | 744,380 | 840,854 | $ 11,242,361 | $ 11,606,643 |
Reinvestment of distributions | 98,556 | 202,948 | 1,448,324 | 2,439,209 |
Shares redeemed | (365,370) | (895,789) | (5,407,978) | (12,102,998) |
Net increase (decrease) | 477,566 | 148,013 | $ 7,282,707 | $ 1,942,854 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Small Cap Value |
|
|
|
|
Shares sold | 19,275,449 | 27,786,966 | $ 309,642,218 | $ 403,227,336 |
Reinvestment of distributions | 4,065,017 | 8,564,707 | 63,037,497 | 107,820,730 |
Shares redeemed | (15,480,758) | (41,177,942) | (245,658,599) | (579,334,071) |
Net increase (decrease) | 7,859,708 | (4,826,269) | $ 127,021,116 | $ (68,286,005) |
Class F |
|
|
|
|
Shares sold | 4,993,295 | 17,383,615 | $ 78,947,712 | $ 249,495,726 |
Reinvestment of distributions | 1,465,154 | 1,506,337 | 22,767,047 | 19,066,009 |
Shares redeemed | (1,687,652) | (1,906,027) | (28,007,441) | (26,618,099) |
Net increase (decrease) | 4,770,797 | 16,983,925 | $ 73,707,318 | $ 241,943,636 |
Institutional Class |
|
|
|
|
Shares sold | 6,136,752 | 4,662,732 | $ 98,547,228 | $ 67,294,175 |
Reinvestment of distributions | 337,968 | 445,761 | 5,246,517 | 5,619,794 |
Shares redeemed | (1,525,598) | (2,373,514) | (24,198,209) | (33,655,059) |
Net increase (decrease) | 4,949,122 | 2,734,979 | $ 79,595,536 | $ 39,258,910 |
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, Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SCV-F-SANN-0313 1.891899.103
Fidelity®
Small Cap Value
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.35% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,203.50 | $ 7.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.87 |
Class T | 1.58% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.90 | $ 8.77 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.24 | $ 8.03 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.90 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Class C | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,198.30 | $ 11.75 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.52 | $ 10.76 |
Small Cap Value | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.80 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
Class F | .82% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,206.30 | $ 4.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.07 | $ 4.18 |
Institutional Class | 1.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.70 | $ 5.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.91 | $ 5.35 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Superior Energy Services, Inc. | 3.1 | 3.0 |
TCF Financial Corp. | 2.9 | 2.7 |
Berry Petroleum Co. Class A | 2.7 | 2.6 |
Hanesbrands, Inc. | 2.5 | 2.6 |
HNI Corp. | 2.5 | 2.7 |
DCT Industrial Trust, Inc. | 2.5 | 2.8 |
WESCO International, Inc. | 2.4 | 2.4 |
Platinum Underwriters Holdings Ltd. | 2.4 | 2.4 |
Tech Data Corp. | 2.2 | 1.9 |
Ingram Micro, Inc. Class A | 2.1 | 0.9 |
| 25.3 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 36.2 | 35.8 |
Industrials | 14.6 | 14.1 |
Consumer Discretionary | 13.1 | 14.0 |
Information Technology | 11.7 | 11.0 |
Health Care | 6.0 | 6.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 98.8% |
| ![]() | Stocks 100.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 8.9% |
| ** Foreign investments | 9.8% |
|
† Amount represents less than 0.1%
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Diversified Consumer Services - 1.7% | |||
Regis Corp. (e) | 3,400,000 | $ 60,350,000 | |
Household Durables - 4.2% | |||
KB Home (d) | 2,400,000 | 45,768,000 | |
Ryland Group, Inc. | 750,000 | 29,790,000 | |
Tempur-Pedic International, Inc. (a)(d) | 1,800,000 | 70,128,000 | |
| 145,686,000 | ||
Media - 1.7% | |||
Valassis Communications, Inc. (d)(e) | 2,102,541 | 58,997,300 | |
Specialty Retail - 2.5% | |||
Asbury Automotive Group, Inc. (a) | 800,000 | 28,448,000 | |
Genesco, Inc. (a) | 632,300 | 39,411,259 | |
Tsutsumi Jewelry Co. Ltd. | 800,000 | 19,657,718 | |
| 87,516,977 | ||
Textiles, Apparel & Luxury Goods - 2.5% | |||
Hanesbrands, Inc. (a) | 2,300,000 | 86,204,000 | |
TOTAL CONSUMER DISCRETIONARY | 438,754,277 | ||
CONSUMER STAPLES - 2.7% | |||
Food Products - 1.8% | |||
Chiquita Brands International, Inc. (a)(e) | 3,375,000 | 24,806,250 | |
Post Holdings, Inc. (a) | 984,700 | 37,408,753 | |
| 62,215,003 | ||
Household Products - 0.9% | |||
Spectrum Brands Holdings, Inc. | 600,000 | 30,384,000 | |
TOTAL CONSUMER STAPLES | 92,599,003 | ||
ENERGY - 5.8% | |||
Energy Equipment & Services - 3.1% | |||
Superior Energy Services, Inc. (a) | 4,250,000 | 106,122,498 | |
Oil, Gas & Consumable Fuels - 2.7% | |||
Berry Petroleum Co. Class A | 2,575,000 | 94,811,500 | |
TOTAL ENERGY | 200,933,998 | ||
FINANCIALS - 36.2% | |||
Capital Markets - 3.8% | |||
Federated Investors, Inc. Class B (non-vtg.) (d) | 882,860 | 20,888,468 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Monex Group, Inc. | 149,703 | $ 43,808,325 | |
Waddell & Reed Financial, Inc. Class A | 1,700,000 | 67,490,000 | |
| 132,186,793 | ||
Commercial Banks - 11.9% | |||
Associated Banc-Corp. | 4,500,000 | 64,215,000 | |
CapitalSource, Inc. | 8,350,000 | 67,718,500 | |
City National Corp. | 1,044,642 | 55,324,240 | |
First Citizen Bancshares, Inc. | 19,046 | 3,320,861 | |
First Citizen Bancshares, Inc. (f) | 180,954 | 28,396,026 | |
National Penn Bancshares, Inc. | 4,400,000 | 42,900,000 | |
PacWest Bancorp (e) | 1,900,000 | 52,212,000 | |
TCF Financial Corp. | 7,303,000 | 99,758,980 | |
| 413,845,607 | ||
Consumer Finance - 2.6% | |||
Cash America International, Inc. | 377,700 | 18,095,607 | |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,600,000 | 35,520,000 | |
World Acceptance Corp. (a)(d) | 475,000 | 36,836,250 | |
| 90,451,857 | ||
Insurance - 6.7% | |||
Alterra Capital Holdings Ltd. | 1,385,995 | 42,231,268 | |
Aspen Insurance Holdings Ltd. | 2,100,000 | 71,631,000 | |
Platinum Underwriters Holdings Ltd. (e) | 1,694,139 | 82,555,393 | |
ProAssurance Corp. | 808,239 | 36,403,085 | |
| 232,820,746 | ||
Real Estate Investment Trusts - 6.9% | |||
DCT Industrial Trust, Inc. (d) | 11,980,586 | 84,582,937 | |
Franklin Street Properties Corp. (e) | 4,800,000 | 62,400,000 | |
Highwoods Properties, Inc. (SBI) | 1,720,330 | 61,931,880 | |
National Retail Properties, Inc. (d) | 900,000 | 28,818,000 | |
| 237,732,817 | ||
Real Estate Management & Development - 0.9% | |||
Forestar Group, Inc. (a) | 1,606,087 | 30,563,836 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 3.4% | |||
Astoria Financial Corp. (e) | 5,404,051 | $ 52,635,457 | |
Washington Federal, Inc. | 3,715,000 | 65,346,850 | |
| 117,982,307 | ||
TOTAL FINANCIALS | 1,255,583,963 | ||
HEALTH CARE - 6.0% | |||
Health Care Equipment & Supplies - 1.2% | |||
Integra LifeSciences Holdings Corp. (a) | 950,000 | 40,042,500 | |
Health Care Providers & Services - 4.8% | |||
Chemed Corp. | 465,200 | 35,145,860 | |
MEDNAX, Inc. (a) | 779,700 | 66,711,132 | |
Team Health Holdings, Inc. (a) | 1,927,580 | 65,287,135 | |
| 167,144,127 | ||
TOTAL HEALTH CARE | 207,186,627 | ||
INDUSTRIALS - 14.6% | |||
Commercial Services & Supplies - 8.1% | |||
ACCO Brands Corp. | 5,000,000 | 41,650,000 | |
HNI Corp. (e) | 2,700,000 | 85,239,000 | |
Knoll, Inc. | 1,750,000 | 29,015,000 | |
Quad/Graphics, Inc. (d)(e) | 2,675,000 | 58,047,500 | |
United Stationers, Inc. | 1,980,800 | 66,039,872 | |
| 279,991,372 | ||
Electrical Equipment - 2.1% | |||
GrafTech International Ltd. (a)(e) | 7,600,000 | 72,960,000 | |
Machinery - 2.0% | |||
Blount International, Inc. (a)(e) | 2,975,000 | 50,723,750 | |
Columbus McKinnon Corp. (NY Shares) (a)(e) | 1,050,000 | 19,866,000 | |
| 70,589,750 | ||
Trading Companies & Distributors - 2.4% | |||
WESCO International, Inc. (a) | 1,153,633 | 84,134,455 | |
TOTAL INDUSTRIALS | 507,675,577 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 2.6% | |||
Polycom, Inc. (a) | 3,600,000 | $ 39,708,000 | |
ViaSat, Inc. (a)(d) | 1,325,000 | 50,893,250 | |
| 90,601,250 | ||
Electronic Equipment & Components - 6.0% | |||
Ingram Micro, Inc. Class A (a) | 4,050,000 | 73,629,000 | |
Macnica, Inc. | 677,400 | 13,237,616 | |
Ryoyo Electro Corp. (e) | 1,972,700 | 17,948,345 | |
SYNNEX Corp. (a) | 790,000 | 28,400,500 | |
Tech Data Corp. (a) | 1,479,500 | 75,321,345 | |
| 208,536,806 | ||
Internet Software & Services - 1.3% | |||
j2 Global, Inc. (d) | 1,350,000 | 42,957,000 | |
Semiconductors & Semiconductor Equipment - 0.4% | |||
Miraial Co. Ltd. (e) | 720,200 | 14,081,881 | |
Software - 1.4% | |||
Monotype Imaging Holdings, Inc. (e) | 2,671,431 | 48,299,472 | |
TOTAL INFORMATION TECHNOLOGY | 404,476,409 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.7% | |||
PolyOne Corp. | 2,800,000 | 61,152,000 | |
Metals & Mining - 3.0% | |||
Carpenter Technology Corp. | 409,380 | 21,422,855 | |
Haynes International, Inc. | 550,000 | 28,116,000 | |
RTI International Metals, Inc. $$ (a)(e) | 1,880,000 | 53,392,000 | |
| 102,930,855 | ||
TOTAL MATERIALS | 164,082,855 | ||
UTILITIES - 4.0% | |||
Electric Utilities - 2.9% | |||
UIL Holdings Corp. | 1,350,000 | 50,233,500 | |
UNS Energy Corp. | 1,150,000 | 52,083,500 | |
| 102,317,000 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Gas Utilities - 1.1% | |||
Southwest Gas Corp. | 836,756 | $ 37,269,112 | |
TOTAL UTILITIES | 139,586,112 | ||
TOTAL COMMON STOCKS (Cost $2,590,471,098) |
| ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
CONSUMER DISCRETIONARY - 0.5% | |||
Household Durables - 0.5% | |||
M/I Homes, Inc. Series A, 9.75% (a) (Cost $11,958,450) | 750,400 |
| |
Money Market Funds - 3.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 38,138,759 | 38,138,759 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 73,365,025 | 73,365,025 | |
TOTAL MONEY MARKET FUNDS (Cost $111,503,784) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $2,713,933,332) | 3,540,347,181 | ||
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (69,372,572) | ||
NET ASSETS - 100% | $ 3,470,974,609 |
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 $28,396,026 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
First Citizen Bancshares, Inc. | 12/21/12 | $ 25,333,560 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,325 |
Fidelity Securities Lending Cash Central Fund | 237,848 |
Total | $ 248,173 |
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, |
Astoria Financial Corp. | $ 51,038,992 | $ - | $ 134,410 | $ 432,324 | $ 52,635,457 |
Blount International, Inc. | 37,039,161 | 4,861,737 | - | - | 50,723,750 |
Chiquita Brands International, Inc. | 17,482,500 | - | - | - | 24,806,250 |
Columbus McKinnon Corp. (NY Shares) | 15,414,197 | 33,512 | - | - | 19,866,000 |
Forestar Group, Inc. | 22,724,438 | - | 7,503,701 | - | - |
Franklin Street Properties Corp. | 32,769,200 | 18,353,991 | - | 679,443 | 62,400,000 |
GrafTech International Ltd. | 62,334,250 | 14,832,304 | - | - | 72,960,000 |
HNI Corp. | 71,739,000 | - | - | 1,296,000 | 85,239,000 |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Miraial Co. Ltd. | $ 10,410,478 | $ - | $ - | $ 294,642 | $ 14,081,881 |
Monotype Imaging Holdings, Inc. | 38,936,219 | 295,917 | - | 212,950 | 48,299,472 |
PacWest Bancorp | 42,557,616 | 917,960 | - | 809,368 | 52,212,000 |
Platinum Underwriters Holdings Ltd. | 64,411,165 | - | - | 271,062 | 82,555,393 |
Quad/Graphics, Inc. | 28,908,484 | 12,835,355 | - | 6,556,250 | 58,047,500 |
Regis Corp. | 52,452,000 | 4,787,419 | - | 390,000 | 60,350,000 |
RTI International Metals, Inc. | 42,206,000 | - | - | - | 53,392,000 |
Ryoyo Electro Corp. | 20,552,790 | - | - | 302,646 | 17,948,345 |
Valassis Communications, Inc. | 35,733,655 | 13,465,583 | - | 651,788 | 58,997,300 |
Western Liberty Bancorp | 2,879,407 | - | 3,071,972 | - | - |
Total | $ 649,589,552 | $ 70,383,778 | $ 10,710,083 | $ 11,896,473 | $ 814,514,348 |
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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 2013. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 88,107,038 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $72,724,657) - See accompanying schedule: Unaffiliated issuers (cost $1,949,633,701) | $ 2,614,329,049 |
|
Fidelity Central Funds (cost $111,503,784) | 111,503,784 |
|
Other affiliated issuers (cost $652,795,847) | 814,514,348 |
|
Total Investments (cost $2,713,933,332) |
| $ 3,540,347,181 |
Cash |
| 484,367 |
Receivable for investments sold | 12,199,775 | |
Receivable for fund shares sold | 7,744,111 | |
Dividends receivable | 2,336,477 | |
Distributions receivable from Fidelity Central Funds | 47,059 | |
Prepaid expenses | 6,802 | |
Other receivables | 115,575 | |
Total assets | 3,563,281,347 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,668,778 | |
Payable for fund shares redeemed | 3,390,243 | |
Accrued management fee | 2,161,173 | |
Distribution and service plan fees payable | 125,883 | |
Other affiliated payables | 554,408 | |
Other payables and accrued expenses | 41,228 | |
Collateral on securities loaned, at value | 73,365,025 | |
Total liabilities | 92,306,738 | |
|
|
|
Net Assets | $ 3,470,974,609 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,575,966,501 | |
Undistributed net investment income | 3,202,777 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 65,395,793 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 826,409,538 | |
Net Assets | $ 3,470,974,609 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.27 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.27) | $ 18.32 | |
Class T: | $ 17.07 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.07) | $ 17.69 | |
Class B: | $ 16.55 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Small Cap Value: | $ 17.47 | |
|
|
|
Class F: | $ 17.50 | |
|
|
|
Institutional Class: | $ 17.48 |
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, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $11,896,473 earned from other affiliated issuers) |
| $ 35,108,998 |
Interest |
| 39 |
Income from Fidelity Central Funds |
| 248,173 |
Total income |
| 35,357,210 |
|
|
|
Expenses | ||
Management fee | $ 10,395,105 | |
Performance adjustment | 1,044,295 | |
Transfer agent fees | 2,768,811 | |
Distribution and service plan fees | 668,112 | |
Accounting and security lending fees | 436,044 | |
Custodian fees and expenses | 32,616 | |
Independent trustees' compensation | 9,382 | |
Registration fees | 115,672 | |
Audit | 33,160 | |
Legal | 7,171 | |
Interest | 218 | |
Miscellaneous | 11,233 | |
Total expenses before reductions | 15,521,819 | |
Expense reductions | (183,042) | 15,338,777 |
Net investment income (loss) | 20,018,433 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 81,698,979 | |
Other affiliated issuers | (3,822,586) |
|
Foreign currency transactions | (25,388) | |
Total net realized gain (loss) |
| 77,851,005 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 471,122,048 | |
Assets and liabilities in foreign currencies | (4,934) | |
Total change in net unrealized appreciation (depreciation) |
| 471,117,114 |
Net gain (loss) | 548,968,119 | |
Net increase (decrease) in net assets resulting from operations | $ 568,986,552 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 20,018,433 | $ 9,490,811 |
Net realized gain (loss) | 77,851,005 | 99,657,152 |
Change in net unrealized appreciation (depreciation) | 471,117,114 | (37,724,900) |
Net increase (decrease) in net assets resulting | 568,986,552 | 71,423,063 |
Distributions to shareholders from net investment income | (21,412,007) | (3,813,704) |
Distributions to shareholders from net realized gain | (85,195,351) | (148,970,854) |
Total distributions | (106,607,358) | (152,784,558) |
Share transactions - net increase (decrease) | 324,724,498 | 230,904,084 |
Redemption fees | 178,167 | 569,163 |
Total increase (decrease) in net assets | 787,281,859 | 150,111,752 |
|
|
|
Net Assets | ||
Beginning of period | 2,683,692,750 | 2,533,580,998 |
End of period (including undistributed net investment income of $3,202,777 and undistributed net investment income of $4,596,351, respectively) | $ 3,470,974,609 | $ 2,683,692,750 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 | $ 14.34 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .08 | .01 | .01 H | .02 I | .08 | (.01) |
Net realized and unrealized gain (loss) | 2.87 | .30 | 2.22 | 2.33 | (.60) | (1.98) |
Total from investment operations | 2.95 | .31 | 2.23 | 2.35 | (.52) | (1.99) |
Distributions from net investment income | (.07) | (.01) | (.08) | (.03) | (.06) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.54) | (.93) L | (.20) | (.03) | (.17) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.27 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 | $ 11.82 |
Total Return B, C, D | 20.35% | 3.24% | 16.72% | 21.16% | (4.37)% | (14.35)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.35% A | 1.44% | 1.44% | 1.47% | 1.45% | 1.43% |
Expenses net of fee waivers, if any | 1.35% A | 1.44% | 1.43% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.34% A | 1.44% | 1.43% | 1.39% | 1.40% | 1.40% |
Net investment income (loss) | 1.06% A | .09% | .06% H | .17% I | .81% | (.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 203,918 | $ 150,285 | $ 140,707 | $ 96,994 | $ 55,029 | $ 52,446 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 (.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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 | $ 14.28 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .06 | (.02) | (.03) H | (.01) I | .05 | (.04) |
Net realized and unrealized gain (loss) | 2.84 | .31 | 2.20 | 2.31 | (.59) | (1.97) |
Total from investment operations | 2.90 | .29 | 2.17 | 2.30 | (.54) | (2.01) |
Distributions from net investment income | (.06) | - | (.05) | (.01) | (.04) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.53) | (.93) | (.17) | (.01) | (.15) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.07 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 | $ 11.74 |
Total Return B, C, D | 20.19% | 3.08% | 16.36% | 20.87% | (4.57)% | (14.58)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 1.58% A | 1.67% | 1.70% | 1.72% | 1.70% | 1.68% |
Expenses net of fee waivers, if any | 1.58% A | 1.67% | 1.69% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.57% A | 1.67% | 1.69% | 1.64% | 1.65% | 1.65% |
Net investment income (loss) | .84% A | (.14)% | (.19)% H | (.08)% I | .56% | (.30)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 78,144 | $ 57,514 | $ 55,845 | $ 44,091 | $ 28,534 | $ 32,091 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.15 | 2.27 | (.59) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.05 | 2.20 | (.58) | (2.06) |
Distributions from net investment income | (.02) | - | (.01) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.49) | (.93) | (.13) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 | $ 11.60 |
Total Return B, C, D | 19.89% | 2.51% | 15.80% | 20.22% | (5.05)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.20% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.19% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.19% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.69)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,283 | $ 6,675 | $ 8,549 | $ 9,747 | $ 7,153 | $ 7,886 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 | $ 14.19 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) E | .02 | (.09) | (.10) H | (.07) I | .01 | (.10) |
Net realized and unrealized gain (loss) | 2.75 | .29 | 2.17 | 2.26 | (.58) | (1.96) |
Total from investment operations | 2.77 | .20 | 2.07 | 2.19 | (.57) | (2.06) |
Distributions from net investment income | (.03) | - | (.02) | - | (.03) | - |
Distributions from net realized gain | (.47) | (.93) | (.12) | - | (.11) | (.53) |
Total distributions | (.50) | (.93) | (.14) | - | (.14) | (.53) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.55 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 | $ 11.60 |
Total Return B, C, D | 19.83% | 2.52% | 15.91% | 20.11% | (4.98)% | (15.04)% |
Ratios to Average Net Assets F, J |
|
|
|
|
| |
Expenses before reductions | 2.12% A | 2.19% | 2.18% | 2.22% | 2.20% | 2.18% |
Expenses net of fee waivers, if any | 2.12% A | 2.19% | 2.18% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.11% A | 2.19% | 2.18% | 2.14% | 2.15% | 2.15% |
Net investment income (loss) | .30% A | (.66)% | (.68)% H | (.58)% I | .06% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,707 | $ 47,265 | $ 47,457 | $ 37,346 | $ 21,345 | $ 20,924 |
Portfolio turnover rate G | 25% A | 27% | 22% | 49% | 51% | 149% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 | $ 14.43 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .11 | .06 | .06 G | .05 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.89 | .32 | 2.23 | 2.34 | (.60) | (1.99) |
Total from investment operations | 3.00 | .38 | 2.29 | 2.39 | (.50) | (1.96) |
Distributions from net investment income | (.11) | (.02) | (.10) | (.05) | (.08) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.58) | (.95) | (.23) | (.05) | (.19) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.47 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 | $ 11.91 |
Total Return B, C | 20.48% | 3.67% | 17.03% | 21.32% | (4.15)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of fee waivers, if any | 1.05% A | 1.13% | 1.13% | 1.18% | 1.20% | 1.14% |
Expenses net of all reductions | 1.04% A | 1.13% | 1.13% | 1.17% | 1.20% | 1.13% |
Net investment income (loss) | 1.36% A | .41% | .37% G | .39% H | 1.01% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 2,177,394 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 | $ 1,488,736 | $ 1,136,860 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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. |
Annual 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) | 2012 | 2011 | 2010 | 2009 I |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 | $ 10.27 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .13 | .09 | .09 G | .09 H | .01 |
Net realized and unrealized gain (loss) | 2.90 | .32 | 2.23 | 2.34 | .94 |
Total from investment operations | 3.03 | .41 | 2.32 | 2.43 | .95 |
Distributions from net investment income | (.15) | (.04) | (.14) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | - |
Total distributions | (.62) | (.96) L | (.26) M | (.07) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - |
Net asset value, end of period | $ 17.50 | $ 15.09 | $ 15.64 | $ 13.58 | $ 11.22 |
Total Return B, C | 20.63% | 3.90% | 17.31% | 21.69% | 9.25% |
Ratios to Average Net Assets E, J |
|
|
| ||
Expenses before reductions | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of fee waivers, if any | .82% A | .89% | .88% | .90% | .86% A |
Expenses net of all reductions | .81% A | .89% | .88% | .89% | .86% A |
Net investment income (loss) | 1.59% A | .64% | .61% G | .67% H | .64% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 693,677 | $ 526,009 | $ 279,653 | $ 109,868 | $ 159 |
Portfolio turnover rate F | 25% A | 27% | 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 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
| ||
Net asset value, beginning of period | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 | $ 14.43 |
Income from Investment |
|
|
|
| ||
Net investment income (loss) D | .11 | .06 | .06 G | .06 H | .10 | .03 |
Net realized and unrealized gain (loss) | 2.91 | .31 | 2.23 | 2.34 | (.59) | (1.99) |
Total from investment operations | 3.02 | .37 | 2.29 | 2.40 | (.49) | (1.96) |
Distributions from net investment income | (.12) | (.02) | (.11) | (.06) | (.07) | - |
Distributions from net realized gain | (.47) | (.93) | (.13) | - | (.11) | (.56) |
Total distributions | (.59) | (.95) | (.24) | (.06) | (.18) | (.56) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 17.48 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 | $ 11.91 |
Total Return B, C | 20.57% | 3.59% | 17.02% | 21.42% | (4.04)% | (14.10)% |
Ratios to Average Net Assets E, I |
|
|
|
| ||
Expenses before reductions | 1.05% A | 1.14% | 1.10% | 1.12% | 1.20% | 1.13% |
Expenses net of fee waivers, if any | 1.05% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Expenses net of all reductions | 1.04% A | 1.14% | 1.10% | 1.12% | 1.15% | 1.13% |
Net investment income (loss) | 1.37% A | .39% | .39% G | .45% H | 1.06% | .22% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 247,852 | $ 138,981 | $ 101,565 | $ 78,440 | $ 10,336 | $ 8,584 |
Portfolio turnover rate F | 25% A | 27% | 22% | 49% | 51% | 149% |
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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on March 1, 2013, the Fund's other share classes were closed to new accounts with certain exceptions. 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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
(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. 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 these securities are generally 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 889,453,857 |
Gross unrealized depreciation | (64,221,272) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 825,232,585 |
|
|
Tax cost | $ 2,715,114,596 |
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.
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $570,111,322 and $369,664,182, 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
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period, the total annualized management fee rate, including the performance adjustment, was .78% 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% | $ 212,815 | $ 3,146 |
Class T | .25% | .25% | 158,668 | - |
Class B | .75% | .25% | 33,254 | 24,957 |
Class C | .75% | .25% | 263,375 | 56,848 |
|
|
| $ 668,112 | $ 84,951 |
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 shares, 1.00% for Class C shares, 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 | 25,043 |
Class T | 4,894 |
Class B* | 3,893 |
Class C* | 2,139 |
| $ 35,969 |
* 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 238,785 | .28 |
Class T | 81,145 | .26 |
Class B | 9,903 | .30 |
Class C | 78,295 | .30 |
Small Cap Value | 2,162,495 | .23 |
Institutional Class | 198,188 | .23 |
| $ 2,768,811 |
|
* 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 $18,734 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,473 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
Semiannual Report
7. Security Lending - continued
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 $7,675,502. 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 $237,848, including $97,539 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 $183,015 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 $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 785,340 | $ 57,416 |
Class T | 231,402 | - |
Class B | 9,411 | - |
Class C | 90,527 | - |
Small Cap Value | 13,318,853 | 2,736,678 |
Class F | 5,669,081 | 858,633 |
Institutional Class | 1,307,393 | 160,977 |
Total | $ 21,412,007 | $ 3,813,704 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders - continued
| Six months ended | Year ended |
From net realized gain |
|
|
Class A | $ 5,001,900 | $ 8,369,079 |
Class T | 1,871,336 | 3,332,444 |
Class B | 211,601 | 513,839 |
Class C | 1,589,586 | 2,835,863 |
Small Cap Value | 54,759,308 | 109,450,254 |
Class F | 17,097,966 | 18,207,376 |
Institutional Class | 4,663,654 | 6,261,999 |
Total | $ 85,195,351 | $ 148,970,854 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 3,058,797 | 3,582,114 | $ 48,203,768 | $ 51,112,084 |
Reinvestment of distributions | 357,180 | 639,382 | 5,478,627 | 7,957,627 |
Shares redeemed | (1,721,528) | (3,203,028) | (26,814,337) | (45,298,282) |
Net increase (decrease) | 1,694,449 | 1,018,468 | $ 26,868,058 | $ 13,771,429 |
Class T |
|
|
|
|
Shares sold | 995,193 | 1,074,645 | $ 15,726,379 | $ 15,238,625 |
Reinvestment of distributions | 135,952 | 264,657 | 2,060,454 | 3,258,576 |
Shares redeemed | (466,339) | (1,066,289) | (7,147,583) | (14,773,000) |
Net increase (decrease) | 664,806 | 273,013 | $ 10,639,250 | $ 3,724,201 |
Class B |
|
|
|
|
Shares sold | 36,755 | 17,886 | $ 571,256 | $ 244,464 |
Reinvestment of distributions | 12,922 | 36,117 | 189,673 | 433,889 |
Shares redeemed | (77,345) | (156,185) | (1,150,416) | (2,129,294) |
Net increase (decrease) | (27,668) | (102,182) | $ (389,487) | $ (1,450,941) |
Class C |
|
|
|
|
Shares sold | 744,380 | 840,854 | $ 11,242,361 | $ 11,606,643 |
Reinvestment of distributions | 98,556 | 202,948 | 1,448,324 | 2,439,209 |
Shares redeemed | (365,370) | (895,789) | (5,407,978) | (12,102,998) |
Net increase (decrease) | 477,566 | 148,013 | $ 7,282,707 | $ 1,942,854 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Small Cap Value |
|
|
|
|
Shares sold | 19,275,449 | 27,786,966 | $ 309,642,218 | $ 403,227,336 |
Reinvestment of distributions | 4,065,017 | 8,564,707 | 63,037,497 | 107,820,730 |
Shares redeemed | (15,480,758) | (41,177,942) | (245,658,599) | (579,334,071) |
Net increase (decrease) | 7,859,708 | (4,826,269) | $ 127,021,116 | $ (68,286,005) |
Class F |
|
|
|
|
Shares sold | 4,993,295 | 17,383,615 | $ 78,947,712 | $ 249,495,726 |
Reinvestment of distributions | 1,465,154 | 1,506,337 | 22,767,047 | 19,066,009 |
Shares redeemed | (1,687,652) | (1,906,027) | (28,007,441) | (26,618,099) |
Net increase (decrease) | 4,770,797 | 16,983,925 | $ 73,707,318 | $ 241,943,636 |
Institutional Class |
|
|
|
|
Shares sold | 6,136,752 | 4,662,732 | $ 98,547,228 | $ 67,294,175 |
Reinvestment of distributions | 337,968 | 445,761 | 5,246,517 | 5,619,794 |
Shares redeemed | (1,525,598) | (2,373,514) | (24,198,209) | (33,655,059) |
Net increase (decrease) | 4,949,122 | 2,734,979 | $ 79,595,536 | $ 39,258,910 |
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, Fidelity Freedom Funds and Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 38% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SCV-USAN-0313 1.803708.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
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 1-877-208-0098 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.90 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,115.90 | $ 8.05 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.40 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.60 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Small Cap Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 4.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 3.74 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,118.70 | $ 5.02 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Aspen Technology, Inc. | 1.7 | 1.3 |
HSN, Inc. | 1.7 | 0.0 |
CommVault Systems, Inc. | 1.5 | 0.9 |
Middleby Corp. | 1.4 | 0.0 |
Medidata Solutions, Inc. | 1.4 | 0.0 |
Axiall Corp. | 1.4 | 0.0 |
Genesee & Wyoming, Inc. Class A | 1.4 | 0.6 |
Maximus, Inc. | 1.2 | 0.9 |
Cornerstone OnDemand, Inc. | 1.2 | 0.9 |
Conn's, Inc. | 1.1 | 0.2 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 19.2 | 20.6 |
Health Care | 18.8 | 21.2 |
Consumer Discretionary | 17.2 | 17.5 |
Industrials | 15.5 | 14.6 |
Financials | 7.3 | 9.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 95.5% |
| ![]() | Stocks 96.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.6% |
| ** Foreign investments | 9.1% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 450,000 | $ 20,619,000 | |
Diversified Consumer Services - 1.4% | |||
Grand Canyon Education, Inc. (a) | 740,000 | 17,656,400 | |
Weight Watchers International, Inc. (d) | 199,365 | 10,660,047 | |
| 28,316,447 | ||
Hotels, Restaurants & Leisure - 4.5% | |||
AFC Enterprises, Inc. (a) | 470,000 | 13,658,200 | |
Chuys Holdings, Inc. | 285,540 | 8,103,625 | |
Denny's Corp. (a) | 2,300,000 | 11,638,000 | |
Interval Leisure Group, Inc. | 1,021,800 | 20,231,640 | |
Jack in the Box, Inc. (a) | 600,000 | 17,418,000 | |
Papa John's International, Inc. (a) | 300,000 | 16,830,000 | |
| 87,879,465 | ||
Household Durables - 1.3% | |||
Jarden Corp. | 290,000 | 17,063,600 | |
Toll Brothers, Inc. (a) | 251,300 | 9,411,185 | |
| 26,474,785 | ||
Internet & Catalog Retail - 1.7% | |||
HSN, Inc. | 545,000 | 32,482,000 | |
Leisure Equipment & Products - 1.1% | |||
Brunswick Corp. | 600,000 | 21,696,000 | |
Media - 0.6% | |||
National CineMedia, Inc. | 755,800 | 11,548,624 | |
Multiline Retail - 0.3% | |||
The Bon-Ton Stores, Inc. (d) | 500,000 | 6,275,000 | |
Specialty Retail - 3.7% | |||
Ascena Retail Group, Inc. (a) | 684,800 | 11,607,360 | |
Conn's, Inc. (a)(d) | 794,947 | 22,608,293 | |
DSW, Inc. Class A | 216,300 | 14,476,959 | |
Tile Shop Holdings, Inc. (a)(d) | 300,000 | 5,517,000 | |
Vitamin Shoppe, Inc. (a) | 322,300 | 19,686,084 | |
| 73,895,696 | ||
Textiles, Apparel & Luxury Goods - 1.6% | |||
Hanesbrands, Inc. (a) | 420,000 | 15,741,600 | |
Steven Madden Ltd. (a) | 331,400 | 15,270,912 | |
| 31,012,512 | ||
TOTAL CONSUMER DISCRETIONARY | 340,199,529 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.8% | |||
Food & Staples Retailing - 0.8% | |||
Susser Holdings Corp. (a) | 398,155 | $ 16,666,768 | |
Food Products - 1.8% | |||
Ingredion, Inc. | 140,000 | 9,249,800 | |
J&J Snack Foods Corp. | 200,000 | 13,630,000 | |
Post Holdings, Inc. (a) | 320,000 | 12,156,800 | |
| 35,036,600 | ||
Household Products - 0.7% | |||
Spectrum Brands Holdings, Inc. | 258,300 | 13,080,312 | |
Personal Products - 0.5% | |||
Elizabeth Arden, Inc. (a) | 275,000 | 10,562,750 | |
TOTAL CONSUMER STAPLES | 75,346,430 | ||
ENERGY - 6.5% | |||
Energy Equipment & Services - 3.6% | |||
Atwood Oceanics, Inc. (a) | 320,000 | 16,886,400 | |
Essential Energy Services Ltd. | 5,166,700 | 11,033,759 | |
Forum Energy Technologies, Inc. | 400,000 | 10,204,000 | |
Tesco Corp. (a) | 750,000 | 9,067,500 | |
Western Energy Services Corp. | 1,530,000 | 11,366,854 | |
Xtreme Drilling & Coil Services Corp. (a)(e) | 4,100,000 | 6,371,566 | |
Zedi, Inc. (a)(e) | 9,000,000 | 6,226,188 | |
| 71,156,267 | ||
Oil, Gas & Consumable Fuels - 2.9% | |||
EPL Oil & Gas, Inc. (a) | 500,000 | 12,230,000 | |
Stone Energy Corp. (a) | 436,300 | 9,816,750 | |
Targa Resources Corp. | 201,035 | 12,134,473 | |
Tesoro Logistics LP | 250,000 | 11,000,000 | |
Whitecap Resources, Inc. (d) | 1,300,000 | 12,473,431 | |
| 57,654,654 | ||
TOTAL ENERGY | 128,810,921 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 0.6% | |||
AllianceBernstein Holding LP | 590,000 | 12,012,400 | |
Commercial Banks - 2.2% | |||
BBCN Bancorp, Inc. | 1,440,000 | 17,409,600 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Pacific Premier Bancorp, Inc. (a) | 356,700 | $ 4,112,751 | |
Texas Capital Bancshares, Inc. (a) | 505,600 | 20,931,840 | |
| 42,454,191 | ||
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings Ltd. | 169,800 | 14,404,134 | |
Amerisafe, Inc. (a) | 464,900 | 13,314,736 | |
eHealth, Inc. (a) | 650,000 | 15,840,500 | |
ProAssurance Corp. | 280,000 | 12,611,200 | |
| 56,170,570 | ||
Real Estate Investment Trusts - 0.9% | |||
Sovran Self Storage, Inc. | 280,000 | 18,267,200 | |
Real Estate Management & Development - 0.7% | |||
Altisource Portfolio Solutions SA (a) | 156,400 | 13,742,868 | |
TOTAL FINANCIALS | 142,647,229 | ||
HEALTH CARE - 18.8% | |||
Biotechnology - 7.5% | |||
Alkermes PLC (a) | 175,500 | 4,045,275 | |
ARIAD Pharmaceuticals, Inc. (a) | 470,000 | 9,343,600 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 10,429,100 | |
Biovitrum AB (a) | 1,000,000 | 5,992,592 | |
Cubist Pharmaceuticals, Inc. (a) | 310,000 | 13,342,400 | |
Infinity Pharmaceuticals, Inc. (a) | 228,236 | 7,862,730 | |
Insmed, Inc. (a) | 800,000 | 4,680,000 | |
Isis Pharmaceuticals, Inc. (a)(d) | 447,257 | 6,498,644 | |
Medivation, Inc. (a) | 180,000 | 9,784,800 | |
OncoGenex Pharmaceuticals, Inc. (a) | 450,000 | 5,922,000 | |
Pharmacyclics, Inc. (a) | 120,000 | 8,319,600 | |
Sarepta Therapeutics, Inc. (a)(d) | 140,000 | 3,787,000 | |
Seattle Genetics, Inc. (a) | 440,000 | 12,958,000 | |
Sunesis Pharmaceuticals, Inc. (a)(d) | 1,097,300 | 6,221,691 | |
Synageva BioPharma Corp. (a) | 170,000 | 7,864,200 | |
Synergy Pharmaceuticals, Inc. (a) | 800,000 | 4,488,000 | |
Targacept, Inc. (a) | 500,000 | 2,245,000 | |
Theravance, Inc. (a) | 519,000 | 11,547,750 | |
Threshold Pharmaceuticals, Inc. (a)(d) | 1,155,000 | 5,336,100 | |
XOMA Corp. (a)(d) | 2,500,000 | 6,725,000 | |
| 147,393,482 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - 4.9% | |||
Align Technology, Inc. (a)(d) | 584,398 | $ 18,326,721 | |
ICU Medical, Inc. (a) | 200,000 | 12,090,000 | |
Sirona Dental Systems, Inc. (a) | 205,000 | 13,626,350 | |
Teleflex, Inc. | 269,300 | 20,197,500 | |
The Cooper Companies, Inc. | 111,900 | 11,341,065 | |
The Spectranetics Corp. (a) | 1,230,000 | 20,491,800 | |
| 96,073,436 | ||
Health Care Providers & Services - 2.6% | |||
Air Methods Corp. | 122,700 | 5,364,444 | |
Centene Corp. (a) | 330,000 | 14,242,800 | |
MEDNAX, Inc. (a) | 152,900 | 13,082,124 | |
MWI Veterinary Supply, Inc. (a) | 173,400 | 19,474,554 | |
| 52,163,922 | ||
Health Care Technology - 2.4% | |||
MedAssets, Inc. (a) | 1,030,000 | 20,136,500 | |
Medidata Solutions, Inc. (a) | 603,948 | 28,258,727 | |
| 48,395,227 | ||
Pharmaceuticals - 1.4% | |||
Biodelivery Sciences International, Inc. (a)(d) | 1,257,084 | 5,480,886 | |
Jazz Pharmaceuticals PLC (a) | 250,000 | 14,097,500 | |
ViroPharma, Inc. (a) | 270,000 | 7,198,200 | |
| 26,776,586 | ||
TOTAL HEALTH CARE | 370,802,653 | ||
INDUSTRIALS - 15.5% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 195,700 | 13,358,482 | |
Building Products - 0.5% | |||
Armstrong World Industries, Inc. | 185,000 | 10,173,150 | |
Electrical Equipment - 2.0% | |||
Generac Holdings, Inc. (d) | 560,000 | 20,820,800 | |
Hubbell, Inc. Class B | 161,800 | 14,731,890 | |
Polypore International, Inc. (a)(d) | 122,065 | 4,710,488 | |
| 40,263,178 | ||
Industrial Conglomerates - 1.0% | |||
Carlisle Companies, Inc. | 300,000 | 19,245,000 | |
Machinery - 6.0% | |||
Actuant Corp. Class A | 503,100 | 14,831,388 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Middleby Corp. (a) | 200,000 | $ 28,272,000 | |
Oshkosh Truck Corp. (a) | 350,000 | 13,713,000 | |
Proto Labs, Inc. (d) | 252,194 | 10,372,739 | |
TriMas Corp. (a) | 605,298 | 18,697,655 | |
Valmont Industries, Inc. | 105,032 | 15,305,263 | |
Wabtec Corp. | 192,300 | 18,003,126 | |
| 119,195,171 | ||
Professional Services - 1.8% | |||
Advisory Board Co. (a) | 295,105 | 16,003,544 | |
Nielsen Holdings B.V. (a) | 310,000 | 10,078,100 | |
Nihon M&A Center, Inc. | 285,512 | 10,084,792 | |
| 36,166,436 | ||
Road & Rail - 1.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 320,000 | 27,065,600 | |
Trading Companies & Distributors - 2.1% | |||
DXP Enterprises, Inc. (a) | 224,719 | 12,786,511 | |
Watsco, Inc. | 229,000 | 17,255,150 | |
WESCO International, Inc. (a) | 150,000 | 10,939,500 | |
| 40,981,161 | ||
TOTAL INDUSTRIALS | 306,448,178 | ||
INFORMATION TECHNOLOGY - 19.2% | |||
Communications Equipment - 1.0% | |||
Arris Group, Inc. (a) | 700,000 | 11,564,000 | |
Telular Corp. | 850,000 | 9,426,500 | |
| 20,990,500 | ||
Computers & Peripherals - 0.2% | |||
Cray, Inc. (a) | 128,600 | 2,388,102 | |
Super Micro Computer, Inc. (a) | 87,903 | 1,088,239 | |
| 3,476,341 | ||
Electronic Equipment & Components - 3.9% | |||
FEI Co. | 300,000 | 18,288,000 | |
FLIR Systems, Inc. | 400,000 | 9,508,000 | |
InvenSense, Inc. (a)(d) | 1,350,000 | 19,710,000 | |
Neonode, Inc. (a)(d)(e) | 2,069,069 | 10,759,159 | |
Parametric Sound Corp. (a)(d)(e) | 596,019 | 4,940,998 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Uni-Pixel, Inc. (a)(d) | 430,000 | $ 5,766,300 | |
Zygo Corp. (a) | 506,129 | 8,052,512 | |
| 77,024,969 | ||
Internet Software & Services - 2.8% | |||
Blucora, Inc. (a) | 1,087,314 | 16,157,486 | |
Cornerstone OnDemand, Inc. (a) | 710,000 | 23,202,800 | |
Demandware, Inc. (d) | 239,007 | 7,598,033 | |
E2open, Inc. (d) | 485,194 | 8,660,713 | |
| 55,619,032 | ||
IT Services - 1.8% | |||
Maximus, Inc. | 343,376 | 23,545,292 | |
Total System Services, Inc. | 533,868 | 12,412,431 | |
| 35,957,723 | ||
Semiconductors & Semiconductor Equipment - 1.6% | |||
Hittite Microwave Corp. (a) | 321,863 | 19,755,951 | |
MagnaChip Semiconductor Corp. (a) | 279,866 | 4,483,453 | |
PDF Solutions, Inc. (a) | 466,056 | 7,000,161 | |
| 31,239,565 | ||
Software - 7.9% | |||
Aspen Technology, Inc. (a) | 1,092,200 | 33,421,322 | |
CommVault Systems, Inc. (a) | 380,000 | 29,157,400 | |
Ebix, Inc. (d) | 633,610 | 10,353,187 | |
Fair Isaac Corp. | 450,000 | 20,281,500 | |
Manhattan Associates, Inc. (a) | 288,199 | 19,744,513 | |
Sourcefire, Inc. (a) | 360,000 | 15,336,000 | |
Synopsys, Inc. (a) | 540,000 | 18,057,600 | |
Tyler Technologies, Inc. (a) | 177,842 | 9,612,360 | |
| 155,963,882 | ||
TOTAL INFORMATION TECHNOLOGY | 380,272,012 | ||
MATERIALS - 6.0% | |||
Chemicals - 3.7% | |||
Axiall Corp. (d) | 490,000 | 27,528,200 | |
Chemtura Corp. (a) | 850,000 | 20,162,000 | |
Cytec Industries, Inc. | 250,000 | 18,325,000 | |
Innospec, Inc. | 176,424 | 7,101,066 | |
| 73,116,266 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Containers & Packaging - 0.7% | |||
Myers Industries, Inc. | 850,000 | $ 12,563,000 | |
Metals & Mining - 1.6% | |||
Commercial Metals Co. | 809,800 | 13,483,170 | |
Compass Minerals International, Inc. (d) | 120,000 | 8,646,000 | |
Kaiser Aluminum Corp. | 160,000 | 9,945,600 | |
| 32,074,770 | ||
TOTAL MATERIALS | 117,754,036 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Diversified Telecommunication Services - 1.2% | |||
8x8, Inc. (a) | 1,000,000 | 6,620,000 | |
Cogent Communications Group, Inc. | 700,000 | 17,339,000 | |
| 23,959,000 | ||
TOTAL COMMON STOCKS (Cost $1,583,197,871) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Commercial Banks - 0.1% | |||
Banco Pine SA (Cost $1,284,051) | 210,171 |
| |
Money Market Funds - 9.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 48,766,939 | 48,766,939 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 128,626,620 | 128,626,620 | |
TOTAL MONEY MARKET FUNDS (Cost $177,393,559) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $1,761,875,481) | 2,065,171,293 | ||
NET OTHER ASSETS (LIABILITIES) - (4.5)% | (88,247,604) | ||
NET ASSETS - 100% | $ 1,976,923,689 |
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 | $ 51,356 |
Fidelity Securities Lending Cash Central Fund | 681,719 |
Total | $ 733,075 |
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, |
Neonode, Inc. | $ 6,969,000 | $ 2,720,529 | $ - | $ - | $ 10,759,159 |
Parametric Sound Corp. | 2,428,413 | 2,697,936 | 26,714 | - | 4,940,998 |
Telular Corp. | 4,715,000 | 3,371,313 | - | 157,000 | - |
US Home Systems, Inc. | 6,604,750 | - | 8,975,299 | - | - |
Xtreme Drilling & Coil Services Corp. | 6,786,658 | 178,443 | 201,743 | - | 6,371,566 |
Zedi, Inc. | 3,905,172 | 2,997,316 | - | - | 6,226,188 |
Total | $ 31,408,993 | $ 11,965,537 | $ 9,203,756 | $ 157,000 | $ 28,297,911 |
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 Investment 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,507,398) - See accompanying schedule: Unaffiliated issuers (cost $1,549,083,993) | $ 1,859,479,823 |
|
Fidelity Central Funds (cost $177,393,559) | 177,393,559 |
|
Other affiliated issuers (cost $35,397,929) | 28,297,911 |
|
Total Investments (cost $1,761,875,481) |
| $ 2,065,171,293 |
Cash |
| 546,758 |
Receivable for investments sold | 55,929,490 | |
Receivable for fund shares sold | 1,827,116 | |
Dividends receivable | 535,035 | |
Distributions receivable from Fidelity Central Funds | 227,279 | |
Prepaid expenses | 4,442 | |
Other receivables | 141,564 | |
Total assets | 2,124,382,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,954,334 | |
Payable for fund shares redeemed | 2,530,242 | |
Accrued management fee | 967,499 | |
Distribution and service plan fees payable | 49,036 | |
Other affiliated payables | 288,040 | |
Other payables and accrued expenses | 43,517 | |
Collateral on securities loaned, at value | 128,626,620 | |
Total liabilities | 147,459,288 | |
|
|
|
Net Assets | $ 1,976,923,689 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,641,389,930 | |
Undistributed net investment income | 619,919 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 31,620,630 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 303,293,210 | |
Net Assets | $ 1,976,923,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 16.61 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.61) | $ 17.62 | |
Class T: | $ 16.40 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.40) | $ 16.99 | |
Class B: | $ 15.82 | |
|
|
|
Class C: | $ 15.79 | |
|
|
|
Small Cap Growth: | $ 16.92 | |
|
|
|
Class F: | $ 17.06 | |
|
|
|
Institutional Class: | $ 16.95 |
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, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $157,000 earned from other affiliated issuers) |
| $ 7,168,759 |
Special dividends |
| 2,362,000 |
Interest |
| 667 |
Income from Fidelity Central Funds (including $681,719 from security lending) |
| 733,075 |
Total income |
| 10,264,501 |
|
|
|
Expenses | ||
Management fee | $ 6,714,777 | |
Performance adjustment | (496,133) | |
Transfer agent fees | 1,482,152 | |
Distribution and service plan fees | 290,180 | |
Accounting and security lending fees | 297,632 | |
Custodian fees and expenses | 35,087 | |
Independent trustees' compensation | 6,229 | |
Registration fees | 77,661 | |
Audit | 31,862 | |
Legal | 5,032 | |
Interest | 674 | |
Miscellaneous | 7,769 | |
Total expenses before reductions | 8,452,922 | |
Expense reductions | (251,098) | 8,201,824 |
Net investment income (loss) | 2,062,677 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 90,388,589 | |
Other affiliated issuers | 223,046 |
|
Foreign currency transactions | (32,590) | |
Total net realized gain (loss) |
| 90,579,045 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 122,799,316 | |
Assets and liabilities in foreign currencies | 8,393 | |
Total change in net unrealized appreciation (depreciation) |
| 122,807,709 |
Net gain (loss) | 213,386,754 | |
Net increase (decrease) in net assets resulting from operations | $ 215,449,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,062,677 | $ (2,581,285) |
Net realized gain (loss) | 90,579,045 | 84,159,524 |
Change in net unrealized appreciation (depreciation) | 122,807,709 | (104,802,589) |
Net increase (decrease) in net assets resulting | 215,449,431 | (23,224,350) |
Distributions to shareholders from net realized gain | (122,560,486) | (34,799,429) |
Share transactions - net increase (decrease) | 36,802,615 | 61,802,637 |
Redemption fees | 59,925 | 255,125 |
Total increase (decrease) in net assets | 129,751,485 | 4,033,983 |
|
|
|
Net Assets | ||
Beginning of period | 1,847,172,204 | 1,843,138,221 |
End of period (including undistributed net investment income of $619,919 and accumulated net investment loss of $1,442,758, respectively) | $ 1,976,923,689 | $ 1,847,172,204 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) H | (.07) I | (.07) J | (.07) K | (.06) | (.11) |
Net realized and unrealized gain (loss) | 1.79 | (.16) | 3.84 | 1.94 | (2.35) | (1.73) |
Total from investment operations | 1.78 | (.23) | 3.77 | 1.87 | (2.41) | (1.84) |
Distributions from net realized gain | (1.04) | (.32) | (.01) N | - | - | (1.02) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.61 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 |
Total Return B, C, D | 11.69% | (1.14)% | 29.78% | 17.33% | (18.26)% | (12.26)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of fee waivers, if any | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of all reductions | 1.23% A | 1.34% | 1.23% | 1.34% | 1.33% | 1.39% |
Net investment income (loss) | (.15)% A, H | (.49)% I | (.47)% J | (.56)% K | (.64)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,967 | $ 59,684 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IInvestment 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 (.57)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount represents less than $.01 per share. NThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.11) I | (.11) J | (.10) K | (.09) | (.15) |
Net realized and unrealized gain (loss) | 1.78 | (.16) | 3.81 | 1.93 | (2.34) | (1.73) |
Total from investment operations | 1.75 | (.27) | 3.70 | 1.83 | (2.43) | (1.88) |
Distributions from net realized gain | (1.03) | (.32) | - | - | - | (.96) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.40 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 |
Total Return B, C, D | 11.59% | (1.41)% | 29.44% | 17.04% | (18.45)% | (12.50)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of fee waivers, if any | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of all reductions | 1.49% A | 1.60% | 1.49% | 1.60% | 1.59% | 1.65% |
Net investment income (loss) | (.41)% A, H | (.74)% I | (.73)% J | (.82)% K | (.91)% | (.99)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28,041 | $ 27,658 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IInvestment 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 (.83)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.74 | 1.89 | (2.33) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.56 | 1.73 | (2.46) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.89) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.82 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 |
Total Return B, C, D | 11.34% | (1.96)% | 28.94% | 16.37% | (18.88)% | (12.92)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.08% | 2.15% |
Net investment income (loss) | (.90)% A, H | (1.23)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,781 | $ 4,123 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.14)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.73 | 1.89 | (2.32) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.55 | 1.73 | (2.45) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.91) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 |
Total Return B, C, D | 11.36% | (1.96)% | 28.91% | 16.40% | (18.85)% | (12.94)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.07% | 2.14% |
Net investment income (loss) | (.90)% A, H | (1.24)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,199 | $ 24,683 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .02 G | (.03) H | (.03) I | (.04) J | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.82 | (.16) | 3.90 | 1.96 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.87 | 1.92 | (2.40) | (1.81) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 |
Total Return B, C | 11.90% | (.88)% | 30.20% | 17.63% | (18.06)% | (11.98)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of fee waivers, if any | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of all reductions | .89% A | 1.02% | .93% | 1.07% | 1.08% | 1.10% |
Net investment income (loss) | .19% A, G | (.16)%H | (.17)%I | (.29)%J | (.39)% | (.45)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,168,869 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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)%. HInvestment 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 (.25)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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) | 2012 | 2011 | 2010 | 2009 L |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 H | .01 I | .01 J | - K, N | (.01) |
Net realized and unrealized gain (loss) | 1.85 | (.16) | 3.91 | 1.95 | .88 |
Total from investment operations | 1.88 | (.15) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (1.08) | (.32) | (.04) O | - | - |
Redemption fees added to paid in capital D, N | - | - | - | - | - |
Net asset value, end of period | $ 17.06 | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | 12.04% | (.64)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, M |
|
|
|
|
|
Expenses before reductions | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of all reductions | .68% A | .79% | .68% | .77% | .73% A |
Net investment income (loss) | .40% A, H | .07% I | .08% J | -% G, K | (.54)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 648,388 | $ 528,229 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .16%. IInvestment 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 (.02)%. JInvestment 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)%. KInvestment 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)%. LFor the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. MExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. NAmount represents less than $.01 per share. OThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 G | (.03) H | (.03) I | (.03) J | (.03) | (.06) |
Net realized and unrealized gain (loss) | 1.83 | (.16) | 3.91 | 1.95 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.88 | 1.92 | (2.39) | (1.80) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.95 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 |
Total Return B, C | 11.87% | (.88)% | 30.24% | 17.60% | (17.97)% | (11.93)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of fee waivers, if any | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of all reductions | .92% A | 1.05% | .93% | 1.02% | 1.04% | 1.03% |
Net investment income (loss) | .16% A, G | (.19)% H | (.17)% I | (.24)% J | (.36)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 38,678 | $ 36,694 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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 .09%. HInvestment 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 (.28)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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, 2013 (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. Class B shares are 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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), 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 338,197,880 |
Gross unrealized depreciation | (36,968,411) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 301,229,469 |
|
|
Tax cost | $ 1,763,941,824 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,265,389,808 and $1,379,509,496, 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 Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% 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% | $ 75,342 | $ 644 |
Class T | .25% | .25% | 69,426 | 12 |
Class B | .75% | .25% | 19,630 | 14,777 |
Class C | .75% | .25% | 125,782 | 18,396 |
|
|
| $ 290,180 | $ 33,829 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 shares, 1.00% for Class C shares, 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 | $ 9,508 |
Class T | 2,733 |
Class B* | 3,398 |
Class C* | 1,042 |
| $ 16,681 |
* 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 he 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 | $ 90,324 | .30 |
Class T | 42,884 | .31 |
Class B | 5,885 | .30 |
Class C | 37,754 | .30 |
Small Cap Growth | 1,260,622 | .22 |
Institutional Class | 44,683 | .24 |
| $ 1,482,152 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $31,528 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 | $ 10,856,167 | .37% | $ 674 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,306 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
Semiannual Report
7. 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 $9,819,905. 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 $66,932 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 $250,919 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $179.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 3,855,020 | $ 1,262,924 |
Class T | 1,778,950 | 573,407 |
Class B | 260,524 | 101,910 |
Class C | 1,656,727 | 481,854 |
Small Cap Growth | 74,940,031 | 25,434,274 |
Class F | 37,680,389 | 6,152,820 |
Institutional Class | 2,388,845 | 792,240 |
Total | $ 122,560,486 | $ 34,799,429 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 401,729 | 986,718 | $ 6,441,443 | $ 14,926,996 |
Reinvestment of distributions | 231,282 | 85,896 | 3,646,231 | 1,194,285 |
Shares redeemed | (604,474) | (1,407,222) | (9,643,130) | (21,375,353) |
Net increase (decrease) | 28,537 | (334,608) | $ 444,544 | $ (5,254,072) |
Class T |
|
|
|
|
Shares sold | 195,435 | 358,193 | $ 3,084,745 | $ 5,456,756 |
Reinvestment of distributions | 106,643 | 38,774 | 1,660,162 | 533,890 |
Shares redeemed | (356,162) | (523,310) | (5,625,295) | (7,812,853) |
Net increase (decrease) | (54,084) | (126,343) | $ (880,388) | $ (1,822,207) |
Class B |
|
|
|
|
Shares sold | 3,365 | 11,810 | $ 50,992 | $ 172,624 |
Reinvestment of distributions | 16,337 | 7,173 | 246,159 | 96,091 |
Shares redeemed | (52,096) | (81,516) | (795,448) | (1,196,288) |
Net increase (decrease) | (32,394) | (62,533) | $ (498,297) | $ (927,573) |
Class C |
|
|
|
|
Shares sold | 165,542 | 405,451 | $ 2,519,979 | $ 5,976,693 |
Reinvestment of distributions | 103,215 | 33,110 | 1,550,542 | 443,092 |
Shares redeemed | (236,997) | (384,855) | (3,591,513) | (5,527,477) |
Net increase (decrease) | 31,760 | 53,706 | $ 479,008 | $ 892,308 |
Small Cap Growth |
|
|
|
|
Shares sold | 4,093,308 | 14,552,522 | $ 66,680,196 | $ 226,496,807 |
Reinvestment of distributions | 4,595,874 | 1,774,167 | 73,721,309 | 25,022,882 |
Shares redeemed | (11,866,561) | (27,135,724) | (193,343,582) | (414,348,619) |
Net increase (decrease) | (3,177,379) | (10,809,035) | $ (52,942,077) | $ (162,828,930) |
Class F |
|
|
|
|
Shares sold | 4,726,483 | 16,430,240 | $ 77,771,613 | $ 255,874,632 |
Reinvestment of distributions | 2,336,095 | 432,802 | 37,680,389 | 6,152,820 |
Shares redeemed | (1,542,221) | (1,757,546) | (25,423,838) | (26,811,905) |
Net increase (decrease) | 5,520,357 | 15,105,496 | $ 90,028,164 | $ 235,215,547 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 234,998 | 819,623 | $ 3,821,973 | $ 12,520,738 |
Reinvestment of distributions | 128,780 | 44,186 | 2,069,290 | 624,723 |
Shares redeemed | (351,912) | (1,078,752) | (5,719,602) | (16,617,897) |
Net increase (decrease) | 11,866 | (214,943) | $ 171,661 | $ (3,472,436) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 62% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ASCP-USAN-0313 1.803716.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
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 1-877-208-0098 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.90 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,115.90 | $ 8.05 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.40 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.60 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Small Cap Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 4.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 3.74 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,118.70 | $ 5.02 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Aspen Technology, Inc. | 1.7 | 1.3 |
HSN, Inc. | 1.7 | 0.0 |
CommVault Systems, Inc. | 1.5 | 0.9 |
Middleby Corp. | 1.4 | 0.0 |
Medidata Solutions, Inc. | 1.4 | 0.0 |
Axiall Corp. | 1.4 | 0.0 |
Genesee & Wyoming, Inc. Class A | 1.4 | 0.6 |
Maximus, Inc. | 1.2 | 0.9 |
Cornerstone OnDemand, Inc. | 1.2 | 0.9 |
Conn's, Inc. | 1.1 | 0.2 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 19.2 | 20.6 |
Health Care | 18.8 | 21.2 |
Consumer Discretionary | 17.2 | 17.5 |
Industrials | 15.5 | 14.6 |
Financials | 7.3 | 9.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 95.5% |
| ![]() | Stocks 96.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.6% |
| ** Foreign investments | 9.1% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 450,000 | $ 20,619,000 | |
Diversified Consumer Services - 1.4% | |||
Grand Canyon Education, Inc. (a) | 740,000 | 17,656,400 | |
Weight Watchers International, Inc. (d) | 199,365 | 10,660,047 | |
| 28,316,447 | ||
Hotels, Restaurants & Leisure - 4.5% | |||
AFC Enterprises, Inc. (a) | 470,000 | 13,658,200 | |
Chuys Holdings, Inc. | 285,540 | 8,103,625 | |
Denny's Corp. (a) | 2,300,000 | 11,638,000 | |
Interval Leisure Group, Inc. | 1,021,800 | 20,231,640 | |
Jack in the Box, Inc. (a) | 600,000 | 17,418,000 | |
Papa John's International, Inc. (a) | 300,000 | 16,830,000 | |
| 87,879,465 | ||
Household Durables - 1.3% | |||
Jarden Corp. | 290,000 | 17,063,600 | |
Toll Brothers, Inc. (a) | 251,300 | 9,411,185 | |
| 26,474,785 | ||
Internet & Catalog Retail - 1.7% | |||
HSN, Inc. | 545,000 | 32,482,000 | |
Leisure Equipment & Products - 1.1% | |||
Brunswick Corp. | 600,000 | 21,696,000 | |
Media - 0.6% | |||
National CineMedia, Inc. | 755,800 | 11,548,624 | |
Multiline Retail - 0.3% | |||
The Bon-Ton Stores, Inc. (d) | 500,000 | 6,275,000 | |
Specialty Retail - 3.7% | |||
Ascena Retail Group, Inc. (a) | 684,800 | 11,607,360 | |
Conn's, Inc. (a)(d) | 794,947 | 22,608,293 | |
DSW, Inc. Class A | 216,300 | 14,476,959 | |
Tile Shop Holdings, Inc. (a)(d) | 300,000 | 5,517,000 | |
Vitamin Shoppe, Inc. (a) | 322,300 | 19,686,084 | |
| 73,895,696 | ||
Textiles, Apparel & Luxury Goods - 1.6% | |||
Hanesbrands, Inc. (a) | 420,000 | 15,741,600 | |
Steven Madden Ltd. (a) | 331,400 | 15,270,912 | |
| 31,012,512 | ||
TOTAL CONSUMER DISCRETIONARY | 340,199,529 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.8% | |||
Food & Staples Retailing - 0.8% | |||
Susser Holdings Corp. (a) | 398,155 | $ 16,666,768 | |
Food Products - 1.8% | |||
Ingredion, Inc. | 140,000 | 9,249,800 | |
J&J Snack Foods Corp. | 200,000 | 13,630,000 | |
Post Holdings, Inc. (a) | 320,000 | 12,156,800 | |
| 35,036,600 | ||
Household Products - 0.7% | |||
Spectrum Brands Holdings, Inc. | 258,300 | 13,080,312 | |
Personal Products - 0.5% | |||
Elizabeth Arden, Inc. (a) | 275,000 | 10,562,750 | |
TOTAL CONSUMER STAPLES | 75,346,430 | ||
ENERGY - 6.5% | |||
Energy Equipment & Services - 3.6% | |||
Atwood Oceanics, Inc. (a) | 320,000 | 16,886,400 | |
Essential Energy Services Ltd. | 5,166,700 | 11,033,759 | |
Forum Energy Technologies, Inc. | 400,000 | 10,204,000 | |
Tesco Corp. (a) | 750,000 | 9,067,500 | |
Western Energy Services Corp. | 1,530,000 | 11,366,854 | |
Xtreme Drilling & Coil Services Corp. (a)(e) | 4,100,000 | 6,371,566 | |
Zedi, Inc. (a)(e) | 9,000,000 | 6,226,188 | |
| 71,156,267 | ||
Oil, Gas & Consumable Fuels - 2.9% | |||
EPL Oil & Gas, Inc. (a) | 500,000 | 12,230,000 | |
Stone Energy Corp. (a) | 436,300 | 9,816,750 | |
Targa Resources Corp. | 201,035 | 12,134,473 | |
Tesoro Logistics LP | 250,000 | 11,000,000 | |
Whitecap Resources, Inc. (d) | 1,300,000 | 12,473,431 | |
| 57,654,654 | ||
TOTAL ENERGY | 128,810,921 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 0.6% | |||
AllianceBernstein Holding LP | 590,000 | 12,012,400 | |
Commercial Banks - 2.2% | |||
BBCN Bancorp, Inc. | 1,440,000 | 17,409,600 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Pacific Premier Bancorp, Inc. (a) | 356,700 | $ 4,112,751 | |
Texas Capital Bancshares, Inc. (a) | 505,600 | 20,931,840 | |
| 42,454,191 | ||
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings Ltd. | 169,800 | 14,404,134 | |
Amerisafe, Inc. (a) | 464,900 | 13,314,736 | |
eHealth, Inc. (a) | 650,000 | 15,840,500 | |
ProAssurance Corp. | 280,000 | 12,611,200 | |
| 56,170,570 | ||
Real Estate Investment Trusts - 0.9% | |||
Sovran Self Storage, Inc. | 280,000 | 18,267,200 | |
Real Estate Management & Development - 0.7% | |||
Altisource Portfolio Solutions SA (a) | 156,400 | 13,742,868 | |
TOTAL FINANCIALS | 142,647,229 | ||
HEALTH CARE - 18.8% | |||
Biotechnology - 7.5% | |||
Alkermes PLC (a) | 175,500 | 4,045,275 | |
ARIAD Pharmaceuticals, Inc. (a) | 470,000 | 9,343,600 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 10,429,100 | |
Biovitrum AB (a) | 1,000,000 | 5,992,592 | |
Cubist Pharmaceuticals, Inc. (a) | 310,000 | 13,342,400 | |
Infinity Pharmaceuticals, Inc. (a) | 228,236 | 7,862,730 | |
Insmed, Inc. (a) | 800,000 | 4,680,000 | |
Isis Pharmaceuticals, Inc. (a)(d) | 447,257 | 6,498,644 | |
Medivation, Inc. (a) | 180,000 | 9,784,800 | |
OncoGenex Pharmaceuticals, Inc. (a) | 450,000 | 5,922,000 | |
Pharmacyclics, Inc. (a) | 120,000 | 8,319,600 | |
Sarepta Therapeutics, Inc. (a)(d) | 140,000 | 3,787,000 | |
Seattle Genetics, Inc. (a) | 440,000 | 12,958,000 | |
Sunesis Pharmaceuticals, Inc. (a)(d) | 1,097,300 | 6,221,691 | |
Synageva BioPharma Corp. (a) | 170,000 | 7,864,200 | |
Synergy Pharmaceuticals, Inc. (a) | 800,000 | 4,488,000 | |
Targacept, Inc. (a) | 500,000 | 2,245,000 | |
Theravance, Inc. (a) | 519,000 | 11,547,750 | |
Threshold Pharmaceuticals, Inc. (a)(d) | 1,155,000 | 5,336,100 | |
XOMA Corp. (a)(d) | 2,500,000 | 6,725,000 | |
| 147,393,482 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - 4.9% | |||
Align Technology, Inc. (a)(d) | 584,398 | $ 18,326,721 | |
ICU Medical, Inc. (a) | 200,000 | 12,090,000 | |
Sirona Dental Systems, Inc. (a) | 205,000 | 13,626,350 | |
Teleflex, Inc. | 269,300 | 20,197,500 | |
The Cooper Companies, Inc. | 111,900 | 11,341,065 | |
The Spectranetics Corp. (a) | 1,230,000 | 20,491,800 | |
| 96,073,436 | ||
Health Care Providers & Services - 2.6% | |||
Air Methods Corp. | 122,700 | 5,364,444 | |
Centene Corp. (a) | 330,000 | 14,242,800 | |
MEDNAX, Inc. (a) | 152,900 | 13,082,124 | |
MWI Veterinary Supply, Inc. (a) | 173,400 | 19,474,554 | |
| 52,163,922 | ||
Health Care Technology - 2.4% | |||
MedAssets, Inc. (a) | 1,030,000 | 20,136,500 | |
Medidata Solutions, Inc. (a) | 603,948 | 28,258,727 | |
| 48,395,227 | ||
Pharmaceuticals - 1.4% | |||
Biodelivery Sciences International, Inc. (a)(d) | 1,257,084 | 5,480,886 | |
Jazz Pharmaceuticals PLC (a) | 250,000 | 14,097,500 | |
ViroPharma, Inc. (a) | 270,000 | 7,198,200 | |
| 26,776,586 | ||
TOTAL HEALTH CARE | 370,802,653 | ||
INDUSTRIALS - 15.5% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 195,700 | 13,358,482 | |
Building Products - 0.5% | |||
Armstrong World Industries, Inc. | 185,000 | 10,173,150 | |
Electrical Equipment - 2.0% | |||
Generac Holdings, Inc. (d) | 560,000 | 20,820,800 | |
Hubbell, Inc. Class B | 161,800 | 14,731,890 | |
Polypore International, Inc. (a)(d) | 122,065 | 4,710,488 | |
| 40,263,178 | ||
Industrial Conglomerates - 1.0% | |||
Carlisle Companies, Inc. | 300,000 | 19,245,000 | |
Machinery - 6.0% | |||
Actuant Corp. Class A | 503,100 | 14,831,388 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Middleby Corp. (a) | 200,000 | $ 28,272,000 | |
Oshkosh Truck Corp. (a) | 350,000 | 13,713,000 | |
Proto Labs, Inc. (d) | 252,194 | 10,372,739 | |
TriMas Corp. (a) | 605,298 | 18,697,655 | |
Valmont Industries, Inc. | 105,032 | 15,305,263 | |
Wabtec Corp. | 192,300 | 18,003,126 | |
| 119,195,171 | ||
Professional Services - 1.8% | |||
Advisory Board Co. (a) | 295,105 | 16,003,544 | |
Nielsen Holdings B.V. (a) | 310,000 | 10,078,100 | |
Nihon M&A Center, Inc. | 285,512 | 10,084,792 | |
| 36,166,436 | ||
Road & Rail - 1.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 320,000 | 27,065,600 | |
Trading Companies & Distributors - 2.1% | |||
DXP Enterprises, Inc. (a) | 224,719 | 12,786,511 | |
Watsco, Inc. | 229,000 | 17,255,150 | |
WESCO International, Inc. (a) | 150,000 | 10,939,500 | |
| 40,981,161 | ||
TOTAL INDUSTRIALS | 306,448,178 | ||
INFORMATION TECHNOLOGY - 19.2% | |||
Communications Equipment - 1.0% | |||
Arris Group, Inc. (a) | 700,000 | 11,564,000 | |
Telular Corp. | 850,000 | 9,426,500 | |
| 20,990,500 | ||
Computers & Peripherals - 0.2% | |||
Cray, Inc. (a) | 128,600 | 2,388,102 | |
Super Micro Computer, Inc. (a) | 87,903 | 1,088,239 | |
| 3,476,341 | ||
Electronic Equipment & Components - 3.9% | |||
FEI Co. | 300,000 | 18,288,000 | |
FLIR Systems, Inc. | 400,000 | 9,508,000 | |
InvenSense, Inc. (a)(d) | 1,350,000 | 19,710,000 | |
Neonode, Inc. (a)(d)(e) | 2,069,069 | 10,759,159 | |
Parametric Sound Corp. (a)(d)(e) | 596,019 | 4,940,998 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Uni-Pixel, Inc. (a)(d) | 430,000 | $ 5,766,300 | |
Zygo Corp. (a) | 506,129 | 8,052,512 | |
| 77,024,969 | ||
Internet Software & Services - 2.8% | |||
Blucora, Inc. (a) | 1,087,314 | 16,157,486 | |
Cornerstone OnDemand, Inc. (a) | 710,000 | 23,202,800 | |
Demandware, Inc. (d) | 239,007 | 7,598,033 | |
E2open, Inc. (d) | 485,194 | 8,660,713 | |
| 55,619,032 | ||
IT Services - 1.8% | |||
Maximus, Inc. | 343,376 | 23,545,292 | |
Total System Services, Inc. | 533,868 | 12,412,431 | |
| 35,957,723 | ||
Semiconductors & Semiconductor Equipment - 1.6% | |||
Hittite Microwave Corp. (a) | 321,863 | 19,755,951 | |
MagnaChip Semiconductor Corp. (a) | 279,866 | 4,483,453 | |
PDF Solutions, Inc. (a) | 466,056 | 7,000,161 | |
| 31,239,565 | ||
Software - 7.9% | |||
Aspen Technology, Inc. (a) | 1,092,200 | 33,421,322 | |
CommVault Systems, Inc. (a) | 380,000 | 29,157,400 | |
Ebix, Inc. (d) | 633,610 | 10,353,187 | |
Fair Isaac Corp. | 450,000 | 20,281,500 | |
Manhattan Associates, Inc. (a) | 288,199 | 19,744,513 | |
Sourcefire, Inc. (a) | 360,000 | 15,336,000 | |
Synopsys, Inc. (a) | 540,000 | 18,057,600 | |
Tyler Technologies, Inc. (a) | 177,842 | 9,612,360 | |
| 155,963,882 | ||
TOTAL INFORMATION TECHNOLOGY | 380,272,012 | ||
MATERIALS - 6.0% | |||
Chemicals - 3.7% | |||
Axiall Corp. (d) | 490,000 | 27,528,200 | |
Chemtura Corp. (a) | 850,000 | 20,162,000 | |
Cytec Industries, Inc. | 250,000 | 18,325,000 | |
Innospec, Inc. | 176,424 | 7,101,066 | |
| 73,116,266 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Containers & Packaging - 0.7% | |||
Myers Industries, Inc. | 850,000 | $ 12,563,000 | |
Metals & Mining - 1.6% | |||
Commercial Metals Co. | 809,800 | 13,483,170 | |
Compass Minerals International, Inc. (d) | 120,000 | 8,646,000 | |
Kaiser Aluminum Corp. | 160,000 | 9,945,600 | |
| 32,074,770 | ||
TOTAL MATERIALS | 117,754,036 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Diversified Telecommunication Services - 1.2% | |||
8x8, Inc. (a) | 1,000,000 | 6,620,000 | |
Cogent Communications Group, Inc. | 700,000 | 17,339,000 | |
| 23,959,000 | ||
TOTAL COMMON STOCKS (Cost $1,583,197,871) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Commercial Banks - 0.1% | |||
Banco Pine SA (Cost $1,284,051) | 210,171 |
| |
Money Market Funds - 9.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 48,766,939 | 48,766,939 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 128,626,620 | 128,626,620 | |
TOTAL MONEY MARKET FUNDS (Cost $177,393,559) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $1,761,875,481) | 2,065,171,293 | ||
NET OTHER ASSETS (LIABILITIES) - (4.5)% | (88,247,604) | ||
NET ASSETS - 100% | $ 1,976,923,689 |
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 | $ 51,356 |
Fidelity Securities Lending Cash Central Fund | 681,719 |
Total | $ 733,075 |
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, |
Neonode, Inc. | $ 6,969,000 | $ 2,720,529 | $ - | $ - | $ 10,759,159 |
Parametric Sound Corp. | 2,428,413 | 2,697,936 | 26,714 | - | 4,940,998 |
Telular Corp. | 4,715,000 | 3,371,313 | - | 157,000 | - |
US Home Systems, Inc. | 6,604,750 | - | 8,975,299 | - | - |
Xtreme Drilling & Coil Services Corp. | 6,786,658 | 178,443 | 201,743 | - | 6,371,566 |
Zedi, Inc. | 3,905,172 | 2,997,316 | - | - | 6,226,188 |
Total | $ 31,408,993 | $ 11,965,537 | $ 9,203,756 | $ 157,000 | $ 28,297,911 |
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 Investment 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,507,398) - See accompanying schedule: Unaffiliated issuers (cost $1,549,083,993) | $ 1,859,479,823 |
|
Fidelity Central Funds (cost $177,393,559) | 177,393,559 |
|
Other affiliated issuers (cost $35,397,929) | 28,297,911 |
|
Total Investments (cost $1,761,875,481) |
| $ 2,065,171,293 |
Cash |
| 546,758 |
Receivable for investments sold | 55,929,490 | |
Receivable for fund shares sold | 1,827,116 | |
Dividends receivable | 535,035 | |
Distributions receivable from Fidelity Central Funds | 227,279 | |
Prepaid expenses | 4,442 | |
Other receivables | 141,564 | |
Total assets | 2,124,382,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,954,334 | |
Payable for fund shares redeemed | 2,530,242 | |
Accrued management fee | 967,499 | |
Distribution and service plan fees payable | 49,036 | |
Other affiliated payables | 288,040 | |
Other payables and accrued expenses | 43,517 | |
Collateral on securities loaned, at value | 128,626,620 | |
Total liabilities | 147,459,288 | |
|
|
|
Net Assets | $ 1,976,923,689 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,641,389,930 | |
Undistributed net investment income | 619,919 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 31,620,630 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 303,293,210 | |
Net Assets | $ 1,976,923,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 16.61 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.61) | $ 17.62 | |
Class T: | $ 16.40 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.40) | $ 16.99 | |
Class B: | $ 15.82 | |
|
|
|
Class C: | $ 15.79 | |
|
|
|
Small Cap Growth: | $ 16.92 | |
|
|
|
Class F: | $ 17.06 | |
|
|
|
Institutional Class: | $ 16.95 |
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, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $157,000 earned from other affiliated issuers) |
| $ 7,168,759 |
Special dividends |
| 2,362,000 |
Interest |
| 667 |
Income from Fidelity Central Funds (including $681,719 from security lending) |
| 733,075 |
Total income |
| 10,264,501 |
|
|
|
Expenses | ||
Management fee | $ 6,714,777 | |
Performance adjustment | (496,133) | |
Transfer agent fees | 1,482,152 | |
Distribution and service plan fees | 290,180 | |
Accounting and security lending fees | 297,632 | |
Custodian fees and expenses | 35,087 | |
Independent trustees' compensation | 6,229 | |
Registration fees | 77,661 | |
Audit | 31,862 | |
Legal | 5,032 | |
Interest | 674 | |
Miscellaneous | 7,769 | |
Total expenses before reductions | 8,452,922 | |
Expense reductions | (251,098) | 8,201,824 |
Net investment income (loss) | 2,062,677 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 90,388,589 | |
Other affiliated issuers | 223,046 |
|
Foreign currency transactions | (32,590) | |
Total net realized gain (loss) |
| 90,579,045 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 122,799,316 | |
Assets and liabilities in foreign currencies | 8,393 | |
Total change in net unrealized appreciation (depreciation) |
| 122,807,709 |
Net gain (loss) | 213,386,754 | |
Net increase (decrease) in net assets resulting from operations | $ 215,449,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,062,677 | $ (2,581,285) |
Net realized gain (loss) | 90,579,045 | 84,159,524 |
Change in net unrealized appreciation (depreciation) | 122,807,709 | (104,802,589) |
Net increase (decrease) in net assets resulting | 215,449,431 | (23,224,350) |
Distributions to shareholders from net realized gain | (122,560,486) | (34,799,429) |
Share transactions - net increase (decrease) | 36,802,615 | 61,802,637 |
Redemption fees | 59,925 | 255,125 |
Total increase (decrease) in net assets | 129,751,485 | 4,033,983 |
|
|
|
Net Assets | ||
Beginning of period | 1,847,172,204 | 1,843,138,221 |
End of period (including undistributed net investment income of $619,919 and accumulated net investment loss of $1,442,758, respectively) | $ 1,976,923,689 | $ 1,847,172,204 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) H | (.07) I | (.07) J | (.07) K | (.06) | (.11) |
Net realized and unrealized gain (loss) | 1.79 | (.16) | 3.84 | 1.94 | (2.35) | (1.73) |
Total from investment operations | 1.78 | (.23) | 3.77 | 1.87 | (2.41) | (1.84) |
Distributions from net realized gain | (1.04) | (.32) | (.01) N | - | - | (1.02) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.61 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 |
Total Return B, C, D | 11.69% | (1.14)% | 29.78% | 17.33% | (18.26)% | (12.26)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of fee waivers, if any | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of all reductions | 1.23% A | 1.34% | 1.23% | 1.34% | 1.33% | 1.39% |
Net investment income (loss) | (.15)% A, H | (.49)% I | (.47)% J | (.56)% K | (.64)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,967 | $ 59,684 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IInvestment 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 (.57)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount represents less than $.01 per share. NThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.11) I | (.11) J | (.10) K | (.09) | (.15) |
Net realized and unrealized gain (loss) | 1.78 | (.16) | 3.81 | 1.93 | (2.34) | (1.73) |
Total from investment operations | 1.75 | (.27) | 3.70 | 1.83 | (2.43) | (1.88) |
Distributions from net realized gain | (1.03) | (.32) | - | - | - | (.96) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.40 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 |
Total Return B, C, D | 11.59% | (1.41)% | 29.44% | 17.04% | (18.45)% | (12.50)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of fee waivers, if any | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of all reductions | 1.49% A | 1.60% | 1.49% | 1.60% | 1.59% | 1.65% |
Net investment income (loss) | (.41)% A, H | (.74)% I | (.73)% J | (.82)% K | (.91)% | (.99)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28,041 | $ 27,658 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IInvestment 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 (.83)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.74 | 1.89 | (2.33) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.56 | 1.73 | (2.46) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.89) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.82 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 |
Total Return B, C, D | 11.34% | (1.96)% | 28.94% | 16.37% | (18.88)% | (12.92)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.08% | 2.15% |
Net investment income (loss) | (.90)% A, H | (1.23)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,781 | $ 4,123 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.14)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.73 | 1.89 | (2.32) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.55 | 1.73 | (2.45) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.91) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 |
Total Return B, C, D | 11.36% | (1.96)% | 28.91% | 16.40% | (18.85)% | (12.94)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.07% | 2.14% |
Net investment income (loss) | (.90)% A, H | (1.24)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,199 | $ 24,683 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .02 G | (.03) H | (.03) I | (.04) J | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.82 | (.16) | 3.90 | 1.96 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.87 | 1.92 | (2.40) | (1.81) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 |
Total Return B, C | 11.90% | (.88)% | 30.20% | 17.63% | (18.06)% | (11.98)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of fee waivers, if any | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of all reductions | .89% A | 1.02% | .93% | 1.07% | 1.08% | 1.10% |
Net investment income (loss) | .19% A, G | (.16)%H | (.17)%I | (.29)%J | (.39)% | (.45)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,168,869 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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)%. HInvestment 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 (.25)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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) | 2012 | 2011 | 2010 | 2009 L |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 H | .01 I | .01 J | - K, N | (.01) |
Net realized and unrealized gain (loss) | 1.85 | (.16) | 3.91 | 1.95 | .88 |
Total from investment operations | 1.88 | (.15) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (1.08) | (.32) | (.04) O | - | - |
Redemption fees added to paid in capital D, N | - | - | - | - | - |
Net asset value, end of period | $ 17.06 | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | 12.04% | (.64)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, M |
|
|
|
|
|
Expenses before reductions | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of all reductions | .68% A | .79% | .68% | .77% | .73% A |
Net investment income (loss) | .40% A, H | .07% I | .08% J | -% G, K | (.54)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 648,388 | $ 528,229 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .16%. IInvestment 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 (.02)%. JInvestment 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)%. KInvestment 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)%. LFor the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. MExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. NAmount represents less than $.01 per share. OThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 G | (.03) H | (.03) I | (.03) J | (.03) | (.06) |
Net realized and unrealized gain (loss) | 1.83 | (.16) | 3.91 | 1.95 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.88 | 1.92 | (2.39) | (1.80) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.95 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 |
Total Return B, C | 11.87% | (.88)% | 30.24% | 17.60% | (17.97)% | (11.93)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of fee waivers, if any | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of all reductions | .92% A | 1.05% | .93% | 1.02% | 1.04% | 1.03% |
Net investment income (loss) | .16% A, G | (.19)% H | (.17)% I | (.24)% J | (.36)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 38,678 | $ 36,694 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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 .09%. HInvestment 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 (.28)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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, 2013 (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. Class B shares are 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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), 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 338,197,880 |
Gross unrealized depreciation | (36,968,411) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 301,229,469 |
|
|
Tax cost | $ 1,763,941,824 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,265,389,808 and $1,379,509,496, 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 Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% 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% | $ 75,342 | $ 644 |
Class T | .25% | .25% | 69,426 | 12 |
Class B | .75% | .25% | 19,630 | 14,777 |
Class C | .75% | .25% | 125,782 | 18,396 |
|
|
| $ 290,180 | $ 33,829 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 shares, 1.00% for Class C shares, 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 | $ 9,508 |
Class T | 2,733 |
Class B* | 3,398 |
Class C* | 1,042 |
| $ 16,681 |
* 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 he 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 | $ 90,324 | .30 |
Class T | 42,884 | .31 |
Class B | 5,885 | .30 |
Class C | 37,754 | .30 |
Small Cap Growth | 1,260,622 | .22 |
Institutional Class | 44,683 | .24 |
| $ 1,482,152 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $31,528 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 | $ 10,856,167 | .37% | $ 674 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,306 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
Semiannual Report
7. 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 $9,819,905. 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 $66,932 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 $250,919 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $179.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 3,855,020 | $ 1,262,924 |
Class T | 1,778,950 | 573,407 |
Class B | 260,524 | 101,910 |
Class C | 1,656,727 | 481,854 |
Small Cap Growth | 74,940,031 | 25,434,274 |
Class F | 37,680,389 | 6,152,820 |
Institutional Class | 2,388,845 | 792,240 |
Total | $ 122,560,486 | $ 34,799,429 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 401,729 | 986,718 | $ 6,441,443 | $ 14,926,996 |
Reinvestment of distributions | 231,282 | 85,896 | 3,646,231 | 1,194,285 |
Shares redeemed | (604,474) | (1,407,222) | (9,643,130) | (21,375,353) |
Net increase (decrease) | 28,537 | (334,608) | $ 444,544 | $ (5,254,072) |
Class T |
|
|
|
|
Shares sold | 195,435 | 358,193 | $ 3,084,745 | $ 5,456,756 |
Reinvestment of distributions | 106,643 | 38,774 | 1,660,162 | 533,890 |
Shares redeemed | (356,162) | (523,310) | (5,625,295) | (7,812,853) |
Net increase (decrease) | (54,084) | (126,343) | $ (880,388) | $ (1,822,207) |
Class B |
|
|
|
|
Shares sold | 3,365 | 11,810 | $ 50,992 | $ 172,624 |
Reinvestment of distributions | 16,337 | 7,173 | 246,159 | 96,091 |
Shares redeemed | (52,096) | (81,516) | (795,448) | (1,196,288) |
Net increase (decrease) | (32,394) | (62,533) | $ (498,297) | $ (927,573) |
Class C |
|
|
|
|
Shares sold | 165,542 | 405,451 | $ 2,519,979 | $ 5,976,693 |
Reinvestment of distributions | 103,215 | 33,110 | 1,550,542 | 443,092 |
Shares redeemed | (236,997) | (384,855) | (3,591,513) | (5,527,477) |
Net increase (decrease) | 31,760 | 53,706 | $ 479,008 | $ 892,308 |
Small Cap Growth |
|
|
|
|
Shares sold | 4,093,308 | 14,552,522 | $ 66,680,196 | $ 226,496,807 |
Reinvestment of distributions | 4,595,874 | 1,774,167 | 73,721,309 | 25,022,882 |
Shares redeemed | (11,866,561) | (27,135,724) | (193,343,582) | (414,348,619) |
Net increase (decrease) | (3,177,379) | (10,809,035) | $ (52,942,077) | $ (162,828,930) |
Class F |
|
|
|
|
Shares sold | 4,726,483 | 16,430,240 | $ 77,771,613 | $ 255,874,632 |
Reinvestment of distributions | 2,336,095 | 432,802 | 37,680,389 | 6,152,820 |
Shares redeemed | (1,542,221) | (1,757,546) | (25,423,838) | (26,811,905) |
Net increase (decrease) | 5,520,357 | 15,105,496 | $ 90,028,164 | $ 235,215,547 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 234,998 | 819,623 | $ 3,821,973 | $ 12,520,738 |
Reinvestment of distributions | 128,780 | 44,186 | 2,069,290 | 624,723 |
Shares redeemed | (351,912) | (1,078,752) | (5,719,602) | (16,617,897) |
Net increase (decrease) | 11,866 | (214,943) | $ 171,661 | $ (3,472,436) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 62% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
ASCPI-USAN-0313 1.803724.109
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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
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, 2012 to January 31, 2013).
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 | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.90 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,115.90 | $ 8.05 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.40 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.60 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Small Cap Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 4.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 3.74 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,118.70 | $ 5.02 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Aspen Technology, Inc. | 1.7 | 1.3 |
HSN, Inc. | 1.7 | 0.0 |
CommVault Systems, Inc. | 1.5 | 0.9 |
Middleby Corp. | 1.4 | 0.0 |
Medidata Solutions, Inc. | 1.4 | 0.0 |
Axiall Corp. | 1.4 | 0.0 |
Genesee & Wyoming, Inc. Class A | 1.4 | 0.6 |
Maximus, Inc. | 1.2 | 0.9 |
Cornerstone OnDemand, Inc. | 1.2 | 0.9 |
Conn's, Inc. | 1.1 | 0.2 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 19.2 | 20.6 |
Health Care | 18.8 | 21.2 |
Consumer Discretionary | 17.2 | 17.5 |
Industrials | 15.5 | 14.6 |
Financials | 7.3 | 9.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 95.5% |
| ![]() | Stocks 96.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.6% |
| ** Foreign investments | 9.1% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 450,000 | $ 20,619,000 | |
Diversified Consumer Services - 1.4% | |||
Grand Canyon Education, Inc. (a) | 740,000 | 17,656,400 | |
Weight Watchers International, Inc. (d) | 199,365 | 10,660,047 | |
| 28,316,447 | ||
Hotels, Restaurants & Leisure - 4.5% | |||
AFC Enterprises, Inc. (a) | 470,000 | 13,658,200 | |
Chuys Holdings, Inc. | 285,540 | 8,103,625 | |
Denny's Corp. (a) | 2,300,000 | 11,638,000 | |
Interval Leisure Group, Inc. | 1,021,800 | 20,231,640 | |
Jack in the Box, Inc. (a) | 600,000 | 17,418,000 | |
Papa John's International, Inc. (a) | 300,000 | 16,830,000 | |
| 87,879,465 | ||
Household Durables - 1.3% | |||
Jarden Corp. | 290,000 | 17,063,600 | |
Toll Brothers, Inc. (a) | 251,300 | 9,411,185 | |
| 26,474,785 | ||
Internet & Catalog Retail - 1.7% | |||
HSN, Inc. | 545,000 | 32,482,000 | |
Leisure Equipment & Products - 1.1% | |||
Brunswick Corp. | 600,000 | 21,696,000 | |
Media - 0.6% | |||
National CineMedia, Inc. | 755,800 | 11,548,624 | |
Multiline Retail - 0.3% | |||
The Bon-Ton Stores, Inc. (d) | 500,000 | 6,275,000 | |
Specialty Retail - 3.7% | |||
Ascena Retail Group, Inc. (a) | 684,800 | 11,607,360 | |
Conn's, Inc. (a)(d) | 794,947 | 22,608,293 | |
DSW, Inc. Class A | 216,300 | 14,476,959 | |
Tile Shop Holdings, Inc. (a)(d) | 300,000 | 5,517,000 | |
Vitamin Shoppe, Inc. (a) | 322,300 | 19,686,084 | |
| 73,895,696 | ||
Textiles, Apparel & Luxury Goods - 1.6% | |||
Hanesbrands, Inc. (a) | 420,000 | 15,741,600 | |
Steven Madden Ltd. (a) | 331,400 | 15,270,912 | |
| 31,012,512 | ||
TOTAL CONSUMER DISCRETIONARY | 340,199,529 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.8% | |||
Food & Staples Retailing - 0.8% | |||
Susser Holdings Corp. (a) | 398,155 | $ 16,666,768 | |
Food Products - 1.8% | |||
Ingredion, Inc. | 140,000 | 9,249,800 | |
J&J Snack Foods Corp. | 200,000 | 13,630,000 | |
Post Holdings, Inc. (a) | 320,000 | 12,156,800 | |
| 35,036,600 | ||
Household Products - 0.7% | |||
Spectrum Brands Holdings, Inc. | 258,300 | 13,080,312 | |
Personal Products - 0.5% | |||
Elizabeth Arden, Inc. (a) | 275,000 | 10,562,750 | |
TOTAL CONSUMER STAPLES | 75,346,430 | ||
ENERGY - 6.5% | |||
Energy Equipment & Services - 3.6% | |||
Atwood Oceanics, Inc. (a) | 320,000 | 16,886,400 | |
Essential Energy Services Ltd. | 5,166,700 | 11,033,759 | |
Forum Energy Technologies, Inc. | 400,000 | 10,204,000 | |
Tesco Corp. (a) | 750,000 | 9,067,500 | |
Western Energy Services Corp. | 1,530,000 | 11,366,854 | |
Xtreme Drilling & Coil Services Corp. (a)(e) | 4,100,000 | 6,371,566 | |
Zedi, Inc. (a)(e) | 9,000,000 | 6,226,188 | |
| 71,156,267 | ||
Oil, Gas & Consumable Fuels - 2.9% | |||
EPL Oil & Gas, Inc. (a) | 500,000 | 12,230,000 | |
Stone Energy Corp. (a) | 436,300 | 9,816,750 | |
Targa Resources Corp. | 201,035 | 12,134,473 | |
Tesoro Logistics LP | 250,000 | 11,000,000 | |
Whitecap Resources, Inc. (d) | 1,300,000 | 12,473,431 | |
| 57,654,654 | ||
TOTAL ENERGY | 128,810,921 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 0.6% | |||
AllianceBernstein Holding LP | 590,000 | 12,012,400 | |
Commercial Banks - 2.2% | |||
BBCN Bancorp, Inc. | 1,440,000 | 17,409,600 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Pacific Premier Bancorp, Inc. (a) | 356,700 | $ 4,112,751 | |
Texas Capital Bancshares, Inc. (a) | 505,600 | 20,931,840 | |
| 42,454,191 | ||
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings Ltd. | 169,800 | 14,404,134 | |
Amerisafe, Inc. (a) | 464,900 | 13,314,736 | |
eHealth, Inc. (a) | 650,000 | 15,840,500 | |
ProAssurance Corp. | 280,000 | 12,611,200 | |
| 56,170,570 | ||
Real Estate Investment Trusts - 0.9% | |||
Sovran Self Storage, Inc. | 280,000 | 18,267,200 | |
Real Estate Management & Development - 0.7% | |||
Altisource Portfolio Solutions SA (a) | 156,400 | 13,742,868 | |
TOTAL FINANCIALS | 142,647,229 | ||
HEALTH CARE - 18.8% | |||
Biotechnology - 7.5% | |||
Alkermes PLC (a) | 175,500 | 4,045,275 | |
ARIAD Pharmaceuticals, Inc. (a) | 470,000 | 9,343,600 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 10,429,100 | |
Biovitrum AB (a) | 1,000,000 | 5,992,592 | |
Cubist Pharmaceuticals, Inc. (a) | 310,000 | 13,342,400 | |
Infinity Pharmaceuticals, Inc. (a) | 228,236 | 7,862,730 | |
Insmed, Inc. (a) | 800,000 | 4,680,000 | |
Isis Pharmaceuticals, Inc. (a)(d) | 447,257 | 6,498,644 | |
Medivation, Inc. (a) | 180,000 | 9,784,800 | |
OncoGenex Pharmaceuticals, Inc. (a) | 450,000 | 5,922,000 | |
Pharmacyclics, Inc. (a) | 120,000 | 8,319,600 | |
Sarepta Therapeutics, Inc. (a)(d) | 140,000 | 3,787,000 | |
Seattle Genetics, Inc. (a) | 440,000 | 12,958,000 | |
Sunesis Pharmaceuticals, Inc. (a)(d) | 1,097,300 | 6,221,691 | |
Synageva BioPharma Corp. (a) | 170,000 | 7,864,200 | |
Synergy Pharmaceuticals, Inc. (a) | 800,000 | 4,488,000 | |
Targacept, Inc. (a) | 500,000 | 2,245,000 | |
Theravance, Inc. (a) | 519,000 | 11,547,750 | |
Threshold Pharmaceuticals, Inc. (a)(d) | 1,155,000 | 5,336,100 | |
XOMA Corp. (a)(d) | 2,500,000 | 6,725,000 | |
| 147,393,482 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - 4.9% | |||
Align Technology, Inc. (a)(d) | 584,398 | $ 18,326,721 | |
ICU Medical, Inc. (a) | 200,000 | 12,090,000 | |
Sirona Dental Systems, Inc. (a) | 205,000 | 13,626,350 | |
Teleflex, Inc. | 269,300 | 20,197,500 | |
The Cooper Companies, Inc. | 111,900 | 11,341,065 | |
The Spectranetics Corp. (a) | 1,230,000 | 20,491,800 | |
| 96,073,436 | ||
Health Care Providers & Services - 2.6% | |||
Air Methods Corp. | 122,700 | 5,364,444 | |
Centene Corp. (a) | 330,000 | 14,242,800 | |
MEDNAX, Inc. (a) | 152,900 | 13,082,124 | |
MWI Veterinary Supply, Inc. (a) | 173,400 | 19,474,554 | |
| 52,163,922 | ||
Health Care Technology - 2.4% | |||
MedAssets, Inc. (a) | 1,030,000 | 20,136,500 | |
Medidata Solutions, Inc. (a) | 603,948 | 28,258,727 | |
| 48,395,227 | ||
Pharmaceuticals - 1.4% | |||
Biodelivery Sciences International, Inc. (a)(d) | 1,257,084 | 5,480,886 | |
Jazz Pharmaceuticals PLC (a) | 250,000 | 14,097,500 | |
ViroPharma, Inc. (a) | 270,000 | 7,198,200 | |
| 26,776,586 | ||
TOTAL HEALTH CARE | 370,802,653 | ||
INDUSTRIALS - 15.5% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 195,700 | 13,358,482 | |
Building Products - 0.5% | |||
Armstrong World Industries, Inc. | 185,000 | 10,173,150 | |
Electrical Equipment - 2.0% | |||
Generac Holdings, Inc. (d) | 560,000 | 20,820,800 | |
Hubbell, Inc. Class B | 161,800 | 14,731,890 | |
Polypore International, Inc. (a)(d) | 122,065 | 4,710,488 | |
| 40,263,178 | ||
Industrial Conglomerates - 1.0% | |||
Carlisle Companies, Inc. | 300,000 | 19,245,000 | |
Machinery - 6.0% | |||
Actuant Corp. Class A | 503,100 | 14,831,388 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Middleby Corp. (a) | 200,000 | $ 28,272,000 | |
Oshkosh Truck Corp. (a) | 350,000 | 13,713,000 | |
Proto Labs, Inc. (d) | 252,194 | 10,372,739 | |
TriMas Corp. (a) | 605,298 | 18,697,655 | |
Valmont Industries, Inc. | 105,032 | 15,305,263 | |
Wabtec Corp. | 192,300 | 18,003,126 | |
| 119,195,171 | ||
Professional Services - 1.8% | |||
Advisory Board Co. (a) | 295,105 | 16,003,544 | |
Nielsen Holdings B.V. (a) | 310,000 | 10,078,100 | |
Nihon M&A Center, Inc. | 285,512 | 10,084,792 | |
| 36,166,436 | ||
Road & Rail - 1.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 320,000 | 27,065,600 | |
Trading Companies & Distributors - 2.1% | |||
DXP Enterprises, Inc. (a) | 224,719 | 12,786,511 | |
Watsco, Inc. | 229,000 | 17,255,150 | |
WESCO International, Inc. (a) | 150,000 | 10,939,500 | |
| 40,981,161 | ||
TOTAL INDUSTRIALS | 306,448,178 | ||
INFORMATION TECHNOLOGY - 19.2% | |||
Communications Equipment - 1.0% | |||
Arris Group, Inc. (a) | 700,000 | 11,564,000 | |
Telular Corp. | 850,000 | 9,426,500 | |
| 20,990,500 | ||
Computers & Peripherals - 0.2% | |||
Cray, Inc. (a) | 128,600 | 2,388,102 | |
Super Micro Computer, Inc. (a) | 87,903 | 1,088,239 | |
| 3,476,341 | ||
Electronic Equipment & Components - 3.9% | |||
FEI Co. | 300,000 | 18,288,000 | |
FLIR Systems, Inc. | 400,000 | 9,508,000 | |
InvenSense, Inc. (a)(d) | 1,350,000 | 19,710,000 | |
Neonode, Inc. (a)(d)(e) | 2,069,069 | 10,759,159 | |
Parametric Sound Corp. (a)(d)(e) | 596,019 | 4,940,998 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Uni-Pixel, Inc. (a)(d) | 430,000 | $ 5,766,300 | |
Zygo Corp. (a) | 506,129 | 8,052,512 | |
| 77,024,969 | ||
Internet Software & Services - 2.8% | |||
Blucora, Inc. (a) | 1,087,314 | 16,157,486 | |
Cornerstone OnDemand, Inc. (a) | 710,000 | 23,202,800 | |
Demandware, Inc. (d) | 239,007 | 7,598,033 | |
E2open, Inc. (d) | 485,194 | 8,660,713 | |
| 55,619,032 | ||
IT Services - 1.8% | |||
Maximus, Inc. | 343,376 | 23,545,292 | |
Total System Services, Inc. | 533,868 | 12,412,431 | |
| 35,957,723 | ||
Semiconductors & Semiconductor Equipment - 1.6% | |||
Hittite Microwave Corp. (a) | 321,863 | 19,755,951 | |
MagnaChip Semiconductor Corp. (a) | 279,866 | 4,483,453 | |
PDF Solutions, Inc. (a) | 466,056 | 7,000,161 | |
| 31,239,565 | ||
Software - 7.9% | |||
Aspen Technology, Inc. (a) | 1,092,200 | 33,421,322 | |
CommVault Systems, Inc. (a) | 380,000 | 29,157,400 | |
Ebix, Inc. (d) | 633,610 | 10,353,187 | |
Fair Isaac Corp. | 450,000 | 20,281,500 | |
Manhattan Associates, Inc. (a) | 288,199 | 19,744,513 | |
Sourcefire, Inc. (a) | 360,000 | 15,336,000 | |
Synopsys, Inc. (a) | 540,000 | 18,057,600 | |
Tyler Technologies, Inc. (a) | 177,842 | 9,612,360 | |
| 155,963,882 | ||
TOTAL INFORMATION TECHNOLOGY | 380,272,012 | ||
MATERIALS - 6.0% | |||
Chemicals - 3.7% | |||
Axiall Corp. (d) | 490,000 | 27,528,200 | |
Chemtura Corp. (a) | 850,000 | 20,162,000 | |
Cytec Industries, Inc. | 250,000 | 18,325,000 | |
Innospec, Inc. | 176,424 | 7,101,066 | |
| 73,116,266 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Containers & Packaging - 0.7% | |||
Myers Industries, Inc. | 850,000 | $ 12,563,000 | |
Metals & Mining - 1.6% | |||
Commercial Metals Co. | 809,800 | 13,483,170 | |
Compass Minerals International, Inc. (d) | 120,000 | 8,646,000 | |
Kaiser Aluminum Corp. | 160,000 | 9,945,600 | |
| 32,074,770 | ||
TOTAL MATERIALS | 117,754,036 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Diversified Telecommunication Services - 1.2% | |||
8x8, Inc. (a) | 1,000,000 | 6,620,000 | |
Cogent Communications Group, Inc. | 700,000 | 17,339,000 | |
| 23,959,000 | ||
TOTAL COMMON STOCKS (Cost $1,583,197,871) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Commercial Banks - 0.1% | |||
Banco Pine SA (Cost $1,284,051) | 210,171 |
| |
Money Market Funds - 9.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 48,766,939 | 48,766,939 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 128,626,620 | 128,626,620 | |
TOTAL MONEY MARKET FUNDS (Cost $177,393,559) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $1,761,875,481) | 2,065,171,293 | ||
NET OTHER ASSETS (LIABILITIES) - (4.5)% | (88,247,604) | ||
NET ASSETS - 100% | $ 1,976,923,689 |
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 | $ 51,356 |
Fidelity Securities Lending Cash Central Fund | 681,719 |
Total | $ 733,075 |
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, |
Neonode, Inc. | $ 6,969,000 | $ 2,720,529 | $ - | $ - | $ 10,759,159 |
Parametric Sound Corp. | 2,428,413 | 2,697,936 | 26,714 | - | 4,940,998 |
Telular Corp. | 4,715,000 | 3,371,313 | - | 157,000 | - |
US Home Systems, Inc. | 6,604,750 | - | 8,975,299 | - | - |
Xtreme Drilling & Coil Services Corp. | 6,786,658 | 178,443 | 201,743 | - | 6,371,566 |
Zedi, Inc. | 3,905,172 | 2,997,316 | - | - | 6,226,188 |
Total | $ 31,408,993 | $ 11,965,537 | $ 9,203,756 | $ 157,000 | $ 28,297,911 |
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 Investment 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,507,398) - See accompanying schedule: Unaffiliated issuers (cost $1,549,083,993) | $ 1,859,479,823 |
|
Fidelity Central Funds (cost $177,393,559) | 177,393,559 |
|
Other affiliated issuers (cost $35,397,929) | 28,297,911 |
|
Total Investments (cost $1,761,875,481) |
| $ 2,065,171,293 |
Cash |
| 546,758 |
Receivable for investments sold | 55,929,490 | |
Receivable for fund shares sold | 1,827,116 | |
Dividends receivable | 535,035 | |
Distributions receivable from Fidelity Central Funds | 227,279 | |
Prepaid expenses | 4,442 | |
Other receivables | 141,564 | |
Total assets | 2,124,382,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,954,334 | |
Payable for fund shares redeemed | 2,530,242 | |
Accrued management fee | 967,499 | |
Distribution and service plan fees payable | 49,036 | |
Other affiliated payables | 288,040 | |
Other payables and accrued expenses | 43,517 | |
Collateral on securities loaned, at value | 128,626,620 | |
Total liabilities | 147,459,288 | |
|
|
|
Net Assets | $ 1,976,923,689 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,641,389,930 | |
Undistributed net investment income | 619,919 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 31,620,630 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 303,293,210 | |
Net Assets | $ 1,976,923,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 16.61 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.61) | $ 17.62 | |
Class T: | $ 16.40 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.40) | $ 16.99 | |
Class B: | $ 15.82 | |
|
|
|
Class C: | $ 15.79 | |
|
|
|
Small Cap Growth: | $ 16.92 | |
|
|
|
Class F: | $ 17.06 | |
|
|
|
Institutional Class: | $ 16.95 |
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, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $157,000 earned from other affiliated issuers) |
| $ 7,168,759 |
Special dividends |
| 2,362,000 |
Interest |
| 667 |
Income from Fidelity Central Funds (including $681,719 from security lending) |
| 733,075 |
Total income |
| 10,264,501 |
|
|
|
Expenses | ||
Management fee | $ 6,714,777 | |
Performance adjustment | (496,133) | |
Transfer agent fees | 1,482,152 | |
Distribution and service plan fees | 290,180 | |
Accounting and security lending fees | 297,632 | |
Custodian fees and expenses | 35,087 | |
Independent trustees' compensation | 6,229 | |
Registration fees | 77,661 | |
Audit | 31,862 | |
Legal | 5,032 | |
Interest | 674 | |
Miscellaneous | 7,769 | |
Total expenses before reductions | 8,452,922 | |
Expense reductions | (251,098) | 8,201,824 |
Net investment income (loss) | 2,062,677 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 90,388,589 | |
Other affiliated issuers | 223,046 |
|
Foreign currency transactions | (32,590) | |
Total net realized gain (loss) |
| 90,579,045 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 122,799,316 | |
Assets and liabilities in foreign currencies | 8,393 | |
Total change in net unrealized appreciation (depreciation) |
| 122,807,709 |
Net gain (loss) | 213,386,754 | |
Net increase (decrease) in net assets resulting from operations | $ 215,449,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,062,677 | $ (2,581,285) |
Net realized gain (loss) | 90,579,045 | 84,159,524 |
Change in net unrealized appreciation (depreciation) | 122,807,709 | (104,802,589) |
Net increase (decrease) in net assets resulting | 215,449,431 | (23,224,350) |
Distributions to shareholders from net realized gain | (122,560,486) | (34,799,429) |
Share transactions - net increase (decrease) | 36,802,615 | 61,802,637 |
Redemption fees | 59,925 | 255,125 |
Total increase (decrease) in net assets | 129,751,485 | 4,033,983 |
|
|
|
Net Assets | ||
Beginning of period | 1,847,172,204 | 1,843,138,221 |
End of period (including undistributed net investment income of $619,919 and accumulated net investment loss of $1,442,758, respectively) | $ 1,976,923,689 | $ 1,847,172,204 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) H | (.07) I | (.07) J | (.07) K | (.06) | (.11) |
Net realized and unrealized gain (loss) | 1.79 | (.16) | 3.84 | 1.94 | (2.35) | (1.73) |
Total from investment operations | 1.78 | (.23) | 3.77 | 1.87 | (2.41) | (1.84) |
Distributions from net realized gain | (1.04) | (.32) | (.01) N | - | - | (1.02) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.61 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 |
Total Return B, C, D | 11.69% | (1.14)% | 29.78% | 17.33% | (18.26)% | (12.26)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of fee waivers, if any | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of all reductions | 1.23% A | 1.34% | 1.23% | 1.34% | 1.33% | 1.39% |
Net investment income (loss) | (.15)% A, H | (.49)% I | (.47)% J | (.56)% K | (.64)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,967 | $ 59,684 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IInvestment 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 (.57)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount represents less than $.01 per share. NThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.11) I | (.11) J | (.10) K | (.09) | (.15) |
Net realized and unrealized gain (loss) | 1.78 | (.16) | 3.81 | 1.93 | (2.34) | (1.73) |
Total from investment operations | 1.75 | (.27) | 3.70 | 1.83 | (2.43) | (1.88) |
Distributions from net realized gain | (1.03) | (.32) | - | - | - | (.96) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.40 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 |
Total Return B, C, D | 11.59% | (1.41)% | 29.44% | 17.04% | (18.45)% | (12.50)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of fee waivers, if any | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of all reductions | 1.49% A | 1.60% | 1.49% | 1.60% | 1.59% | 1.65% |
Net investment income (loss) | (.41)% A, H | (.74)% I | (.73)% J | (.82)% K | (.91)% | (.99)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28,041 | $ 27,658 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IInvestment 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 (.83)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.74 | 1.89 | (2.33) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.56 | 1.73 | (2.46) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.89) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.82 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 |
Total Return B, C, D | 11.34% | (1.96)% | 28.94% | 16.37% | (18.88)% | (12.92)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.08% | 2.15% |
Net investment income (loss) | (.90)% A, H | (1.23)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,781 | $ 4,123 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.14)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.73 | 1.89 | (2.32) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.55 | 1.73 | (2.45) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.91) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 |
Total Return B, C, D | 11.36% | (1.96)% | 28.91% | 16.40% | (18.85)% | (12.94)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.07% | 2.14% |
Net investment income (loss) | (.90)% A, H | (1.24)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,199 | $ 24,683 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .02 G | (.03) H | (.03) I | (.04) J | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.82 | (.16) | 3.90 | 1.96 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.87 | 1.92 | (2.40) | (1.81) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 |
Total Return B, C | 11.90% | (.88)% | 30.20% | 17.63% | (18.06)% | (11.98)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of fee waivers, if any | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of all reductions | .89% A | 1.02% | .93% | 1.07% | 1.08% | 1.10% |
Net investment income (loss) | .19% A, G | (.16)%H | (.17)%I | (.29)%J | (.39)% | (.45)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,168,869 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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)%. HInvestment 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 (.25)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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) | 2012 | 2011 | 2010 | 2009 L |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 H | .01 I | .01 J | - K, N | (.01) |
Net realized and unrealized gain (loss) | 1.85 | (.16) | 3.91 | 1.95 | .88 |
Total from investment operations | 1.88 | (.15) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (1.08) | (.32) | (.04) O | - | - |
Redemption fees added to paid in capital D, N | - | - | - | - | - |
Net asset value, end of period | $ 17.06 | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | 12.04% | (.64)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, M |
|
|
|
|
|
Expenses before reductions | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of all reductions | .68% A | .79% | .68% | .77% | .73% A |
Net investment income (loss) | .40% A, H | .07% I | .08% J | -% G, K | (.54)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 648,388 | $ 528,229 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .16%. IInvestment 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 (.02)%. JInvestment 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)%. KInvestment 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)%. LFor the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. MExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. NAmount represents less than $.01 per share. OThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 G | (.03) H | (.03) I | (.03) J | (.03) | (.06) |
Net realized and unrealized gain (loss) | 1.83 | (.16) | 3.91 | 1.95 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.88 | 1.92 | (2.39) | (1.80) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.95 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 |
Total Return B, C | 11.87% | (.88)% | 30.24% | 17.60% | (17.97)% | (11.93)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of fee waivers, if any | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of all reductions | .92% A | 1.05% | .93% | 1.02% | 1.04% | 1.03% |
Net investment income (loss) | .16% A, G | (.19)% H | (.17)% I | (.24)% J | (.36)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 38,678 | $ 36,694 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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 .09%. HInvestment 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 (.28)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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, 2013 (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. Class B shares are 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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), 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 338,197,880 |
Gross unrealized depreciation | (36,968,411) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 301,229,469 |
|
|
Tax cost | $ 1,763,941,824 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,265,389,808 and $1,379,509,496, 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 Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% 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% | $ 75,342 | $ 644 |
Class T | .25% | .25% | 69,426 | 12 |
Class B | .75% | .25% | 19,630 | 14,777 |
Class C | .75% | .25% | 125,782 | 18,396 |
|
|
| $ 290,180 | $ 33,829 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 shares, 1.00% for Class C shares, 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 | $ 9,508 |
Class T | 2,733 |
Class B* | 3,398 |
Class C* | 1,042 |
| $ 16,681 |
* 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 he 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 | $ 90,324 | .30 |
Class T | 42,884 | .31 |
Class B | 5,885 | .30 |
Class C | 37,754 | .30 |
Small Cap Growth | 1,260,622 | .22 |
Institutional Class | 44,683 | .24 |
| $ 1,482,152 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $31,528 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 | $ 10,856,167 | .37% | $ 674 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,306 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
Semiannual Report
7. 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 $9,819,905. 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 $66,932 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 $250,919 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $179.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 3,855,020 | $ 1,262,924 |
Class T | 1,778,950 | 573,407 |
Class B | 260,524 | 101,910 |
Class C | 1,656,727 | 481,854 |
Small Cap Growth | 74,940,031 | 25,434,274 |
Class F | 37,680,389 | 6,152,820 |
Institutional Class | 2,388,845 | 792,240 |
Total | $ 122,560,486 | $ 34,799,429 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 401,729 | 986,718 | $ 6,441,443 | $ 14,926,996 |
Reinvestment of distributions | 231,282 | 85,896 | 3,646,231 | 1,194,285 |
Shares redeemed | (604,474) | (1,407,222) | (9,643,130) | (21,375,353) |
Net increase (decrease) | 28,537 | (334,608) | $ 444,544 | $ (5,254,072) |
Class T |
|
|
|
|
Shares sold | 195,435 | 358,193 | $ 3,084,745 | $ 5,456,756 |
Reinvestment of distributions | 106,643 | 38,774 | 1,660,162 | 533,890 |
Shares redeemed | (356,162) | (523,310) | (5,625,295) | (7,812,853) |
Net increase (decrease) | (54,084) | (126,343) | $ (880,388) | $ (1,822,207) |
Class B |
|
|
|
|
Shares sold | 3,365 | 11,810 | $ 50,992 | $ 172,624 |
Reinvestment of distributions | 16,337 | 7,173 | 246,159 | 96,091 |
Shares redeemed | (52,096) | (81,516) | (795,448) | (1,196,288) |
Net increase (decrease) | (32,394) | (62,533) | $ (498,297) | $ (927,573) |
Class C |
|
|
|
|
Shares sold | 165,542 | 405,451 | $ 2,519,979 | $ 5,976,693 |
Reinvestment of distributions | 103,215 | 33,110 | 1,550,542 | 443,092 |
Shares redeemed | (236,997) | (384,855) | (3,591,513) | (5,527,477) |
Net increase (decrease) | 31,760 | 53,706 | $ 479,008 | $ 892,308 |
Small Cap Growth |
|
|
|
|
Shares sold | 4,093,308 | 14,552,522 | $ 66,680,196 | $ 226,496,807 |
Reinvestment of distributions | 4,595,874 | 1,774,167 | 73,721,309 | 25,022,882 |
Shares redeemed | (11,866,561) | (27,135,724) | (193,343,582) | (414,348,619) |
Net increase (decrease) | (3,177,379) | (10,809,035) | $ (52,942,077) | $ (162,828,930) |
Class F |
|
|
|
|
Shares sold | 4,726,483 | 16,430,240 | $ 77,771,613 | $ 255,874,632 |
Reinvestment of distributions | 2,336,095 | 432,802 | 37,680,389 | 6,152,820 |
Shares redeemed | (1,542,221) | (1,757,546) | (25,423,838) | (26,811,905) |
Net increase (decrease) | 5,520,357 | 15,105,496 | $ 90,028,164 | $ 235,215,547 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 234,998 | 819,623 | $ 3,821,973 | $ 12,520,738 |
Reinvestment of distributions | 128,780 | 44,186 | 2,069,290 | 624,723 |
Shares redeemed | (351,912) | (1,078,752) | (5,719,602) | (16,617,897) |
Net increase (decrease) | 11,866 | (214,943) | $ 171,661 | $ (3,472,436) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 62% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SCP-USAN-0313 1.803699.108
Fidelity®
Small Cap Growth
Fund
Class F
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.90 | $ 6.67 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,115.90 | $ 8.05 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.40 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,113.60 | $ 10.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Small Cap Growth | .92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 4.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.57 | $ 4.69 |
Class F | .70% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 3.74 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.68 | $ 3.57 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,118.70 | $ 5.02 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Aspen Technology, Inc. | 1.7 | 1.3 |
HSN, Inc. | 1.7 | 0.0 |
CommVault Systems, Inc. | 1.5 | 0.9 |
Middleby Corp. | 1.4 | 0.0 |
Medidata Solutions, Inc. | 1.4 | 0.0 |
Axiall Corp. | 1.4 | 0.0 |
Genesee & Wyoming, Inc. Class A | 1.4 | 0.6 |
Maximus, Inc. | 1.2 | 0.9 |
Cornerstone OnDemand, Inc. | 1.2 | 0.9 |
Conn's, Inc. | 1.1 | 0.2 |
| 14.0 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 19.2 | 20.6 |
Health Care | 18.8 | 21.2 |
Consumer Discretionary | 17.2 | 17.5 |
Industrials | 15.5 | 14.6 |
Financials | 7.3 | 9.6 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 95.5% |
| ![]() | Stocks 96.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.6% |
| ** Foreign investments | 9.1% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 450,000 | $ 20,619,000 | |
Diversified Consumer Services - 1.4% | |||
Grand Canyon Education, Inc. (a) | 740,000 | 17,656,400 | |
Weight Watchers International, Inc. (d) | 199,365 | 10,660,047 | |
| 28,316,447 | ||
Hotels, Restaurants & Leisure - 4.5% | |||
AFC Enterprises, Inc. (a) | 470,000 | 13,658,200 | |
Chuys Holdings, Inc. | 285,540 | 8,103,625 | |
Denny's Corp. (a) | 2,300,000 | 11,638,000 | |
Interval Leisure Group, Inc. | 1,021,800 | 20,231,640 | |
Jack in the Box, Inc. (a) | 600,000 | 17,418,000 | |
Papa John's International, Inc. (a) | 300,000 | 16,830,000 | |
| 87,879,465 | ||
Household Durables - 1.3% | |||
Jarden Corp. | 290,000 | 17,063,600 | |
Toll Brothers, Inc. (a) | 251,300 | 9,411,185 | |
| 26,474,785 | ||
Internet & Catalog Retail - 1.7% | |||
HSN, Inc. | 545,000 | 32,482,000 | |
Leisure Equipment & Products - 1.1% | |||
Brunswick Corp. | 600,000 | 21,696,000 | |
Media - 0.6% | |||
National CineMedia, Inc. | 755,800 | 11,548,624 | |
Multiline Retail - 0.3% | |||
The Bon-Ton Stores, Inc. (d) | 500,000 | 6,275,000 | |
Specialty Retail - 3.7% | |||
Ascena Retail Group, Inc. (a) | 684,800 | 11,607,360 | |
Conn's, Inc. (a)(d) | 794,947 | 22,608,293 | |
DSW, Inc. Class A | 216,300 | 14,476,959 | |
Tile Shop Holdings, Inc. (a)(d) | 300,000 | 5,517,000 | |
Vitamin Shoppe, Inc. (a) | 322,300 | 19,686,084 | |
| 73,895,696 | ||
Textiles, Apparel & Luxury Goods - 1.6% | |||
Hanesbrands, Inc. (a) | 420,000 | 15,741,600 | |
Steven Madden Ltd. (a) | 331,400 | 15,270,912 | |
| 31,012,512 | ||
TOTAL CONSUMER DISCRETIONARY | 340,199,529 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.8% | |||
Food & Staples Retailing - 0.8% | |||
Susser Holdings Corp. (a) | 398,155 | $ 16,666,768 | |
Food Products - 1.8% | |||
Ingredion, Inc. | 140,000 | 9,249,800 | |
J&J Snack Foods Corp. | 200,000 | 13,630,000 | |
Post Holdings, Inc. (a) | 320,000 | 12,156,800 | |
| 35,036,600 | ||
Household Products - 0.7% | |||
Spectrum Brands Holdings, Inc. | 258,300 | 13,080,312 | |
Personal Products - 0.5% | |||
Elizabeth Arden, Inc. (a) | 275,000 | 10,562,750 | |
TOTAL CONSUMER STAPLES | 75,346,430 | ||
ENERGY - 6.5% | |||
Energy Equipment & Services - 3.6% | |||
Atwood Oceanics, Inc. (a) | 320,000 | 16,886,400 | |
Essential Energy Services Ltd. | 5,166,700 | 11,033,759 | |
Forum Energy Technologies, Inc. | 400,000 | 10,204,000 | |
Tesco Corp. (a) | 750,000 | 9,067,500 | |
Western Energy Services Corp. | 1,530,000 | 11,366,854 | |
Xtreme Drilling & Coil Services Corp. (a)(e) | 4,100,000 | 6,371,566 | |
Zedi, Inc. (a)(e) | 9,000,000 | 6,226,188 | |
| 71,156,267 | ||
Oil, Gas & Consumable Fuels - 2.9% | |||
EPL Oil & Gas, Inc. (a) | 500,000 | 12,230,000 | |
Stone Energy Corp. (a) | 436,300 | 9,816,750 | |
Targa Resources Corp. | 201,035 | 12,134,473 | |
Tesoro Logistics LP | 250,000 | 11,000,000 | |
Whitecap Resources, Inc. (d) | 1,300,000 | 12,473,431 | |
| 57,654,654 | ||
TOTAL ENERGY | 128,810,921 | ||
FINANCIALS - 7.2% | |||
Capital Markets - 0.6% | |||
AllianceBernstein Holding LP | 590,000 | 12,012,400 | |
Commercial Banks - 2.2% | |||
BBCN Bancorp, Inc. | 1,440,000 | 17,409,600 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Pacific Premier Bancorp, Inc. (a) | 356,700 | $ 4,112,751 | |
Texas Capital Bancshares, Inc. (a) | 505,600 | 20,931,840 | |
| 42,454,191 | ||
Insurance - 2.8% | |||
Allied World Assurance Co. Holdings Ltd. | 169,800 | 14,404,134 | |
Amerisafe, Inc. (a) | 464,900 | 13,314,736 | |
eHealth, Inc. (a) | 650,000 | 15,840,500 | |
ProAssurance Corp. | 280,000 | 12,611,200 | |
| 56,170,570 | ||
Real Estate Investment Trusts - 0.9% | |||
Sovran Self Storage, Inc. | 280,000 | 18,267,200 | |
Real Estate Management & Development - 0.7% | |||
Altisource Portfolio Solutions SA (a) | 156,400 | 13,742,868 | |
TOTAL FINANCIALS | 142,647,229 | ||
HEALTH CARE - 18.8% | |||
Biotechnology - 7.5% | |||
Alkermes PLC (a) | 175,500 | 4,045,275 | |
ARIAD Pharmaceuticals, Inc. (a) | 470,000 | 9,343,600 | |
BioMarin Pharmaceutical, Inc. (a) | 190,000 | 10,429,100 | |
Biovitrum AB (a) | 1,000,000 | 5,992,592 | |
Cubist Pharmaceuticals, Inc. (a) | 310,000 | 13,342,400 | |
Infinity Pharmaceuticals, Inc. (a) | 228,236 | 7,862,730 | |
Insmed, Inc. (a) | 800,000 | 4,680,000 | |
Isis Pharmaceuticals, Inc. (a)(d) | 447,257 | 6,498,644 | |
Medivation, Inc. (a) | 180,000 | 9,784,800 | |
OncoGenex Pharmaceuticals, Inc. (a) | 450,000 | 5,922,000 | |
Pharmacyclics, Inc. (a) | 120,000 | 8,319,600 | |
Sarepta Therapeutics, Inc. (a)(d) | 140,000 | 3,787,000 | |
Seattle Genetics, Inc. (a) | 440,000 | 12,958,000 | |
Sunesis Pharmaceuticals, Inc. (a)(d) | 1,097,300 | 6,221,691 | |
Synageva BioPharma Corp. (a) | 170,000 | 7,864,200 | |
Synergy Pharmaceuticals, Inc. (a) | 800,000 | 4,488,000 | |
Targacept, Inc. (a) | 500,000 | 2,245,000 | |
Theravance, Inc. (a) | 519,000 | 11,547,750 | |
Threshold Pharmaceuticals, Inc. (a)(d) | 1,155,000 | 5,336,100 | |
XOMA Corp. (a)(d) | 2,500,000 | 6,725,000 | |
| 147,393,482 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - 4.9% | |||
Align Technology, Inc. (a)(d) | 584,398 | $ 18,326,721 | |
ICU Medical, Inc. (a) | 200,000 | 12,090,000 | |
Sirona Dental Systems, Inc. (a) | 205,000 | 13,626,350 | |
Teleflex, Inc. | 269,300 | 20,197,500 | |
The Cooper Companies, Inc. | 111,900 | 11,341,065 | |
The Spectranetics Corp. (a) | 1,230,000 | 20,491,800 | |
| 96,073,436 | ||
Health Care Providers & Services - 2.6% | |||
Air Methods Corp. | 122,700 | 5,364,444 | |
Centene Corp. (a) | 330,000 | 14,242,800 | |
MEDNAX, Inc. (a) | 152,900 | 13,082,124 | |
MWI Veterinary Supply, Inc. (a) | 173,400 | 19,474,554 | |
| 52,163,922 | ||
Health Care Technology - 2.4% | |||
MedAssets, Inc. (a) | 1,030,000 | 20,136,500 | |
Medidata Solutions, Inc. (a) | 603,948 | 28,258,727 | |
| 48,395,227 | ||
Pharmaceuticals - 1.4% | |||
Biodelivery Sciences International, Inc. (a)(d) | 1,257,084 | 5,480,886 | |
Jazz Pharmaceuticals PLC (a) | 250,000 | 14,097,500 | |
ViroPharma, Inc. (a) | 270,000 | 7,198,200 | |
| 26,776,586 | ||
TOTAL HEALTH CARE | 370,802,653 | ||
INDUSTRIALS - 15.5% | |||
Aerospace & Defense - 0.7% | |||
Teledyne Technologies, Inc. (a) | 195,700 | 13,358,482 | |
Building Products - 0.5% | |||
Armstrong World Industries, Inc. | 185,000 | 10,173,150 | |
Electrical Equipment - 2.0% | |||
Generac Holdings, Inc. (d) | 560,000 | 20,820,800 | |
Hubbell, Inc. Class B | 161,800 | 14,731,890 | |
Polypore International, Inc. (a)(d) | 122,065 | 4,710,488 | |
| 40,263,178 | ||
Industrial Conglomerates - 1.0% | |||
Carlisle Companies, Inc. | 300,000 | 19,245,000 | |
Machinery - 6.0% | |||
Actuant Corp. Class A | 503,100 | 14,831,388 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Middleby Corp. (a) | 200,000 | $ 28,272,000 | |
Oshkosh Truck Corp. (a) | 350,000 | 13,713,000 | |
Proto Labs, Inc. (d) | 252,194 | 10,372,739 | |
TriMas Corp. (a) | 605,298 | 18,697,655 | |
Valmont Industries, Inc. | 105,032 | 15,305,263 | |
Wabtec Corp. | 192,300 | 18,003,126 | |
| 119,195,171 | ||
Professional Services - 1.8% | |||
Advisory Board Co. (a) | 295,105 | 16,003,544 | |
Nielsen Holdings B.V. (a) | 310,000 | 10,078,100 | |
Nihon M&A Center, Inc. | 285,512 | 10,084,792 | |
| 36,166,436 | ||
Road & Rail - 1.4% | |||
Genesee & Wyoming, Inc. Class A (a) | 320,000 | 27,065,600 | |
Trading Companies & Distributors - 2.1% | |||
DXP Enterprises, Inc. (a) | 224,719 | 12,786,511 | |
Watsco, Inc. | 229,000 | 17,255,150 | |
WESCO International, Inc. (a) | 150,000 | 10,939,500 | |
| 40,981,161 | ||
TOTAL INDUSTRIALS | 306,448,178 | ||
INFORMATION TECHNOLOGY - 19.2% | |||
Communications Equipment - 1.0% | |||
Arris Group, Inc. (a) | 700,000 | 11,564,000 | |
Telular Corp. | 850,000 | 9,426,500 | |
| 20,990,500 | ||
Computers & Peripherals - 0.2% | |||
Cray, Inc. (a) | 128,600 | 2,388,102 | |
Super Micro Computer, Inc. (a) | 87,903 | 1,088,239 | |
| 3,476,341 | ||
Electronic Equipment & Components - 3.9% | |||
FEI Co. | 300,000 | 18,288,000 | |
FLIR Systems, Inc. | 400,000 | 9,508,000 | |
InvenSense, Inc. (a)(d) | 1,350,000 | 19,710,000 | |
Neonode, Inc. (a)(d)(e) | 2,069,069 | 10,759,159 | |
Parametric Sound Corp. (a)(d)(e) | 596,019 | 4,940,998 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Uni-Pixel, Inc. (a)(d) | 430,000 | $ 5,766,300 | |
Zygo Corp. (a) | 506,129 | 8,052,512 | |
| 77,024,969 | ||
Internet Software & Services - 2.8% | |||
Blucora, Inc. (a) | 1,087,314 | 16,157,486 | |
Cornerstone OnDemand, Inc. (a) | 710,000 | 23,202,800 | |
Demandware, Inc. (d) | 239,007 | 7,598,033 | |
E2open, Inc. (d) | 485,194 | 8,660,713 | |
| 55,619,032 | ||
IT Services - 1.8% | |||
Maximus, Inc. | 343,376 | 23,545,292 | |
Total System Services, Inc. | 533,868 | 12,412,431 | |
| 35,957,723 | ||
Semiconductors & Semiconductor Equipment - 1.6% | |||
Hittite Microwave Corp. (a) | 321,863 | 19,755,951 | |
MagnaChip Semiconductor Corp. (a) | 279,866 | 4,483,453 | |
PDF Solutions, Inc. (a) | 466,056 | 7,000,161 | |
| 31,239,565 | ||
Software - 7.9% | |||
Aspen Technology, Inc. (a) | 1,092,200 | 33,421,322 | |
CommVault Systems, Inc. (a) | 380,000 | 29,157,400 | |
Ebix, Inc. (d) | 633,610 | 10,353,187 | |
Fair Isaac Corp. | 450,000 | 20,281,500 | |
Manhattan Associates, Inc. (a) | 288,199 | 19,744,513 | |
Sourcefire, Inc. (a) | 360,000 | 15,336,000 | |
Synopsys, Inc. (a) | 540,000 | 18,057,600 | |
Tyler Technologies, Inc. (a) | 177,842 | 9,612,360 | |
| 155,963,882 | ||
TOTAL INFORMATION TECHNOLOGY | 380,272,012 | ||
MATERIALS - 6.0% | |||
Chemicals - 3.7% | |||
Axiall Corp. (d) | 490,000 | 27,528,200 | |
Chemtura Corp. (a) | 850,000 | 20,162,000 | |
Cytec Industries, Inc. | 250,000 | 18,325,000 | |
Innospec, Inc. | 176,424 | 7,101,066 | |
| 73,116,266 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - continued | |||
Containers & Packaging - 0.7% | |||
Myers Industries, Inc. | 850,000 | $ 12,563,000 | |
Metals & Mining - 1.6% | |||
Commercial Metals Co. | 809,800 | 13,483,170 | |
Compass Minerals International, Inc. (d) | 120,000 | 8,646,000 | |
Kaiser Aluminum Corp. | 160,000 | 9,945,600 | |
| 32,074,770 | ||
TOTAL MATERIALS | 117,754,036 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Diversified Telecommunication Services - 1.2% | |||
8x8, Inc. (a) | 1,000,000 | 6,620,000 | |
Cogent Communications Group, Inc. | 700,000 | 17,339,000 | |
| 23,959,000 | ||
TOTAL COMMON STOCKS (Cost $1,583,197,871) |
| ||
Nonconvertible Preferred Stocks - 0.1% | |||
|
|
|
|
FINANCIALS - 0.1% | |||
Commercial Banks - 0.1% | |||
Banco Pine SA (Cost $1,284,051) | 210,171 |
| |
Money Market Funds - 9.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 48,766,939 | 48,766,939 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 128,626,620 | 128,626,620 | |
TOTAL MONEY MARKET FUNDS (Cost $177,393,559) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $1,761,875,481) | 2,065,171,293 | ||
NET OTHER ASSETS (LIABILITIES) - (4.5)% | (88,247,604) | ||
NET ASSETS - 100% | $ 1,976,923,689 |
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 | $ 51,356 |
Fidelity Securities Lending Cash Central Fund | 681,719 |
Total | $ 733,075 |
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, |
Neonode, Inc. | $ 6,969,000 | $ 2,720,529 | $ - | $ - | $ 10,759,159 |
Parametric Sound Corp. | 2,428,413 | 2,697,936 | 26,714 | - | 4,940,998 |
Telular Corp. | 4,715,000 | 3,371,313 | - | 157,000 | - |
US Home Systems, Inc. | 6,604,750 | - | 8,975,299 | - | - |
Xtreme Drilling & Coil Services Corp. | 6,786,658 | 178,443 | 201,743 | - | 6,371,566 |
Zedi, Inc. | 3,905,172 | 2,997,316 | - | - | 6,226,188 |
Total | $ 31,408,993 | $ 11,965,537 | $ 9,203,756 | $ 157,000 | $ 28,297,911 |
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 Investment 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $127,507,398) - See accompanying schedule: Unaffiliated issuers (cost $1,549,083,993) | $ 1,859,479,823 |
|
Fidelity Central Funds (cost $177,393,559) | 177,393,559 |
|
Other affiliated issuers (cost $35,397,929) | 28,297,911 |
|
Total Investments (cost $1,761,875,481) |
| $ 2,065,171,293 |
Cash |
| 546,758 |
Receivable for investments sold | 55,929,490 | |
Receivable for fund shares sold | 1,827,116 | |
Dividends receivable | 535,035 | |
Distributions receivable from Fidelity Central Funds | 227,279 | |
Prepaid expenses | 4,442 | |
Other receivables | 141,564 | |
Total assets | 2,124,382,977 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 14,954,334 | |
Payable for fund shares redeemed | 2,530,242 | |
Accrued management fee | 967,499 | |
Distribution and service plan fees payable | 49,036 | |
Other affiliated payables | 288,040 | |
Other payables and accrued expenses | 43,517 | |
Collateral on securities loaned, at value | 128,626,620 | |
Total liabilities | 147,459,288 | |
|
|
|
Net Assets | $ 1,976,923,689 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,641,389,930 | |
Undistributed net investment income | 619,919 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 31,620,630 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 303,293,210 | |
Net Assets | $ 1,976,923,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 16.61 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.61) | $ 17.62 | |
Class T: | $ 16.40 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.40) | $ 16.99 | |
Class B: | $ 15.82 | |
|
|
|
Class C: | $ 15.79 | |
|
|
|
Small Cap Growth: | $ 16.92 | |
|
|
|
Class F: | $ 17.06 | |
|
|
|
Institutional Class: | $ 16.95 |
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, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends (including $157,000 earned from other affiliated issuers) |
| $ 7,168,759 |
Special dividends |
| 2,362,000 |
Interest |
| 667 |
Income from Fidelity Central Funds (including $681,719 from security lending) |
| 733,075 |
Total income |
| 10,264,501 |
|
|
|
Expenses | ||
Management fee | $ 6,714,777 | |
Performance adjustment | (496,133) | |
Transfer agent fees | 1,482,152 | |
Distribution and service plan fees | 290,180 | |
Accounting and security lending fees | 297,632 | |
Custodian fees and expenses | 35,087 | |
Independent trustees' compensation | 6,229 | |
Registration fees | 77,661 | |
Audit | 31,862 | |
Legal | 5,032 | |
Interest | 674 | |
Miscellaneous | 7,769 | |
Total expenses before reductions | 8,452,922 | |
Expense reductions | (251,098) | 8,201,824 |
Net investment income (loss) | 2,062,677 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 90,388,589 | |
Other affiliated issuers | 223,046 |
|
Foreign currency transactions | (32,590) | |
Total net realized gain (loss) |
| 90,579,045 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 122,799,316 | |
Assets and liabilities in foreign currencies | 8,393 | |
Total change in net unrealized appreciation (depreciation) |
| 122,807,709 |
Net gain (loss) | 213,386,754 | |
Net increase (decrease) in net assets resulting from operations | $ 215,449,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,062,677 | $ (2,581,285) |
Net realized gain (loss) | 90,579,045 | 84,159,524 |
Change in net unrealized appreciation (depreciation) | 122,807,709 | (104,802,589) |
Net increase (decrease) in net assets resulting | 215,449,431 | (23,224,350) |
Distributions to shareholders from net realized gain | (122,560,486) | (34,799,429) |
Share transactions - net increase (decrease) | 36,802,615 | 61,802,637 |
Redemption fees | 59,925 | 255,125 |
Total increase (decrease) in net assets | 129,751,485 | 4,033,983 |
|
|
|
Net Assets | ||
Beginning of period | 1,847,172,204 | 1,843,138,221 |
End of period (including undistributed net investment income of $619,919 and accumulated net investment loss of $1,442,758, respectively) | $ 1,976,923,689 | $ 1,847,172,204 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 | $ 16.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) H | (.07) I | (.07) J | (.07) K | (.06) | (.11) |
Net realized and unrealized gain (loss) | 1.79 | (.16) | 3.84 | 1.94 | (2.35) | (1.73) |
Total from investment operations | 1.78 | (.23) | 3.77 | 1.87 | (2.41) | (1.84) |
Distributions from net realized gain | (1.04) | (.32) | (.01) N | - | - | (1.02) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.61 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 | $ 13.20 |
Total Return B, C, D | 11.69% | (1.14)% | 29.78% | 17.33% | (18.26)% | (12.26)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of fee waivers, if any | 1.25% A | 1.35% | 1.25% | 1.35% | 1.33% | 1.40% |
Expenses net of all reductions | 1.23% A | 1.34% | 1.23% | 1.34% | 1.33% | 1.39% |
Net investment income (loss) | (.15)% A, H | (.49)% I | (.47)% J | (.56)% K | (.64)% | (.74)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 62,967 | $ 59,684 | $ 67,272 | $ 50,620 | $ 40,211 | $ 42,187 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.39)%. IInvestment 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 (.57)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount represents less than $.01 per share. NThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 | $ 16.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.11) I | (.11) J | (.10) K | (.09) | (.15) |
Net realized and unrealized gain (loss) | 1.78 | (.16) | 3.81 | 1.93 | (2.34) | (1.73) |
Total from investment operations | 1.75 | (.27) | 3.70 | 1.83 | (2.43) | (1.88) |
Distributions from net realized gain | (1.03) | (.32) | - | - | - | (.96) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 16.40 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 | $ 13.17 |
Total Return B, C, D | 11.59% | (1.41)% | 29.44% | 17.04% | (18.45)% | (12.50)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of fee waivers, if any | 1.51% A | 1.61% | 1.50% | 1.61% | 1.60% | 1.65% |
Expenses net of all reductions | 1.49% A | 1.60% | 1.49% | 1.60% | 1.59% | 1.65% |
Net investment income (loss) | (.41)% A, H | (.74)% I | (.73)% J | (.82)% K | (.91)% | (.99)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 28,041 | $ 27,658 | $ 30,764 | $ 23,930 | $ 21,533 | $ 21,754 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (.65)%. IInvestment 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 (.83)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 | $ 15.85 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.74 | 1.89 | (2.33) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.56 | 1.73 | (2.46) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.89) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.82 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 | $ 13.03 |
Total Return B, C, D | 11.34% | (1.96)% | 28.94% | 16.37% | (18.88)% | (12.92)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.08% | 2.15% |
Net investment income (loss) | (.90)% A, H | (1.23)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,781 | $ 4,123 | $ 5,295 | $ 5,142 | $ 4,171 | $ 5,517 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.14)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 | $ 15.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) H | (.18) I | (.18) J | (.16) K | (.13) | (.22) |
Net realized and unrealized gain (loss) | 1.72 | (.17) | 3.73 | 1.89 | (2.32) | (1.71) |
Total from investment operations | 1.65 | (.35) | 3.55 | 1.73 | (2.45) | (1.93) |
Distributions from net realized gain | (1.02) | (.32) | - | - | - | (.91) |
Redemption fees added to paid in capital E, M | - | - | - | - | - | - |
Net asset value, end of period | $ 15.79 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 | $ 13.00 |
Total Return B, C, D | 11.36% | (1.96)% | 28.91% | 16.40% | (18.85)% | (12.94)% |
Ratios to Average Net Assets F, L |
|
|
|
|
| |
Expenses before reductions | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of fee waivers, if any | 2.00% A | 2.10% | 2.00% | 2.11% | 2.08% | 2.15% |
Expenses net of all reductions | 1.98% A | 2.09% | 1.98% | 2.09% | 2.07% | 2.14% |
Net investment income (loss) | (.90)% A, H | (1.24)% I | (1.22)% J | (1.32)% K | (1.39)% | (1.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,199 | $ 24,683 | $ 24,914 | $ 18,091 | $ 14,267 | $ 15,946 |
Portfolio turnover rate G | 138% A | 150% | 106% | 105% | 150% | 113% |
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. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 (1.15)%. IInvestment 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 (1.32)%. JInvestment 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)%. KInvestment 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)%. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. MAmount 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
| |
Net investment income (loss) D | .02 G | (.03) H | (.03) I | (.04) J | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.82 | (.16) | 3.90 | 1.96 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.87 | 1.92 | (2.40) | (1.81) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 | $ 13.29 |
Total Return B, C | 11.90% | (.88)% | 30.20% | 17.63% | (18.06)% | (11.98)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of fee waivers, if any | .92% A | 1.03% | .95% | 1.08% | 1.08% | 1.11% |
Expenses net of all reductions | .89% A | 1.02% | .93% | 1.07% | 1.08% | 1.10% |
Net investment income (loss) | .19% A, G | (.16)%H | (.17)%I | (.29)%J | (.39)% | (.45)% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 1,168,869 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 | $ 1,085,184 | $ 1,217,520 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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)%. HInvestment 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 (.25)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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) | 2012 | 2011 | 2010 | 2009 L |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 | $ 10.03 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .03 H | .01 I | .01 J | - K, N | (.01) |
Net realized and unrealized gain (loss) | 1.85 | (.16) | 3.91 | 1.95 | .88 |
Total from investment operations | 1.88 | (.15) | 3.92 | 1.95 | .87 |
Distributions from net realized gain | (1.08) | (.32) | (.04) O | - | - |
Redemption fees added to paid in capital D, N | - | - | - | - | - |
Net asset value, end of period | $ 17.06 | $ 16.26 | $ 16.73 | $ 12.85 | $ 10.90 |
Total Return B, C | 12.04% | (.64)% | 30.56% | 17.89% | 8.67% |
Ratios to Average Net Assets E, M |
|
|
|
|
|
Expenses before reductions | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of fee waivers, if any | .70% A | .80% | .70% | .78% | .74% A |
Expenses net of all reductions | .68% A | .79% | .68% | .77% | .73% A |
Net investment income (loss) | .40% A, H | .07% I | .08% J | -% G, K | (.54)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 648,388 | $ 528,229 | $ 290,765 | $ 106,941 | $ 159 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .16%. IInvestment 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 (.02)%. JInvestment 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)%. KInvestment 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)%. LFor the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. MExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. NAmount represents less than $.01 per share. OThe 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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 | $ 16.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 G | (.03) H | (.03) I | (.03) J | (.03) | (.06) |
Net realized and unrealized gain (loss) | 1.83 | (.16) | 3.91 | 1.95 | (2.36) | (1.74) |
Total from investment operations | 1.84 | (.19) | 3.88 | 1.92 | (2.39) | (1.80) |
Distributions from net realized gain | (1.06) | (.32) | (.03) M | - | - | (1.05) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.95 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 | $ 13.30 |
Total Return B, C | 11.87% | (.88)% | 30.24% | 17.60% | (17.97)% | (11.93)% |
Ratios to Average Net Assets E, K |
|
|
|
|
| |
Expenses before reductions | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of fee waivers, if any | .94% A | 1.06% | .94% | 1.03% | 1.05% | 1.04% |
Expenses net of all reductions | .92% A | 1.05% | .93% | 1.02% | 1.04% | 1.03% |
Net investment income (loss) | .16% A, G | (.19)% H | (.17)% I | (.24)% J | (.36)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 38,678 | $ 36,694 | $ 41,440 | $ 25,650 | $ 19,204 | $ 22,444 |
Portfolio turnover rate F | 138% A | 150% | 106% | 105% | 150% | 113% |
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. GInvestment 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 .09%. HInvestment 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 (.28)%. IInvestment 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)%. JInvestment 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)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. LAmount represents less than $.01 per share. MThe 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, 2013 (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. Class B shares are 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements.
Semiannual Report
3. Significant Accounting Policies - continued
Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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), 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 338,197,880 |
Gross unrealized depreciation | (36,968,411) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 301,229,469 |
|
|
Tax cost | $ 1,763,941,824 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,265,389,808 and $1,379,509,496, 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 Growth as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% 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% | $ 75,342 | $ 644 |
Class T | .25% | .25% | 69,426 | 12 |
Class B | .75% | .25% | 19,630 | 14,777 |
Class C | .75% | .25% | 125,782 | 18,396 |
|
|
| $ 290,180 | $ 33,829 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 shares, 1.00% for Class C shares, 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 | $ 9,508 |
Class T | 2,733 |
Class B* | 3,398 |
Class C* | 1,042 |
| $ 16,681 |
* 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 he 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 | $ 90,324 | .30 |
Class T | 42,884 | .31 |
Class B | 5,885 | .30 |
Class C | 37,754 | .30 |
Small Cap Growth | 1,260,622 | .22 |
Institutional Class | 44,683 | .24 |
| $ 1,482,152 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $31,528 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 | $ 10,856,167 | .37% | $ 674 |
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,306 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
Semiannual Report
7. 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 $9,819,905. 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 $66,932 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 $250,919 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $179.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ 3,855,020 | $ 1,262,924 |
Class T | 1,778,950 | 573,407 |
Class B | 260,524 | 101,910 |
Class C | 1,656,727 | 481,854 |
Small Cap Growth | 74,940,031 | 25,434,274 |
Class F | 37,680,389 | 6,152,820 |
Institutional Class | 2,388,845 | 792,240 |
Total | $ 122,560,486 | $ 34,799,429 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 401,729 | 986,718 | $ 6,441,443 | $ 14,926,996 |
Reinvestment of distributions | 231,282 | 85,896 | 3,646,231 | 1,194,285 |
Shares redeemed | (604,474) | (1,407,222) | (9,643,130) | (21,375,353) |
Net increase (decrease) | 28,537 | (334,608) | $ 444,544 | $ (5,254,072) |
Class T |
|
|
|
|
Shares sold | 195,435 | 358,193 | $ 3,084,745 | $ 5,456,756 |
Reinvestment of distributions | 106,643 | 38,774 | 1,660,162 | 533,890 |
Shares redeemed | (356,162) | (523,310) | (5,625,295) | (7,812,853) |
Net increase (decrease) | (54,084) | (126,343) | $ (880,388) | $ (1,822,207) |
Class B |
|
|
|
|
Shares sold | 3,365 | 11,810 | $ 50,992 | $ 172,624 |
Reinvestment of distributions | 16,337 | 7,173 | 246,159 | 96,091 |
Shares redeemed | (52,096) | (81,516) | (795,448) | (1,196,288) |
Net increase (decrease) | (32,394) | (62,533) | $ (498,297) | $ (927,573) |
Class C |
|
|
|
|
Shares sold | 165,542 | 405,451 | $ 2,519,979 | $ 5,976,693 |
Reinvestment of distributions | 103,215 | 33,110 | 1,550,542 | 443,092 |
Shares redeemed | (236,997) | (384,855) | (3,591,513) | (5,527,477) |
Net increase (decrease) | 31,760 | 53,706 | $ 479,008 | $ 892,308 |
Small Cap Growth |
|
|
|
|
Shares sold | 4,093,308 | 14,552,522 | $ 66,680,196 | $ 226,496,807 |
Reinvestment of distributions | 4,595,874 | 1,774,167 | 73,721,309 | 25,022,882 |
Shares redeemed | (11,866,561) | (27,135,724) | (193,343,582) | (414,348,619) |
Net increase (decrease) | (3,177,379) | (10,809,035) | $ (52,942,077) | $ (162,828,930) |
Class F |
|
|
|
|
Shares sold | 4,726,483 | 16,430,240 | $ 77,771,613 | $ 255,874,632 |
Reinvestment of distributions | 2,336,095 | 432,802 | 37,680,389 | 6,152,820 |
Shares redeemed | (1,542,221) | (1,757,546) | (25,423,838) | (26,811,905) |
Net increase (decrease) | 5,520,357 | 15,105,496 | $ 90,028,164 | $ 235,215,547 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 234,998 | 819,623 | $ 3,821,973 | $ 12,520,738 |
Reinvestment of distributions | 128,780 | 44,186 | 2,069,290 | 624,723 |
Shares redeemed | (351,912) | (1,078,752) | (5,719,602) | (16,617,897) |
Net increase (decrease) | 11,866 | (214,943) | $ 171,661 | $ (3,472,436) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Freedom Funds and the Fidelity Freedom K Funds were the owners of record, in the aggregate, of approximately 62% 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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SCP-F-SANN-0313 1.891909.103
Fidelity®
Series Small Cap Opportunities
Fund
Fidelity Series Small Cap Opportunities Fund
Class F
Semiannual Report
January 31, 2013
(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 of the fund 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 Small Cap Opportunities | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,134.20 | $ 5.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
Class F | .84% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,135.80 | $ 4.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.97 | $ 4.28 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Ramco-Gershenson Properties Trust (SBI) | 1.1 | 0.9 |
PacWest Bancorp | 1.1 | 0.7 |
Sapient Corp. | 1.0 | 0.4 |
Nuance Communications, Inc. | 1.0 | 0.6 |
Waddell & Reed Financial, Inc. Class A | 1.0 | 0.8 |
Allied World Assurance Co. Holdings Ltd. | 1.0 | 0.8 |
Glimcher Realty Trust | 1.0 | 0.9 |
Brunswick Corp. | 0.9 | 0.0 |
Associated Banc-Corp. | 0.9 | 0.7 |
Teledyne Technologies, Inc. | 0.9 | 1.0 |
| 9.9 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Financials | 21.5 | 20.3 |
Information Technology | 18.1 | 16.6 |
Industrials | 14.7 | 13.7 |
Consumer Discretionary | 13.6 | 13.5 |
Health Care | 10.6 | 12.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks and |
| ![]() | Stocks and |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 6.7% |
| ** Foreign investments | 7.2% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.6% | |||
Auto Components - 1.7% | |||
Dorman Products, Inc. | 470,949 | $ 16,308,964 | |
Gentex Corp. | 632,740 | 12,104,316 | |
Tenneco, Inc. (a) | 471,686 | 16,490,143 | |
| 44,903,423 | ||
Hotels, Restaurants & Leisure - 1.4% | |||
BJ's Restaurants, Inc. (a) | 484,100 | 15,476,677 | |
Life Time Fitness, Inc. (a) | 450,099 | 22,833,522 | |
| 38,310,199 | ||
Household Durables - 1.3% | |||
Ethan Allen Interiors, Inc. | 583,990 | 16,883,151 | |
KB Home | 931,811 | 17,769,636 | |
| 34,652,787 | ||
Internet & Catalog Retail - 0.7% | |||
HSN, Inc. | 337,707 | 20,127,337 | |
Leisure Equipment & Products - 0.9% | |||
Brunswick Corp. | 712,286 | 25,756,262 | |
Media - 0.8% | |||
Cinemark Holdings, Inc. | 505,683 | 14,229,920 | |
MDC Partners, Inc. Class A (sub. vtg.) | 663,200 | 8,442,535 | |
| 22,672,455 | ||
Multiline Retail - 0.6% | |||
Dollarama, Inc. | 250,766 | 15,256,147 | |
Specialty Retail - 4.6% | |||
Ascena Retail Group, Inc. (a) | 1,294,514 | 21,942,012 | |
Conn's, Inc. (a) | 650,773 | 18,507,984 | |
DSW, Inc. Class A | 201,027 | 13,454,737 | |
Francescas Holdings Corp. (a) | 736,048 | 20,903,763 | |
GameStop Corp. Class A | 472,300 | 10,957,360 | |
Genesco, Inc. (a) | 359,125 | 22,384,261 | |
Signet Jewelers Ltd. | 239,540 | 14,990,413 | |
| 123,140,530 | ||
Textiles, Apparel & Luxury Goods - 1.6% | |||
Hanesbrands, Inc. (a) | 447,565 | 16,774,736 | |
Steven Madden Ltd. (a) | 547,001 | 25,205,806 | |
| 41,980,542 | ||
TOTAL CONSUMER DISCRETIONARY | 366,799,682 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - 3.4% | |||
Food & Staples Retailing - 1.6% | |||
Fresh Market, Inc. (a) | 238,322 | $ 11,651,563 | |
Susser Holdings Corp. (a) | 373,235 | 15,623,617 | |
United Natural Foods, Inc. (a) | 300,455 | 16,218,561 | |
| 43,493,741 | ||
Food Products - 1.8% | |||
Calavo Growers, Inc. (d) | 445,526 | 11,098,053 | |
Fresh Del Monte Produce, Inc. | 539,413 | 14,213,533 | |
Post Holdings, Inc. (a) | 337,448 | 12,819,650 | |
WhiteWave Foods Co. (d) | 638,485 | 10,337,072 | |
| 48,468,308 | ||
TOTAL CONSUMER STAPLES | 91,962,049 | ||
ENERGY - 6.3% | |||
Energy Equipment & Services - 1.0% | |||
Atwood Oceanics, Inc. (a) | 291,800 | 15,398,286 | |
Total Energy Services, Inc. | 761,850 | 11,610,307 | |
| 27,008,593 | ||
Oil, Gas & Consumable Fuels - 5.3% | |||
Atlas Pipeline Partners LP | 465,183 | 16,067,421 | |
Cloud Peak Energy, Inc. (a) | 816,600 | 14,298,666 | |
Energen Corp. | 85,738 | 4,127,427 | |
Genesis Energy LP | 245,000 | 9,871,050 | |
PDC Energy, Inc. (a) | 609,878 | 22,583,782 | |
Rosetta Resources, Inc. (a) | 472,401 | 25,046,701 | |
Stone Energy Corp. (a) | 828,701 | 18,645,773 | |
Targa Resources Corp. | 301,944 | 18,225,340 | |
Western Refining, Inc. (d) | 387,028 | 13,015,752 | |
| 141,881,912 | ||
TOTAL ENERGY | 168,890,505 | ||
FINANCIALS - 21.5% | |||
Capital Markets - 1.8% | |||
Affiliated Managers Group, Inc. (a) | 113,400 | 16,321,662 | |
Duff & Phelps Corp. Class A | 277,649 | 4,411,843 | |
Waddell & Reed Financial, Inc. Class A | 664,841 | 26,394,188 | |
| 47,127,693 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Commercial Banks - 7.3% | |||
Associated Banc-Corp. | 1,773,828 | $ 25,312,526 | |
BancFirst Corp. | 44,706 | 1,828,475 | |
Bank of the Ozarks, Inc. | 565,405 | 20,535,510 | |
BBCN Bancorp, Inc. | 1,610,410 | 19,469,857 | |
Bridge Capital Holdings (a) | 620,329 | 9,732,962 | |
Cathay General Bancorp | 645,824 | 12,535,444 | |
City National Corp. | 473,778 | 25,091,283 | |
MB Financial, Inc. | 809,800 | 18,115,226 | |
National Penn Bancshares, Inc. | 1,889,744 | 18,425,004 | |
PacWest Bancorp | 1,041,125 | 28,610,115 | |
UMB Financial Corp. | 387,800 | 17,167,906 | |
| 196,824,308 | ||
Insurance - 3.2% | |||
Allied World Assurance Co. Holdings Ltd. | 306,800 | 26,025,844 | |
Amerisafe, Inc. (a) | 681,500 | 19,518,160 | |
Primerica, Inc. | 610,244 | 20,064,823 | |
ProAssurance Corp. | 477,808 | 21,520,472 | |
| 87,129,299 | ||
Real Estate Investment Trusts - 8.1% | |||
American Assets Trust, Inc. | 637,871 | 18,434,472 | |
Colonial Properties Trust (SBI) | 1,038,665 | 22,757,150 | |
DCT Industrial Trust, Inc. | 3,306,900 | 23,346,714 | |
Glimcher Realty Trust | 2,319,705 | 25,795,120 | |
Highwoods Properties, Inc. (SBI) | 583,400 | 21,002,400 | |
Home Properties, Inc. | 312,091 | 19,184,234 | |
National Retail Properties, Inc. (d) | 698,937 | 22,379,963 | |
Parkway Properties, Inc. | 1,046,876 | 16,582,516 | |
Ramco-Gershenson Properties Trust (SBI) | 1,895,550 | 28,660,710 | |
Sovran Self Storage, Inc. | 308,037 | 20,096,334 | |
| 218,239,613 | ||
Thrifts & Mortgage Finance - 1.1% | |||
ViewPoint Financial Group | 713,174 | 15,083,630 | |
Washington Federal, Inc. | 686,805 | 12,080,900 | |
WSFS Financial Corp. | 40,866 | 1,858,177 | |
| 29,022,707 | ||
TOTAL FINANCIALS | 578,343,620 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - 10.5% | |||
Biotechnology - 4.7% | |||
Achillion Pharmaceuticals, Inc. (a) | 992,196 | $ 8,909,920 | |
ARIAD Pharmaceuticals, Inc. (a) | 367,796 | 7,311,784 | |
BioMarin Pharmaceutical, Inc. (a) | 152,744 | 8,384,118 | |
Discovery Laboratories, Inc. (a) | 1,760,448 | 3,961,008 | |
Dynavax Technologies Corp. (a) | 2,648,790 | 8,184,761 | |
Infinity Pharmaceuticals, Inc. (a) | 276,056 | 9,510,129 | |
Insmed, Inc. (a) | 866,129 | 5,066,855 | |
Isis Pharmaceuticals, Inc. (a)(d) | 761,072 | 11,058,376 | |
Medivation, Inc. (a) | 127,814 | 6,947,969 | |
MEI Pharma, Inc. (a)(d) | 231,991 | 1,159,955 | |
Merrimack Pharmaceuticals, Inc. (d) | 694,410 | 4,215,069 | |
Novavax, Inc. (a) | 3,800,013 | 6,802,023 | |
OncoGenex Pharmaceuticals, Inc. (a) | 409,371 | 5,387,322 | |
Pharmacyclics, Inc. (a) | 112,148 | 7,775,221 | |
Rigel Pharmaceuticals, Inc. (a) | 640,800 | 4,203,648 | |
Synageva BioPharma Corp. (a) | 161,013 | 7,448,461 | |
Theravance, Inc. (a) | 453,731 | 10,095,515 | |
Threshold Pharmaceuticals, Inc. (a) | 976,528 | 4,511,559 | |
XOMA Corp. (a) | 2,391,541 | 6,433,245 | |
| 127,366,938 | ||
Health Care Equipment & Supplies - 1.9% | |||
Align Technology, Inc. (a) | 327,371 | 10,266,355 | |
Cerus Corp. (a)(d) | 2,417,823 | 7,664,499 | |
Conceptus, Inc. (a) | 477,364 | 9,862,340 | |
Haemonetics Corp. (a) | 186,679 | 7,829,317 | |
ICU Medical, Inc. (a) | 147,588 | 8,921,695 | |
Sirona Dental Systems, Inc. (a) | 106,067 | 7,050,273 | |
| 51,594,479 | ||
Health Care Providers & Services - 1.4% | |||
BioScrip, Inc. (a) | 711,745 | 7,992,896 | |
Magellan Health Services, Inc. (a) | 104,047 | 5,337,611 | |
MEDNAX, Inc. (a) | 92,145 | 7,883,926 | |
Team Health Holdings, Inc. (a) | 288,102 | 9,758,015 | |
Universal Health Services, Inc. Class B | 106,373 | 6,024,967 | |
| 36,997,415 | ||
Health Care Technology - 1.2% | |||
MedAssets, Inc. (a) | 797,542 | 15,591,946 | |
Medidata Solutions, Inc. (a) | 342,635 | 16,031,892 | |
| 31,623,838 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - 0.4% | |||
PerkinElmer, Inc. | 277,285 | $ 9,771,523 | |
Pharmaceuticals - 0.9% | |||
Biodelivery Sciences International, Inc. (a)(d) | 1,431,016 | 6,239,230 | |
ViroPharma, Inc. (a) | 440,378 | 11,740,477 | |
XenoPort, Inc. (a) | 906,600 | 7,606,374 | |
| 25,586,081 | ||
TOTAL HEALTH CARE | 282,940,274 | ||
INDUSTRIALS - 14.7% | |||
Aerospace & Defense - 1.3% | |||
Alliant Techsystems, Inc. | 155,725 | 10,078,522 | |
Teledyne Technologies, Inc. (a) | 370,649 | 25,300,501 | |
| 35,379,023 | ||
Air Freight & Logistics - 1.1% | |||
Hub Group, Inc. Class A (a) | 589,535 | 21,700,783 | |
UTI Worldwide, Inc. | 584,700 | 8,630,172 | |
| 30,330,955 | ||
Building Products - 0.6% | |||
Armstrong World Industries, Inc. | 304,474 | 16,743,025 | |
Commercial Services & Supplies - 1.3% | |||
Swisher Hygiene, Inc. (a) | 961,491 | 1,298,013 | |
Tetra Tech, Inc. (a) | 617,319 | 17,692,363 | |
United Stationers, Inc. | 456,800 | 15,229,712 | |
| 34,220,088 | ||
Construction & Engineering - 1.8% | |||
Foster Wheeler AG (a) | 600,428 | 15,677,175 | |
MasTec, Inc. (a) | 632,210 | 17,891,543 | |
URS Corp. | 329,800 | 13,680,104 | |
| 47,248,822 | ||
Electrical Equipment - 0.8% | |||
General Cable Corp. (a) | 636,010 | 21,382,656 | |
Industrial Conglomerates - 0.6% | |||
Carlisle Companies, Inc. | 264,900 | 16,993,335 | |
Machinery - 2.2% | |||
Actuant Corp. Class A | 612,531 | 18,057,414 | |
Harsco Corp. | 530,681 | 13,527,059 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
TriMas Corp. (a) | 503,397 | $ 15,549,933 | |
Wabtec Corp. | 125,754 | 11,773,089 | |
| 58,907,495 | ||
Marine - 0.2% | |||
DryShips, Inc. (a)(d) | 2,760,603 | 5,962,902 | |
Professional Services - 2.9% | |||
Advisory Board Co. (a) | 112,636 | 6,108,250 | |
Dun & Bradstreet Corp. (d) | 199,406 | 16,259,565 | |
Manpower, Inc. | 401,404 | 20,672,306 | |
Stantec, Inc. | 553,300 | 22,666,772 | |
Towers Watson & Co. | 205,800 | 12,570,264 | |
| 78,277,157 | ||
Road & Rail - 0.5% | |||
Ryder System, Inc. | 213,299 | 12,111,117 | |
Trading Companies & Distributors - 1.4% | |||
Kaman Corp. | 431,799 | 15,691,576 | |
Watsco, Inc. | 271,777 | 20,478,397 | |
| 36,169,973 | ||
TOTAL INDUSTRIALS | 393,726,548 | ||
INFORMATION TECHNOLOGY - 18.1% | |||
Communications Equipment - 2.6% | |||
Brocade Communications Systems, Inc. (a) | 3,324,275 | 19,014,853 | |
Finisar Corp. (a)(d) | 1,206,782 | 18,705,121 | |
Infinera Corp. (a) | 357,400 | 2,548,262 | |
NETGEAR, Inc. (a) | 213,181 | 7,484,785 | |
Polycom, Inc. (a) | 1,206,426 | 13,306,879 | |
Riverbed Technology, Inc. (a) | 307,341 | 5,962,415 | |
Sonus Networks, Inc. (a) | 1,141,221 | 2,590,572 | |
| 69,612,887 | ||
Computers & Peripherals - 2.4% | |||
NCR Corp. (a) | 602,700 | 16,736,979 | |
Quantum Corp. (a) | 9,868,411 | 13,421,039 | |
SanDisk Corp. (a) | 131,340 | 6,565,687 | |
Super Micro Computer, Inc. (a) | 1,405,512 | 17,400,239 | |
Synaptics, Inc. (a) | 252,309 | 8,851,000 | |
| 62,974,944 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - 1.6% | |||
Arrow Electronics, Inc. (a) | 218,487 | $ 8,394,271 | |
Fabrinet (a) | 1,095,041 | 16,031,400 | |
InvenSense, Inc. (a) | 847,981 | 12,380,523 | |
Universal Display Corp. (a)(d) | 242,876 | 6,756,810 | |
| 43,563,004 | ||
Internet Software & Services - 1.8% | |||
Active Network, Inc. (a) | 1,023,793 | 5,661,575 | |
Bankrate, Inc. (a) | 1,380,450 | 17,076,167 | |
EarthLink, Inc. | 556,220 | 3,782,296 | |
Stamps.com, Inc. (a) | 465,837 | 12,572,941 | |
Web.com Group, Inc. (a) | 635,418 | 10,293,772 | |
| 49,386,751 | ||
IT Services - 3.2% | |||
Euronet Worldwide, Inc. (a) | 884,317 | 21,639,237 | |
ExlService Holdings, Inc. (a) | 699,185 | 20,737,827 | |
Pactera Technology International Ltd. ADR | 924,131 | 7,420,772 | |
Sapient Corp. (a) | 2,253,509 | 27,289,994 | |
ServiceSource International, Inc. (a) | 1,448,912 | 8,765,918 | |
| 85,853,748 | ||
Semiconductors & Semiconductor Equipment - 2.4% | |||
Atmel Corp. (a) | 960,400 | 6,434,680 | |
Entegris, Inc. (a) | 1,308,223 | 12,899,079 | |
Integrated Device Technology, Inc. (a) | 1,228,038 | 8,878,715 | |
RF Micro Devices, Inc. (a) | 3,071,583 | 15,357,915 | |
Skyworks Solutions, Inc. (a) | 601,358 | 14,396,511 | |
Spreadtrum Communications, Inc. ADR | 388,782 | 6,026,121 | |
| 63,993,021 | ||
Software - 4.1% | |||
MICROS Systems, Inc. (a) | 395,224 | 18,192,161 | |
Nuance Communications, Inc. (a) | 1,121,117 | 26,962,864 | |
Parametric Technology Corp. (a) | 868,460 | 20,130,903 | |
QLIK Technologies, Inc. (a) | 368,300 | 8,179,943 | |
Solera Holdings, Inc. | 236,149 | 12,943,327 | |
Synchronoss Technologies, Inc. (a) | 315,844 | 7,520,246 | |
Verint Systems, Inc. (a) | 473,063 | 15,989,529 | |
| 109,918,973 | ||
TOTAL INFORMATION TECHNOLOGY | 485,303,328 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - 4.8% | |||
Chemicals - 1.9% | |||
Axiall Corp. (d) | 332,394 | $ 18,673,895 | |
Cabot Corp. | 341,494 | 12,782,120 | |
Kraton Performance Polymers, Inc. (a) | 496,839 | 13,042,024 | |
Zoltek Companies, Inc. (a)(d) | 823,400 | 6,710,710 | |
| 51,208,749 | ||
Construction Materials - 0.5% | |||
Eagle Materials, Inc. | 218,229 | 14,134,692 | |
Containers & Packaging - 0.4% | |||
Silgan Holdings, Inc. | 281,233 | 12,064,896 | |
Metals & Mining - 1.7% | |||
Carpenter Technology Corp. | 281,541 | 14,733,041 | |
Coeur d'Alene Mines Corp. (a) | 547,500 | 11,880,750 | |
Worthington Industries, Inc. | 656,500 | 18,040,620 | |
| 44,654,411 | ||
Paper & Forest Products - 0.3% | |||
Canfor Corp. (a) | 440,900 | 8,124,867 | |
TOTAL MATERIALS | 130,187,615 | ||
TELECOMMUNICATION SERVICES - 0.4% | |||
Diversified Telecommunication Services - 0.4% | |||
Towerstream Corp. (a)(d)(e) | 3,828,692 | 11,294,641 | |
UTILITIES - 2.8% | |||
Electric Utilities - 2.3% | |||
Allete, Inc. | 157,100 | 7,248,594 | |
Cleco Corp. | 371,200 | 15,868,800 | |
IDACORP, Inc. | 281,793 | 13,078,013 | |
PNM Resources, Inc. | 615,251 | 13,141,761 | |
UNS Energy Corp. | 255,800 | 11,585,182 | |
| 60,922,350 | ||
Gas Utilities - 0.5% | |||
Atmos Energy Corp. | 359,494 | 13,430,696 | |
TOTAL UTILITIES | 74,353,046 | ||
TOTAL COMMON STOCKS (Cost $2,168,614,103) |
| ||
Convertible Preferred Stocks - 0.1% | |||
Shares | Value | ||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Agios Pharmaceuticals, Inc. Series C (a)(g) (Cost $1,738,254) | 353,944 | $ 1,738,254 |
U.S. Treasury Obligations - 0.0% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.08% 2/14/13 (f) | $ 1,350,000 |
|
Money Market Funds - 7.0% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 114,571,262 | 114,571,262 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 72,880,542 | 72,880,542 | |
TOTAL MONEY MARKET FUNDS (Cost $187,451,804) |
| ||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $2,359,154,120) | 2,774,341,359 | ||
NET OTHER ASSETS (LIABILITIES) - (3.2)% | (86,910,864) | ||
NET ASSETS - 100% | $ 2,687,430,495 |
Futures Contracts | |||||
Expiration | Underlying | Unrealized | |||
Purchased | |||||
Equity Index Contracts | |||||
227 NYFE Russell 2000 Mini Index Contracts | March 2013 | $ 20,432,270 | $ 349,018 |
|
The face value of futures purchased as a percentage of net assets is 0.8% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,349,993. |
(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 $1,738,254 or 0.1% 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 |
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 | $ 86,132 |
Fidelity Securities Lending Cash Central Fund | 1,718,090 |
Total | $ 1,804,222 |
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, |
Biodelivery Sciences International, Inc. | $ 8,128,124 | $ 891,548 | $ 2,846,353 | $ - | $ - |
Towerstream Corp. | - | 12,657,107 | 182,538 | - | 11,294,641 |
Total | $ 8,128,124 | $ 13,548,655 | $ 3,028,891 | $ - | $ 11,294,641 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 366,799,682 | $ 366,799,682 | $ - | $ - |
Consumer Staples | 91,962,049 | 91,962,049 | - | - |
Energy | 168,890,505 | 168,890,505 | - | - |
Financials | 578,343,620 | 578,343,620 | - | - |
Health Care | 284,678,528 | 282,940,274 | - | 1,738,254 |
Industrials | 393,726,548 | 392,428,535 | 1,298,013 | - |
Information Technology | 485,303,328 | 485,303,328 | - | - |
Materials | 130,187,615 | 130,187,615 | - | - |
Telecommunication Services | 11,294,641 | 11,294,641 | - | - |
Utilities | 74,353,046 | 74,353,046 | - | - |
U.S. Government and Government Agency Obligations | 1,349,993 | - | 1,349,993 | - |
Money Market Funds | 187,451,804 | 187,451,804 | - | - |
Total Investments in Securities: | $ 2,774,341,359 | $ 2,769,955,099 | $ 2,648,006 | $ 1,738,254 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $ 349,018 | $ 349,018 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of January 31, 2013. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ 349,018 | $ - |
Total Value of Derivatives | $ 349,018 | $ - |
(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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $71,809,843) - See accompanying schedule: Unaffiliated issuers (cost $2,159,305,074) | $ 2,575,594,914 |
|
Fidelity Central Funds (cost $187,451,804) | 187,451,804 |
|
Other affiliated issuers (cost $12,397,242) | 11,294,641 |
|
Total Investments (cost $2,359,154,120) |
| $ 2,774,341,359 |
Cash |
| 5,006 |
Receivable for investments sold | 23,340,037 | |
Receivable for fund shares sold | 2,256,464 | |
Dividends receivable | 1,293,666 | |
Distributions receivable from Fidelity Central Funds | 137,810 | |
Receivable for daily variation margin on futures contracts | 141,086 | |
Prepaid expenses | 6,001 | |
Other receivables | 282,837 | |
Total assets | 2,801,804,266 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 38,388,570 | |
Payable for fund shares redeemed | 1,097,582 | |
Accrued management fee | 1,665,738 | |
Other affiliated payables | 288,674 | |
Other payables and accrued expenses | 52,665 | |
Collateral on securities loaned, at value | 72,880,542 | |
Total liabilities | 114,373,771 | |
|
|
|
Net Assets | $ 2,687,430,495 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,232,552,654 | |
Distributions in excess of net investment income | (829,296) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 40,174,673 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 415,532,464 | |
Net Assets | $ 2,687,430,495 |
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, 2013 (Unaudited) | |
|
|
|
Series Small Cap Opportunities: | $ 11.74 | |
|
|
|
Class F: | $ 11.80 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 18,799,556 |
Interest |
| 956 |
Income from Fidelity Central Funds (including $1,718,090 from security lending) |
| 1,804,222 |
Total income |
| 20,604,734 |
|
|
|
Expenses | ||
Management fee | $ 8,548,664 | |
Performance adjustment | 1,136,203 | |
Transfer agent fees | 1,325,074 | |
Accounting and security lending fees | 366,320 | |
Custodian fees and expenses | 40,855 | |
Independent trustees' compensation | 7,789 | |
Audit | 33,363 | |
Legal | 6,074 | |
Miscellaneous | 9,077 | |
Total expenses before reductions | 11,473,419 | |
Expense reductions | (371,691) | 11,101,728 |
Net investment income (loss) | 9,503,006 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 73,861,626 | |
Other affiliated issuers | 812,109 |
|
Foreign currency transactions | 15,299 | |
Futures contracts | 2,951,643 | |
Total net realized gain (loss) |
| 77,640,677 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 227,720,297 | |
Assets and liabilities in foreign currencies | 2,840 | |
Futures contracts | (558,347) | |
Total change in net unrealized appreciation (depreciation) |
| 227,164,790 |
Net gain (loss) | 304,805,467 | |
Net increase (decrease) in net assets resulting from operations | $ 314,308,473 |
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) | $ 9,503,006 | $ 2,155,575 |
Net realized gain (loss) | 77,640,677 | 87,039,240 |
Change in net unrealized appreciation (depreciation) | 227,164,790 | (119,534,053) |
Net increase (decrease) in net assets resulting | 314,308,473 | (30,339,238) |
Distributions to shareholders from net investment income | (11,718,166) | (1,018,413) |
Distributions to shareholders from net realized gain | (119,046,114) | (19,349,019) |
Total distributions | (130,764,280) | (20,367,432) |
Share transactions - net increase (decrease) | 250,464,480 | 409,737,421 |
Total increase (decrease) in net assets | 434,008,673 | 359,030,751 |
|
|
|
Net Assets | ||
Beginning of period | 2,253,421,822 | 1,894,391,071 |
End of period (including distributions in excess of net investment income of $829,296 and undistributed net investment income of $1,385,864, respectively) | $ 2,687,430,495 | $ 2,253,421,822 |
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) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.93 | $ 11.22 | $ 8.76 | $ 6.94 | $ 7.97 | $ 9.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .04 | - J | (-) G, J | (.01) | .03 | .02 |
Net realized and unrealized gain (loss) | 1.39 | (.17) | 2.50 | 1.83 | (1.02) | (1.66) |
Total from investment operations | 1.43 | (.17) | 2.50 | 1.82 | (.99) | (1.64) |
Distributions from net investment income | (.05) | - J | - L | - | (.04) | (.02) |
Distributions from net realized gain | (.57) | (.11) | (.04) L | - | - | (.02) |
Total distributions | (.62) | (.12) K | (.04) | - | (.04) | (.04) |
Redemption fees added to paid in capital I | - | - | - | - | - | - D, J |
Net asset value, end of period | $ 11.74 | $ 10.93 | $ 11.22 | $ 8.76 | $ 6.94 | $ 7.97 |
Total Return B, C | 13.42% | (1.41)% | 28.50% | 26.22% | (12.34)% | (17.10)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.03% A | 1.12% | 1.10% | 1.02% | .93% | .93% |
Expenses net of fee waivers, if any | 1.03% A | 1.12% | 1.10% | 1.02% | .93% | .93% |
Expenses net of all reductions | 1.00% A | 1.11% | 1.09% | 1.01% | .93% | .92% |
Net investment income (loss) | .70% A | .04% | (.04)% G | (.07)% | .49% | .20% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,515,643 | $ 1,329,447 | $ 1,415,570 | $ 1,363,646 | $ 1,284,079 | $ 1,348,258 |
Portfolio turnover rate F | 77% A | 66% | 73% | 104% | 167% | 179% |
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 (.27)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The redemption fee was eliminated during the year ended July 31, 2009. J Amount represents less than $.01 per share. K 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. L 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 January 31, 2013 | Years ended July 31, | |||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.99 | $ 11.27 | $ 8.79 | $ 6.94 | $ 6.24 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | .05 | .03 | .02 G | .01 | - J |
Net realized and unrealized gain (loss) | 1.40 | (.18) | 2.50 | 1.84 | .70 |
Total from investment operations | 1.45 | (.15) | 2.52 | 1.85 | .70 |
Distributions from net investment income | (.07) | (.01) | - L | - | - |
Distributions from net realized gain | (.57) | (.11) | (.04) L | - | - |
Total distributions | (.64) | (.13) K | (.04) | - | - |
Net asset value, end of period | $ 11.80 | $ 10.99 | $ 11.27 | $ 8.79 | $ 6.94 |
Total Return B, C | 13.58% | (1.23)% | 28.74% | 26.66% | 11.22% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
Expenses before reductions | .84% A | .91% | .89% | .78% | .68% A |
Expenses net of fee waivers, if any | .84% A | .91% | .89% | .78% | .68% A |
Expenses net of all reductions | .81% A | .91% | .88% | .77% | .68% A |
Net investment income (loss) | .90% A | .24% | .17% G | .17% | .11% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,171,788 | $ 923,975 | $ 478,821 | $ 174,783 | $ 197 |
Portfolio turnover rate F | 77% A | 66% | 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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06)%. H For the period June 26, 2009 (commencement of sale of shares) to July 31, 2009. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K 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. L 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, 2013 (Unaudited)
1. Organization.
Fidelity® Series Small Cap Opportunities Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager and, for shares of Series Small Cap Opportunities, FMR investment professionals. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Small Cap Opportunities and Class F shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities are generally categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, partnerships 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 | $ 484,476,167 |
Gross unrealized depreciation | (70,355,217) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 414,120,950 |
|
|
Tax cost | $ 2,360,220,409 |
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.
New Accounting Pronouncement. 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, and interim periods within those annual periods. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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, if any, 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.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index 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 $2,951,643 and a change in net unrealized appreciation (depreciation) of $(558,347) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,047,565,179 and $895,165,915, 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 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 .80% 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 Small Cap Opportunities. FIIOC receives no fees for providing transfer agency services to
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 1,325,074 | .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 $41,125 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,883 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
Semiannual Report
8. Security Lending - continued
loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,831,426. 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 $172,135 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 $371,389 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 $302.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Series Small Cap Opportunities | $ 5,439,782 | $ 360,217 |
Class F | 6,278,384 | 658,196 |
Total | $ 11,718,166 | $ 1,018,413 |
From net realized gain |
|
|
Series Small Cap Opportunities | $ 68,495,319 | $ 14,087,548 |
Class F | 50,550,795 | 5,261,471 |
Total | $ 119,046,114 | $ 19,349,019 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Series Small Cap Opportunities |
|
|
|
|
Shares sold | 14,910,524 | 27,072,389 | $ 163,822,775 | $ 295,278,935 |
Reinvestment of distributions | 6,656,221 | 1,501,907 | 73,935,101 | 14,447,765 |
Shares redeemed | (14,107,803) | (33,133,824) | (158,008,736) | (348,573,500) |
Net increase (decrease) | 7,458,942 | (4,559,528) | $ 79,749,140 | $ (38,846,800) |
Class F |
|
|
|
|
Shares sold | 12,786,062 | 45,760,157 | $ 143,471,832 | $ 492,916,658 |
Reinvestment of distributions | 5,100,288 | 607,120 | 56,829,179 | 5,919,667 |
Shares redeemed | (2,631,049) | (4,808,984) | (29,585,671) | (50,252,104) |
Net increase (decrease) | 15,255,301 | 41,558,293 | $ 170,715,340 | $ 448,584,221 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the Fund.
Semiannual Report
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.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SMO-SANN-0313 1.839810.105
Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2013
(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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,097.60 | $ 3.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.48 | $ 3.77 |
Class K | .60% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,098.30 | $ 3.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.18 | $ 3.06 |
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 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 8.3 | 13.4 |
Google, Inc. Class A | 6.3 | 8.0 |
Oracle Corp. | 3.0 | 2.0 |
Tesla Motors, Inc. | 2.9 | 2.0 |
Green Mountain Coffee Roasters, Inc. | 2.6 | 1.3 |
Electronic Arts, Inc. | 2.5 | 0.0 |
Facebook, Inc. Class A | 2.4 | 0.0 |
QUALCOMM, Inc. | 2.3 | 1.4 |
Costco Wholesale Corp. | 2.2 | 2.3 |
NVIDIA Corp. | 2.2 | 4.6 |
| 34.7 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 55.4 | 55.9 |
Health Care | 18.9 | 13.8 |
Consumer Discretionary | 13.0 | 14.8 |
Consumer Staples | 6.2 | 4.7 |
Financials | 2.7 | 3.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 99.8% |
| ![]() | Stocks 100.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.1% |
| ** Foreign investments | 10.2% |
|
† Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart. |
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 13.0% | |||
Automobiles - 2.9% | |||
Tesla Motors, Inc. (a)(d) | 5,575,664 | $ 209,143 | |
Volkswagen AG sponsored ADR | 6,100 | 283 | |
| 209,426 | ||
Hotels, Restaurants & Leisure - 1.3% | |||
Bravo Brio Restaurant Group, Inc. (a) | 184,825 | 2,754 | |
Chipotle Mexican Grill, Inc. (a) | 153,600 | 47,157 | |
Dunkin' Brands Group, Inc. | 37,400 | 1,365 | |
Las Vegas Sands Corp. | 3,900 | 215 | |
Starbucks Corp. | 666,900 | 37,426 | |
Texas Roadhouse, Inc. Class A | 12,725 | 224 | |
The Cheesecake Factory, Inc. | 66,500 | 2,205 | |
| 91,346 | ||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 1,408,900 | 33,335 | |
iRobot Corp. (a) | 7,693 | 176 | |
Lennar Corp. Class A | 6,200 | 258 | |
PulteGroup, Inc. (a) | 69,300 | 1,437 | |
SodaStream International Ltd. (a)(d) | 228,258 | 10,977 | |
Toll Brothers, Inc. (a) | 703,600 | 26,350 | |
| 72,533 | ||
Internet & Catalog Retail - 1.8% | |||
Amazon.com, Inc. (a) | 319,096 | 84,720 | |
ASOS PLC (a) | 6,200 | 255 | |
HomeAway, Inc. (a)(d) | 589,360 | 14,127 | |
Ocado Group PLC (a) | 174,165 | 292 | |
Start Today Co. Ltd. (d) | 2,689,800 | 25,885 | |
| 125,279 | ||
Leisure Equipment & Products - 0.3% | |||
Brunswick Corp. | 555,100 | 20,072 | |
Media - 1.5% | |||
Charter Communications, Inc. Class A (a) | 25,000 | 1,949 | |
DIRECTV (a) | 290,300 | 14,846 | |
Discovery Communications, Inc. (a) | 374,800 | 26,004 | |
DISH Network Corp. Class A | 76,600 | 2,855 | |
IMAX Corp. (a) | 14,500 | 343 | |
Lions Gate Entertainment Corp. (a)(d) | 1,629,869 | 29,859 | |
Pandora Media, Inc. (a)(d) | 2,726,119 | 31,405 | |
| 107,261 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Multiline Retail - 0.0% | |||
J.C. Penney Co., Inc. (d) | 48,200 | $ 980 | |
Specialty Retail - 2.3% | |||
Bed Bath & Beyond, Inc. (a) | 740,300 | 43,456 | |
Five Below, Inc. | 6,100 | 226 | |
Francescas Holdings Corp. (a)(d) | 833,709 | 23,677 | |
Inditex SA | 2,033 | 285 | |
Lowe's Companies, Inc. | 864,100 | 33,000 | |
Monro Muffler Brake, Inc. (d) | 363,813 | 13,177 | |
O'Reilly Automotive, Inc. (a) | 56,200 | 5,207 | |
Restoration Hardware Holdings, Inc. (d) | 22,100 | 796 | |
Ross Stores, Inc. | 195,000 | 11,642 | |
Urban Outfitters, Inc. (a) | 668,800 | 28,618 | |
| 160,084 | ||
Textiles, Apparel & Luxury Goods - 1.9% | |||
Deckers Outdoor Corp. (a)(d) | 14,530 | 580 | |
lululemon athletica, Inc. (a)(d) | 726,246 | 50,111 | |
Michael Kors Holdings Ltd. (a) | 616,100 | 34,582 | |
NIKE, Inc. Class B | 549,000 | 29,673 | |
Ralph Lauren Corp. | 96,700 | 16,099 | |
Vera Bradley, Inc. (a)(d) | 277,288 | 7,013 | |
| 138,058 | ||
TOTAL CONSUMER DISCRETIONARY | 925,039 | ||
CONSUMER STAPLES - 6.2% | |||
Beverages - 0.6% | |||
Monster Beverage Corp. (a) | 936,800 | 44,873 | |
Food & Staples Retailing - 2.2% | |||
Costco Wholesale Corp. | 1,547,300 | 158,351 | |
Food Products - 3.4% | |||
Green Mountain Coffee Roasters, Inc. (a)(d) | 4,079,604 | 185,744 | |
Kraft Foods Group, Inc. | 215,266 | 9,950 | |
Mondelez International, Inc. | 1,687,800 | 46,904 | |
| 242,598 | ||
TOTAL CONSUMER STAPLES | 445,822 | ||
ENERGY - 0.7% | |||
Energy Equipment & Services - 0.4% | |||
Halliburton Co. | 26,100 | 1,062 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Heckmann Corp. (a)(d) | 44,400 | $ 170 | |
National Oilwell Varco, Inc. | 207,700 | 15,399 | |
Ocean Rig UDW, Inc. (United States) (a) | 448,600 | 7,752 | |
| 24,383 | ||
Oil, Gas & Consumable Fuels - 0.3% | |||
Alpha Natural Resources, Inc. (a) | 34,821 | 309 | |
Amyris, Inc. (a)(d) | 66,182 | 201 | |
Cobalt International Energy, Inc. (a) | 756,098 | 18,305 | |
Noble Energy, Inc. | 30,600 | 3,298 | |
Peabody Energy Corp. | 8,600 | 216 | |
Rosetta Resources, Inc. (a) | 8,550 | 453 | |
Solazyme, Inc. (a)(d) | 18,141 | 142 | |
| 22,924 | ||
TOTAL ENERGY | 47,307 | ||
FINANCIALS - 2.7% | |||
Capital Markets - 0.3% | |||
WisdomTree Investments, Inc. (a) | 2,819,720 | 24,391 | |
Commercial Banks - 1.5% | |||
First Republic Bank | 26,900 | 960 | |
HDFC Bank Ltd. sponsored ADR | 5,800 | 233 | |
Huntington Bancshares, Inc. | 5,404,400 | 37,615 | |
National Bank Holdings Corp. | 110,800 | 2,000 | |
National Penn Bancshares, Inc. | 19,600 | 191 | |
UMB Financial Corp. | 428,000 | 18,948 | |
Wells Fargo & Co. | 1,330,200 | 46,331 | |
| 106,278 | ||
Consumer Finance - 0.9% | |||
Capital One Financial Corp. | 1,079,400 | 60,792 | |
Real Estate Management & Development - 0.0% | |||
Realogy Holdings Corp. | 23,500 | 1,052 | |
TOTAL FINANCIALS | 192,513 | ||
HEALTH CARE - 18.9% | |||
Biotechnology - 11.4% | |||
Achillion Pharmaceuticals, Inc. (a) | 858,000 | 7,705 | |
Aegerion Pharmaceuticals, Inc. (a)(d) | 579,000 | 16,391 | |
Alexion Pharmaceuticals, Inc. (a) | 546,200 | 51,337 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Alkermes PLC (a) | 796,636 | $ 18,362 | |
Alnylam Pharmaceuticals, Inc. (a) | 272,700 | 6,580 | |
Amarin Corp. PLC ADR (a)(d) | 778,061 | 6,629 | |
Amgen, Inc. | 654,100 | 55,899 | |
ARIAD Pharmaceuticals, Inc. (a) | 2,516,100 | 50,020 | |
Biogen Idec, Inc. (a) | 851,800 | 132,949 | |
BioMarin Pharmaceutical, Inc. (a) | 1,000,156 | 54,899 | |
Biovitrum AB (a) | 403,000 | 2,415 | |
Cepheid, Inc. (a) | 5,700 | 206 | |
Clovis Oncology, Inc. (a)(d) | 442,455 | 8,734 | |
Elan Corp. PLC sponsored ADR (a) | 488,700 | 5,136 | |
Gilead Sciences, Inc. (a) | 2,810,600 | 110,878 | |
ImmunoGen, Inc. (a)(d) | 297,309 | 4,257 | |
Infinity Pharmaceuticals, Inc. (a) | 122,500 | 4,220 | |
InterMune, Inc. (a) | 36,720 | 362 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 2,705,858 | 34,689 | |
Isis Pharmaceuticals, Inc. (a)(d) | 80,849 | 1,175 | |
Medivation, Inc. (a) | 1,353,640 | 73,584 | |
Mesoblast Ltd. (a)(d) | 27,236 | 170 | |
Novavax, Inc. (a)(d) | 929,019 | 1,663 | |
NPS Pharmaceuticals, Inc. (a) | 291,400 | 2,576 | |
OncoGenex Pharmaceuticals, Inc. (a) | 269,355 | 3,545 | |
Onyx Pharmaceuticals, Inc. (a) | 620,500 | 48,101 | |
Prothena Corp. PLC (a) | 14,987 | 90 | |
Regeneron Pharmaceuticals, Inc. (a) | 208,732 | 36,307 | |
Seattle Genetics, Inc. (a) | 33,503 | 987 | |
Synageva BioPharma Corp. (a) | 187,400 | 8,669 | |
Targacept, Inc. (a) | 156,349 | 702 | |
Theravance, Inc. (a)(d) | 2,658,253 | 59,146 | |
Threshold Pharmaceuticals, Inc. (a) | 45,000 | 208 | |
ZIOPHARM Oncology, Inc. (a) | 302,900 | 1,203 | |
| 809,794 | ||
Health Care Equipment & Supplies - 0.5% | |||
Abiomed, Inc. (a)(d) | 16,400 | 229 | |
Align Technology, Inc. (a) | 456,800 | 14,325 | |
DexCom, Inc. (a) | 15,000 | 228 | |
Endologix, Inc. (a) | 1,488,700 | 22,822 | |
Mako Surgical Corp. (a)(d) | 118,163 | 1,370 | |
Masimo Corp. | 7,500 | 152 | |
| 39,126 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - 2.5% | |||
Accretive Health, Inc. (a)(d)(e) | 9,842,302 | $ 127,064 | |
Catamaran Corp. (a) | 4,400 | 228 | |
Catamaran Corp. (United States) (a) | 483,240 | 25,075 | |
ExamWorks Group, Inc. (a) | 252,900 | 3,659 | |
HMS Holdings Corp. (a) | 474,500 | 12,935 | |
Qualicorp SA (a) | 848,200 | 8,774 | |
| 177,735 | ||
Health Care Technology - 1.8% | |||
athenahealth, Inc. (a)(d) | 1,470,977 | 127,195 | |
Life Sciences Tools & Services - 0.5% | |||
Life Technologies Corp. (a) | 536,000 | 34,674 | |
Pharmaceuticals - 2.2% | |||
Questcor Pharmaceuticals, Inc. (d)(e) | 5,614,954 | 143,069 | |
Roche Holding AG sponsored ADR | 261,600 | 14,514 | |
| 157,583 | ||
TOTAL HEALTH CARE | 1,346,107 | ||
INDUSTRIALS - 0.5% | |||
Aerospace & Defense - 0.0% | |||
Precision Castparts Corp. | 7,300 | 1,339 | |
Building Products - 0.1% | |||
Quanex Building Products Corp. | 181,724 | 3,754 | |
Commercial Services & Supplies - 0.2% | |||
Stericycle, Inc. (a) | 158,800 | 14,983 | |
Construction & Engineering - 0.0% | |||
Foster Wheeler AG (a) | 11,584 | 302 | |
Electrical Equipment - 0.2% | |||
SolarCity Corp. (d) | 872,094 | 12,750 | |
Machinery - 0.0% | |||
Edwards Group Ltd. ADR (a) | 77,900 | 530 | |
Stanley Black & Decker, Inc. | 4,400 | 338 | |
| 868 | ||
Professional Services - 0.0% | |||
Verisk Analytics, Inc. (a) | 39,600 | 2,184 | |
TOTAL INDUSTRIALS | 36,180 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 55.4% | |||
Communications Equipment - 6.5% | |||
Acme Packet, Inc. (a) | 17,275 | $ 418 | |
Aruba Networks, Inc. (a) | 694,546 | 16,002 | |
Cisco Systems, Inc. | 3,865,500 | 79,513 | |
Juniper Networks, Inc. (a) | 2,902,400 | 64,956 | |
QUALCOMM, Inc. | 2,511,409 | 165,828 | |
RADWARE Ltd. (a) | 903,514 | 32,861 | |
Research In Motion Ltd. (a)(d) | 437,700 | 5,681 | |
Riverbed Technology, Inc. (a) | 4,223,500 | 81,936 | |
ViaSat, Inc. (a) | 487,152 | 18,712 | |
| 465,907 | ||
Computers & Peripherals - 9.8% | |||
Apple, Inc. | 1,291,000 | 587,807 | |
Cray, Inc. (a)(e) | 1,965,665 | 36,502 | |
Fusion-io, Inc. (a)(d) | 2,157,966 | 37,721 | |
SanDisk Corp. (a) | 349,150 | 17,454 | |
Silicon Graphics International Corp. (a)(d) | 1,177,474 | 17,120 | |
| 696,604 | ||
Electronic Equipment & Components - 0.0% | |||
E Ink Holdings, Inc. GDR (a)(f) | 16,900 | 124 | |
Trimble Navigation Ltd. (a) | 31,500 | 1,969 | |
| 2,093 | ||
Internet Software & Services - 14.8% | |||
Angie's List, Inc. (a)(d) | 1,296,300 | 16,269 | |
Bazaarvoice, Inc. (d) | 655,233 | 5,065 | |
Constant Contact, Inc. (a)(e) | 2,917,136 | 43,932 | |
Demandware, Inc. | 474,300 | 15,078 | |
Dropbox, Inc. (g) | 331,524 | 3,000 | |
E2open, Inc. | 437,100 | 7,802 | |
eBay, Inc. (a) | 2,731,900 | 152,795 | |
ExactTarget, Inc. (e) | 5,497,987 | 120,901 | |
Facebook, Inc. Class A | 5,548,269 | 171,830 | |
Google, Inc. Class A (a) | 592,522 | 447,763 | |
LinkedIn Corp. (a) | 129,400 | 16,018 | |
Liquidity Services, Inc. (a) | 4,000 | 127 | |
Mail.ru Group Ltd. GDR (f) | 5,500 | 183 | |
Millennial Media, Inc. | 60,300 | 696 | |
Rackspace Hosting, Inc. (a) | 9,456 | 713 | |
SINA Corp. (a) | 216,800 | 11,909 | |
Trulia, Inc. (d) | 875,996 | 23,030 | |
Velti PLC (a)(d) | 1,154,251 | 4,294 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Yelp, Inc. (d) | 177,000 | $ 3,759 | |
YouKu.com, Inc. ADR (a) | 239,100 | 5,442 | |
| 1,050,606 | ||
IT Services - 0.4% | |||
Cardtronics, Inc. (a) | 12,800 | 331 | |
Pactera Technology International Ltd. ADR | 168,405 | 1,352 | |
ServiceSource International, Inc. (a)(e) | 4,877,736 | 29,510 | |
| 31,193 | ||
Semiconductors & Semiconductor Equipment - 7.7% | |||
Altera Corp. | 1,195,994 | 39,970 | |
Applied Micro Circuits Corp. (a) | 457,300 | 3,919 | |
ASML Holding NV | 11,165 | 838 | |
Atmel Corp. (a) | 1,395,900 | 9,353 | |
Broadcom Corp. Class A | 1,685,300 | 54,688 | |
Cirrus Logic, Inc. (a) | 1,079,996 | 30,488 | |
Cree, Inc. (a) | 79,400 | 3,426 | |
Inphi Corp. (a) | 798,295 | 6,410 | |
Integrated Device Technology, Inc. (a) | 93,000 | 672 | |
LSI Corp. (a) | 9,432,800 | 66,407 | |
Maxim Integrated Products, Inc. | 921,200 | 28,972 | |
Mellanox Technologies Ltd. (a)(d) | 1,121,812 | 59,703 | |
Microchip Technology, Inc. | 205,500 | 6,874 | |
Monolithic Power Systems, Inc. | 678,056 | 15,799 | |
NVE Corp. (a)(e) | 436,057 | 23,983 | |
NVIDIA Corp. | 12,910,112 | 158,278 | |
Skyworks Solutions, Inc. (a) | 1,534,900 | 36,746 | |
| 546,526 | ||
Software - 16.2% | |||
Activision Blizzard, Inc. | 3,062,400 | 34,881 | |
BroadSoft, Inc. (a) | 588,580 | 19,994 | |
Check Point Software Technologies Ltd. (a) | 1,140,600 | 57,030 | |
Electronic Arts, Inc. (a) | 11,313,492 | 177,961 | |
Envivio, Inc. (d) | 653,200 | 1,078 | |
Fortinet, Inc. (a) | 1,762,200 | 41,570 | |
Gameloft Se (a)(d)(e) | 7,764,787 | 53,348 | |
Guidewire Software, Inc. | 945,330 | 31,309 | |
Imperva, Inc. (a) | 15,600 | 535 | |
Infoblox, Inc. | 10,000 | 189 | |
Jive Software, Inc. (a) | 1,055,328 | 16,178 | |
MICROS Systems, Inc. (a) | 587,400 | 27,038 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Microsoft Corp. | 5,674,265 | $ 155,872 | |
Oracle Corp. | 5,939,700 | 210,919 | |
Proofpoint, Inc. | 14,900 | 196 | |
QLIK Technologies, Inc. (a) | 734,000 | 16,302 | |
salesforce.com, Inc. (a) | 371,200 | 63,895 | |
ServiceNow, Inc. (d) | 800,176 | 22,181 | |
Splunk, Inc. | 24,339 | 802 | |
Synchronoss Technologies, Inc. (a)(e) | 3,850,927 | 91,691 | |
Take-Two Interactive Software, Inc. (a) | 3,200,008 | 38,944 | |
Ubisoft Entertainment SA (a)(e) | 9,309,204 | 89,871 | |
Ubisoft Entertainment SA warrants 10/10/13 (a)(e) | 3,080,130 | 452 | |
| 1,152,236 | ||
TOTAL INFORMATION TECHNOLOGY | 3,945,165 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.2% | |||
Sherwin-Williams Co. | 88,700 | 14,382 | |
Metals & Mining - 0.2% | |||
AngloGold Ashanti Ltd. sponsored ADR | 223,200 | 6,254 | |
Randgold Resources Ltd. sponsored ADR | 21,633 | 2,037 | |
Royal Gold, Inc. | 72,300 | 5,399 | |
| 13,690 | ||
TOTAL MATERIALS | 28,072 | ||
TELECOMMUNICATION SERVICES - 2.0% | |||
Diversified Telecommunication Services - 0.3% | |||
Level 3 Communications, Inc. (a) | 846,279 | 20,158 | |
Wireless Telecommunication Services - 1.7% | |||
NII Holdings, Inc. (a)(d)(e) | 17,120,769 | 119,845 | |
TOTAL TELECOMMUNICATION SERVICES | 140,003 | ||
TOTAL COMMON STOCKS (Cost $6,186,942) |
| ||
U.S. Treasury Obligations - 0.0% | |||
| Principal | Value (000s) | |
U.S. Treasury Bills, yield at date of purchase 0.08% 2/14/13 | $ 2,500 | $ 2,500 | |
Money Market Funds - 8.7% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 3,202,341 | 3,202 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 614,137,106 | 614,137 | |
TOTAL MONEY MARKET FUNDS (Cost $617,339) |
| ||
TOTAL INVESTMENT PORTFOLIO - 108.5% (Cost $6,806,781) | 7,726,047 | ||
NET OTHER ASSETS (LIABILITIES) - (8.5)% | (604,361) | ||
NET ASSETS - 100% | $ 7,121,686 |
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 $307,000 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 $3,000,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Dropbox, Inc. | 5/2/12 | $ 3,000 |
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 | $ 10 |
Fidelity Securities Lending Cash Central Fund | 20,777 |
Total | $ 20,787 |
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, |
Accretive Health, Inc. | $ 134,915 | $ - | $ 1,010 | $ - | $ 127,064 |
Constant Contact, Inc. | 32,819 | 21,849 | 6,097 | - | 43,932 |
Cray, Inc. | 3,901 | 26,901 | 1,219 | - | 36,502 |
ExactTarget, Inc. | - | 108,610 | - | - | 120,901 |
Gameloft Se | 44,521 | - | - | - | 53,348 |
Inphi Corp. | 19,745 | - | 9,995 | - | - |
NII Holdings, Inc. | 88,138 | 24,865 | - | - | 119,845 |
NVE Corp. | 25,650 | - | 1,423 | - | 23,983 |
Questcor Pharmaceuticals, Inc. | 225,333 | - | 24,311 | 2,246 | 143,069 |
ServiceSource International, Inc. | 41,029 | 12,837 | 4,371 | - | 29,510 |
Synchronoss Technologies, Inc. | 73,630 | - | - | - | 91,691 |
Ubisoft Entertainment SA | 61,686 | 3,837 | - | - | 89,871 |
Ubisoft Entertainment SA warrants 10/10/13 | 207 | - | 217 | - | 452 |
Total | $ 751,574 | $ 198,899 | $ 48,643 | $ 2,246 | $ 880,168 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 925,039 | $ 925,039 | $ - | $ - |
Consumer Staples | 445,822 | 445,822 | - | - |
Energy | 47,307 | 47,307 | - | - |
Financials | 192,513 | 192,513 | - | - |
Health Care | 1,346,107 | 1,346,107 | - | - |
Industrials | 36,180 | 36,180 | - | - |
Information Technology | 3,945,165 | 3,942,165 | - | 3,000 |
Materials | 28,072 | 28,072 | - | - |
Telecommunication Services | 140,003 | 140,003 | - | - |
U.S. Government and Government Agency Obligations | 2,500 | - | 2,500 | - |
Money Market Funds | 617,339 | 617,339 | - | - |
Total Investments in Securities: | $ 7,726,047 | $ 7,720,547 | $ 2,500 | $ 3,000 |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $599,865) - See accompanying schedule: Unaffiliated issuers (cost $5,058,120) | $ 6,228,540 |
|
Fidelity Central Funds (cost $617,339) | 617,339 |
|
Other affiliated issuers (cost $1,131,322) | 880,168 |
|
Total Investments (cost $6,806,781) |
| $ 7,726,047 |
Cash |
| 130 |
Receivable for investments sold | 90,143 | |
Receivable for fund shares sold | 14,647 | |
Dividends receivable | 561 | |
Distributions receivable from Fidelity Central Funds | 2,728 | |
Prepaid expenses | 17 | |
Other receivables | 1,113 | |
Total assets | 7,835,386 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 73,529 | |
Payable for fund shares redeemed | 21,784 | |
Accrued management fee | 3,010 | |
Other affiliated payables | 1,001 | |
Other payables and accrued expenses | 239 | |
Collateral on securities loaned, at value | 614,137 | |
Total liabilities | 713,700 | |
|
|
|
Net Assets | $ 7,121,686 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,262,611 | |
Accumulated net investment loss | (539) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (59,629) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 919,243 | |
Net Assets | $ 7,121,686 |
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, 2013 (Unaudited) | |
|
|
|
OTC: | $ 62.85 | |
|
|
|
Class K: | $ 63.30 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $2,246 earned from other affiliated issuers) |
| $ 27,501 |
Special dividends |
| 11,578 |
Interest |
| 2 |
Income from Fidelity Central Funds (including $20,777 from security lending) |
| 20,787 |
Total income |
| 59,868 |
|
|
|
Expenses | ||
Management fee | $ 21,908 | |
Performance adjustment | (2,814) | |
Transfer agent fees | 5,518 | |
Accounting and security lending fees | 647 | |
Custodian fees and expenses | 111 | |
Independent trustees' compensation | 24 | |
Registration fees | 49 | |
Audit | 40 | |
Legal | 28 | |
Interest | 8 | |
Miscellaneous | 29 | |
Total expenses before reductions | 25,548 | |
Expense reductions | (1,531) | 24,017 |
Net investment income (loss) | 35,851 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 314,226 | |
Other affiliated issuers | (8,738) |
|
Foreign currency transactions | (25) | |
Futures contracts | 826 | |
Total net realized gain (loss) |
| 306,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 325,483 | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) |
| 325,487 |
Net gain (loss) | 631,776 | |
Net increase (decrease) in net assets resulting from operations | $ 667,627 |
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) | $ 35,851 | $ (8,447) |
Net realized gain (loss) | 306,289 | 104,141 |
Change in net unrealized appreciation (depreciation) | 325,487 | (349,473) |
Net increase (decrease) in net assets resulting | 667,627 | (253,779) |
Distributions to shareholders from net investment income | (33,821) | - |
Share transactions - net increase (decrease) | (654,840) | (340,677) |
Total increase (decrease) in net assets | (21,034) | (594,456) |
|
|
|
Net Assets | ||
Beginning of period | 7,142,720 | 7,737,176 |
End of period (including accumulated net investment loss of $539 and accumulated net investment loss of $2,569, respectively) | $ 7,121,686 | $ 7,142,720 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .29 G | (.08) H | (.27) | (.23) | (.12) | (.20) |
Net realized and unrealized gain (loss) | 5.31 | (1.67) | 14.55 | 6.50 | (5.81) | (2.23) |
Total from investment operations | 5.60 | (1.75) | 14.28 | 6.27 | (5.93) | (2.43) |
Distributions from net investment income | (.28) | - | - | - | - | - |
Net asset value, end of period | $ 62.85 | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 |
Total Return B,C | 9.76% | (2.95)% | 31.73% | 16.19% | (13.28)% | (5.16)% |
Ratios to Average Net Assets E,I | ||||||
Expenses before reductions | .74% A | .91% | .94% | 1.06% | 1.13% | 1.06% |
Expenses net of fee waivers, if any | .74% A | .91% | .94% | 1.06% | 1.13% | 1.06% |
Expenses net of all reductions | .70% A | .90% | .92% | 1.04% | 1.13% | 1.05% |
Net investment income (loss) | .96% A,G | (.14)% H | (.49)% | (.51)% | (.37)% | (.42)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,318 | $ 5,499 | $ 6,374 | $ 5,080 | $ 4,677 | $ 6,871 |
Portfolio turnover rate F | 102% A | 149% | 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .64%.
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 (.20)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .33 H | - I,L | (.19) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 5.35 | (1.67) | 14.61 | 6.52 | (5.80) | (3.06) |
Total from investment operations | 5.68 | (1.67) | 14.42 | 6.36 | (5.85) | (3.11) |
Distributions from net investment income | (.32) | - | - | - | - | - |
Net asset value, end of period | $ 63.30 | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B,C | 9.83% | (2.80)% | 31.91% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E,K | ||||||
Expenses before reductions | .60% A | .77% | .80% | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .60% A | .77% | .80% | .90% | .92% | .91% A |
Expenses net of all reductions | .56% A | .76% | .78% | .88% | .92% | .91% A |
Net investment income (loss) | 1.10% A,H | -% G,I | (.35)% | (.35)% | (.17)% | (.47)% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,803,572 | $ 1,644,073 | $ 1,363,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 102% A | 149% | 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 Amount represents less than .01%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .78%.
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 (.06)%.
J For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt Securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
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, deferred trustees compensation, 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 | $ 1,386,850 |
Gross unrealized depreciation | (522,063) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 864,787 |
|
|
Tax cost | $ 6,861,260 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2013 approximately $208,254 of capital losses recognized during the period November 1, 2011 to July 31, 2012.
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.
New Accounting Pronouncement. 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, and interim periods within those annual periods. 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
(Amounts in thousands except percentages)
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns, to gain exposure to certain types of assets 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 mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, 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.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $826 related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,668,959 and $4,338,187, 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 .53% 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
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
that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets.. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
OTC | $ 5,078 | .19 |
Class K | 440 | .05 |
| $ 5,518 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $168 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 Expense |
Borrower | $ 11,818 | .41% | $ 7 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous 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 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 $102,285. 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 $2,286 from securities loaned to FCM.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $27,714. The weighted average interest rate was .66%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,531 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 two hundred sixteen 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 |
|
|
OTC | $ 24,686 | $ - |
Class K | 9,135 | - |
Total | $ 33,821 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
OTC |
|
|
|
|
Shares sold | 4,890 | 24,727 | $ 297,579 | $ 1,432,210 |
Reinvestment of distributions | 400 | - | 23,934 | - |
Shares redeemed | (16,250) | (36,677) | (981,839) | (2,097,412) |
Net increase (decrease) | (10,960) | (11,950) | $ (660,326) | $ (665,202) |
Class K |
|
|
|
|
Shares sold | 4,908 | 15,671 | $ 297,245 | $ 918,563 |
Reinvestment of distributions | 152 | - | 9,135 | - |
Shares redeemed | (4,945) | (10,166) | (300,894) | (594,038) |
Net increase (decrease) | 115 | 5,505 | $ 5,486 | $ 324,525 |
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
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
OTC-K-USAN-0313 1.863312.104
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .74% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,097.60 | $ 3.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.48 | $ 3.77 |
Class K | .60% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,098.30 | $ 3.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.18 | $ 3.06 |
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 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 8.3 | 13.4 |
Google, Inc. Class A | 6.3 | 8.0 |
Oracle Corp. | 3.0 | 2.0 |
Tesla Motors, Inc. | 2.9 | 2.0 |
Green Mountain Coffee Roasters, Inc. | 2.6 | 1.3 |
Electronic Arts, Inc. | 2.5 | 0.0 |
Facebook, Inc. Class A | 2.4 | 0.0 |
QUALCOMM, Inc. | 2.3 | 1.4 |
Costco Wholesale Corp. | 2.2 | 2.3 |
NVIDIA Corp. | 2.2 | 4.6 |
| 34.7 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Information Technology | 55.4 | 55.9 |
Health Care | 18.9 | 13.8 |
Consumer Discretionary | 13.0 | 14.8 |
Consumer Staples | 6.2 | 4.7 |
Financials | 2.7 | 3.0 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Stocks 99.8% |
| ![]() | Stocks 100.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 7.1% |
| ** Foreign investments | 10.2% |
|
† Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart. |
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 13.0% | |||
Automobiles - 2.9% | |||
Tesla Motors, Inc. (a)(d) | 5,575,664 | $ 209,143 | |
Volkswagen AG sponsored ADR | 6,100 | 283 | |
| 209,426 | ||
Hotels, Restaurants & Leisure - 1.3% | |||
Bravo Brio Restaurant Group, Inc. (a) | 184,825 | 2,754 | |
Chipotle Mexican Grill, Inc. (a) | 153,600 | 47,157 | |
Dunkin' Brands Group, Inc. | 37,400 | 1,365 | |
Las Vegas Sands Corp. | 3,900 | 215 | |
Starbucks Corp. | 666,900 | 37,426 | |
Texas Roadhouse, Inc. Class A | 12,725 | 224 | |
The Cheesecake Factory, Inc. | 66,500 | 2,205 | |
| 91,346 | ||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 1,408,900 | 33,335 | |
iRobot Corp. (a) | 7,693 | 176 | |
Lennar Corp. Class A | 6,200 | 258 | |
PulteGroup, Inc. (a) | 69,300 | 1,437 | |
SodaStream International Ltd. (a)(d) | 228,258 | 10,977 | |
Toll Brothers, Inc. (a) | 703,600 | 26,350 | |
| 72,533 | ||
Internet & Catalog Retail - 1.8% | |||
Amazon.com, Inc. (a) | 319,096 | 84,720 | |
ASOS PLC (a) | 6,200 | 255 | |
HomeAway, Inc. (a)(d) | 589,360 | 14,127 | |
Ocado Group PLC (a) | 174,165 | 292 | |
Start Today Co. Ltd. (d) | 2,689,800 | 25,885 | |
| 125,279 | ||
Leisure Equipment & Products - 0.3% | |||
Brunswick Corp. | 555,100 | 20,072 | |
Media - 1.5% | |||
Charter Communications, Inc. Class A (a) | 25,000 | 1,949 | |
DIRECTV (a) | 290,300 | 14,846 | |
Discovery Communications, Inc. (a) | 374,800 | 26,004 | |
DISH Network Corp. Class A | 76,600 | 2,855 | |
IMAX Corp. (a) | 14,500 | 343 | |
Lions Gate Entertainment Corp. (a)(d) | 1,629,869 | 29,859 | |
Pandora Media, Inc. (a)(d) | 2,726,119 | 31,405 | |
| 107,261 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Multiline Retail - 0.0% | |||
J.C. Penney Co., Inc. (d) | 48,200 | $ 980 | |
Specialty Retail - 2.3% | |||
Bed Bath & Beyond, Inc. (a) | 740,300 | 43,456 | |
Five Below, Inc. | 6,100 | 226 | |
Francescas Holdings Corp. (a)(d) | 833,709 | 23,677 | |
Inditex SA | 2,033 | 285 | |
Lowe's Companies, Inc. | 864,100 | 33,000 | |
Monro Muffler Brake, Inc. (d) | 363,813 | 13,177 | |
O'Reilly Automotive, Inc. (a) | 56,200 | 5,207 | |
Restoration Hardware Holdings, Inc. (d) | 22,100 | 796 | |
Ross Stores, Inc. | 195,000 | 11,642 | |
Urban Outfitters, Inc. (a) | 668,800 | 28,618 | |
| 160,084 | ||
Textiles, Apparel & Luxury Goods - 1.9% | |||
Deckers Outdoor Corp. (a)(d) | 14,530 | 580 | |
lululemon athletica, Inc. (a)(d) | 726,246 | 50,111 | |
Michael Kors Holdings Ltd. (a) | 616,100 | 34,582 | |
NIKE, Inc. Class B | 549,000 | 29,673 | |
Ralph Lauren Corp. | 96,700 | 16,099 | |
Vera Bradley, Inc. (a)(d) | 277,288 | 7,013 | |
| 138,058 | ||
TOTAL CONSUMER DISCRETIONARY | 925,039 | ||
CONSUMER STAPLES - 6.2% | |||
Beverages - 0.6% | |||
Monster Beverage Corp. (a) | 936,800 | 44,873 | |
Food & Staples Retailing - 2.2% | |||
Costco Wholesale Corp. | 1,547,300 | 158,351 | |
Food Products - 3.4% | |||
Green Mountain Coffee Roasters, Inc. (a)(d) | 4,079,604 | 185,744 | |
Kraft Foods Group, Inc. | 215,266 | 9,950 | |
Mondelez International, Inc. | 1,687,800 | 46,904 | |
| 242,598 | ||
TOTAL CONSUMER STAPLES | 445,822 | ||
ENERGY - 0.7% | |||
Energy Equipment & Services - 0.4% | |||
Halliburton Co. | 26,100 | 1,062 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Heckmann Corp. (a)(d) | 44,400 | $ 170 | |
National Oilwell Varco, Inc. | 207,700 | 15,399 | |
Ocean Rig UDW, Inc. (United States) (a) | 448,600 | 7,752 | |
| 24,383 | ||
Oil, Gas & Consumable Fuels - 0.3% | |||
Alpha Natural Resources, Inc. (a) | 34,821 | 309 | |
Amyris, Inc. (a)(d) | 66,182 | 201 | |
Cobalt International Energy, Inc. (a) | 756,098 | 18,305 | |
Noble Energy, Inc. | 30,600 | 3,298 | |
Peabody Energy Corp. | 8,600 | 216 | |
Rosetta Resources, Inc. (a) | 8,550 | 453 | |
Solazyme, Inc. (a)(d) | 18,141 | 142 | |
| 22,924 | ||
TOTAL ENERGY | 47,307 | ||
FINANCIALS - 2.7% | |||
Capital Markets - 0.3% | |||
WisdomTree Investments, Inc. (a) | 2,819,720 | 24,391 | |
Commercial Banks - 1.5% | |||
First Republic Bank | 26,900 | 960 | |
HDFC Bank Ltd. sponsored ADR | 5,800 | 233 | |
Huntington Bancshares, Inc. | 5,404,400 | 37,615 | |
National Bank Holdings Corp. | 110,800 | 2,000 | |
National Penn Bancshares, Inc. | 19,600 | 191 | |
UMB Financial Corp. | 428,000 | 18,948 | |
Wells Fargo & Co. | 1,330,200 | 46,331 | |
| 106,278 | ||
Consumer Finance - 0.9% | |||
Capital One Financial Corp. | 1,079,400 | 60,792 | |
Real Estate Management & Development - 0.0% | |||
Realogy Holdings Corp. | 23,500 | 1,052 | |
TOTAL FINANCIALS | 192,513 | ||
HEALTH CARE - 18.9% | |||
Biotechnology - 11.4% | |||
Achillion Pharmaceuticals, Inc. (a) | 858,000 | 7,705 | |
Aegerion Pharmaceuticals, Inc. (a)(d) | 579,000 | 16,391 | |
Alexion Pharmaceuticals, Inc. (a) | 546,200 | 51,337 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Alkermes PLC (a) | 796,636 | $ 18,362 | |
Alnylam Pharmaceuticals, Inc. (a) | 272,700 | 6,580 | |
Amarin Corp. PLC ADR (a)(d) | 778,061 | 6,629 | |
Amgen, Inc. | 654,100 | 55,899 | |
ARIAD Pharmaceuticals, Inc. (a) | 2,516,100 | 50,020 | |
Biogen Idec, Inc. (a) | 851,800 | 132,949 | |
BioMarin Pharmaceutical, Inc. (a) | 1,000,156 | 54,899 | |
Biovitrum AB (a) | 403,000 | 2,415 | |
Cepheid, Inc. (a) | 5,700 | 206 | |
Clovis Oncology, Inc. (a)(d) | 442,455 | 8,734 | |
Elan Corp. PLC sponsored ADR (a) | 488,700 | 5,136 | |
Gilead Sciences, Inc. (a) | 2,810,600 | 110,878 | |
ImmunoGen, Inc. (a)(d) | 297,309 | 4,257 | |
Infinity Pharmaceuticals, Inc. (a) | 122,500 | 4,220 | |
InterMune, Inc. (a) | 36,720 | 362 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 2,705,858 | 34,689 | |
Isis Pharmaceuticals, Inc. (a)(d) | 80,849 | 1,175 | |
Medivation, Inc. (a) | 1,353,640 | 73,584 | |
Mesoblast Ltd. (a)(d) | 27,236 | 170 | |
Novavax, Inc. (a)(d) | 929,019 | 1,663 | |
NPS Pharmaceuticals, Inc. (a) | 291,400 | 2,576 | |
OncoGenex Pharmaceuticals, Inc. (a) | 269,355 | 3,545 | |
Onyx Pharmaceuticals, Inc. (a) | 620,500 | 48,101 | |
Prothena Corp. PLC (a) | 14,987 | 90 | |
Regeneron Pharmaceuticals, Inc. (a) | 208,732 | 36,307 | |
Seattle Genetics, Inc. (a) | 33,503 | 987 | |
Synageva BioPharma Corp. (a) | 187,400 | 8,669 | |
Targacept, Inc. (a) | 156,349 | 702 | |
Theravance, Inc. (a)(d) | 2,658,253 | 59,146 | |
Threshold Pharmaceuticals, Inc. (a) | 45,000 | 208 | |
ZIOPHARM Oncology, Inc. (a) | 302,900 | 1,203 | |
| 809,794 | ||
Health Care Equipment & Supplies - 0.5% | |||
Abiomed, Inc. (a)(d) | 16,400 | 229 | |
Align Technology, Inc. (a) | 456,800 | 14,325 | |
DexCom, Inc. (a) | 15,000 | 228 | |
Endologix, Inc. (a) | 1,488,700 | 22,822 | |
Mako Surgical Corp. (a)(d) | 118,163 | 1,370 | |
Masimo Corp. | 7,500 | 152 | |
| 39,126 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - 2.5% | |||
Accretive Health, Inc. (a)(d)(e) | 9,842,302 | $ 127,064 | |
Catamaran Corp. (a) | 4,400 | 228 | |
Catamaran Corp. (United States) (a) | 483,240 | 25,075 | |
ExamWorks Group, Inc. (a) | 252,900 | 3,659 | |
HMS Holdings Corp. (a) | 474,500 | 12,935 | |
Qualicorp SA (a) | 848,200 | 8,774 | |
| 177,735 | ||
Health Care Technology - 1.8% | |||
athenahealth, Inc. (a)(d) | 1,470,977 | 127,195 | |
Life Sciences Tools & Services - 0.5% | |||
Life Technologies Corp. (a) | 536,000 | 34,674 | |
Pharmaceuticals - 2.2% | |||
Questcor Pharmaceuticals, Inc. (d)(e) | 5,614,954 | 143,069 | |
Roche Holding AG sponsored ADR | 261,600 | 14,514 | |
| 157,583 | ||
TOTAL HEALTH CARE | 1,346,107 | ||
INDUSTRIALS - 0.5% | |||
Aerospace & Defense - 0.0% | |||
Precision Castparts Corp. | 7,300 | 1,339 | |
Building Products - 0.1% | |||
Quanex Building Products Corp. | 181,724 | 3,754 | |
Commercial Services & Supplies - 0.2% | |||
Stericycle, Inc. (a) | 158,800 | 14,983 | |
Construction & Engineering - 0.0% | |||
Foster Wheeler AG (a) | 11,584 | 302 | |
Electrical Equipment - 0.2% | |||
SolarCity Corp. (d) | 872,094 | 12,750 | |
Machinery - 0.0% | |||
Edwards Group Ltd. ADR (a) | 77,900 | 530 | |
Stanley Black & Decker, Inc. | 4,400 | 338 | |
| 868 | ||
Professional Services - 0.0% | |||
Verisk Analytics, Inc. (a) | 39,600 | 2,184 | |
TOTAL INDUSTRIALS | 36,180 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - 55.4% | |||
Communications Equipment - 6.5% | |||
Acme Packet, Inc. (a) | 17,275 | $ 418 | |
Aruba Networks, Inc. (a) | 694,546 | 16,002 | |
Cisco Systems, Inc. | 3,865,500 | 79,513 | |
Juniper Networks, Inc. (a) | 2,902,400 | 64,956 | |
QUALCOMM, Inc. | 2,511,409 | 165,828 | |
RADWARE Ltd. (a) | 903,514 | 32,861 | |
Research In Motion Ltd. (a)(d) | 437,700 | 5,681 | |
Riverbed Technology, Inc. (a) | 4,223,500 | 81,936 | |
ViaSat, Inc. (a) | 487,152 | 18,712 | |
| 465,907 | ||
Computers & Peripherals - 9.8% | |||
Apple, Inc. | 1,291,000 | 587,807 | |
Cray, Inc. (a)(e) | 1,965,665 | 36,502 | |
Fusion-io, Inc. (a)(d) | 2,157,966 | 37,721 | |
SanDisk Corp. (a) | 349,150 | 17,454 | |
Silicon Graphics International Corp. (a)(d) | 1,177,474 | 17,120 | |
| 696,604 | ||
Electronic Equipment & Components - 0.0% | |||
E Ink Holdings, Inc. GDR (a)(f) | 16,900 | 124 | |
Trimble Navigation Ltd. (a) | 31,500 | 1,969 | |
| 2,093 | ||
Internet Software & Services - 14.8% | |||
Angie's List, Inc. (a)(d) | 1,296,300 | 16,269 | |
Bazaarvoice, Inc. (d) | 655,233 | 5,065 | |
Constant Contact, Inc. (a)(e) | 2,917,136 | 43,932 | |
Demandware, Inc. | 474,300 | 15,078 | |
Dropbox, Inc. (g) | 331,524 | 3,000 | |
E2open, Inc. | 437,100 | 7,802 | |
eBay, Inc. (a) | 2,731,900 | 152,795 | |
ExactTarget, Inc. (e) | 5,497,987 | 120,901 | |
Facebook, Inc. Class A | 5,548,269 | 171,830 | |
Google, Inc. Class A (a) | 592,522 | 447,763 | |
LinkedIn Corp. (a) | 129,400 | 16,018 | |
Liquidity Services, Inc. (a) | 4,000 | 127 | |
Mail.ru Group Ltd. GDR (f) | 5,500 | 183 | |
Millennial Media, Inc. | 60,300 | 696 | |
Rackspace Hosting, Inc. (a) | 9,456 | 713 | |
SINA Corp. (a) | 216,800 | 11,909 | |
Trulia, Inc. (d) | 875,996 | 23,030 | |
Velti PLC (a)(d) | 1,154,251 | 4,294 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - continued | |||
Yelp, Inc. (d) | 177,000 | $ 3,759 | |
YouKu.com, Inc. ADR (a) | 239,100 | 5,442 | |
| 1,050,606 | ||
IT Services - 0.4% | |||
Cardtronics, Inc. (a) | 12,800 | 331 | |
Pactera Technology International Ltd. ADR | 168,405 | 1,352 | |
ServiceSource International, Inc. (a)(e) | 4,877,736 | 29,510 | |
| 31,193 | ||
Semiconductors & Semiconductor Equipment - 7.7% | |||
Altera Corp. | 1,195,994 | 39,970 | |
Applied Micro Circuits Corp. (a) | 457,300 | 3,919 | |
ASML Holding NV | 11,165 | 838 | |
Atmel Corp. (a) | 1,395,900 | 9,353 | |
Broadcom Corp. Class A | 1,685,300 | 54,688 | |
Cirrus Logic, Inc. (a) | 1,079,996 | 30,488 | |
Cree, Inc. (a) | 79,400 | 3,426 | |
Inphi Corp. (a) | 798,295 | 6,410 | |
Integrated Device Technology, Inc. (a) | 93,000 | 672 | |
LSI Corp. (a) | 9,432,800 | 66,407 | |
Maxim Integrated Products, Inc. | 921,200 | 28,972 | |
Mellanox Technologies Ltd. (a)(d) | 1,121,812 | 59,703 | |
Microchip Technology, Inc. | 205,500 | 6,874 | |
Monolithic Power Systems, Inc. | 678,056 | 15,799 | |
NVE Corp. (a)(e) | 436,057 | 23,983 | |
NVIDIA Corp. | 12,910,112 | 158,278 | |
Skyworks Solutions, Inc. (a) | 1,534,900 | 36,746 | |
| 546,526 | ||
Software - 16.2% | |||
Activision Blizzard, Inc. | 3,062,400 | 34,881 | |
BroadSoft, Inc. (a) | 588,580 | 19,994 | |
Check Point Software Technologies Ltd. (a) | 1,140,600 | 57,030 | |
Electronic Arts, Inc. (a) | 11,313,492 | 177,961 | |
Envivio, Inc. (d) | 653,200 | 1,078 | |
Fortinet, Inc. (a) | 1,762,200 | 41,570 | |
Gameloft Se (a)(d)(e) | 7,764,787 | 53,348 | |
Guidewire Software, Inc. | 945,330 | 31,309 | |
Imperva, Inc. (a) | 15,600 | 535 | |
Infoblox, Inc. | 10,000 | 189 | |
Jive Software, Inc. (a) | 1,055,328 | 16,178 | |
MICROS Systems, Inc. (a) | 587,400 | 27,038 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Microsoft Corp. | 5,674,265 | $ 155,872 | |
Oracle Corp. | 5,939,700 | 210,919 | |
Proofpoint, Inc. | 14,900 | 196 | |
QLIK Technologies, Inc. (a) | 734,000 | 16,302 | |
salesforce.com, Inc. (a) | 371,200 | 63,895 | |
ServiceNow, Inc. (d) | 800,176 | 22,181 | |
Splunk, Inc. | 24,339 | 802 | |
Synchronoss Technologies, Inc. (a)(e) | 3,850,927 | 91,691 | |
Take-Two Interactive Software, Inc. (a) | 3,200,008 | 38,944 | |
Ubisoft Entertainment SA (a)(e) | 9,309,204 | 89,871 | |
Ubisoft Entertainment SA warrants 10/10/13 (a)(e) | 3,080,130 | 452 | |
| 1,152,236 | ||
TOTAL INFORMATION TECHNOLOGY | 3,945,165 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.2% | |||
Sherwin-Williams Co. | 88,700 | 14,382 | |
Metals & Mining - 0.2% | |||
AngloGold Ashanti Ltd. sponsored ADR | 223,200 | 6,254 | |
Randgold Resources Ltd. sponsored ADR | 21,633 | 2,037 | |
Royal Gold, Inc. | 72,300 | 5,399 | |
| 13,690 | ||
TOTAL MATERIALS | 28,072 | ||
TELECOMMUNICATION SERVICES - 2.0% | |||
Diversified Telecommunication Services - 0.3% | |||
Level 3 Communications, Inc. (a) | 846,279 | 20,158 | |
Wireless Telecommunication Services - 1.7% | |||
NII Holdings, Inc. (a)(d)(e) | 17,120,769 | 119,845 | |
TOTAL TELECOMMUNICATION SERVICES | 140,003 | ||
TOTAL COMMON STOCKS (Cost $6,186,942) |
| ||
U.S. Treasury Obligations - 0.0% | |||
| Principal | Value (000s) | |
U.S. Treasury Bills, yield at date of purchase 0.08% 2/14/13 | $ 2,500 | $ 2,500 | |
Money Market Funds - 8.7% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 3,202,341 | 3,202 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 614,137,106 | 614,137 | |
TOTAL MONEY MARKET FUNDS (Cost $617,339) |
| ||
TOTAL INVESTMENT PORTFOLIO - 108.5% (Cost $6,806,781) | 7,726,047 | ||
NET OTHER ASSETS (LIABILITIES) - (8.5)% | (604,361) | ||
NET ASSETS - 100% | $ 7,121,686 |
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 $307,000 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 $3,000,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
Dropbox, Inc. | 5/2/12 | $ 3,000 |
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 | $ 10 |
Fidelity Securities Lending Cash Central Fund | 20,777 |
Total | $ 20,787 |
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, |
Accretive Health, Inc. | $ 134,915 | $ - | $ 1,010 | $ - | $ 127,064 |
Constant Contact, Inc. | 32,819 | 21,849 | 6,097 | - | 43,932 |
Cray, Inc. | 3,901 | 26,901 | 1,219 | - | 36,502 |
ExactTarget, Inc. | - | 108,610 | - | - | 120,901 |
Gameloft Se | 44,521 | - | - | - | 53,348 |
Inphi Corp. | 19,745 | - | 9,995 | - | - |
NII Holdings, Inc. | 88,138 | 24,865 | - | - | 119,845 |
NVE Corp. | 25,650 | - | 1,423 | - | 23,983 |
Questcor Pharmaceuticals, Inc. | 225,333 | - | 24,311 | 2,246 | 143,069 |
ServiceSource International, Inc. | 41,029 | 12,837 | 4,371 | - | 29,510 |
Synchronoss Technologies, Inc. | 73,630 | - | - | - | 91,691 |
Ubisoft Entertainment SA | 61,686 | 3,837 | - | - | 89,871 |
Ubisoft Entertainment SA warrants 10/10/13 | 207 | - | 217 | - | 452 |
Total | $ 751,574 | $ 198,899 | $ 48,643 | $ 2,246 | $ 880,168 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 925,039 | $ 925,039 | $ - | $ - |
Consumer Staples | 445,822 | 445,822 | - | - |
Energy | 47,307 | 47,307 | - | - |
Financials | 192,513 | 192,513 | - | - |
Health Care | 1,346,107 | 1,346,107 | - | - |
Industrials | 36,180 | 36,180 | - | - |
Information Technology | 3,945,165 | 3,942,165 | - | 3,000 |
Materials | 28,072 | 28,072 | - | - |
Telecommunication Services | 140,003 | 140,003 | - | - |
U.S. Government and Government Agency Obligations | 2,500 | - | 2,500 | - |
Money Market Funds | 617,339 | 617,339 | - | - |
Total Investments in Securities: | $ 7,726,047 | $ 7,720,547 | $ 2,500 | $ 3,000 |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $599,865) - See accompanying schedule: Unaffiliated issuers (cost $5,058,120) | $ 6,228,540 |
|
Fidelity Central Funds (cost $617,339) | 617,339 |
|
Other affiliated issuers (cost $1,131,322) | 880,168 |
|
Total Investments (cost $6,806,781) |
| $ 7,726,047 |
Cash |
| 130 |
Receivable for investments sold | 90,143 | |
Receivable for fund shares sold | 14,647 | |
Dividends receivable | 561 | |
Distributions receivable from Fidelity Central Funds | 2,728 | |
Prepaid expenses | 17 | |
Other receivables | 1,113 | |
Total assets | 7,835,386 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 73,529 | |
Payable for fund shares redeemed | 21,784 | |
Accrued management fee | 3,010 | |
Other affiliated payables | 1,001 | |
Other payables and accrued expenses | 239 | |
Collateral on securities loaned, at value | 614,137 | |
Total liabilities | 713,700 | |
|
|
|
Net Assets | $ 7,121,686 | |
Net Assets consist of: |
| |
Paid in capital | $ 6,262,611 | |
Accumulated net investment loss | (539) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (59,629) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 919,243 | |
Net Assets | $ 7,121,686 |
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, 2013 (Unaudited) | |
|
|
|
OTC: | $ 62.85 | |
|
|
|
Class K: | $ 63.30 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2013 (Unaudited) | |
|
|
|
Investment Income |
|
|
Dividends (including $2,246 earned from other affiliated issuers) |
| $ 27,501 |
Special dividends |
| 11,578 |
Interest |
| 2 |
Income from Fidelity Central Funds (including $20,777 from security lending) |
| 20,787 |
Total income |
| 59,868 |
|
|
|
Expenses | ||
Management fee | $ 21,908 | |
Performance adjustment | (2,814) | |
Transfer agent fees | 5,518 | |
Accounting and security lending fees | 647 | |
Custodian fees and expenses | 111 | |
Independent trustees' compensation | 24 | |
Registration fees | 49 | |
Audit | 40 | |
Legal | 28 | |
Interest | 8 | |
Miscellaneous | 29 | |
Total expenses before reductions | 25,548 | |
Expense reductions | (1,531) | 24,017 |
Net investment income (loss) | 35,851 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 314,226 | |
Other affiliated issuers | (8,738) |
|
Foreign currency transactions | (25) | |
Futures contracts | 826 | |
Total net realized gain (loss) |
| 306,289 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 325,483 | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) |
| 325,487 |
Net gain (loss) | 631,776 | |
Net increase (decrease) in net assets resulting from operations | $ 667,627 |
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) | $ 35,851 | $ (8,447) |
Net realized gain (loss) | 306,289 | 104,141 |
Change in net unrealized appreciation (depreciation) | 325,487 | (349,473) |
Net increase (decrease) in net assets resulting | 667,627 | (253,779) |
Distributions to shareholders from net investment income | (33,821) | - |
Share transactions - net increase (decrease) | (654,840) | (340,677) |
Total increase (decrease) in net assets | (21,034) | (594,456) |
|
|
|
Net Assets | ||
Beginning of period | 7,142,720 | 7,737,176 |
End of period (including accumulated net investment loss of $539 and accumulated net investment loss of $2,569, respectively) | $ 7,121,686 | $ 7,142,720 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended | Years ended July 31, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 | $ 47.09 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .29 G | (.08) H | (.27) | (.23) | (.12) | (.20) |
Net realized and unrealized gain (loss) | 5.31 | (1.67) | 14.55 | 6.50 | (5.81) | (2.23) |
Total from investment operations | 5.60 | (1.75) | 14.28 | 6.27 | (5.93) | (2.43) |
Distributions from net investment income | (.28) | - | - | - | - | - |
Net asset value, end of period | $ 62.85 | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 | $ 44.66 |
Total Return B,C | 9.76% | (2.95)% | 31.73% | 16.19% | (13.28)% | (5.16)% |
Ratios to Average Net Assets E,I | ||||||
Expenses before reductions | .74% A | .91% | .94% | 1.06% | 1.13% | 1.06% |
Expenses net of fee waivers, if any | .74% A | .91% | .94% | 1.06% | 1.13% | 1.06% |
Expenses net of all reductions | .70% A | .90% | .92% | 1.04% | 1.13% | 1.05% |
Net investment income (loss) | .96% A,G | (.14)% H | (.49)% | (.51)% | (.37)% | (.42)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,318 | $ 5,499 | $ 6,374 | $ 5,080 | $ 4,677 | $ 6,871 |
Portfolio turnover rate F | 102% A | 149% | 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .64%.
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 (.20)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended | Years ended July 31, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 J |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 | $ 47.79 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .33 H | - I,L | (.19) | (.16) | (.05) | (.05) |
Net realized and unrealized gain (loss) | 5.35 | (1.67) | 14.61 | 6.52 | (5.80) | (3.06) |
Total from investment operations | 5.68 | (1.67) | 14.42 | 6.36 | (5.85) | (3.11) |
Distributions from net investment income | (.32) | - | - | - | - | - |
Net asset value, end of period | $ 63.30 | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 | $ 44.68 |
Total Return B,C | 9.83% | (2.80)% | 31.91% | 16.38% | (13.09)% | (6.51)% |
Ratios to Average Net Assets E,K | ||||||
Expenses before reductions | .60% A | .77% | .80% | .90% | .92% | .91% A |
Expenses net of fee waivers, if any | .60% A | .77% | .80% | .90% | .92% | .91% A |
Expenses net of all reductions | .56% A | .76% | .78% | .88% | .92% | .91% A |
Net investment income (loss) | 1.10% A,H | -% G,I | (.35)% | (.35)% | (.17)% | (.47)% A |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 1,803,572 | $ 1,644,073 | $ 1,363,389 | $ 936,256 | $ 488,683 | $ 93 |
Portfolio turnover rate F | 102% A | 149% | 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 Amount represents less than .01%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .78%.
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 (.06)%.
J For the period May 9, 2008 (commencement of sale of shares) to July 31, 2008.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt Securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
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, deferred trustees compensation, 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 | $ 1,386,850 |
Gross unrealized depreciation | (522,063) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 864,787 |
|
|
Tax cost | $ 6,861,260 |
The Fund intends to elect to defer to its fiscal year ending July 31, 2013 approximately $208,254 of capital losses recognized during the period November 1, 2011 to July 31, 2012.
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.
New Accounting Pronouncement. 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, and interim periods within those annual periods. 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
(Amounts in thousands except percentages)
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns, to gain exposure to certain types of assets 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 mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, 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.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $826 related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,668,959 and $4,338,187, 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 .53% 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
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
that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets.. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
OTC | $ 5,078 | .19 |
Class K | 440 | .05 |
| $ 5,518 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 $168 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 Expense |
Borrower | $ 11,818 | .41% | $ 7 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous 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 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 $102,285. 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 $2,286 from securities loaned to FCM.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $27,714. The weighted average interest rate was .66%. The interest expense amounted to $1 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,531 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 two hundred sixteen 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 |
|
|
OTC | $ 24,686 | $ - |
Class K | 9,135 | - |
Total | $ 33,821 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
OTC |
|
|
|
|
Shares sold | 4,890 | 24,727 | $ 297,579 | $ 1,432,210 |
Reinvestment of distributions | 400 | - | 23,934 | - |
Shares redeemed | (16,250) | (36,677) | (981,839) | (2,097,412) |
Net increase (decrease) | (10,960) | (11,950) | $ (660,326) | $ (665,202) |
Class K |
|
|
|
|
Shares sold | 4,908 | 15,671 | $ 297,245 | $ 918,563 |
Reinvestment of distributions | 152 | - | 9,135 | - |
Shares redeemed | (4,945) | (10,166) | (300,894) | (594,038) |
Net increase (decrease) | 115 | 5,505 | $ 5,486 | $ 324,525 |
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
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
Smithfield, RI
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
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
OTC-USAN-0313 1.789288.110
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2013
(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 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. © 2013 FMR LLC. All rights reserved.
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 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, 2012 to January 31, 2013).
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 |
Leveraged Company Stock | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,224.80 | $ 4.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Class K | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,225.60 | $ 3.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 8.1 | 8.9 |
Service Corp. International | 4.1 | 4.9 |
The AES Corp. | 3.0 | 4.3 |
General Motors Co. | 2.8 | 0.9 |
Comcast Corp. Class A | 2.7 | 3.0 |
HollyFrontier Corp. | 2.5 | 3.1 |
Tenet Healthcare Corp. | 2.2 | 1.4 |
Ford Motor Co. | 1.9 | 1.7 |
GameStop Corp. Class A | 1.6 | 1.4 |
Cinemark Holdings, Inc. | 1.6 | 1.7 |
| 30.5 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 22.6 | 21.5 |
Materials | 12.4 | 13.9 |
Energy | 11.6 | 11.3 |
Industrials | 10.4 | 11.0 |
Health Care | 7.7 | 7.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 83.2% |
| ![]() | Stocks 91.3% |
| ||
![]() | Bonds 0.9% |
| ![]() | Bonds 0.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 0.3% |
| ![]() | Other Investments 0.4% |
| ||
![]() | Short-Term Investments and Net Other Assets (Liabilities) 15.5% |
| ![]() | Short-Term Investments and Net Other Assets (Liabilities) 7.4% |
| ||
* Foreign investments | 12.6% |
| ** Foreign investments | 14.3% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 82.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 21.7% | |||
Auto Components - 1.6% | |||
Delphi Automotive PLC (a) | 163,300 | $ 6,313 | |
Exide Technologies (a) | 3,930,293 | 13,520 | |
Tenneco, Inc. (a) | 825,300 | 28,852 | |
TRW Automotive Holdings Corp. (a) | 396,200 | 22,833 | |
| 71,518 | ||
Automobiles - 5.2% | |||
Ford Motor Co. | 6,790,633 | 87,939 | |
General Motors Co. (a) | 4,578,649 | 128,614 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 445,805 | 8,399 | |
warrants 7/10/19 (a) | 445,805 | 5,439 | |
Motors Liquidation Co. GUC Trust (a) | 123,112 | 2,875 | |
Toyota Motor Corp. sponsored ADR | 89,500 | 8,536 | |
| 241,802 | ||
Diversified Consumer Services - 4.4% | |||
Service Corp. International (f) | 12,885,925 | 192,387 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 12,501 | |
| 204,888 | ||
Hotels, Restaurants & Leisure - 0.4% | |||
Penn National Gaming, Inc. (a) | 360,340 | 17,534 | |
Station Holdco LLC warrants 6/15/18 (a)(i)(j) | 146,846 | 7 | |
| 17,541 | ||
Household Durables - 2.3% | |||
Hovnanian Enterprises, Inc. Class A (a)(e) | 1,419,000 | 8,102 | |
Lennar Corp. Class A (e) | 983,400 | 40,850 | |
Newell Rubbermaid, Inc. | 2,341,747 | 54,984 | |
| 103,936 | ||
Leisure Equipment & Products - 0.2% | |||
Callaway Golf Co. | 1,630,035 | 10,693 | |
Media - 5.0% | |||
Cinemark Holdings, Inc. | 2,601,645 | 73,210 | |
Comcast Corp. Class A | 3,302,598 | 125,763 | |
Gray Television, Inc. (a)(f) | 3,766,164 | 14,085 | |
Nexstar Broadcasting Group, Inc. Class A | 1,130,500 | 16,257 | |
| 229,315 | ||
Multiline Retail - 0.4% | |||
Target Corp. | 338,600 | 20,455 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - 2.1% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | $ 13,695 | |
GameStop Corp. Class A | 3,156,107 | 73,222 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 7,962 | |
| 94,879 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 123,220 | 6,284 | |
TOTAL CONSUMER DISCRETIONARY | 1,001,311 | ||
CONSUMER STAPLES - 2.6% | |||
Food & Staples Retailing - 0.5% | |||
Whole Foods Market, Inc. | 222,009 | 21,368 | |
Food Products - 1.9% | |||
ConAgra Foods, Inc. | 541,700 | 17,708 | |
Darling International, Inc. (a) | 3,476,642 | 58,651 | |
Smithfield Foods, Inc. (a) | 559,606 | 13,044 | |
| 89,403 | ||
Personal Products - 0.2% | |||
Revlon, Inc. (a) | 553,261 | 8,714 | |
TOTAL CONSUMER STAPLES | 119,485 | ||
ENERGY - 11.6% | |||
Energy Equipment & Services - 2.8% | |||
Ensco PLC Class A | 110,000 | 6,993 | |
Halliburton Co. | 1,126,593 | 45,830 | |
Noble Corp. | 447,200 | 18,112 | |
Oil States International, Inc. (a) | 345,966 | 26,840 | |
Schlumberger Ltd. | 109,400 | 8,539 | |
Transocean Ltd. (United States) | 381,900 | 21,658 | |
| 127,972 | ||
Oil, Gas & Consumable Fuels - 8.8% | |||
Alpha Natural Resources, Inc. (a) | 2,204,108 | 19,528 | |
Continental Resources, Inc. (a) | 534,087 | 44,393 | |
Forest Oil Corp. (a) | 1,205,652 | 8,391 | |
Hess Corp. | 779,010 | 52,318 | |
HollyFrontier Corp. | 2,197,627 | 114,760 | |
Kodiak Oil & Gas Corp. (a) | 2,019,747 | 18,582 | |
Nexen, Inc. | 188,000 | 5,029 | |
Peabody Energy Corp. | 822,825 | 20,694 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Range Resources Corp. | 247,200 | $ 16,604 | |
Valero Energy Corp. | 1,438,166 | 62,891 | |
Western Refining, Inc. | 1,303,573 | 43,839 | |
| 407,029 | ||
TOTAL ENERGY | 535,001 | ||
FINANCIALS - 6.3% | |||
Commercial Banks - 2.4% | |||
Huntington Bancshares, Inc. | 8,526,580 | 59,345 | |
Regions Financial Corp. | 3,284,894 | 25,556 | |
SunTrust Banks, Inc. | 1,019,600 | 28,926 | |
| 113,827 | ||
Consumer Finance - 0.9% | |||
American Express Co. | 679,548 | 39,964 | |
Diversified Financial Services - 1.3% | |||
Citigroup, Inc. | 1,458,047 | 61,471 | |
Insurance - 1.0% | |||
AFLAC, Inc. | 641,700 | 34,049 | |
Lincoln National Corp. | 435,700 | 12,627 | |
| 46,676 | ||
Real Estate Investment Trusts - 0.7% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | 17,061 | |
Sabra Health Care REIT, Inc. | 547,507 | 13,737 | |
| 30,798 | ||
TOTAL FINANCIALS | 292,736 | ||
HEALTH CARE - 7.7% | |||
Health Care Equipment & Supplies - 0.8% | |||
Boston Scientific Corp. (a) | 4,796,000 | 35,826 | |
Health Care Providers & Services - 5.2% | |||
Community Health Systems, Inc. | 784,376 | 30,065 | |
DaVita, Inc. (a) | 367,826 | 42,451 | |
HCA Holdings, Inc. | 1,216,779 | 45,812 | |
Tenet Healthcare Corp. (a) | 2,574,826 | 99,980 | |
Universal Health Services, Inc. Class B | 385,505 | 21,835 | |
| 240,143 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 1.7% | |||
Johnson & Johnson | 153,000 | $ 11,310 | |
Merck & Co., Inc. | 1,577,900 | 68,244 | |
| 79,554 | ||
TOTAL HEALTH CARE | 355,523 | ||
INDUSTRIALS - 10.1% | |||
Aerospace & Defense - 1.1% | |||
Honeywell International, Inc. | 478,776 | 32,672 | |
Textron, Inc. | 602,700 | 17,334 | |
| 50,006 | ||
Airlines - 1.9% | |||
Delta Air Lines, Inc. (a) | 3,665,001 | 50,907 | |
Southwest Airlines Co. | 571,283 | 6,404 | |
United Continental Holdings, Inc. (a) | 370,700 | 8,952 | |
US Airways Group, Inc. (a) | 1,481,380 | 21,154 | |
| 87,417 | ||
Building Products - 1.1% | |||
Armstrong World Industries, Inc. | 693,300 | 38,125 | |
Owens Corning (a) | 294,219 | 12,260 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 1,382 | |
| 51,767 | ||
Commercial Services & Supplies - 1.6% | |||
Deluxe Corp. | 1,786,873 | 65,739 | |
Tyco International Ltd. | 328,233 | 9,922 | |
| 75,661 | ||
Electrical Equipment - 1.5% | |||
Belden, Inc. | 777,664 | 37,445 | |
Emerson Electric Co. | 163,500 | 9,360 | |
General Cable Corp. (a) | 437,132 | 14,696 | |
Polypore International, Inc. (a)(e) | 217,800 | 8,405 | |
| 69,906 | ||
Industrial Conglomerates - 0.7% | |||
Carlisle Companies, Inc. | 109,910 | 7,051 | |
General Electric Co. | 1,103,883 | 24,595 | |
| 31,646 | ||
Machinery - 1.6% | |||
Fiat Industrial SpA | 1,634,423 | 21,049 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Ingersoll-Rand PLC | 739,500 | $ 38,003 | |
Pentair Ltd. | 78,757 | 3,991 | |
Timken Co. | 228,734 | 12,262 | |
| 75,305 | ||
Marine - 0.2% | |||
Navios Maritime Holdings, Inc. | 2,162,794 | 8,089 | |
Road & Rail - 0.3% | |||
Hertz Global Holdings, Inc. (a) | 707,700 | 12,937 | |
Trading Companies & Distributors - 0.1% | |||
Edgen Group, Inc. Class A | 841,256 | 6,722 | |
TOTAL INDUSTRIALS | 469,456 | ||
INFORMATION TECHNOLOGY - 5.4% | |||
Communications Equipment - 1.1% | |||
Cisco Systems, Inc. | 2,383,049 | 49,019 | |
Computers & Peripherals - 0.3% | |||
NCR Corp. (a) | 569,631 | 15,819 | |
Electronic Equipment & Components - 0.8% | |||
Avnet, Inc. (a) | 594,313 | 21,015 | |
Corning, Inc. | 726,800 | 8,722 | |
Viasystems Group, Inc. (a) | 540,460 | 7,615 | |
| 37,352 | ||
Internet Software & Services - 0.2% | |||
VeriSign, Inc. (a) | 194,300 | 8,435 | |
Semiconductors & Semiconductor Equipment - 2.3% | |||
Fairchild Semiconductor International, Inc. (a) | 1,122,274 | 16,576 | |
Freescale Semiconductor Holdings I Ltd. (a) | 1,178,100 | 17,024 | |
Intersil Corp. Class A | 1,460,387 | 12,632 | |
Micron Technology, Inc. (a) | 2,293,545 | 17,339 | |
ON Semiconductor Corp. (a) | 5,502,368 | 43,194 | |
| 106,765 | ||
Software - 0.7% | |||
Citrix Systems, Inc. (a) | 230,899 | 16,893 | |
Microsoft Corp. | 108,800 | 2,989 | |
Nuance Communications, Inc. (a) | 573,666 | 13,797 | |
| 33,679 | ||
TOTAL INFORMATION TECHNOLOGY | 251,069 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 12.4% | |||
Chemicals - 10.2% | |||
H.B. Fuller Co. | 461,829 | $ 18,048 | |
LyondellBasell Industries NV Class A | 5,928,729 | 376,000 | |
OMNOVA Solutions, Inc. (a)(f) | 3,114,962 | 25,480 | |
Phosphate Holdings, Inc. (a) | 307,500 | 461 | |
The Dow Chemical Co. | 832,388 | 26,803 | |
W.R. Grace & Co. (a) | 317,904 | 22,826 | |
| 469,618 | ||
Containers & Packaging - 1.6% | |||
Rock-Tenn Co. Class A | 733,723 | 57,927 | |
Sealed Air Corp. | 821,949 | 15,387 | |
| 73,314 | ||
Metals & Mining - 0.3% | |||
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | 14,741 | |
Ormet Corp. (a) | 330,000 | 264 | |
Ormet Corp. (a)(j) | 1,075,000 | 860 | |
| 15,865 | ||
Paper & Forest Products - 0.3% | |||
Neenah Paper, Inc. | 418,300 | 12,942 | |
TOTAL MATERIALS | 571,739 | ||
TELECOMMUNICATION SERVICES - 0.7% | |||
Diversified Telecommunication Services - 0.7% | |||
CenturyLink, Inc. | 771,680 | 31,214 | |
UTILITIES - 4.4% | |||
Electric Utilities - 0.4% | |||
FirstEnergy Corp. | 421,304 | 17,059 | |
Independent Power Producers & Energy Traders - 4.0% | |||
Calpine Corp. (a) | 2,361,000 | 46,583 | |
The AES Corp. | 12,738,524 | 138,086 | |
| 184,669 | ||
TOTAL UTILITIES | 201,728 | ||
TOTAL COMMON STOCKS (Cost $2,912,228) |
| ||
Nonconvertible Preferred Stocks - 0.3% | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | $ 3,460 | |
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
GMAC Capital Trust I Series 2, 8.125% | 439,013 | 11,708 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $19,207) |
|
Corporate Bonds - 1.0% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.1% | ||||
INDUSTRIALS - 0.1% | ||||
Marine - 0.1% | ||||
Genco Shipping & Trading Ltd. 5% 8/15/15 | $ 12,440 | 4,727 | ||
Nonconvertible Bonds - 0.9% | ||||
CONSUMER DISCRETIONARY - 0.9% | ||||
Automobiles - 0.0% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | 3,075 | 0 | ||
7.125% 7/15/13 (d) | 8,320 | 0 | ||
7.2% 1/15/11 (d) | 22,980 | 0 | ||
8.25% 7/15/23 (d) | 25,035 | 0 | ||
8.375% 7/15/33 (d) | 50,210 | 0 | ||
8.8% 3/1/21 (d) | 10,765 | 0 | ||
Multiline Retail - 0.9% | ||||
The Bon-Ton Department Stores, Inc. 10.625% 7/15/17 (g) | 41,875 | 41,561 | ||
TOTAL CORPORATE BONDS (Cost $39,267) |
| |||
Floating Rate Loans - 0.3% | ||||
| ||||
INDUSTRIALS - 0.2% | ||||
Airlines - 0.2% | ||||
US Airways Group, Inc. term loan 2.7017% 3/23/14 (h) | 10,835 | 10,795 | ||
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 4.7423% 10/10/17 (h) | $ 5,458 | $ 3,609 | ||
TOTAL FLOATING RATE LOANS (Cost $14,907) |
|
Money Market Funds - 15.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 705,651,039 | 705,651 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 26,060,925 | 26,061 | |
TOTAL MONEY MARKET FUNDS (Cost $731,712) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $3,717,321) | 4,636,834 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (16,939) | ||
NET ASSETS - 100% | $ 4,619,895 |
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) 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 $41,561,000 or 0.9% of net assets. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(i) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes which is owned by the Fund. |
(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 $867,000 or 0.0% 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 |
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 | $ 406 |
Fidelity Securities Lending Cash Central Fund | 1,641 |
Total | $ 2,047 |
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, |
Exide Technologies | $ 11,516 | $ - | $ - | $ - | $ - |
Gray Television, Inc. | 6,327 | - | - | - | 14,085 |
OMNOVA Solutions, Inc. | 22,677 | - | - | - | 25,480 |
Service Corp. International | 176,344 | - | 11,722 | 1,575 | 192,387 |
Total | $ 216,864 | $ - | $ 11,722 | $ 1,575 | $ 231,952 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 1,001,311 | $ 1,001,304 | $ - | $ 7 |
Consumer Staples | 122,945 | 119,485 | - | 3,460 |
Energy | 535,001 | 535,001 | - | - |
Financials | 304,444 | 304,444 | - | - |
Health Care | 355,523 | 355,523 | - | - |
Industrials | 469,456 | 469,456 | - | - |
Information Technology | 251,069 | 251,069 | - | - |
Materials | 571,739 | 571,739 | - | - |
Telecommunication Services | 31,214 | 31,214 | - | - |
Utilities | 201,728 | 201,728 | - | - |
Corporate Bonds | 46,288 | - | 46,288 | - |
Floating Rate Loans | 14,404 | - | 14,404 | - |
Money Market Funds | 731,712 | 731,712 | - | - |
Total Investments in Securities: | $ 4,636,834 | $ 4,572,675 | $ 60,692 | $ 3,467 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 87.4% |
Netherlands | 8.1% |
Switzerland | 1.1% |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $25,053) - See accompanying schedule: Unaffiliated issuers (cost $2,833,921) | $ 3,673,170 |
|
Fidelity Central Funds (cost $731,712) | 731,712 |
|
Other affiliated issuers (cost $151,688) | 231,952 |
|
Total Investments (cost $3,717,321) |
| $ 4,636,834 |
Cash |
| 25 |
Receivable for investments sold | 12,961 | |
Receivable for fund shares sold | 8,037 | |
Dividends receivable | 1,723 | |
Interest receivable | 2,001 | |
Distributions receivable from Fidelity Central Funds | 188 | |
Prepaid expenses | 7 | |
Other receivables | 193 | |
Total assets | 4,661,969 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,489 | |
Payable for fund shares redeemed | 8,601 | |
Accrued management fee | 2,242 | |
Other affiliated payables | 641 | |
Other payables and accrued expenses | 40 | |
Collateral on securities loaned, at value | 26,061 | |
Total liabilities | 42,074 | |
|
|
|
Net Assets | $ 4,619,895 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,111,179 | |
Undistributed net investment income | 3,454 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (414,251) | |
Net unrealized appreciation (depreciation) on investments | 919,513 | |
Net Assets | $ 4,619,895 | |
|
|
|
Leveraged Company Stock: | $ 34.43 | |
|
|
|
Class K: | $ 34.48 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends (including $1,575 earned from other affiliated issuers) |
| $ 38,429 |
Special dividends |
| 12,429 |
Interest |
| 3,895 |
Income from Fidelity Central Funds |
| 2,047 |
Income before foreign taxes withheld |
| 56,800 |
Less foreign taxes withheld |
| (3,326) |
Total income |
| 53,474 |
|
|
|
Expenses | ||
Management fee | $ 11,940 | |
Transfer agent fees | 3,271 | |
Accounting and security lending fees | 525 | |
Custodian fees and expenses | 19 | |
Independent trustees' compensation | 13 | |
Registration fees | 56 | |
Audit | 34 | |
Legal | 11 | |
Miscellaneous | 18 | |
Total expenses before reductions | 15,887 | |
Expense reductions | (161) | 15,726 |
Net investment income (loss) | 37,748 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 158,770 | |
Other affiliated issuers | 5,632 |
|
Total net realized gain (loss) |
| 164,402 |
Change in net unrealized appreciation (depreciation) on investment securities | 607,973 | |
Net gain (loss) | 772,375 | |
Net increase (decrease) in net assets resulting from operations | $ 810,123 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 37,748 | $ 22,919 |
Net realized gain (loss) | 164,402 | 163,015 |
Change in net unrealized appreciation (depreciation) | 607,973 | (307,255) |
Net increase (decrease) in net assets resulting | 810,123 | (121,321) |
Distributions to shareholders from net investment income | (15,789) | (41,206) |
Share transactions - net increase (decrease) | 216,280 | (714,976) |
Redemption fees | 215 | 410 |
Total increase (decrease) in net assets | 1,010,829 | (877,093) |
|
|
|
Net Assets | ||
Beginning of period | 3,609,066 | 4,486,159 |
End of period (including undistributed net investment income of $3,454 and distributions in excess of net investment income of $18,505, respectively) | $ 4,619,895 | $ 3,609,066 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.22 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .29 H | .16 | - J | .07 | .21 | .14 |
Net realized and unrealized gain (loss) | 6.04 | (.50) | 5.46 | 3.99 | (11.37) | (1.06) |
Total from investment operations | 6.33 | (.34) | 5.46 | 4.06 | (11.16) | (.92) |
Distributions from net investment income | (.12) | (.29) | (.11) | (.11) | (.14) | (.39) |
Distributions from net realized gain | - | - | - | - | (.25) | (1.39) |
Total distributions | (.12) | (.29) | (.11) | (.11) | (.39) | (1.78) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 34.43 | $ 28.22 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 |
Total Return B,C | 22.48% | (1.05)% | 23.27% | 20.84% | (35.99)% | (2.76)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .83% A | .86% | .85% | .88% | .92% | .83% |
Expenses net of fee waivers, if any | .83% A | .86% | .85% | .88% | .92% | .83% |
Expenses net of all reductions | .82% A | .85% | .84% | .88% | .92% | .83% |
Net investment income (loss) | 1.89% A,H | .60% | -% G | .29% | 1.17% | .44% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,785 | $ 3,009 | $ 3,931 | $ 3,983 | $ 3,714 | $ 8,032 |
Portfolio turnover rate F | 19% A | 29% | 18% | 21% | 34% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.26%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.26 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 G | .20 | .04 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | 6.04 | (.49) | 5.45 | 4.00 | (11.35) | (3.04) |
Total from investment operations | 6.36 | (.29) | 5.49 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.14) | (.31) | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | - | - | (.25) | - |
Total distributions | (.14) | (.31) | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | - J |
Net asset value, end of period | $ 34.48 | $ 28.26 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B,C | 22.56% | (.87)% | 23.45% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .69% A | .69% | .69% | .70% | .71% | .70% A |
Expenses net of fee waivers, if any | .69% A | .69% | .69% | .70% | .71% | .70% A |
Expenses net of all reductions | .68% A | .69% | .69% | .69% | .71% | .70% A |
Net investment income (loss) | 2.03% A,G | .76% | .16% | .47% | 1.39% | .58% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 835,093 | $ 600,270 | $ 554,907 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 19% A | 29% | 18% | 21% | 34% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
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 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, 2013 (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, 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds and floating rate loans, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, equity-debt classifications, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,179,758 |
Gross unrealized depreciation | (258,577) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 921,181 |
|
|
Tax cost | $ 3,715,653 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
|
|
2018 | $ (578,439) |
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.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $335,385 and $536,405, 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 .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. 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 | $ 3,096 | .19 |
Class K | 175 | .05 |
| $ 3,271 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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.
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 $1,641, including $27 from securities loaned to FCM.
Semiannual Report
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 $161 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 12,562 | $ 35,167 |
Class K | 3,227 | 6,039 |
Total | $ 15,789 | $ 41,206 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2013 | Year ended | Six months ended January 31, 2013 | Year ended | |
Leveraged Company Stock |
|
|
|
|
Shares sold | 16,551 | 11,853 | $ 531,050 | $ 318,644 |
Reinvestment of distributions | 378 | 1,333 | 11,889 | 33,481 |
Shares redeemed | (13,604) | (42,830) | (419,563) | (1,123,666) |
Net increase (decrease) | 3,325 | (29,644) | $ 123,376 | $ (771,541) |
Class K |
|
|
|
|
Shares sold | 6,314 | 9,320 | $ 196,527 | $ 250,995 |
Reinvestment of distributions | 102 | 240 | 3,227 | 6,039 |
Shares redeemed | (3,436) | (7,542) | (106,850) | (200,469) |
Net increase (decrease) | 2,980 | 2,018 | $ 92,904 | $ 56,565 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-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
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
LSF-USAN-0313 1.789286.110
Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2013
(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 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.
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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. © 2013 FMR LLC. All rights reserved.
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 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, 2012 to January 31, 2013).
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 |
Leveraged Company Stock | .83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,224.80 | $ 4.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.02 | $ 4.23 |
Class K | .69% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,225.60 | $ 3.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.73 | $ 3.52 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
LyondellBasell Industries NV Class A | 8.1 | 8.9 |
Service Corp. International | 4.1 | 4.9 |
The AES Corp. | 3.0 | 4.3 |
General Motors Co. | 2.8 | 0.9 |
Comcast Corp. Class A | 2.7 | 3.0 |
HollyFrontier Corp. | 2.5 | 3.1 |
Tenet Healthcare Corp. | 2.2 | 1.4 |
Ford Motor Co. | 1.9 | 1.7 |
GameStop Corp. Class A | 1.6 | 1.4 |
Cinemark Holdings, Inc. | 1.6 | 1.7 |
| 30.5 | |
Top Five Market Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 22.6 | 21.5 |
Materials | 12.4 | 13.9 |
Energy | 11.6 | 11.3 |
Industrials | 10.4 | 11.0 |
Health Care | 7.7 | 7.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Stocks 83.2% |
| ![]() | Stocks 91.3% |
| ||
![]() | Bonds 0.9% |
| ![]() | Bonds 0.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 0.3% |
| ![]() | Other Investments 0.4% |
| ||
![]() | Short-Term Investments and Net Other Assets (Liabilities) 15.5% |
| ![]() | Short-Term Investments and Net Other Assets (Liabilities) 7.4% |
| ||
* Foreign investments | 12.6% |
| ** Foreign investments | 14.3% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 82.9% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 21.7% | |||
Auto Components - 1.6% | |||
Delphi Automotive PLC (a) | 163,300 | $ 6,313 | |
Exide Technologies (a) | 3,930,293 | 13,520 | |
Tenneco, Inc. (a) | 825,300 | 28,852 | |
TRW Automotive Holdings Corp. (a) | 396,200 | 22,833 | |
| 71,518 | ||
Automobiles - 5.2% | |||
Ford Motor Co. | 6,790,633 | 87,939 | |
General Motors Co. (a) | 4,578,649 | 128,614 | |
General Motors Co.: | |||
warrants 7/10/16 (a) | 445,805 | 8,399 | |
warrants 7/10/19 (a) | 445,805 | 5,439 | |
Motors Liquidation Co. GUC Trust (a) | 123,112 | 2,875 | |
Toyota Motor Corp. sponsored ADR | 89,500 | 8,536 | |
| 241,802 | ||
Diversified Consumer Services - 4.4% | |||
Service Corp. International (f) | 12,885,925 | 192,387 | |
Stewart Enterprises, Inc. Class A | 1,515,242 | 12,501 | |
| 204,888 | ||
Hotels, Restaurants & Leisure - 0.4% | |||
Penn National Gaming, Inc. (a) | 360,340 | 17,534 | |
Station Holdco LLC warrants 6/15/18 (a)(i)(j) | 146,846 | 7 | |
| 17,541 | ||
Household Durables - 2.3% | |||
Hovnanian Enterprises, Inc. Class A (a)(e) | 1,419,000 | 8,102 | |
Lennar Corp. Class A (e) | 983,400 | 40,850 | |
Newell Rubbermaid, Inc. | 2,341,747 | 54,984 | |
| 103,936 | ||
Leisure Equipment & Products - 0.2% | |||
Callaway Golf Co. | 1,630,035 | 10,693 | |
Media - 5.0% | |||
Cinemark Holdings, Inc. | 2,601,645 | 73,210 | |
Comcast Corp. Class A | 3,302,598 | 125,763 | |
Gray Television, Inc. (a)(f) | 3,766,164 | 14,085 | |
Nexstar Broadcasting Group, Inc. Class A | 1,130,500 | 16,257 | |
| 229,315 | ||
Multiline Retail - 0.4% | |||
Target Corp. | 338,600 | 20,455 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - 2.1% | |||
Asbury Automotive Group, Inc. (a) | 385,122 | $ 13,695 | |
GameStop Corp. Class A | 3,156,107 | 73,222 | |
Sally Beauty Holdings, Inc. (a) | 300,000 | 7,962 | |
| 94,879 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Coach, Inc. | 123,220 | 6,284 | |
TOTAL CONSUMER DISCRETIONARY | 1,001,311 | ||
CONSUMER STAPLES - 2.6% | |||
Food & Staples Retailing - 0.5% | |||
Whole Foods Market, Inc. | 222,009 | 21,368 | |
Food Products - 1.9% | |||
ConAgra Foods, Inc. | 541,700 | 17,708 | |
Darling International, Inc. (a) | 3,476,642 | 58,651 | |
Smithfield Foods, Inc. (a) | 559,606 | 13,044 | |
| 89,403 | ||
Personal Products - 0.2% | |||
Revlon, Inc. (a) | 553,261 | 8,714 | |
TOTAL CONSUMER STAPLES | 119,485 | ||
ENERGY - 11.6% | |||
Energy Equipment & Services - 2.8% | |||
Ensco PLC Class A | 110,000 | 6,993 | |
Halliburton Co. | 1,126,593 | 45,830 | |
Noble Corp. | 447,200 | 18,112 | |
Oil States International, Inc. (a) | 345,966 | 26,840 | |
Schlumberger Ltd. | 109,400 | 8,539 | |
Transocean Ltd. (United States) | 381,900 | 21,658 | |
| 127,972 | ||
Oil, Gas & Consumable Fuels - 8.8% | |||
Alpha Natural Resources, Inc. (a) | 2,204,108 | 19,528 | |
Continental Resources, Inc. (a) | 534,087 | 44,393 | |
Forest Oil Corp. (a) | 1,205,652 | 8,391 | |
Hess Corp. | 779,010 | 52,318 | |
HollyFrontier Corp. | 2,197,627 | 114,760 | |
Kodiak Oil & Gas Corp. (a) | 2,019,747 | 18,582 | |
Nexen, Inc. | 188,000 | 5,029 | |
Peabody Energy Corp. | 822,825 | 20,694 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Range Resources Corp. | 247,200 | $ 16,604 | |
Valero Energy Corp. | 1,438,166 | 62,891 | |
Western Refining, Inc. | 1,303,573 | 43,839 | |
| 407,029 | ||
TOTAL ENERGY | 535,001 | ||
FINANCIALS - 6.3% | |||
Commercial Banks - 2.4% | |||
Huntington Bancshares, Inc. | 8,526,580 | 59,345 | |
Regions Financial Corp. | 3,284,894 | 25,556 | |
SunTrust Banks, Inc. | 1,019,600 | 28,926 | |
| 113,827 | ||
Consumer Finance - 0.9% | |||
American Express Co. | 679,548 | 39,964 | |
Diversified Financial Services - 1.3% | |||
Citigroup, Inc. | 1,458,047 | 61,471 | |
Insurance - 1.0% | |||
AFLAC, Inc. | 641,700 | 34,049 | |
Lincoln National Corp. | 435,700 | 12,627 | |
| 46,676 | ||
Real Estate Investment Trusts - 0.7% | |||
Host Hotels & Resorts, Inc. | 1,016,122 | 17,061 | |
Sabra Health Care REIT, Inc. | 547,507 | 13,737 | |
| 30,798 | ||
TOTAL FINANCIALS | 292,736 | ||
HEALTH CARE - 7.7% | |||
Health Care Equipment & Supplies - 0.8% | |||
Boston Scientific Corp. (a) | 4,796,000 | 35,826 | |
Health Care Providers & Services - 5.2% | |||
Community Health Systems, Inc. | 784,376 | 30,065 | |
DaVita, Inc. (a) | 367,826 | 42,451 | |
HCA Holdings, Inc. | 1,216,779 | 45,812 | |
Tenet Healthcare Corp. (a) | 2,574,826 | 99,980 | |
Universal Health Services, Inc. Class B | 385,505 | 21,835 | |
| 240,143 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 1.7% | |||
Johnson & Johnson | 153,000 | $ 11,310 | |
Merck & Co., Inc. | 1,577,900 | 68,244 | |
| 79,554 | ||
TOTAL HEALTH CARE | 355,523 | ||
INDUSTRIALS - 10.1% | |||
Aerospace & Defense - 1.1% | |||
Honeywell International, Inc. | 478,776 | 32,672 | |
Textron, Inc. | 602,700 | 17,334 | |
| 50,006 | ||
Airlines - 1.9% | |||
Delta Air Lines, Inc. (a) | 3,665,001 | 50,907 | |
Southwest Airlines Co. | 571,283 | 6,404 | |
United Continental Holdings, Inc. (a) | 370,700 | 8,952 | |
US Airways Group, Inc. (a) | 1,481,380 | 21,154 | |
| 87,417 | ||
Building Products - 1.1% | |||
Armstrong World Industries, Inc. | 693,300 | 38,125 | |
Owens Corning (a) | 294,219 | 12,260 | |
Owens Corning warrants 10/31/13 (a) | 406,600 | 1,382 | |
| 51,767 | ||
Commercial Services & Supplies - 1.6% | |||
Deluxe Corp. | 1,786,873 | 65,739 | |
Tyco International Ltd. | 328,233 | 9,922 | |
| 75,661 | ||
Electrical Equipment - 1.5% | |||
Belden, Inc. | 777,664 | 37,445 | |
Emerson Electric Co. | 163,500 | 9,360 | |
General Cable Corp. (a) | 437,132 | 14,696 | |
Polypore International, Inc. (a)(e) | 217,800 | 8,405 | |
| 69,906 | ||
Industrial Conglomerates - 0.7% | |||
Carlisle Companies, Inc. | 109,910 | 7,051 | |
General Electric Co. | 1,103,883 | 24,595 | |
| 31,646 | ||
Machinery - 1.6% | |||
Fiat Industrial SpA | 1,634,423 | 21,049 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Ingersoll-Rand PLC | 739,500 | $ 38,003 | |
Pentair Ltd. | 78,757 | 3,991 | |
Timken Co. | 228,734 | 12,262 | |
| 75,305 | ||
Marine - 0.2% | |||
Navios Maritime Holdings, Inc. | 2,162,794 | 8,089 | |
Road & Rail - 0.3% | |||
Hertz Global Holdings, Inc. (a) | 707,700 | 12,937 | |
Trading Companies & Distributors - 0.1% | |||
Edgen Group, Inc. Class A | 841,256 | 6,722 | |
TOTAL INDUSTRIALS | 469,456 | ||
INFORMATION TECHNOLOGY - 5.4% | |||
Communications Equipment - 1.1% | |||
Cisco Systems, Inc. | 2,383,049 | 49,019 | |
Computers & Peripherals - 0.3% | |||
NCR Corp. (a) | 569,631 | 15,819 | |
Electronic Equipment & Components - 0.8% | |||
Avnet, Inc. (a) | 594,313 | 21,015 | |
Corning, Inc. | 726,800 | 8,722 | |
Viasystems Group, Inc. (a) | 540,460 | 7,615 | |
| 37,352 | ||
Internet Software & Services - 0.2% | |||
VeriSign, Inc. (a) | 194,300 | 8,435 | |
Semiconductors & Semiconductor Equipment - 2.3% | |||
Fairchild Semiconductor International, Inc. (a) | 1,122,274 | 16,576 | |
Freescale Semiconductor Holdings I Ltd. (a) | 1,178,100 | 17,024 | |
Intersil Corp. Class A | 1,460,387 | 12,632 | |
Micron Technology, Inc. (a) | 2,293,545 | 17,339 | |
ON Semiconductor Corp. (a) | 5,502,368 | 43,194 | |
| 106,765 | ||
Software - 0.7% | |||
Citrix Systems, Inc. (a) | 230,899 | 16,893 | |
Microsoft Corp. | 108,800 | 2,989 | |
Nuance Communications, Inc. (a) | 573,666 | 13,797 | |
| 33,679 | ||
TOTAL INFORMATION TECHNOLOGY | 251,069 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - 12.4% | |||
Chemicals - 10.2% | |||
H.B. Fuller Co. | 461,829 | $ 18,048 | |
LyondellBasell Industries NV Class A | 5,928,729 | 376,000 | |
OMNOVA Solutions, Inc. (a)(f) | 3,114,962 | 25,480 | |
Phosphate Holdings, Inc. (a) | 307,500 | 461 | |
The Dow Chemical Co. | 832,388 | 26,803 | |
W.R. Grace & Co. (a) | 317,904 | 22,826 | |
| 469,618 | ||
Containers & Packaging - 1.6% | |||
Rock-Tenn Co. Class A | 733,723 | 57,927 | |
Sealed Air Corp. | 821,949 | 15,387 | |
| 73,314 | ||
Metals & Mining - 0.3% | |||
AngloGold Ashanti Ltd. sponsored ADR | 526,100 | 14,741 | |
Ormet Corp. (a) | 330,000 | 264 | |
Ormet Corp. (a)(j) | 1,075,000 | 860 | |
| 15,865 | ||
Paper & Forest Products - 0.3% | |||
Neenah Paper, Inc. | 418,300 | 12,942 | |
TOTAL MATERIALS | 571,739 | ||
TELECOMMUNICATION SERVICES - 0.7% | |||
Diversified Telecommunication Services - 0.7% | |||
CenturyLink, Inc. | 771,680 | 31,214 | |
UTILITIES - 4.4% | |||
Electric Utilities - 0.4% | |||
FirstEnergy Corp. | 421,304 | 17,059 | |
Independent Power Producers & Energy Traders - 4.0% | |||
Calpine Corp. (a) | 2,361,000 | 46,583 | |
The AES Corp. | 12,738,524 | 138,086 | |
| 184,669 | ||
TOTAL UTILITIES | 201,728 | ||
TOTAL COMMON STOCKS (Cost $2,912,228) |
| ||
Nonconvertible Preferred Stocks - 0.3% | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 0.1% | |||
Personal Products - 0.1% | |||
Revlon, Inc. Series A 12.75% | 639,576 | $ 3,460 | |
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
GMAC Capital Trust I Series 2, 8.125% | 439,013 | 11,708 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $19,207) |
|
Corporate Bonds - 1.0% | ||||
| Principal Amount (000s) |
| ||
Convertible Bonds - 0.1% | ||||
INDUSTRIALS - 0.1% | ||||
Marine - 0.1% | ||||
Genco Shipping & Trading Ltd. 5% 8/15/15 | $ 12,440 | 4,727 | ||
Nonconvertible Bonds - 0.9% | ||||
CONSUMER DISCRETIONARY - 0.9% | ||||
Automobiles - 0.0% | ||||
General Motors Corp.: | ||||
6.75% 5/1/28 (d) | 3,075 | 0 | ||
7.125% 7/15/13 (d) | 8,320 | 0 | ||
7.2% 1/15/11 (d) | 22,980 | 0 | ||
8.25% 7/15/23 (d) | 25,035 | 0 | ||
8.375% 7/15/33 (d) | 50,210 | 0 | ||
8.8% 3/1/21 (d) | 10,765 | 0 | ||
Multiline Retail - 0.9% | ||||
The Bon-Ton Department Stores, Inc. 10.625% 7/15/17 (g) | 41,875 | 41,561 | ||
TOTAL CORPORATE BONDS (Cost $39,267) |
| |||
Floating Rate Loans - 0.3% | ||||
| ||||
INDUSTRIALS - 0.2% | ||||
Airlines - 0.2% | ||||
US Airways Group, Inc. term loan 2.7017% 3/23/14 (h) | 10,835 | 10,795 | ||
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 4.7423% 10/10/17 (h) | $ 5,458 | $ 3,609 | ||
TOTAL FLOATING RATE LOANS (Cost $14,907) |
|
Money Market Funds - 15.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 705,651,039 | 705,651 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 26,060,925 | 26,061 | |
TOTAL MONEY MARKET FUNDS (Cost $731,712) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $3,717,321) | 4,636,834 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (16,939) | ||
NET ASSETS - 100% | $ 4,619,895 |
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) 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 $41,561,000 or 0.9% of net assets. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(i) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes which is owned by the Fund. |
(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 $867,000 or 0.0% 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 |
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 | $ 406 |
Fidelity Securities Lending Cash Central Fund | 1,641 |
Total | $ 2,047 |
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, |
Exide Technologies | $ 11,516 | $ - | $ - | $ - | $ - |
Gray Television, Inc. | 6,327 | - | - | - | 14,085 |
OMNOVA Solutions, Inc. | 22,677 | - | - | - | 25,480 |
Service Corp. International | 176,344 | - | 11,722 | 1,575 | 192,387 |
Total | $ 216,864 | $ - | $ 11,722 | $ 1,575 | $ 231,952 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 1,001,311 | $ 1,001,304 | $ - | $ 7 |
Consumer Staples | 122,945 | 119,485 | - | 3,460 |
Energy | 535,001 | 535,001 | - | - |
Financials | 304,444 | 304,444 | - | - |
Health Care | 355,523 | 355,523 | - | - |
Industrials | 469,456 | 469,456 | - | - |
Information Technology | 251,069 | 251,069 | - | - |
Materials | 571,739 | 571,739 | - | - |
Telecommunication Services | 31,214 | 31,214 | - | - |
Utilities | 201,728 | 201,728 | - | - |
Corporate Bonds | 46,288 | - | 46,288 | - |
Floating Rate Loans | 14,404 | - | 14,404 | - |
Money Market Funds | 731,712 | 731,712 | - | - |
Total Investments in Securities: | $ 4,636,834 | $ 4,572,675 | $ 60,692 | $ 3,467 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 87.4% |
Netherlands | 8.1% |
Switzerland | 1.1% |
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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $25,053) - See accompanying schedule: Unaffiliated issuers (cost $2,833,921) | $ 3,673,170 |
|
Fidelity Central Funds (cost $731,712) | 731,712 |
|
Other affiliated issuers (cost $151,688) | 231,952 |
|
Total Investments (cost $3,717,321) |
| $ 4,636,834 |
Cash |
| 25 |
Receivable for investments sold | 12,961 | |
Receivable for fund shares sold | 8,037 | |
Dividends receivable | 1,723 | |
Interest receivable | 2,001 | |
Distributions receivable from Fidelity Central Funds | 188 | |
Prepaid expenses | 7 | |
Other receivables | 193 | |
Total assets | 4,661,969 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,489 | |
Payable for fund shares redeemed | 8,601 | |
Accrued management fee | 2,242 | |
Other affiliated payables | 641 | |
Other payables and accrued expenses | 40 | |
Collateral on securities loaned, at value | 26,061 | |
Total liabilities | 42,074 | |
|
|
|
Net Assets | $ 4,619,895 | |
Net Assets consist of: |
| |
Paid in capital | $ 4,111,179 | |
Undistributed net investment income | 3,454 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (414,251) | |
Net unrealized appreciation (depreciation) on investments | 919,513 | |
Net Assets | $ 4,619,895 | |
|
|
|
Leveraged Company Stock: | $ 34.43 | |
|
|
|
Class K: | $ 34.48 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends (including $1,575 earned from other affiliated issuers) |
| $ 38,429 |
Special dividends |
| 12,429 |
Interest |
| 3,895 |
Income from Fidelity Central Funds |
| 2,047 |
Income before foreign taxes withheld |
| 56,800 |
Less foreign taxes withheld |
| (3,326) |
Total income |
| 53,474 |
|
|
|
Expenses | ||
Management fee | $ 11,940 | |
Transfer agent fees | 3,271 | |
Accounting and security lending fees | 525 | |
Custodian fees and expenses | 19 | |
Independent trustees' compensation | 13 | |
Registration fees | 56 | |
Audit | 34 | |
Legal | 11 | |
Miscellaneous | 18 | |
Total expenses before reductions | 15,887 | |
Expense reductions | (161) | 15,726 |
Net investment income (loss) | 37,748 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 158,770 | |
Other affiliated issuers | 5,632 |
|
Total net realized gain (loss) |
| 164,402 |
Change in net unrealized appreciation (depreciation) on investment securities | 607,973 | |
Net gain (loss) | 772,375 | |
Net increase (decrease) in net assets resulting from operations | $ 810,123 |
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, 2013 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 37,748 | $ 22,919 |
Net realized gain (loss) | 164,402 | 163,015 |
Change in net unrealized appreciation (depreciation) | 607,973 | (307,255) |
Net increase (decrease) in net assets resulting | 810,123 | (121,321) |
Distributions to shareholders from net investment income | (15,789) | (41,206) |
Share transactions - net increase (decrease) | 216,280 | (714,976) |
Redemption fees | 215 | 410 |
Total increase (decrease) in net assets | 1,010,829 | (877,093) |
|
|
|
Net Assets | ||
Beginning of period | 3,609,066 | 4,486,159 |
End of period (including undistributed net investment income of $3,454 and distributions in excess of net investment income of $18,505, respectively) | $ 4,619,895 | $ 3,609,066 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.22 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 | $ 33.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .29 H | .16 | - J | .07 | .21 | .14 |
Net realized and unrealized gain (loss) | 6.04 | (.50) | 5.46 | 3.99 | (11.37) | (1.06) |
Total from investment operations | 6.33 | (.34) | 5.46 | 4.06 | (11.16) | (.92) |
Distributions from net investment income | (.12) | (.29) | (.11) | (.11) | (.14) | (.39) |
Distributions from net realized gain | - | - | - | - | (.25) | (1.39) |
Total distributions | (.12) | (.29) | (.11) | (.11) | (.39) | (1.78) |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 34.43 | $ 28.22 | $ 28.85 | $ 23.50 | $ 19.55 | $ 31.09 |
Total Return B,C | 22.48% | (1.05)% | 23.27% | 20.84% | (35.99)% | (2.76)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .83% A | .86% | .85% | .88% | .92% | .83% |
Expenses net of fee waivers, if any | .83% A | .86% | .85% | .88% | .92% | .83% |
Expenses net of all reductions | .82% A | .85% | .84% | .88% | .92% | .83% |
Net investment income (loss) | 1.89% A,H | .60% | -% G | .29% | 1.17% | .44% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,785 | $ 3,009 | $ 3,931 | $ 3,983 | $ 3,714 | $ 8,032 |
Portfolio turnover rate F | 19% A | 29% | 18% | 21% | 34% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.26%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31, 2013 | Years ended July 31, | ||||
| (Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 H |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.26 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 | $ 34.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 G | .20 | .04 | .11 | .21 | .05 |
Net realized and unrealized gain (loss) | 6.04 | (.49) | 5.45 | 4.00 | (11.35) | (3.04) |
Total from investment operations | 6.36 | (.29) | 5.49 | 4.11 | (11.14) | (2.99) |
Distributions from net investment income | (.14) | (.31) | (.15) | (.15) | (.17) | - |
Distributions from net realized gain | - | - | - | - | (.25) | - |
Total distributions | (.14) | (.31) | (.15) | (.15) | (.42) | - |
Redemption fees added to paid in capital D | - J | - J | - J | - J | .01 | - J |
Net asset value, end of period | $ 34.48 | $ 28.26 | $ 28.86 | $ 23.52 | $ 19.56 | $ 31.11 |
Total Return B,C | 22.56% | (.87)% | 23.45% | 21.09% | (35.86)% | (8.77)% |
Ratios to Average Net Assets E,I |
|
|
|
|
| |
Expenses before reductions | .69% A | .69% | .69% | .70% | .71% | .70% A |
Expenses net of fee waivers, if any | .69% A | .69% | .69% | .70% | .71% | .70% A |
Expenses net of all reductions | .68% A | .69% | .69% | .69% | .71% | .70% A |
Net investment income (loss) | 2.03% A,G | .76% | .16% | .47% | 1.39% | .58% A |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 835,093 | $ 600,270 | $ 554,907 | $ 409,934 | $ 267,351 | $ 91 |
Portfolio turnover rate F | 19% A | 29% | 18% | 21% | 34% | 30% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower 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 $.10 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.40%.
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 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, 2013 (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, 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally 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
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds and floating rate loans, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2013 is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, equity-debt classifications, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,179,758 |
Gross unrealized depreciation | (258,577) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 921,181 |
|
|
Tax cost | $ 3,715,653 |
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, 2012, capital loss carryforwards were as follows:
Fiscal year of expiration |
|
|
|
2018 | $ (578,439) |
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.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $335,385 and $536,405, 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 .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. 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 | $ 3,096 | .19 |
Class K | 175 | .05 |
| $ 3,271 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for 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 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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.
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 $1,641, including $27 from securities loaned to FCM.
Semiannual Report
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 $161 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, | Year ended | |
From net investment income |
|
|
Leveraged Company Stock | $ 12,562 | $ 35,167 |
Class K | 3,227 | 6,039 |
Total | $ 15,789 | $ 41,206 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2013 | Year ended | Six months ended January 31, 2013 | Year ended | |
Leveraged Company Stock |
|
|
|
|
Shares sold | 16,551 | 11,853 | $ 531,050 | $ 318,644 |
Reinvestment of distributions | 378 | 1,333 | 11,889 | 33,481 |
Shares redeemed | (13,604) | (42,830) | (419,563) | (1,123,666) |
Net increase (decrease) | 3,325 | (29,644) | $ 123,376 | $ (771,541) |
Class K |
|
|
|
|
Shares sold | 6,314 | 9,320 | $ 196,527 | $ 250,995 |
Reinvestment of distributions | 102 | 240 | 3,227 | 6,039 |
Shares redeemed | (3,436) | (7,542) | (106,850) | (200,469) |
Net increase (decrease) | 2,980 | 2,018 | $ 92,904 | $ 56,565 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
LSF-K-USAN-0313 1.863384.104
Fidelity®
Series Real Estate Equity
Fund
Fidelity Series Real Estate Equity Fund
Class F
Semiannual Report
January 31, 2013
(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 Real Estate Equity Fund or 1-800-835-5092 for Class F of the fund 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .80% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.50 | $ 4.13 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.17 | $ 4.08 |
Class F | .60% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,049.60 | $ 3.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.18 | $ 3.06 |
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 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Simon Property Group, Inc. | 12.0 | 13.2 |
Public Storage | 7.8 | 6.7 |
Ventas, Inc. | 7.6 | 7.7 |
Prologis, Inc. | 6.8 | 5.3 |
SL Green Realty Corp. | 4.1 | 4.3 |
Camden Property Trust (SBI) | 4.0 | 3.8 |
HCP, Inc. | 3.6 | 3.0 |
Boston Properties, Inc. | 3.5 | 5.1 |
Essex Property Trust, Inc. | 3.3 | 4.2 |
CBL & Associates Properties, Inc. | 3.0 | 2.8 |
| 55.7 | |
Top Five REIT Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
REITs - Apartments | 16.9 | 17.6 |
REITs - Malls | 16.6 | 16.6 |
REITs - Industrial Buildings | 16.3 | 13.4 |
REITs - Office Buildings | 14.5 | 15.2 |
REITs - Health Care Facilities | 13.2 | 11.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 | As of July 31, 2012 | ||||||
![]() | Stocks 96.8% |
| ![]() | Stocks 96.8% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.8% | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - 2.4% | |||
Health Care Facilities - 2.4% | |||
Brookdale Senior Living, Inc. (a) | 287,266 | $ 7,759,055 | |
Emeritus Corp. (a) | 475,874 | 12,886,668 | |
TOTAL HEALTH CARE FACILITIES | 20,645,723 | ||
REAL ESTATE INVESTMENT TRUSTS - 92.3% | |||
REITs - Apartments - 16.9% | |||
Apartment Investment & Management Co. Class A | 337,800 | 9,215,184 | |
AvalonBay Communities, Inc. | 144,300 | 18,728,697 | |
Camden Property Trust (SBI) | 504,872 | 35,033,068 | |
Education Realty Trust, Inc. | 1,739,691 | 18,701,678 | |
Equity Residential (SBI) | 320,451 | 17,749,781 | |
Essex Property Trust, Inc. | 184,067 | 28,305,823 | |
Home Properties, Inc. | 296,542 | 18,228,437 | |
TOTAL REITS - APARTMENTS | 145,962,668 | ||
REITs - Health Care Facilities - 13.2% | |||
HCP, Inc. | 674,859 | 31,306,709 | |
Health Care REIT, Inc. | 272,526 | 17,125,534 | |
Ventas, Inc. | 979,710 | 64,944,976 | |
TOTAL REITS - HEALTH CARE FACILITIES | 113,377,219 | ||
REITs - Hotels - 5.2% | |||
Chesapeake Lodging Trust | 674,696 | 14,404,760 | |
Host Hotels & Resorts, Inc. | 901,600 | 15,137,864 | |
Sunstone Hotel Investors, Inc. (a) | 1,353,266 | 15,657,288 | |
TOTAL REITS - HOTELS | 45,199,912 | ||
REITs - Industrial Buildings - 16.3% | |||
DCT Industrial Trust, Inc. | 1,028,200 | 7,259,092 | |
DuPont Fabros Technology, Inc. | 27,400 | 647,736 | |
First Industrial Realty Trust, Inc. (a) | 206,900 | 3,242,123 | |
First Potomac Realty Trust | 244,400 | 3,348,280 | |
Prologis, Inc. | 1,478,626 | 58,997,177 | |
Public Storage | 437,050 | 67,275,107 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 140,769,515 | ||
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Malls - 16.6% | |||
CBL & Associates Properties, Inc. | 1,232,519 | $ 26,486,833 | |
General Growth Properties, Inc. | 701,000 | 13,683,520 | |
Simon Property Group, Inc. | 644,768 | 103,278,937 | |
TOTAL REITS - MALLS | 143,449,290 | ||
REITs - Management/Investment - 0.8% | |||
Coresite Realty Corp. | 14,400 | 424,800 | |
Retail Properties America, Inc. | 308,162 | 3,987,616 | |
Weyerhaeuser Co. | 69,000 | 2,078,280 | |
TOTAL REITS - MANAGEMENT/INVESTMENT | 6,490,696 | ||
REITs - Mobile Home Parks - 0.7% | |||
Sun Communities, Inc. | 136,308 | 5,854,429 | |
REITs - Office Buildings - 14.5% | |||
Alexandria Real Estate Equities, Inc. | 128,697 | 9,330,533 | |
Boston Properties, Inc. | 285,775 | 30,086,392 | |
Cousins Properties, Inc. | 774,200 | 6,890,380 | |
Douglas Emmett, Inc. | 776,800 | 18,114,976 | |
Highwoods Properties, Inc. (SBI) | 591,240 | 21,284,640 | |
SL Green Realty Corp. | 441,300 | 35,471,694 | |
Sovran Self Storage, Inc. | 52,900 | 3,451,196 | |
TOTAL REITS - OFFICE BUILDINGS | 124,629,811 | ||
REITs - Shopping Centers - 8.1% | |||
Acadia Realty Trust (SBI) | 467,900 | 12,230,906 | |
Cedar Shopping Centers, Inc. | 855,190 | 4,712,097 | |
Equity One, Inc. | 811,669 | 18,351,836 | |
Excel Trust, Inc. | 108,892 | 1,369,861 | |
Glimcher Realty Trust | 977,270 | 10,867,242 | |
Kite Realty Group Trust | 757,800 | 4,584,690 | |
Vornado Realty Trust | 206,200 | 17,415,652 | |
TOTAL REITS - SHOPPING CENTERS | 69,532,284 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 795,265,824 | ||
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.1% | |||
Real Estate Operating Companies - 1.1% | |||
Forest City Enterprises, Inc. Class A (a) | 527,000 | $ 8,911,570 | |
Real Estate Services - 1.0% | |||
CBRE Group, Inc. (a) | 411,991 | 8,890,766 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 17,802,336 | ||
TOTAL COMMON STOCKS (Cost $707,201,326) |
| ||
Money Market Funds - 3.3% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.16% (b) | 28,740,477 |
| |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $735,941,803) | 862,454,360 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (972,889) | ||
NET ASSETS - 100% | $ 861,481,471 |
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. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 21,786 |
Fidelity Securities Lending Cash Central Fund | 5,348 |
Total | $ 27,134 |
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 Investment 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $707,201,326) | $ 833,713,883 |
|
Fidelity Central Funds (cost $28,740,477) | 28,740,477 |
|
Total Investments (cost $735,941,803) |
| $ 862,454,360 |
Receivable for investments sold | 2,199,010 | |
Receivable for fund shares sold | 1,305,972 | |
Dividends receivable | 679,146 | |
Distributions receivable from Fidelity Central Funds | 3,694 | |
Prepaid expenses | 3,216 | |
Other receivables | 31,898 | |
Total assets | 866,677,296 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,175,317 | |
Payable for fund shares redeemed | 497,587 | |
Accrued management fee | 392,425 | |
Other affiliated payables | 98,095 | |
Other payables and accrued expenses | 32,401 | |
Total liabilities | 5,195,825 | |
|
|
|
Net Assets | $ 861,481,471 | |
Net Assets consist of: |
| |
Paid in capital | $ 731,616,895 | |
Undistributed net investment income | 752,212 | |
Accumulated undistributed net realized gain (loss) on investments | 2,599,807 | |
Net unrealized appreciation (depreciation) on investments | 126,512,557 | |
Net Assets | $ 861,481,471 |
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, 2013 (Unaudited) | |
|
|
|
Series Real Estate Equity: | $ 12.53 | |
|
|
|
Class F: | $ 12.54 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 9,642,234 |
Income from Fidelity Central Funds |
| 27,134 |
Total income |
| 9,669,368 |
|
|
|
Expenses | ||
Management fee | $ 2,246,668 | |
Transfer agent fees | 454,733 | |
Accounting and security lending fees | 140,537 | |
Custodian fees and expenses | 14,398 | |
Independent trustees' compensation | 2,640 | |
Audit | 22,792 | |
Legal | 1,922 | |
Miscellaneous | 2,261 | |
Total expenses before reductions | 2,885,951 | |
Expense reductions | (48,788) | 2,837,163 |
Net investment income (loss) | 6,832,205 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 14,986,076 |
Change in net unrealized appreciation (depreciation) on investment securities | 17,713,474 | |
Net gain (loss) | 32,699,550 | |
Net increase (decrease) in net assets resulting from operations | $ 39,531,755 |
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 | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 6,832,205 | $ 6,063,365 |
Net realized gain (loss) | 14,986,076 | 8,922,512 |
Change in net unrealized appreciation (depreciation) | 17,713,474 | 108,799,083 |
Net increase (decrease) in net assets resulting | 39,531,755 | 123,784,960 |
Distributions to shareholders from net investment income | (7,991,464) | (4,149,221) |
Distributions to shareholders from net realized gain | (20,512,803) | (798,651) |
Total distributions | (28,504,267) | (4,947,872) |
Share transactions - net increase (decrease) | 51,539,714 | 680,077,181 |
Total increase (decrease) in net assets | 62,567,202 | 798,914,269 |
|
|
|
Net Assets | ||
Beginning of period | 798,914,269 | - |
End of period (including undistributed net investment income of $752,212 and undistributed net investment income of $1,911,471, respectively) | $ 861,481,471 | $ 798,914,269 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Equity
| Six months ended | Year ended |
January 31, | (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 12.39 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .10 | .11 |
Net realized and unrealized gain (loss) | .47 | 2.38 |
Total from investment operations | .57 | 2.49 |
Distributions from net investment income | (.12) | (.08) |
Distributions from net realized gain | (.31) | (.02) |
Total distributions | (.43) | (.10) |
Net asset value, end of period | $ 12.53 | $ 12.39 |
Total Return B, C | 4.75% | 25.03% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .80% A | .81% A |
Expenses net of fee waivers, if any | .80% A | .81% A |
Expenses net of all reductions | .78% A | .81% A |
Net investment income (loss) | 1.61% A | 1.27% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 485,117 | $ 475,392 |
Portfolio turnover rate F | 53% A | 40% 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 For the period October 20, 2011 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Year ended |
January 31, | (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 12.39 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .11 | .13 |
Net realized and unrealized gain (loss) | .48 | 2.37 |
Total from investment operations | .59 | 2.50 |
Distributions from net investment income | (.13) | (.09) |
Distributions from net realized gain | (.31) | (.02) |
Total distributions | (.44) | (.11) |
Net asset value, end of period | $ 12.54 | $ 12.39 |
Total Return B, C | 4.96% | 25.16% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .60% A | .61% A |
Expenses net of fee waivers, if any | .60% A | .61% A |
Expenses net of all reductions | .59% A | .61% A |
Net investment income (loss) | 1.81% A | 1.47% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 376,364 | $ 323,523 |
Portfolio turnover rate F | 53% A | 40% 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 For the period October 20, 2011 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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.
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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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.
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 | $ 127,952,096 |
Gross unrealized depreciation | (2,211,215) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 125,740,881 |
Tax cost | $ 736,713,479 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $237,290,068 and $206,271,667, 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. 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 Equity. FIIOC receives no fees for providing transfer agency services to
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
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 | $ 454,733 | .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 $3,114 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $978 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
Semiannual Report
7. Security Lending - continued
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 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 $5,348. 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 $48,779 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 $9.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Series Real Estate Equity | $ 4,396,620 | $ 2,536,950 |
Class F | 3,594,844 | 1,612,271 |
Total | $ 7,991,464 | $ 4,149,221 |
From net realized gain |
|
|
Series Real Estate Equity | $ 11,925,873 | $ 550,380 |
Class F | 8,586,930 | 248,271 |
Total | $ 20,512,803 | $ 798,651 |
A For the period October 20, 2011 (commencement of operations) to July 31, 2012.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Series Real Estate Equity |
|
|
|
|
Shares sold | 1,896,540 | 45,860,755 B | $ 23,193,542 | $ 478,790,709 B |
Reinvestment of distributions | 1,355,185 | 289,752 | 16,322,493 | 3,087,330 |
Shares redeemed | (2,928,797) | (7,772,152) | (35,730,260) | (82,058,496) |
Net increase (decrease) | 322,928 | 38,378,355 | $ 3,785,775 | $ 399,819,543 |
Class F |
|
|
|
|
Shares sold | 3,584,242 | 28,641,002 B | $ 43,860,689 | $ 306,842,724 B |
Reinvestment of distributions | 1,012,028 | 172,860 | 12,181,774 | 1,860,542 |
Shares redeemed | (683,312) | (2,708,395) | (8,288,524) | (28,445,628) |
Net increase (decrease) | 3,912,958 | 26,105,467 | $ 47,753,939 | $ 280,257,638 |
A For the period October 20, 2011 (commencement of operations) to July 31, 2012.
B Amount includes in-kind exchanges.
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
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
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SLE-SANN-0313 1.930456.101
Fidelity®
Series Real Estate Income
Fund
Fidelity Series Real Estate Income Fund
Class F
Semiannual Report
January 31, 2013
(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 Real Estate Income Fund or 1-800-835-5092 for Class F of the fund 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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.00 | $ 4.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.22 | $ 4.02 |
Class F | .61% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.20 | $ 3.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.13 | $ 3.11 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
MFA Financial, Inc. | 1.5 | 1.4 |
Ventas, Inc. | 1.4 | 1.6 |
Acadia Realty Trust (SBI) | 1.4 | 1.4 |
Equity Lifestyle Properties, Inc. | 1.3 | 1.4 |
Excel Trust, Inc. Series B, 8.125% | 1.2 | 1.3 |
| 6.8 | |
Top 5 Bonds as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 | 3.3 | 3.8 |
Hilton Hotels Corp. Tranche C, term loan 3.706% 11/12/15 | 1.9 | 0.0 |
Hilton Hotels Corp. Tranche D, term loan 3.956% 11/12/15 | 1.6 | 0.0 |
Wachovia Ltd./Wachovia LLC Series 2006-1A Class A1B, 0.64% 9/25/26 | 1.3 | 1.3 |
Standard Pacific Corp. 8.375% 5/15/18 | 1.2 | 1.3 |
| 9.3 | |
Top Five REIT Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
REITs - Mortgage | 13.5 | 12.4 |
REITs - Shopping Centers | 6.5 | 7.0 |
REITs - Management/Investment | 6.2 | 5.6 |
REITs - Health Care Facilities | 5.9 | 5.8 |
REITs - Industrial Buildings | 3.9 | 3.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013 * | As of July 31, 2012 ** | ||||||
![]() | Common Stocks 16.6% |
| ![]() | Common Stocks 15.4% |
| ||
![]() | Preferred Stocks 18.6% |
| ![]() | Preferred Stocks 18.7% |
| ||
![]() | Bonds 49.5% |
| ![]() | Bonds 55.9% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 7.7% |
| ![]() | Other Investments 2.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 4.5% |
| ** Foreign investments | 5.8% |
|
Semiannual Report
Investments January 31, 2013 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 16.6% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
Hyatt Hotels Corp. Class A (a) | 20,700 | $ 829,449 | |
Household Durables - 0.1% | |||
Standard Pacific Corp. (a)(e) | 89,200 | 740,360 | |
TOTAL CONSUMER DISCRETIONARY | 1,569,809 | ||
FINANCIALS - 14.9% | |||
Real Estate Investment Trusts - 14.6% | |||
Acadia Realty Trust (SBI) | 420,200 | 10,984,028 | |
American Campus Communities, Inc. | 28,100 | 1,308,617 | |
American Residential Properties, Inc. (f) | 138,500 | 3,012,375 | |
American Tower Corp. | 30,300 | 2,307,345 | |
AmREIT, Inc. | 39,300 | 691,287 | |
Anworth Mortgage Asset Corp. | 271,800 | 1,701,468 | |
Apartment Investment & Management Co. Class A | 92,400 | 2,520,672 | |
Associated Estates Realty Corp. | 67,100 | 1,083,665 | |
AvalonBay Communities, Inc. | 9,700 | 1,258,963 | |
CapLease, Inc. | 397,100 | 2,299,209 | |
CBL & Associates Properties, Inc. | 167,600 | 3,601,724 | |
Chartwell Retirement Residence (f) | 14,700 | 159,911 | |
Chesapeake Lodging Trust | 87,900 | 1,876,665 | |
CommonWealth REIT | 75,400 | 1,239,576 | |
Cys Investments, Inc. | 121,800 | 1,583,400 | |
DCT Industrial Trust, Inc. | 213,500 | 1,507,310 | |
DiamondRock Hospitality Co. | 63,700 | 580,944 | |
Douglas Emmett, Inc. | 64,100 | 1,494,812 | |
Dynex Capital, Inc. | 218,300 | 2,207,013 | |
EastGroup Properties, Inc. | 9,500 | 532,380 | |
Education Realty Trust, Inc. | 102,100 | 1,097,575 | |
Equity Lifestyle Properties, Inc. | 139,300 | 9,973,880 | |
Equity Residential (SBI) | 10,600 | 587,134 | |
Excel Trust, Inc. | 206,300 | 2,595,254 | |
First Potomac Realty Trust | 98,000 | 1,342,600 | |
Glimcher Realty Trust | 151,000 | 1,679,120 | |
Hatteras Financial Corp. | 20,800 | 563,264 | |
HCP, Inc. | 18,800 | 872,132 | |
Highwoods Properties, Inc. (SBI) | 16,300 | 586,800 | |
Lexington Corporate Properties Trust | 392,600 | 4,318,600 | |
LTC Properties, Inc. | 53,100 | 1,977,444 | |
MFA Financial, Inc. | 1,254,200 | 11,275,258 | |
Mid-America Apartment Communities, Inc. | 16,000 | 1,045,920 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Monmouth Real Estate Investment Corp. Class A | 34,000 | $ 369,240 | |
National Retail Properties, Inc. | 31,900 | 1,021,438 | |
Newcastle Investment Corp. | 284,000 | 2,979,160 | |
NorthStar Realty Finance Corp. | 63,600 | 496,080 | |
Prologis, Inc. | 126,900 | 5,063,310 | |
Retail Properties America, Inc. | 74,200 | 960,148 | |
Select Income (REIT) | 37,200 | 936,324 | |
Senior Housing Properties Trust (SBI) | 93,300 | 2,247,597 | |
Simon Property Group, Inc. | 2,700 | 432,486 | |
Stag Industrial, Inc. | 179,400 | 3,537,768 | |
Summit Hotel Properties, Inc. | 74,500 | 684,655 | |
Two Harbors Investment Corp. | 77,400 | 961,308 | |
Ventas, Inc. | 167,000 | 11,070,430 | |
Washington (REIT) (SBI) | 40,200 | 1,144,896 | |
WP Carey, Inc. | 19,900 | 1,116,987 | |
| 112,888,172 | ||
Real Estate Management & Development - 0.1% | |||
Kennedy-Wilson Holdings, Inc. | 50,600 | 758,494 | |
Thrifts & Mortgage Finance - 0.2% | |||
Home Loan Servicing Solutions Ltd. | 91,400 | 1,987,036 | |
TOTAL FINANCIALS | 115,633,702 | ||
HEALTH CARE - 1.4% | |||
Health Care Providers & Services - 1.4% | |||
Brookdale Senior Living, Inc. (a) | 204,300 | 5,518,143 | |
Capital Senior Living Corp. (a) | 21,400 | 454,322 | |
Emeritus Corp. (a) | 186,600 | 5,053,128 | |
| 11,025,593 | ||
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
CyrusOne, Inc. | 27,900 | 590,643 | |
TOTAL COMMON STOCKS (Cost $99,246,972) |
| ||
Preferred Stocks - 19.5% | |||
Shares | Value | ||
Convertible Preferred Stocks - 0.9% | |||
FINANCIALS - 0.9% | |||
Real Estate Investment Trusts - 0.9% | |||
CommonWealth REIT 6.50% | 127,200 | $ 2,973,936 | |
Health Care REIT, Inc. Series I, 6.50% | 16,200 | 949,220 | |
Lexington Corporate Properties Trust Series C, 6.50% | 58,800 | 2,845,920 | |
| 6,769,076 | ||
Nonconvertible Preferred Stocks - 18.6% | |||
CONSUMER DISCRETIONARY - 0.4% | |||
Hotels, Restaurants & Leisure - 0.4% | |||
Red Lion Hotels Capital Trust 9.50% | 112,200 | 2,941,884 | |
FINANCIALS - 18.2% | |||
Real Estate Investment Trusts - 17.5% | |||
AG Mortgage Investment Trust, Inc. 8.00% (a) | 52,804 | 1,328,021 | |
American Capital Agency Corp. 8.00% | 120,000 | 3,111,600 | |
Annaly Capital Management, Inc.: | |||
Series A, 7.875% | 150,300 | 3,906,297 | |
Series C, 7.625% | 9,839 | 248,435 | |
Series D, 7.50% | 55,213 | 1,383,086 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 178,800 | 4,623,768 | |
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% | 61,725 | 1,641,268 | |
Apollo Residential Mortgage, Inc. Series A, 8.00% | 49,077 | 1,226,434 | |
Arbor Realty Trust, Inc. Series A, 8.25% (a) | 41,922 | 1,048,050 | |
Ashford Hospitality Trust, Inc. Series E, 9.00% | 35,948 | 971,315 | |
BioMed Realty Trust, Inc. Series A, 7.375% | 16,200 | 416,016 | |
Campus Crest Communities, Inc. Series A, 8.00% | 71,569 | 1,914,471 | |
CapLease, Inc.: | |||
Series A, 8.125% | 22,150 | 561,503 | |
Series B, 8.375% | 190,234 | 5,071,638 | |
CBL & Associates Properties, Inc.: | |||
7.375% | 67,200 | 1,694,784 | |
Series E, 6.625% | 25,000 | 631,750 | |
Cedar Shopping Centers, Inc.: | |||
8.875% | 9,259 | 238,234 | |
Series B, 7.25% | 57,640 | 1,412,180 | |
Chesapeake Lodging Trust Series A, 7.75% | 64,034 | 1,744,286 | |
Colony Financial, Inc. Series A, 8.50% | 77,829 | 2,050,794 | |
CommonWealth REIT 7.50% | 24,923 | 536,343 | |
Coresite Realty Corp. Series A, 7.25% (a) | 30,000 | 761,100 | |
Corporate Office Properties Trust Series L, 7.375% | 80,000 | 2,078,400 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Cousins Properties, Inc.: | |||
Series A, 7.75% | 84,500 | $ 2,115,880 | |
Series B, 7.50% | 34,900 | 874,245 | |
CubeSmart Series A, 7.75% | 40,000 | 1,072,000 | |
Cys Investments, Inc. Series A, 7.75% | 10,014 | 251,952 | |
DDR Corp. Series J, 6.50% | 30,181 | 751,507 | |
Digital Realty Trust, Inc. Series F, 6.625% | 20,000 | 530,000 | |
Duke Realty LP: | |||
8.375% | 51,200 | 1,295,360 | |
Series L, 6.60% | 4,300 | 109,306 | |
Dynex Capital, Inc. Series A, 8.50% | 96,313 | 2,528,216 | |
Equity Lifestyle Properties, Inc. Series C, 6.75% | 160,000 | 4,115,200 | |
Essex Property Trust, Inc. Series H, 7.125% | 8,100 | 216,999 | |
Excel Trust, Inc. Series B, 8.125% | 360,000 | 9,381,600 | |
First Potomac Realty Trust 7.75% | 107,746 | 2,812,171 | |
Gladstone Commercial Corp. Series C, 7.125% | 67,762 | 1,771,976 | |
Glimcher Realty Trust: | |||
Series G, 8.125% | 72,497 | 1,834,174 | |
Series H, 7.50% | 13,575 | 349,285 | |
Hatteras Financial Corp. Series A, 7.625% | 19,592 | 490,780 | |
Health Care REIT, Inc. Series J, 6.50% | 20,000 | 526,000 | |
Hersha Hospitality Trust Series B, 8.00% | 18,928 | 494,021 | |
Hospitality Properties Trust: | |||
Series C, 7.00% | 49,797 | 1,249,407 | |
Series D, 7.125% | 40,200 | 1,075,350 | |
Hudson Pacific Properties, Inc. 8.375% | 84,787 | 2,255,334 | |
Inland Real Estate Corp. Series A, 8.125% | 200,000 | 5,326,000 | |
Invesco Mortgage Capital, Inc. Series A, 7.75% | 30,151 | 761,313 | |
Investors Real Estate Trust Series B, 7.95% | 33,428 | 869,462 | |
Kilroy Realty Corp. Series G, 6.875% | 20,000 | 517,600 | |
Kite Realty Group Trust 8.25% | 4,100 | 107,010 | |
LaSalle Hotel Properties: | |||
Series G, 7.25% | 71,100 | 1,803,807 | |
Series H, 7.50% | 7,192 | 185,122 | |
LBA Realty Fund II Series B, 7.625% (a) | 118,900 | 2,259,100 | |
Lexington Realty Trust 7.55% | 16,500 | 415,965 | |
MFA Financial, Inc.: | |||
8.00% | 108,747 | 2,808,935 | |
Series A, 8.50% | 306,700 | 8,035,540 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Monmouth Real Estate Investment Corp. Series B, 7.875% | 30,000 | $ 792,000 | |
National Retail Properties, Inc. Series D, 6.625% | 17,563 | 458,921 | |
NorthStar Realty Finance Corp. Series C, 8.875% | 50,295 | 1,276,990 | |
Parkway Properties, Inc. Series D, 8.00% | 28,518 | 723,502 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 49,000 | 1,267,630 | |
Series B, 8.00% | 37,400 | 985,490 | |
Pennsylvania (REIT) 7.375% | 19,408 | 493,934 | |
Prologis, Inc.: | |||
Series O, 7.00% | 900 | 22,770 | |
Series Q, 8.54% | 15,800 | 1,012,188 | |
PS Business Parks, Inc. Series S, 6.45% | 16,039 | 418,297 | |
Regency Centers Corp. Series 6, 6.625% | 17,739 | 466,358 | |
Retail Properties America, Inc. 7.00% (a) | 35,218 | 878,689 | |
Saul Centers, Inc.: | |||
8.00% | 36,400 | 912,548 | |
Series B (depositary shares) 9.00% | 24,400 | 616,344 | |
Series C, 6.875% (a)(g) | 69,596 | 1,739,900 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,702,800 | |
Strategic Hotel & Resorts, Inc. Series A, 8.50% | 21,591 | 540,207 | |
Summit Hotel Properties, Inc. Series A, 9.25% | 173,700 | 4,740,273 | |
Sun Communities, Inc. Series A, 7.125% | 24,000 | 602,640 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 126,400 | 3,196,656 | |
Series D, 8.00% | 20,200 | 533,280 | |
Terreno Realty Corp. Series A 7.75% | 44,310 | 1,158,263 | |
UMH Properties, Inc. Series A, 8.25% | 96,000 | 2,533,440 | |
Urstadt Biddle Properties, Inc. Series F, 7.125% | 30,000 | 795,000 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 62,800 | 1,586,328 | |
Winthrop Realty Trust: | |||
7.75% | 60,000 | 1,545,000 | |
Series D, 9.25% | 35,000 | 966,000 | |
| 135,755,838 | ||
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Management & Development - 0.7% | |||
Forest City Enterprises, Inc. 7.375% | 180,500 | $ 4,463,765 | |
Kennedy-Wilson, Inc. 7.75% (a) | 35,054 | 878,453 | |
| 5,342,218 | ||
TOTAL FINANCIALS | 141,098,056 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 144,039,940 | ||
TOTAL PREFERRED STOCKS (Cost $143,662,244) |
|
Corporate Bonds - 25.3% | ||||
| Principal Amount |
| ||
Convertible Bonds - 3.1% | ||||
CONSUMER DISCRETIONARY - 0.2% | ||||
Hotels, Restaurants & Leisure - 0.2% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 1,365,000 | 1,286,513 | ||
FINANCIALS - 2.9% | ||||
Real Estate Investment Trusts - 2.6% | ||||
Annaly Capital Management, Inc. 5% 5/15/15 | 6,690,000 | 6,848,888 | ||
Ares Commercial Real Estate Corp. 7% 12/15/15 (f) | 2,300,000 | 2,369,000 | ||
CapLease, Inc. 7.5% 10/1/27 (f) | 4,458,000 | 4,458,000 | ||
Northstar Realty Finance LP 8.875% 6/15/32 (f) | 5,000,000 | 6,512,500 | ||
ProLogis LP 2.625% 5/15/38 | 405,000 | 407,552 | ||
| 20,595,940 | |||
Real Estate Management & Development - 0.3% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (f) | 1,940,000 | 2,006,688 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (d)(f) | 1,540,000 | 3,080 | ||
| 2,009,768 | |||
TOTAL FINANCIALS | 22,605,708 | |||
TOTAL CONVERTIBLE BONDS | 23,892,221 | |||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - 22.2% | ||||
CONSUMER DISCRETIONARY - 6.7% | ||||
Hotels, Restaurants & Leisure - 0.7% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | $ 440,000 | $ 474,100 | ||
FelCor Lodging LP 6.75% 6/1/19 | 1,375,000 | 1,474,688 | ||
Times Square Hotel Trust 8.528% 8/1/26 (f) | 2,768,399 | 3,469,554 | ||
| 5,418,342 | |||
Household Durables - 5.5% | ||||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (f) | 395,000 | 416,725 | ||
D.R. Horton, Inc. 6.5% 4/15/16 | 811,000 | 902,238 | ||
KB Home: | ||||
5.875% 1/15/15 | 1,216,000 | 1,276,800 | ||
7.25% 6/15/18 | 2,110,000 | 2,336,825 | ||
8% 3/15/20 | 2,395,000 | 2,766,225 | ||
9.1% 9/15/17 | 3,230,000 | 3,803,325 | ||
Lennar Corp.: | ||||
4.125% 12/1/18 (f) | 1,220,000 | 1,220,000 | ||
5.6% 5/31/15 | 1,216,000 | 1,307,200 | ||
6.95% 6/1/18 | 1,720,000 | 1,932,850 | ||
M/I Homes, Inc. 8.625% 11/15/18 | 6,764,000 | 7,440,400 | ||
Meritage Homes Corp.: | ||||
7% 4/1/22 | 2,005,000 | 2,215,525 | ||
7.15% 4/15/20 | 440,000 | 487,300 | ||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | 445,000 | 500,625 | ||
8.4% 5/15/17 | 1,446,000 | 1,724,355 | ||
Standard Pacific Corp.: | ||||
8.375% 5/15/18 | 8,047,000 | 9,495,460 | ||
10.75% 9/15/16 | 3,284,000 | 4,084,475 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 450,000 | 505,125 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 (f) | 460,000 | 495,650 | ||
| 42,911,103 | |||
Multiline Retail - 0.5% | ||||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 1,280,000 | 1,064,000 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Multiline Retail - continued | ||||
JC Penney Corp., Inc.: - continued | ||||
5.75% 2/15/18 | $ 756,000 | $ 672,840 | ||
Sears Holdings Corp. 6.625% 10/15/18 | 2,053,000 | 1,945,218 | ||
| 3,682,058 | |||
TOTAL CONSUMER DISCRETIONARY | 52,011,503 | |||
FINANCIALS - 13.7% | ||||
Diversified Financial Services - 0.6% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | 2,172,000 | 2,256,165 | ||
8% 1/15/18 | 1,795,000 | 1,922,894 | ||
| 4,179,059 | |||
Real Estate Investment Trusts - 9.2% | ||||
Camden Property Trust 5% 6/15/15 | 1,135,000 | 1,229,332 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 917,000 | 1,031,616 | ||
6.25% 6/15/14 | 949,000 | 1,011,380 | ||
CubeSmart LP 4.8% 7/15/22 | 1,000,000 | 1,090,545 | ||
Developers Diversified Realty Corp.: | ||||
7.5% 7/15/18 | 2,407,000 | 2,963,494 | ||
9.625% 3/15/16 | 2,254,000 | 2,761,835 | ||
Duke Realty LP 6.25% 5/15/13 | 608,000 | 617,238 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 405,000 | 443,375 | ||
6% 9/15/16 | 811,000 | 918,785 | ||
6.25% 1/15/17 | 811,000 | 922,551 | ||
Health Care Property Investors, Inc.: | ||||
6% 6/15/14 | 660,000 | 702,093 | ||
6% 3/1/15 | 1,216,000 | 1,328,319 | ||
6.3% 9/15/16 | 3,850,000 | 4,467,074 | ||
7.072% 6/8/15 | 405,000 | 452,164 | ||
Health Care REIT, Inc. 4.125% 4/1/19 | 1,000,000 | 1,080,139 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 811,000 | 845,895 | ||
6.5% 1/17/17 | 506,000 | 577,350 | ||
Highwoods/Forsyth LP: | ||||
3.625% 1/15/23 | 393,000 | 379,007 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Highwoods/Forsyth LP: - continued | ||||
5.85% 3/15/17 | $ 2,593,000 | $ 2,916,041 | ||
Hospitality Properties Trust: | ||||
5% 8/15/22 | 823,000 | 873,116 | ||
5.625% 3/15/17 | 1,248,000 | 1,375,758 | ||
6.7% 1/15/18 | 811,000 | 930,930 | ||
7.875% 8/15/14 | 405,000 | 431,197 | ||
HRPT Properties Trust 6.25% 8/15/16 | 4,000,000 | 4,397,416 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 825,000 | 829,125 | ||
5.875% 3/15/16 | 8,610,000 | 8,739,150 | ||
5.95% 10/15/13 | 3,833,000 | 3,914,451 | ||
6.05% 4/15/15 | 2,887,000 | 2,915,870 | ||
7.125% 2/15/18 | 1,010,000 | 1,042,825 | ||
9% 6/1/17 | 2,430,000 | 2,697,300 | ||
MPT Operating Partnership LP/MPT Finance Corp. 6.375% 2/15/22 | 890,000 | 956,750 | ||
National Retail Properties, Inc. 6.875% 10/15/17 | 1,621,000 | 1,945,868 | ||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | 1,540,000 | 1,710,721 | ||
6.25% 2/1/13 | 1,621,000 | 1,621,000 | ||
Omega Healthcare Investors, Inc. 7.5% 2/15/20 | 811,000 | 890,073 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,378,000 | 1,470,567 | ||
Potlatch Corp. 7.5% 11/1/19 | 811,000 | 916,430 | ||
ProLogis LP 7.625% 7/1/17 | 1,268,000 | 1,475,721 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 811,000 | 989,501 | ||
Senior Housing Properties Trust: | ||||
6.75% 4/15/20 | 576,000 | 657,321 | ||
6.75% 12/15/21 | 2,000,000 | 2,298,074 | ||
UDR, Inc. 5.5% 4/1/14 | 1,000,000 | 1,049,680 | ||
United Dominion Realty Trust, Inc.: | ||||
5.25% 1/15/15 | 405,000 | 435,550 | ||
5.25% 1/15/16 | 811,000 | 894,468 | ||
| 71,197,095 | |||
Real Estate Management & Development - 3.9% | ||||
AMB Property LP 5.9% 8/15/13 | 486,000 | 497,598 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | $ 1,216,000 | $ 1,298,416 | ||
6% 4/1/16 | 811,000 | 910,123 | ||
7.5% 5/15/15 | 405,000 | 457,171 | ||
CB Richard Ellis Services, Inc. 11.625% 6/15/17 | 811,000 | 883,990 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,013,000 | 1,022,364 | ||
6.25% 6/15/14 | 1,293,000 | 1,372,551 | ||
Colonial Realty LP 6.05% 9/1/16 | 1,216,000 | 1,360,232 | ||
First Industrial LP 5.75% 1/15/16 | 811,000 | 861,520 | ||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | 6,171,000 | 5,924,160 | ||
7.625% 6/1/15 | 2,583,000 | 2,570,085 | ||
Host Hotels & Resorts LP 6% 10/1/21 | 485,000 | 554,719 | ||
Kennedy-Wilson, Inc.: | ||||
8.75% 4/1/19 | 1,110,000 | 1,173,825 | ||
8.75% 4/1/19 (f) | 1,890,000 | 2,003,400 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (f) | 1,450,000 | 1,598,625 | ||
9% 1/15/20 (f) | 560,000 | 652,400 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 3,250,000 | 3,548,480 | ||
5.875% 6/15/17 | 486,000 | 558,102 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,035,000 | 2,187,625 | ||
Ventas Realty LP 4% 4/30/19 | 597,000 | 640,963 | ||
Weekley Homes LLC/Weekley Finance Corp. 6% 2/1/23 (f) | 325,000 | 331,500 | ||
| 30,407,849 | |||
TOTAL FINANCIALS | 105,784,003 | |||
HEALTH CARE - 1.5% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 1,835,000 | 1,968,038 | ||
Corporate Bonds - continued | ||||
| Principal Amount | Value | ||
Nonconvertible Bonds - continued | ||||
HEALTH CARE - continued | ||||
Health Care Providers & Services - 1.2% | ||||
Health Management Associates, Inc. 7.375% 1/15/20 | $ 385,000 | $ 419,650 | ||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 8,507,000 | 9,102,490 | ||
| 9,522,140 | |||
TOTAL HEALTH CARE | 11,490,178 | |||
INDUSTRIALS - 0.1% | ||||
Industrial Conglomerates - 0.1% | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 (f) | 785,000 | 810,513 | ||
MATERIALS - 0.2% | ||||
Paper & Forest Products - 0.2% | ||||
Plum Creek Timberlands LP 5.875% 11/15/15 | 1,621,000 | 1,793,512 | ||
TOTAL NONCONVERTIBLE BONDS | 171,889,709 | |||
TOTAL CORPORATE BONDS (Cost $179,048,881) |
| |||
Asset-Backed Securities - 5.0% | ||||
| ||||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.5647% 3/23/19 (f)(h) | 1,133,381 | 1,116,947 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (f) | 1,777,946 | 1,791,458 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.555% 1/20/37 (f)(h) | 678,781 | 639,751 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.555% 4/7/52 (f)(h) | 2,885,473 | 2,553,644 | ||
Conseco Finance Securitizations Corp.: | ||||
Series 2002-1 Class M2, 9.546% 12/1/33 | 1,216,000 | 1,021,937 | ||
Series 2002-2 Class M2, 9.163% 3/1/33 | 2,026,000 | 1,830,697 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (f) | 622,297 | 622,565 | ||
Class B2, 1.66% 12/28/35 (f)(h) | 614,043 | 595,622 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 1,627,000 | 1,566,681 | ||
Asset-Backed Securities - continued | ||||
| Principal Amount | Value | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | $ 3,758,413 | $ 1,399,991 | ||
N-Star Real Estate CDO Ltd. Series 1A Class B1, 1.9865% 8/28/38 (f)(h) | 3,574,000 | 3,359,560 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (f) | 2,570,000 | 2,595,700 | ||
Residential Asset Securities Corp. Series 2003-KS10 Class MI3, 6.41% 12/25/33 | 276,494 | 118,854 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 5.81% 9/25/26 (f)(h) | 2,432,000 | 1,288,960 | ||
Series 2006-1A: | ||||
Class A1A, 0.57% 9/25/26 (f)(h) | 1,599,668 | 1,519,684 | ||
Class A1B, 0.64% 9/25/26 (f)(h) | 11,266,000 | 9,639,190 | ||
Class A2A, 0.53% 9/25/26 (f)(h) | 1,687,715 | 1,657,167 | ||
Class C 0.84% 9/25/26 (f)(h) | 1,010,000 | 820,625 | ||
Class F, 1.46% 9/25/26 (f)(h) | 1,824,000 | 1,404,480 | ||
Class G, 1.66% 9/25/26 (f)(h) | 1,273,000 | 954,750 | ||
Class H, 1.96% 9/25/26 (f)(h) | 3,486,000 | 2,509,920 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $34,392,077) |
| |||
Collateralized Mortgage Obligations - 0.8% | ||||
| ||||
Private Sponsor - 0.8% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.3857% 6/15/22 (f)(h) | 1,284,572 | 1,272,887 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.4353% 4/25/20 (f)(h) | 2,605,000 | 2,897,620 | ||
Series 2010-K6 Class B, 5.358% 12/25/46 (f)(h) | 811,000 | 896,974 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (f) | 811,000 | 848,131 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $5,196,347) |
| |||
Commercial Mortgage Securities - 21.5% | ||||
| ||||
Banc of America Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2002-2 Class F, 5.487% 7/11/43 | 463,543 | 466,551 | ||
Series 2005-1 Class A3, 4.877% 11/10/42 | 37,910 | 37,991 | ||
Series 2005-1 Class CJ, 5.196% 11/10/42 (h) | 1,175,000 | 1,257,183 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 (f)(h) | $ 25,918,512 | $ 25,945,740 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1 Class K, 2.2057% 3/15/22 (f)(h) | 2,132,000 | 1,268,540 | ||
Banc of America REMIC Trust Series 2012-CLMZ Class A, 7.7057% 8/15/17 (f)(h) | 1,010,000 | 1,078,175 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4516% 3/11/39 (h) | 2,432,000 | 2,460,260 | ||
Chase Commercial Mortgage Securities Corp. Series 1998-1 Class H, 6.34% 5/18/30 (f) | 1,621,000 | 1,430,956 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12 Class AJ, 0.3357% 12/15/20 (f)(h) | 1,621,000 | 1,553,383 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (f) | 1,115,663 | 1,125,704 | ||
Commercial Mortgage Trust pass-thru certificates: | ||||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (h) | 2,000,000 | 2,132,592 | ||
Series 2012-CR1: | ||||
Class C, 5.547% 5/15/45 | 3,000,000 | 3,384,363 | ||
Class D, 5.547% 5/15/45 (f) | 1,350,000 | 1,375,938 | ||
Series 2012-CR2 Class D, 4.8582% 8/15/45 (f)(h) | 500,000 | 515,598 | ||
Series 2012-LC4: | ||||
Class C, 5.6488% 12/10/44 (h) | 780,000 | 893,063 | ||
Class D, 5.6488% 12/10/44 (f)(h) | 2,830,000 | 2,915,240 | ||
Communication Mortgage Trust Series 2011-THL: | ||||
Class E, 5.949% 6/9/28 (f) | 2,260,000 | 2,316,554 | ||
Class F, 4.867% 6/9/28 (f) | 3,640,000 | 3,365,009 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C2 Class F, 6.75% 11/15/30 (f) | 811,000 | 861,954 | ||
Series 2003-C3 Class D, 4.131% 5/15/38 | 1,621,000 | 1,629,872 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5567% 11/10/46 (f)(h) | 2,450,000 | 2,628,666 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,946,000 | 1,956,501 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 Class B4, 7.2214% 6/10/31 (f)(h) | 1,719,657 | 1,737,089 | ||
Extended Stay America Trust Series 2013-ESHM Class M, 7.625% 12/5/19 (f)(g) | 2,460,000 | 2,559,334 | ||
Freddie Mac pass-thru certificates: | ||||
Series K011 Class X3, 2.575% 12/25/43 (h)(i) | 4,947,000 | 785,747 | ||
Series K012 Class X3, 2.2878% 1/25/41 (h)(i) | 2,846,999 | 407,004 | ||
Series K013 Class X3, 2.7899% 1/25/43 (h)(i) | 4,806,000 | 837,297 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (f) | 4,710,032 | 4,745,357 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
GCCFC Commercial Mortgage Trust: | ||||
sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (f) | $ 811,000 | $ 816,585 | ||
Series 2005-GG3 Class B, 4.894% 8/10/42 (h) | 885,000 | 892,649 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2 Class G, 6.75% 4/15/29 (h) | 826,062 | 910,856 | ||
Series 1999-C1 Class F, 6.02% 5/15/33 (f) | 888,841 | 904,188 | ||
Series 1999-C3 Class J, 6.974% 8/15/36 | 2,204,000 | 2,348,981 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 144,929 | 110,263 | ||
Series 2003-C3 Class H, 5.7185% 4/10/40 (f)(h) | 830,000 | 810,170 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 5.4585% 3/6/20 (f)(h) | 2,270,000 | 2,295,603 | ||
Series 2012-GCJ7: | ||||
Class C, 5.7222% 5/10/45 (h) | 3,500,000 | 3,912,653 | ||
Class D, 5.7222% 5/10/45 (f)(h) | 2,500,000 | 2,602,393 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (f) | 6,300,000 | 6,347,880 | ||
GS Mortgage Securities Trust: | ||||
Series 2010-C2 Class D, 5.2273% 12/10/43 (f)(h) | 2,000,000 | 2,075,792 | ||
Series 2012-GC6 Class C, 5.6388% 1/10/45 (f)(h) | 2,400,000 | 2,756,691 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2009-IWST Class D, 7.4453% 12/5/27 (f)(h) | 2,779,000 | 3,264,780 | ||
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (f) | 2,620,000 | 2,760,236 | ||
Series 2010-CNTR Class D, 6.1838% 8/5/32 (f)(h) | 1,216,000 | 1,277,773 | ||
Series 2012-CBX Class C, 5.1897% 6/16/45 (h) | 1,240,000 | 1,364,772 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (f) | 729,248 | 747,964 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 3,760,000 | 3,940,209 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 1,240,000 | 1,334,229 | ||
Series 2005-C1 Class E, 4.924% 2/15/40 | 1,000,000 | 999,840 | ||
Series 2006-C4 Class AJ, 5.8853% 6/15/38 (h) | 2,511,000 | 2,531,861 | ||
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2007-LLFA Class E, 1.1057% 6/15/22 (f)(h) | 1,770,000 | 1,700,880 | ||
LStar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.5644% 6/25/43 (f)(h) | 1,564,000 | 1,549,921 | ||
Series 2011-1 Class B, 5.5644% 6/25/43 (f)(h) | 1,897,000 | 1,985,468 | ||
Mezz Capital Commercial Mortgage Trust sequential payer Series 2004-C2 Class A, 5.318% 10/15/40 (f) | 2,479,302 | 2,057,820 | ||
Commercial Mortgage Securities - continued | ||||
| Principal Amount | Value | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2012-C4 Class E, 5.71% 3/15/45 (f) | $ 1,250,000 | $ 1,282,995 | ||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (f) | 400,359 | 401,112 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 3,769,000 | 4,114,598 | ||
Series 1997-RR Class F, 7.4011% 4/30/39 (f)(h) | 242,696 | 232,988 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (f) | 1,798,687 | 1,335,144 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 3,242,000 | 3,665,425 | ||
Series 2011-C1 Class C, 5.2537% 9/15/47 (f)(h) | 2,000,000 | 2,237,780 | ||
Series 2011-C2: | ||||
Class D, 5.3171% 6/15/44 (f)(h) | 1,532,000 | 1,625,189 | ||
Class E, 5.3171% 6/15/44 (f)(h) | 1,946,000 | 1,977,251 | ||
Class F, 5.3171% 6/15/44 (f)(h) | 1,467,000 | 1,222,139 | ||
Class XB, 0.4644% 6/15/44 (f)(h)(i) | 51,641,000 | 1,859,076 | ||
Series 2011-C3 Class C, 5.1844% 7/15/49 (f)(h) | 2,000,000 | 2,222,774 | ||
Series 2012-C4 Class D, 5.5263% 3/15/45 (f)(h) | 1,640,000 | 1,762,488 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (f) | 1,039,067 | 1,299,665 | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6791% 4/15/24 (f)(h) | 2,687,000 | 2,727,832 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (f) | 2,026,000 | 2,089,082 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.7807% 7/15/24 (f)(h) | 1,459,000 | 1,172,225 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 1,621,000 | 1,656,649 | ||
Series 2004-C12 Class D, 5.3075% 7/15/41 (h) | 1,824,000 | 1,845,111 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 2,708,000 | 2,843,300 | ||
WF-RBS Commercial Mortgage Trust: | ||||
Series 2011-C3: | ||||
Class C, 5.335% 3/15/44 (f) | 2,100,000 | 2,367,145 | ||
Class D, 5.5486% 3/15/44 (f)(h) | 1,000,000 | 1,060,933 | ||
Series 2011-C5 Class C, 5.6365% 11/15/44 (f)(h) | 1,250,000 | 1,436,134 | ||
Series 2012-C7 Class D, 4.8502% 6/15/45 (f)(h) | 620,000 | 644,300 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $150,401,516) |
| |||
Floating Rate Loans - 7.7% | ||||
| Principal Amount | Value | ||
CONSUMER DISCRETIONARY - 3.9% | ||||
Hotels, Restaurants & Leisure - 3.7% | ||||
Extended Stay America, Inc. REL 9.625% 12/1/19 | $ 2,000,000 | $ 2,050,000 | ||
Hilton Hotels Corp.: | ||||
Tranche C, term loan 3.706% 11/12/15 (h) | 15,000,000 | 14,756,250 | ||
Tranche D, term loan 3.956% 11/12/15 (h) | 12,500,000 | 12,296,875 | ||
| 29,103,125 | |||
Specialty Retail - 0.2% | ||||
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 5% 10/11/18 (h) | 1,360,000 | 1,383,800 | ||
TOTAL CONSUMER DISCRETIONARY | 30,486,925 | |||
FINANCIALS - 2.6% | ||||
Diversified Financial Services - 1.1% | ||||
Blackstone REL 10% 10/1/2017 | 7,500,000 | 7,837,500 | ||
Pilot Travel Centers LLC Tranche B 2LN, term loan 4.25% 8/7/19 (h) | 189,525 | 192,368 | ||
| 8,029,868 | |||
Real Estate Investment Trusts - 0.5% | ||||
iStar Financial, Inc. Tranche B, term loan 5.75% 10/15/17 (h) | 3,762,536 | 3,828,381 | ||
Real Estate Management & Development - 1.0% | ||||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7047% 9/4/19 (h) | 1,017,639 | 1,022,727 | ||
EOP Operating LP term loan 5.25% 2/5/13 (h) | 1,700,000 | 1,718,190 | ||
Equity Inns Reality LLC Tranche A, term loan 10.5% 11/4/13 (h) | 2,198,000 | 2,005,919 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.2087% 10/10/13 (h) | 196,790 | 191,870 | ||
Credit-Linked Deposit 4.4587% 10/10/16 (h) | 166,322 | 167,569 | ||
term loan 4.4557% 10/10/16 (h) | 2,545,171 | 2,564,260 | ||
| 7,670,535 | |||
Thrifts & Mortgage Finance - 0.0% | ||||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 1/23/18 (h) | 215,000 | 217,688 | ||
TOTAL FINANCIALS | 19,746,472 | |||
Floating Rate Loans - continued | ||||
| Principal Amount | Value | ||
HEALTH CARE - 0.5% | ||||
Health Care Providers & Services - 0.5% | ||||
Community Health Systems, Inc. term loan 3.8105% 1/25/17 (h) | $ 393,006 | $ 395,953 | ||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (h) | 495,000 | 499,950 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (h) | 3,193,969 | 3,217,923 | ||
| 4,113,826 | |||
INDUSTRIALS - 0.4% | ||||
Construction & Engineering - 0.4% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (h) | 3,607,227 | 3,453,920 | ||
TELECOMMUNICATION SERVICES - 0.3% | ||||
Wireless Telecommunication Services - 0.3% | ||||
Crown Castle Operating Co. Tranche B, term loan 4% 1/31/19 (h) | 1,986,017 | 1,993,564 | ||
TOTAL FLOATING RATE LOANS (Cost $57,812,850) |
|
Money Market Funds - 4.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (b) | 30,854,282 | 30,854,282 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 584,500 | 584,500 | |
TOTAL MONEY MARKET FUNDS (Cost $31,438,782) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $701,199,669) | 778,621,430 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (3,655,750) | ||
NET ASSETS - 100% | $ 774,965,680 |
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) Includes 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 $186,839,189 or 24.1% of net assets. |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(i) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool 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 | $ 22,909 |
Fidelity Securities Lending Cash Central Fund | 4,865 |
Total | $ 27,774 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 4,511,693 | $ 4,511,693 | $ - | $ - |
Financials | 263,500,834 | 253,480,001 | 10,020,833 | - |
Health Care | 11,025,593 | 11,025,593 | - | - |
Industrials | 590,643 | 590,643 | - | - |
Corporate Bonds | 195,781,930 | - | 195,781,930 | - |
Asset-Backed Securities | 39,008,183 | - | 31,834,736 | 7,173,447 |
Collateralized Mortgage Obligations | 5,915,612 | - | 5,915,612 | - |
Commercial Mortgage Securities | 167,053,453 | - | 158,891,584 | 8,161,869 |
Floating Rate Loans | 59,794,707 | - | 48,189,017 | 11,605,690 |
Money Market Funds | 31,438,782 | 31,438,782 | - | - |
Total Investments in Securities: | $ 778,621,430 | $ 301,046,712 | $ 450,633,712 | $ 26,941,006 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Asset-Backed Securities | |
Beginning Balance | $ 15,625,880 |
Total Realized Gain (Loss) | 749,363 |
Total Unrealized Gain (Loss) | (335,119) |
Cost of Purchases | - |
Proceeds of Sales | (3,539,660) |
Amortization/Accretion | 14,047 |
Transfers in to Level 3 | 2,518,600 |
Transfers out of Level 3 | (7,859,664) |
Ending Balance | $ 7,173,447 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ (307,699) |
Commercial Mortgage Securities | |
Beginning Balance | $ 19,153,838 |
Total Realized Gain (Loss) | 984,559 |
Total Unrealized Gain (Loss) | (288,435) |
Cost of Purchases | - |
Proceeds of Sales | (4,967,910) |
Amortization/Accretion | 245,733 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (6,965,916) |
Ending Balance | $ 8,161,869 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 193,012 |
Floating Rate Loans | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 407,714 |
Cost of Purchases | 11,199,811 |
Proceeds of Sales | (58,492) |
Amortization/Accretion | 56,657 |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 11,605,690 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 407,714 |
Other Investments in Securities | |
Beginning Balance | $ 3,470,000 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | (1,090,000) |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | (2,380,000) |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ - |
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 into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. 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. | 0.3% |
AAA,AA,A | 8.2% |
BBB | 14.8% |
BB | 6.7% |
B | 12.9% |
CCC,CC,C | 3.1% |
D | 0.2% |
Not Rated | 14.1% |
Equities | 36.1% |
Short-Term Investments and Net | 3.6% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's ratings are not available, we have used S&P ratings. All ratings are as of the 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, 2013 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $554,440) - See accompanying schedule: Unaffiliated issuers (cost $669,760,887) | $ 747,182,648 |
|
Fidelity Central Funds (cost $31,438,782) | 31,438,782 |
|
Total Investments (cost $701,199,669) |
| $ 778,621,430 |
Cash |
| 28,103 |
Receivable for investments sold | 155,587 | |
Receivable for fund shares sold | 18,927 | |
Dividends receivable | 470,409 | |
Interest receivable | 4,402,931 | |
Distributions receivable from Fidelity Central Funds | 3,920 | |
Prepaid expenses | 2,833 | |
Other receivables | 2,789 | |
Total assets | 783,706,929 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,225,626 | |
Delayed delivery | 4,316,331 | |
Payable for fund shares redeemed | 126,151 | |
Accrued management fee | 357,039 | |
Other affiliated payables | 91,306 | |
Other payables and accrued expenses | 40,296 | |
Collateral on securities loaned, at value | 584,500 | |
Total liabilities | 8,741,249 | |
|
|
|
Net Assets | $ 774,965,680 | |
Net Assets consist of: |
| |
Paid in capital | $ 690,930,269 | |
Undistributed net investment income | 3,396,614 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 3,217,031 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 77,421,766 | |
Net Assets | $ 774,965,680 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2013 (Unaudited) | |
|
|
|
Series Real Estate Income: | $ 11.41 | |
|
|
|
Class F: | $ 11.41 |
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, 2013 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 6,821,887 |
Interest |
| 18,186,152 |
Income from Fidelity Central Funds |
| 27,774 |
Total income |
| 25,035,813 |
|
|
|
Expenses | ||
Management fee | $ 2,080,020 | |
Transfer agent fees | 380,483 | |
Accounting and security lending fees | 167,215 | |
Custodian fees and expenses | 6,707 | |
Independent trustees' compensation | 2,432 | |
Audit | 36,021 | |
Legal | 1,795 | |
Miscellaneous | 2,033 | |
Total expenses before reductions | 2,676,706 | |
Expense reductions | (6,873) | 2,669,833 |
Net investment income (loss) | 22,365,980 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 8,199,199 | |
Foreign currency transactions | 21 | |
Total net realized gain (loss) |
| 8,199,220 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 27,700,835 | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) |
| 27,700,836 |
Net gain (loss) | 35,900,056 | |
Net increase (decrease) in net assets resulting from operations | $ 58,266,036 |
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, 2013 (Unaudited) | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 22,365,980 | $ 26,921,648 |
Net realized gain (loss) | 8,199,220 | 5,969,627 |
Change in net unrealized appreciation (depreciation) | 27,700,836 | 49,720,930 |
Net increase (decrease) in net assets resulting | 58,266,036 | 82,612,205 |
Distributions to shareholders from net investment income | (27,108,524) | (18,782,490) |
Distributions to shareholders from net realized gain | (10,435,441) | (516,375) |
Total distributions | (37,543,965) | (19,298,865) |
Share transactions - net increase (decrease) | 51,238,269 | 639,692,000 |
Total increase (decrease) in net assets | 71,960,340 | 703,005,340 |
|
|
|
Net Assets | ||
Beginning of period | 703,005,340 | - |
End of period (including undistributed net investment income of $3,396,614 and undistributed net investment income of $8,139,158, respectively) | $ 774,965,680 | $ 703,005,340 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Income
| Six months ended | Period ended |
| (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.10 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .33 | .47 |
Net realized and unrealized gain (loss) | .55 | .97 |
Total from investment operations | .88 | 1.44 |
Distributions from net investment income | (.41) | (.33) |
Distributions from net realized gain | (.16) | (.01) |
Total distributions | (.57) | (.34) |
Net asset value, end of period | $ 11.41 | $ 11.10 |
Total Return B, C | 8.10% | 14.67% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .79% A | .80% A |
Expenses net of fee waivers, if any | .79% A | .80% A |
Expenses net of all reductions | .79% A | .80% A |
Net investment income (loss) | 5.91% A | 5.70% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 419,841 | $ 416,151 |
Portfolio turnover rate F | 22% A | 29% 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 For the period October 20, 2011 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended | Period ended |
| (Unaudited) | 2012 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 11.11 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .34 | .48 |
Net realized and unrealized gain (loss) | .54 | .98 |
Total from investment operations | .88 | 1.46 |
Distributions from net investment income | (.42) | (.34) |
Distributions from net realized gain | (.16) | (.01) |
Total distributions | (.58) | (.35) |
Net asset value, end of period | $ 11.41 | $ 11.11 |
Total Return B, C | 8.12% A | 14.89% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .61% A | .62% A |
Expenses net of fee waivers, if any | .61% A | .62% A |
Expenses net of all reductions | .61% A | .62% A |
Net investment income (loss) | 6.09% A | 5.88% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 355,125 | $ 286,854 |
Portfolio turnover rate F | 22% A | 29% 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 For the period October 20, 2011 (commencement of operations) to July 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2013 (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 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website 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
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
securities. For corporate bonds and floating rate loans, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing vendors 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 broker-supplied prices. Independent prices obtained from a single source or brokers are evaluated by management and may be categorized as Level 3 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value at |
| Valuation |
| Unobservable | Range | Weighted |
Asset-Backed Securities | $ 622,564 |
| Discounted cash flow |
| Yield | 5.8% | 5.8% |
Floating Rate Loans |
|
| Discounted cash flow |
| Yield Internal rate of return | 9.5% 9.2% | 9.5% 9.2% |
For the unobservable inputs listed in the table above, a significant increase in yields or internal rates of return could result in a significant decrease to the fair value measurement.
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, 2013, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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
Semiannual Report
3. Significant Accounting Policies - continued
Expenses - continued
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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 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 | $ 79,608,649 |
Gross unrealized depreciation | (2,158,383) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 77,450,266 |
|
|
Tax cost | $ 701,171,164 |
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
paid for are fixed at the time the transaction is negotiated. 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 invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $108,006,402 and $79,292,615, 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. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
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 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 | $ 380,483 | .17 |
* 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 $2,001 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $901 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)
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 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 $4,865. 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 $5,822 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $1,051.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Period ended | |
From net investment income |
|
|
Series Real Estate Income | $ 15,722,961 | $ 12,027,607 |
Class F | 11,385,563 | 6,754,883 |
Total | $ 27,108,524 | $ 18,782,490 |
From net realized gain |
|
|
Series Real Estate Income | $ 6,141,225 | $ 360,160 |
Class F | 4,294,216 | 156,215 |
Total | $ 10,435,441 | $ 516,375 |
A For the period October 20, 2011 (commencement of operations) to July 31, 2012.
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Period ended | Six months ended | Period ended | |
Series Real Estate Income |
|
|
|
|
Shares sold | 5,839,095 | 37,244,380 B | $ 66,221,494 | $ 373,024,203 B |
Reinvestment of distributions | 1,974,119 | 1,190,173 | 21,864,186 | 12,387,767 |
Shares redeemed | (8,496,694) | (954,245) | (96,547,856) | (9,701,976) |
Net increase (decrease) | (683,480) | 37,480,308 | $ (8,462,176) | $ 375,709,994 |
Class F |
|
|
|
|
Shares sold | 6,490,392 | 25,373,246 B | $ 73,670,694 | $ 259,200,242 B |
Reinvestment of distributions | 1,415,142 | 661,737 | 15,679,779 | 6,911,098 |
Shares redeemed | (2,612,171) | (209,099) | (29,650,028) | (2,129,334) |
Net increase (decrease) | 5,293,363 | 25,825,884 | $ 59,700,445 | $ 263,982,006 |
A For the period October 20, 2011 (commencement of operations) to July 31, 2012.
B Amount includes in-kind exchanges
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
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
SRE-SANN-0313 1.924313.101
Fidelity®
Real Estate Income
Fund
Semiannual Report
January 31, 2013
(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. | |
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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.60 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class T | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.30 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class C | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.10 | $ 9.60 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Real Estate Income | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.40 | $ 4.47 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
Institutional Class | .81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.10 | $ 4.26 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.12 | $ 4.13 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
MFA Financial, Inc. | 2.0 | 1.7 |
Equity Lifestyle Properties, Inc. | 1.8 | 1.8 |
Ventas, Inc. | 1.7 | 1.9 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Lexington Corporate Properties Trust | 0.9 | 0.9 |
| 7.8 | |
Top 5 Bonds as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 | 2.9 | 4.2 |
Hilton Hotels Corp. term loan 4.456% 11/12/15 | 1.0 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 1.0 | 0.8 |
Annaly Capital Management, Inc. 5% 5/15/15 | 1.0 | 1.3 |
iStar Financial, Inc. 5.875% 3/15/16 | 1.0 | 1.2 |
| 6.9 | |
Top Five REIT Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
REITs - Mortgage | 12.7 | 11.9 |
REITs - Management/Investment | 8.2 | 6.8 |
REITs - Health Care Facilities | 6.5 | 6.0 |
REITs - Shopping Centers | 6.1 | 6.5 |
REITs - Industrial Buildings | 4.2 | 3.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Common Stocks 26.1% |
| ![]() | Common Stocks 23.1% |
| ||
![]() | Preferred Stocks 13.5% |
| ![]() | Preferred Stocks 13.3% |
| ||
![]() | Bonds 39.9% |
| ![]() | Bonds 48.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 8.6% |
| ![]() | Other Investments 4.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 3.8% |
| ** Foreign investments | 4.9% |
|
Semiannual Report
Investments January 31, 2013
Showing Percentage of Net Assets
Common Stocks - 26.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.8% | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Hyatt Hotels Corp. Class A (a) | 178,800 | $ 7,164,516 | |
Household Durables - 0.6% | |||
NVR, Inc. (a) | 6,700 | 6,898,722 | |
Standard Pacific Corp. (a)(f) | 844,895 | 7,012,629 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,095,491 | |
Toll Brothers, Inc. (a) | 82,100 | 3,074,645 | |
| 21,081,487 | ||
TOTAL CONSUMER DISCRETIONARY | 28,246,003 | ||
FINANCIALS - 24.0% | |||
Real Estate Investment Trusts - 23.2% | |||
Acadia Realty Trust (SBI) | 1,968,249 | 51,450,029 | |
AG Mortgage Investment Trust, Inc. | 222,700 | 5,656,580 | |
American Campus Communities, Inc. | 215,300 | 10,026,521 | |
American Residential Properties, Inc. (g) | 574,941 | 12,504,967 | |
American Tower Corp. | 246,800 | 18,793,820 | |
AmREIT, Inc. | 200,000 | 3,518,000 | |
Anworth Mortgage Asset Corp. | 1,120,710 | 7,015,645 | |
Apartment Investment & Management Co. Class A | 747,600 | 20,394,528 | |
Arbor Realty Trust, Inc. | 1,002,999 | 7,151,383 | |
Associated Estates Realty Corp. | 309,400 | 4,996,810 | |
AvalonBay Communities, Inc. | 91,100 | 11,823,869 | |
Canadian (REIT) | 131,600 | 5,922,924 | |
CapLease, Inc. | 2,686,300 | 15,553,677 | |
CBL & Associates Properties, Inc. | 1,500,573 | 32,247,314 | |
Cedar Shopping Centers, Inc. | 921,410 | 5,076,969 | |
Chartwell Retirement Residence | 459,700 | 5,000,747 | |
Chartwell Retirement Residence (g) | 78,500 | 853,945 | |
Chesapeake Lodging Trust | 410,800 | 8,770,580 | |
CommonWealth REIT | 598,700 | 9,842,628 | |
Cys Investments, Inc. (f) | 878,839 | 11,424,907 | |
DCT Industrial Trust, Inc. | 1,235,100 | 8,719,806 | |
DiamondRock Hospitality Co. | 483,300 | 4,407,696 | |
Douglas Emmett, Inc. | 729,500 | 17,011,940 | |
Dynex Capital, Inc. | 1,858,043 | 18,784,815 | |
EastGroup Properties, Inc. | 89,600 | 5,021,184 | |
Education Realty Trust, Inc. | 402,600 | 4,327,950 | |
Equity Lifestyle Properties, Inc. | 913,630 | 65,415,908 | |
Equity Residential (SBI) | 109,200 | 6,048,588 | |
Excel Trust, Inc. | 1,278,928 | 16,088,914 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
First Potomac Realty Trust | 1,004,415 | $ 13,760,486 | |
Glimcher Realty Trust | 1,318,000 | 14,656,160 | |
H&R REIT/H&R Finance Trust | 284,100 | 6,736,480 | |
Hatteras Financial Corp. | 185,000 | 5,009,800 | |
HCP, Inc. | 168,300 | 7,807,437 | |
Highwoods Properties, Inc. (SBI) | 157,800 | 5,680,800 | |
Lexington Corporate Properties Trust | 2,998,982 | 32,988,802 | |
LTC Properties, Inc. | 442,113 | 16,464,288 | |
MFA Financial, Inc. | 7,812,493 | 70,234,312 | |
Mid-America Apartment Communities, Inc. | 152,400 | 9,962,388 | |
Monmouth Real Estate Investment Corp. Class A | 249,773 | 2,712,535 | |
National Retail Properties, Inc. | 195,700 | 6,266,314 | |
Newcastle Investment Corp. | 2,437,400 | 25,568,326 | |
NorthStar Realty Finance Corp. | 811,200 | 6,327,360 | |
Parkway Properties, Inc. | 33,908 | 537,103 | |
Piedmont Office Realty Trust, Inc. Class A | 135,800 | 2,625,014 | |
Prologis, Inc. | 732,787 | 29,238,201 | |
RAIT Financial Trust (f) | 348,852 | 2,403,590 | |
Rayonier, Inc. | 187,300 | 10,084,232 | |
Retail Properties America, Inc. | 789,650 | 10,218,071 | |
Select Income (REIT) | 333,500 | 8,394,195 | |
Senior Housing Properties Trust (SBI) | 730,500 | 17,597,745 | |
Simon Property Group, Inc. | 26,000 | 4,164,680 | |
Stag Industrial, Inc. | 1,040,269 | 20,514,105 | |
Summit Hotel Properties, Inc. | 692,000 | 6,359,480 | |
Terreno Realty Corp. | 413,064 | 6,898,169 | |
Two Harbors Investment Corp. | 774,180 | 9,615,316 | |
Ventas, Inc. | 898,146 | 59,538,098 | |
Washington (REIT) (SBI) | 347,800 | 9,905,344 | |
Whitestone REIT Class B (f) | 183,267 | 2,602,391 | |
WP Carey, Inc. | 173,600 | 9,744,168 | |
| 828,468,034 | ||
Real Estate Management & Development - 0.4% | |||
Altisource Residential Corp. Class B (a) | 45,350 | 816,300 | |
Brookfield Asset Management, Inc. Class A (f) | 171,900 | 6,344,134 | |
Kennedy-Wilson Holdings, Inc. | 425,221 | 6,374,063 | |
| 13,534,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.4% | |||
Home Loan Servicing Solutions Ltd. | 693,200 | $ 15,070,168 | |
TOTAL FINANCIALS | 857,072,699 | ||
HEALTH CARE - 1.0% | |||
Health Care Providers & Services - 1.0% | |||
Brookdale Senior Living, Inc. (a) | 909,000 | 24,552,090 | |
Capital Senior Living Corp. (a) | 96,850 | 2,056,126 | |
Emeritus Corp. (a) | 405,393 | 10,978,042 | |
| 37,586,258 | ||
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
CyrusOne, Inc. | 122,600 | 2,595,442 | |
TELECOMMUNICATION SERVICES - 0.2% | |||
Wireless Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 126,900 | 8,839,854 | |
TOTAL COMMON STOCKS (Cost $750,722,840) |
| ||
Preferred Stocks - 14.7% | |||
|
|
|
|
Convertible Preferred Stocks - 1.2% | |||
FINANCIALS - 1.2% | |||
Real Estate Investment Trusts - 1.2% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | 2,565,000 | |
CommonWealth REIT 6.50% | 396,216 | 9,263,530 | |
Excel Trust, Inc. 7.00% (g) | 248,200 | 6,236,025 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,742,190 | |
Lexington Corporate Properties Trust Series C, 6.50% | 380,921 | 18,436,576 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 2,296,800 | |
| 41,540,121 | ||
Nonconvertible Preferred Stocks - 13.5% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,279,760 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | $ 878,598 | |
TOTAL CONSUMER DISCRETIONARY | 5,158,358 | ||
FINANCIALS - 13.4% | |||
Real Estate Investment Trusts - 12.8% | |||
AG Mortgage Investment Trust, Inc. 8.00% (a) | 324,817 | 8,169,148 | |
American Capital Agency Corp. 8.00% | 200,000 | 5,186,000 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 12 | |
Series B, 9.25% (a) | 124,100 | 12 | |
Annaly Capital Management, Inc.: | |||
Series A, 7.875% | 134,900 | 3,506,051 | |
Series C, 7.625% | 77,837 | 1,965,384 | |
Series D, 7.50% | 213,116 | 5,338,556 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,007,032 | |
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% | 235,101 | 6,251,336 | |
Apollo Residential Mortgage, Inc. Series A, 8.00% | 279,276 | 6,979,107 | |
Arbor Realty Trust, Inc. Series A, 8.25% (a) | 189,089 | 4,727,225 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 27,000 | 689,310 | |
Series E, 9.00% | 85,751 | 2,316,992 | |
Campus Crest Communities, Inc. Series A, 8.00% | 248,431 | 6,645,529 | |
CapLease, Inc.: | |||
Series A, 8.125% | 132,510 | 3,359,129 | |
Series B, 8.375% | 439,766 | 11,724,162 | |
Series C, 7.25% (a) | 210,000 | 5,283,600 | |
CBL & Associates Properties, Inc.: | |||
7.375% | 289,876 | 7,310,673 | |
Series E, 6.625% | 95,000 | 2,400,650 | |
Cedar Shopping Centers, Inc.: | |||
8.875% | 65,983 | 1,697,743 | |
Series B, 7.25% | 222,628 | 5,454,386 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,073,500 | |
Chesapeake Lodging Trust Series A, 7.75% | 266,916 | 7,270,792 | |
Colony Financial, Inc. Series A, 8.50% | 282,171 | 7,435,206 | |
CommonWealth REIT 7.50% | 93,300 | 2,007,816 | |
Coresite Realty Corp. Series A, 7.25% (a) | 258,224 | 6,551,143 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Corporate Office Properties Trust: | |||
Series J, 7.625% | 98,523 | $ 2,499,529 | |
Series L, 7.375% | 80,000 | 2,078,400 | |
Cousins Properties, Inc. Series A, 7.75% | 245,420 | 6,145,317 | |
CubeSmart Series A, 7.75% | 40,000 | 1,072,000 | |
Cys Investments, Inc. Series A, 7.75% | 117,824 | 2,964,452 | |
DDR Corp. Series J, 6.50% | 237,721 | 5,919,253 | |
Digital Realty Trust, Inc.: | |||
Series E, 7.00% | 40,000 | 1,071,200 | |
Series F, 6.625% | 40,000 | 1,060,000 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,251,480 | |
Series L, 6.60% | 10,666 | 271,130 | |
Dynex Capital, Inc. Series A, 8.50% | 362,932 | 9,526,965 | |
Equity Lifestyle Properties, Inc. Series C, 6.75% | 800,000 | 20,576,000 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,071,600 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,424,000 | |
First Potomac Realty Trust 7.75% | 415,296 | 10,839,226 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 6,073,024 | |
Glimcher Realty Trust: | |||
Series G, 8.125% | 193,186 | 4,887,606 | |
Series H, 7.50% | 198,527 | 5,108,100 | |
Hatteras Financial Corp. Series A, 7.625% | 104,668 | 2,621,933 | |
Health Care REIT, Inc. Series J, 6.50% | 20,000 | 526,000 | |
Hersha Hospitality Trust: | |||
Series A, 8.00% | 66,551 | 1,683,740 | |
Series B, 8.00% | 162,538 | 4,242,242 | |
Hospitality Properties Trust: | |||
Series C, 7.00% | 109,236 | 2,740,731 | |
Series D, 7.125% | 40,800 | 1,091,400 | |
Hudson Pacific Properties, Inc. 8.375% | 394,069 | 10,482,235 | |
Inland Real Estate Corp. Series A, 8.125% | 423,500 | 11,277,805 | |
Invesco Mortgage Capital, Inc. Series A, 7.75% | 113,342 | 2,861,886 | |
Investors Real Estate Trust Series B, 7.95% | 126,572 | 3,292,138 | |
iStar Financial, Inc.: | |||
Series E, 7.875% | 70,000 | 1,677,200 | |
Series F, 7.80% | 2,500 | 59,175 | |
Kilroy Realty Corp. Series G, 6.875% | 40,000 | 1,035,200 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,508,210 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LaSalle Hotel Properties: | |||
Series G, 7.25% | 114,485 | $ 2,904,484 | |
Series H, 7.50% | 126,308 | 3,251,168 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,725,500 | |
Series B, 7.625% (a) | 31,240 | 593,560 | |
Lexington Realty Trust 7.55% | 23,800 | 599,998 | |
MFA Financial, Inc.: | |||
8.00% | 538,930 | 13,920,562 | |
Series A, 8.50% | 485,381 | 12,716,982 | |
Monmouth Real Estate Investment Corp.: | |||
7.625% | 80,000 | 2,064,800 | |
Series B, 7.875% | 95,000 | 2,508,000 | |
National Retail Properties, Inc. Series D, 6.625% | 62,437 | 1,631,479 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 891,219 | |
NorthStar Realty Finance Corp.: | |||
Series B, 8.25% | 50,000 | 1,245,000 | |
Series C, 8.875% | 275,338 | 6,990,832 | |
Parkway Properties, Inc. Series D, 8.00% | 342,382 | 8,686,231 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,623,640 | |
Series B, 8.00% | 185,085 | 4,876,990 | |
Pennsylvania (REIT) 7.375% | 76,510 | 1,947,180 | |
Prologis, Inc.: | |||
Series Q, 8.54% | 94,446 | 6,050,447 | |
Series R, 6.75% | 75,000 | 1,888,500 | |
PS Business Parks, Inc.: | |||
6.875% | 50,000 | 1,332,500 | |
Series S, 6.45% | 70,536 | 1,839,579 | |
Regency Centers Corp. Series 6, 6.625% | 62,261 | 1,636,842 | |
Retail Properties America, Inc. 7.00% (a) | 194,782 | 4,859,811 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,349,059 | |
Series B (depositary shares) 9.00% | 118,550 | 2,994,573 | |
Series C, 6.875% (a) | 315,478 | 7,886,950 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,702,800 | |
Strategic Hotel & Resorts, Inc. Series A, 8.50% | 92,323 | 2,309,921 | |
Summit Hotel Properties, Inc.: | |||
Series A, 9.25% | 138,340 | 3,775,299 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Summit Hotel Properties, Inc.: - continued | |||
Series B, 7.875% (a) | 190,173 | $ 4,944,498 | |
Sun Communities, Inc. Series A, 7.125% | 360,000 | 9,039,600 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 417,039 | 10,546,916 | |
Series D, 8.00% | 60,362 | 1,593,557 | |
Terreno Realty Corp. Series A 7.75% | 165,690 | 4,331,137 | |
UMH Properties, Inc. Series A, 8.25% | 600,000 | 15,834,000 | |
Urstadt Biddle Properties, Inc. Series F, 7.125% | 210,000 | 5,565,000 | |
Vornado Realty Trust 6.75% | 20,000 | 504,000 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 116,230 | 2,935,970 | |
Winthrop Realty Trust: | |||
7.75% | 540,000 | 13,905,000 | |
Series D, 9.25% | 65,000 | 1,794,000 | |
| 456,087,255 | ||
Real Estate Management & Development - 0.6% | |||
Forest City Enterprises, Inc. 7.375% | 657,000 | 16,247,610 | |
Kennedy-Wilson, Inc. 7.75% (a) | 141,574 | 3,547,844 | |
Vornado Realty LP 7.875% | 54,682 | 1,490,631 | |
| 21,286,085 | ||
TOTAL FINANCIALS | 477,373,340 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 482,531,698 | ||
TOTAL PREFERRED STOCKS (Cost $505,456,488) |
|
Corporate Bonds - 22.2% | ||||
| Principal |
| ||
Convertible Bonds - 2.3% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 4,510,000 | 4,250,675 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - 2.2% | ||||
Real Estate Investment Trusts - 1.9% | ||||
Annaly Capital Management, Inc. 5% 5/15/15 | $ 34,396,000 | $ 35,212,905 | ||
Ares Commercial Real Estate Corp. 7% 12/15/15 (g) | 9,700,000 | 9,991,000 | ||
CapLease, Inc. 7.5% 10/1/27 (g) | 5,180,000 | 5,180,000 | ||
Northstar Realty Finance LP 8.875% 6/15/32 (g) | 11,500,000 | 14,978,750 | ||
ProLogis LP 2.625% 5/15/38 | 1,500,000 | 1,509,450 | ||
| 66,872,105 | |||
Real Estate Management & Development - 0.3% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (g) | 9,460,000 | 9,785,188 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (d)(g) | 5,500,000 | 11,000 | ||
| 9,796,188 | |||
TOTAL FINANCIALS | 76,668,293 | |||
TOTAL CONVERTIBLE BONDS | 80,918,968 | |||
Nonconvertible Bonds - 19.9% | ||||
CONSUMER DISCRETIONARY - 6.7% | ||||
Hotels, Restaurants & Leisure - 0.7% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 3,505,000 | 3,776,638 | ||
FelCor Lodging LP: | ||||
5.625% 3/1/23 (g) | 2,000,000 | 2,017,400 | ||
6.75% 6/1/19 | 5,875,000 | 6,300,938 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,921,000 | ||
Times Square Hotel Trust 8.528% 8/1/26 (g) | 8,884,663 | 11,134,891 | ||
| 25,150,867 | |||
Household Durables - 5.6% | ||||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (g) | 1,615,000 | 1,703,825 | ||
D.R. Horton, Inc. 4.75% 5/15/17 | 2,000,000 | 2,147,500 | ||
KB Home: | ||||
5.875% 1/15/15 | 7,000,000 | 7,350,000 | ||
7.25% 6/15/18 | 7,420,000 | 8,217,650 | ||
8% 3/15/20 | 8,465,000 | 9,777,075 | ||
9.1% 9/15/17 | 17,595,000 | 20,718,113 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Lennar Corp.: | ||||
4.125% 12/1/18 (g) | $ 5,520,000 | $ 5,520,000 | ||
5.6% 5/31/15 | 6,000,000 | 6,450,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,440,000 | ||
6.95% 6/1/18 | 14,280,000 | 16,047,150 | ||
M/I Homes, Inc. 8.625% 11/15/18 | 26,055,000 | 28,660,500 | ||
Meritage Homes Corp.: | ||||
7% 4/1/22 | 7,525,000 | 8,315,125 | ||
7.15% 4/15/20 | 7,060,000 | 7,818,950 | ||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | 1,555,000 | 1,749,375 | ||
8.4% 5/15/17 | 5,420,000 | 6,463,350 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,350,000 | ||
8.375% 5/15/18 | 28,983,000 | 34,199,940 | ||
10.75% 9/15/16 | 8,415,000 | 10,466,156 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,739,875 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 (g) | 11,130,000 | 11,992,575 | ||
| 198,127,159 | |||
Multiline Retail - 0.4% | ||||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 4,720,000 | 3,923,500 | ||
5.75% 2/15/18 | 2,845,000 | 2,532,050 | ||
Sears Holdings Corp. 6.625% 10/15/18 | 9,820,000 | 9,304,450 | ||
| 15,760,000 | |||
TOTAL CONSUMER DISCRETIONARY | 239,038,026 | |||
CONSUMER STAPLES - 0.1% | ||||
Food & Staples Retailing - 0.1% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 907,635 | 1,036,973 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | 3,960,000 | 4,227,300 | ||
| 5,264,273 | |||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - 11.4% | ||||
Diversified Financial Services - 0.5% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | $ 10,820,000 | $ 11,239,275 | ||
8% 1/15/18 | 5,240,000 | 5,613,350 | ||
| 16,852,625 | |||
Real Estate Investment Trusts - 7.6% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,191,423 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,841,725 | ||
6.25% 6/15/14 | 7,355,000 | 7,838,459 | ||
CubeSmart LP 4.8% 7/15/22 | 2,000,000 | 2,181,090 | ||
Developers Diversified Realty Corp.: | ||||
5.5% 5/1/15 | 4,000,000 | 4,336,284 | ||
7.5% 4/1/17 | 6,000,000 | 7,168,704 | ||
7.5% 7/15/18 | 8,756,000 | 10,780,370 | ||
7.875% 9/1/20 | 4,637,000 | 5,893,548 | ||
9.625% 3/15/16 | 3,836,000 | 4,700,266 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 761,396 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,831,632 | ||
6.25% 1/15/17 | 3,000,000 | 3,412,644 | ||
Equity Residential 5.125% 3/15/16 | 7,201,000 | 8,041,796 | ||
Health Care Property Investors, Inc.: | ||||
6% 6/15/14 | 2,340,000 | 2,489,238 | ||
6% 3/1/15 | 1,000,000 | 1,092,368 | ||
7.072% 6/8/15 | 1,500,000 | 1,674,683 | ||
Health Care REIT, Inc.: | ||||
3.625% 3/15/16 | 7,685,000 | 8,142,388 | ||
4.125% 4/1/19 | 2,000,000 | 2,160,278 | ||
6% 11/15/13 | 1,000,000 | 1,039,359 | ||
6.2% 6/1/16 | 2,750,000 | 3,142,827 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,302,749 | ||
5.75% 1/15/21 | 3,095,000 | 3,453,082 | ||
6.5% 1/17/17 | 2,875,000 | 3,280,395 | ||
Highwoods/Forsyth LP: | ||||
3.625% 1/15/23 | 1,607,000 | 1,549,781 | ||
5.85% 3/15/17 | 2,800,000 | 3,148,830 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Hospitality Properties Trust: | ||||
5% 8/15/22 | $ 3,177,000 | $ 3,370,460 | ||
5.625% 3/15/17 | 915,000 | 1,008,669 | ||
7.875% 8/15/14 | 1,000,000 | 1,064,685 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 4,826,000 | 5,169,824 | ||
6.25% 8/15/16 | 9,675,000 | 10,636,250 | ||
6.25% 6/15/17 | 1,055,000 | 1,162,443 | ||
6.65% 1/15/18 | 3,000,000 | 3,416,661 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 3,587,000 | 3,604,935 | ||
5.875% 3/15/16 | 34,260,000 | 34,773,900 | ||
5.95% 10/15/13 | 7,330,000 | 7,485,763 | ||
6.05% 4/15/15 | 14,630,000 | 14,776,300 | ||
7.125% 2/15/18 | 5,725,000 | 5,911,063 | ||
9% 6/1/17 | 9,175,000 | 10,184,250 | ||
MPT Operating Partnership LP/MPT Finance Corp.: | ||||
6.375% 2/15/22 | 3,610,000 | 3,880,750 | ||
6.875% 5/1/21 | 2,000,000 | 2,200,000 | ||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | 5,670,000 | 6,298,565 | ||
6.25% 2/1/13 | 1,000,000 | 1,000,000 | ||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | 2,115,000 | 2,310,638 | ||
7.5% 2/15/20 | 1,000,000 | 1,097,500 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,867,556 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,130,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,800,332 | ||
7.625% 7/1/17 | 4,690,000 | 5,458,306 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,440,200 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 5,192,920 | ||
6.75% 4/15/20 | 13,624,000 | 15,547,464 | ||
6.75% 12/15/21 | 8,000,000 | 9,192,296 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 518,963 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
United Dominion Realty Trust, Inc.: - continued | ||||
5.25% 1/15/15 | $ 1,000,000 | $ 1,075,432 | ||
5.25% 1/15/16 | 4,000,000 | 4,411,680 | ||
| 273,443,120 | |||
Real Estate Management & Development - 3.2% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 409,546 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 2,118,110 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 7,207,488 | ||
7.5% 5/15/15 | 1,000,000 | 1,128,817 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,312,004 | ||
11.625% 6/15/17 | 1,500,000 | 1,635,000 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,513,866 | ||
6.25% 6/15/14 | 3,094,000 | 3,284,355 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,796,530 | ||
ERP Operating LP 5.25% 9/15/14 | 4,815,000 | 5,160,654 | ||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | 17,120,000 | 16,435,200 | ||
7.625% 6/1/15 | 10,156,000 | 10,105,220 | ||
Host Hotels & Resorts LP: | ||||
5.25% 3/15/22 | 2,000,000 | 2,180,000 | ||
5.875% 6/15/19 | 2,725,000 | 2,963,438 | ||
Kennedy-Wilson, Inc.: | ||||
8.75% 4/1/19 | 12,700,000 | 13,430,250 | ||
8.75% 4/1/19 (g) | 7,710,000 | 8,172,600 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (g) | 7,085,000 | 7,811,213 | ||
9% 1/15/20 (g) | 1,920,000 | 2,236,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,923,107 | ||
5.875% 6/15/17 | 400,000 | 459,343 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,676,750 | ||
Ventas Realty LP: | ||||
3.125% 11/30/15 | 7,297,000 | 7,710,638 | ||
3.25% 8/15/22 | 2,000,000 | 1,952,494 | ||
4% 4/30/19 | 2,262,000 | 2,428,574 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Weekley Homes LLC/Weekley Finance Corp. 6% 2/1/23 (g) | $ 2,460,000 | $ 2,509,200 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,091,269 | ||
| 115,652,466 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 (d) | 4,052,590 | 2,532,869 | ||
TOTAL FINANCIALS | 408,481,080 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 10,410,000 | 11,164,725 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 33,008,000 | 35,318,560 | ||
TOTAL HEALTH CARE | 46,483,285 | |||
INDUSTRIALS - 0.2% | ||||
Commercial Services & Supplies - 0.1% | ||||
Iron Mountain, Inc. 5.75% 8/15/24 | 2,235,000 | 2,254,556 | ||
Industrial Conglomerates - 0.1% | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 (g) | 3,050,000 | 3,149,125 | ||
TOTAL INDUSTRIALS | 5,403,681 | |||
INFORMATION TECHNOLOGY - 0.1% | ||||
Internet Software & Services - 0.1% | ||||
Cyrusone LP/Cyrusone Finance Corp. 6.375% 11/15/22 (g) | 3,000,000 | 3,195,000 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Crown Castle International Corp. 5.25% 1/15/23 (g) | $ 4,000,000 | $ 4,160,000 | ||
TOTAL NONCONVERTIBLE BONDS | 712,025,345 | |||
TOTAL CORPORATE BONDS (Cost $731,113,334) |
| |||
Asset-Backed Securities - 3.0% | ||||
| ||||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.5647% 3/23/19 (g)(i) | 207,807 | 204,794 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7047% 3/20/50 (g)(i) | 2,250,000 | 103,500 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | 2,968,280 | 2,990,839 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.555% 1/20/37 (g)(i) | 729,854 | 687,887 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | 1,123,639 | 988,803 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.555% 4/7/52 (g)(i) | 9,687,044 | 8,573,034 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 451,801 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (g) | 563,441 | 563,683 | ||
Class B2, 1.66% 12/28/35 (g)(i) | 565,235 | 548,278 | ||
Class D, 9% 12/28/35 (g) | 518,237 | 347,893 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 1.81% 6/28/38 (g)(i) | 540,919 | 540,107 | ||
Class D, 9% 6/28/38 (g) | 1,033,566 | 744,167 | ||
Crest Ltd. Series 2002-IGA Class B, 1.6505% 7/28/35 (g)(i) | 26,722 | 26,749 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 9,147,797 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6765% 11/28/39 (g)(i) | 577,107 | 17,313 | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | 1,788,179 | 1,649,708 | ||
Asset-Backed Securities - continued | ||||
| Principal | Value | ||
Green Tree Financial Corp.: - continued | ||||
Series 1997-3 Class M1, 7.53% 3/15/28 | $ 7,352,794 | $ 6,256,180 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 (i)(k) | 911,599 | 34,542 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.7537% 8/26/30 (g)(i) | 735,000 | 639,450 | ||
Class E, 2.2037% 8/26/30 (g)(i) | 1,517,957 | 857,646 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,117,245 | 416,169 | ||
Merit Securities Corp. Series 13 Class M1, 7.888% 12/28/33 (i) | 1,923,000 | 2,075,142 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | 899,989 | 764,991 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (g) | 2,757,445 | 2,822,523 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (g) | 2,010,527 | 2,012,537 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (g) | 9,370,000 | 9,463,700 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9628% 2/5/36 (g)(i) | 3,638,732 | 364 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 5.81% 9/25/26 (g)(i) | 2,000,000 | 1,060,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.57% 9/25/26 (g)(i) | 14,382,726 | 13,663,589 | ||
Class A1B, 0.64% 9/25/26 (g)(i) | 22,506,000 | 19,256,134 | ||
Class A2A, 0.53% 9/25/26 (g)(i) | 5,409,203 | 5,311,296 | ||
Class A2B, 0.62% 9/25/26 (g)(i) | 1,550,000 | 1,403,835 | ||
Class B, 0.67% 9/25/26 (g)(i) | 890,000 | 734,695 | ||
Class C 0.84% 9/25/26 (g)(i) | 3,830,000 | 3,111,875 | ||
Class G, 1.66% 9/25/26 (g)(i) | 1,270,000 | 952,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.6315% 11/21/40 (g)(i) | 9,453,458 | 8,508,112 | ||
Class F, 2.2615% 11/21/40 (g)(i) | 250,000 | 45,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $103,710,957) |
| |||
Collateralized Mortgage Obligations - 0.6% | ||||
| Principal | Value | ||
Private Sponsor - 0.6% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.3857% 6/15/22 (g)(i) | $ 1,872,974 | $ 1,855,937 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (g) | 53,650 | 18,005 | ||
Series 2002-R2 Class 2B3, 3.6491% 7/25/33 (g)(i) | 202,886 | 104,372 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | 89,474 | 57,165 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (g) | 1,347,692 | 236,618 | ||
Class B3, 5.5% 11/25/33 | 126,133 | 5,642 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(i) | 102,838 | 3,686 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.4353% 4/25/20 (g)(i) | 3,200,000 | 3,559,456 | ||
Series 2010-K6 Class B, 5.358% 12/25/46 (g)(i) | 4,500,000 | 4,977,045 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | 7,120,000 | 7,445,982 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.1577% 7/10/35 (g)(i) | 270,755 | 223,562 | ||
Series 2005-A Class B6, 2.2077% 3/10/37 (g)(i) | 1,399,369 | 41,701 | ||
Series 2005-B Class B6, 1.8077% 6/10/37 (g)(i) | 845,863 | 6,851 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | 33,310 | 28,961 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7077% 12/10/35 (g)(i) | 259,132 | 131,768 | ||
Series 2004-A Class B7, 4.4577% 2/10/36 (g)(i) | 291,067 | 159,621 | ||
Series 2004-B Class B7, 4.2077% 2/10/36 (g)(i) | 345,619 | 178,651 | ||
TOTAL PRIVATE SPONSOR | 19,035,023 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) | 151,871 | 81,746 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.1891% 2/25/42 (g)(i) | 97,767 | 55,536 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (k) | 224,727 | 63,438 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.194% 6/25/43 (g)(i) | $ 146,486 | $ 59,003 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.166% 10/25/42 (g)(i) | 63,232 | 32,642 | ||
TOTAL U.S. GOVERNMENT AGENCY | 292,365 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $20,555,631) |
| |||
Commercial Mortgage Securities - 16.4% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (k) | 4,177,433 | 4,093,395 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | 2,000,000 | 2,380,245 | ||
Asset Securitization Corp. Series 1997-D4 Class B2, 7.525% 4/14/29 | 171,147 | 171,755 | ||
Banc of America Commercial Mortgage Trust: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 598,374 | 602,256 | ||
Series 2005-1 Class CJ, 5.196% 11/10/42 (i) | 3,580,000 | 3,830,396 | ||
Series 2005-6 Class AJ, 5.1904% 9/10/47 (i) | 5,000,000 | 5,425,525 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 (g)(i) | 104,082,643 | 104,192,018 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.2557% 3/15/22 (g)(i) | 4,691,243 | 4,339,399 | ||
Class K, 2.2057% 3/15/22 (g)(i) | 4,190,000 | 2,493,050 | ||
Banc of America REMIC Trust Series 2012-CLMZ Class A, 7.7057% 8/15/17 (g)(i) | 4,900,000 | 5,230,750 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4516% 3/11/39 (i) | 5,700,000 | 5,766,235 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5729% 4/12/38 (g)(i) | 2,520,000 | 2,558,012 | ||
COMM Mortgage Trust Series 2012-CR5 Class D, 4.334% 12/10/45 (g)(i) | 2,000,000 | 1,972,952 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12: | ||||
Class AJ, 0.3357% 12/15/20 (g)(i) | 8,000,000 | 7,666,296 | ||
Class B, 0.3757% 12/15/20 (g)(i) | 2,990,790 | 2,854,371 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | 4,427,059 | 4,466,903 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Commercial Mortgage Trust pass-thru certificates: | ||||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) | $ 5,000,000 | $ 5,331,480 | ||
Series 2012-CR1: | ||||
Class C, 5.547% 5/15/45 | 1,000,000 | 1,128,121 | ||
Class D, 5.547% 5/15/45 (g) | 2,050,000 | 2,089,387 | ||
Series 2012-CR2: | ||||
Class D, 4.8582% 8/15/45 (g)(i) | 4,500,000 | 4,640,382 | ||
Class E, 4.8582% 8/15/45 (g)(i) | 6,000,000 | 5,869,596 | ||
Series 2012-LC4: | ||||
Class C, 5.6488% 12/10/44 (i) | 2,000,000 | 2,289,906 | ||
Class D, 5.6488% 12/10/44 (g)(i) | 8,000,000 | 8,240,960 | ||
Communication Mortgage Trust Series 2011-THL: | ||||
Class E, 5.949% 6/9/28 (g) | 3,690,000 | 3,782,339 | ||
Class F, 4.867% 6/9/28 (g) | 11,090,000 | 10,252,184 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (g) | 2,045,086 | 2,227,011 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (g) | 3,000,000 | 3,188,484 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5567% 11/10/46 (g)(i) | 12,490,000 | 13,400,833 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 1,206,475 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 Class B4, 7.2214% 6/10/31 (g)(i) | 2,121,985 | 2,143,496 | ||
Extended Stay America Trust Series 2013-ESHM Class M, 7.625% 12/5/19 (g)(h) | 10,950,000 | 11,392,158 | ||
Freddie Mac: | ||||
pass-thru certificates: | ||||
Series K011 Class X3, 2.575% 12/25/43 (i)(j) | 12,206,096 | 1,938,731 | ||
Series K012 Class X3, 2.2878% 1/25/41 (i)(j) | 21,072,886 | 3,012,559 | ||
Series K013 Class X3, 2.7899% 1/25/43 (i)(j) | 14,360,000 | 2,501,785 | ||
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) | 7,430,000 | 1,674,290 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | 9,462,679 | 9,533,649 | ||
GCCFC Commercial Mortgage Trust sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | 2,000,000 | 2,013,774 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2 Class G, 6.75% 4/15/29 (i) | 942,133 | 1,038,841 | ||
Series 1999-C3 Class J, 6.974% 8/15/36 | 1,500,000 | 1,598,671 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 196,574 | 149,555 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 5.4585% 3/6/20 (g)(i) | 1,400,000 | 1,415,791 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
GS Mortgage Securities Corp. II: - continued | ||||
Series 2010-C1: | ||||
Class D, 5.9897% 8/10/43 (g)(i) | $ 4,000,000 | $ 4,332,584 | ||
Class E, 4% 8/10/43 (g) | 3,770,000 | 2,918,187 | ||
Series 2012-GCJ7: | ||||
Class C, 5.7222% 5/10/45 (i) | 6,500,000 | 7,266,355 | ||
Class D, 5.7222% 5/10/45 (g)(i) | 2,000,000 | 2,081,914 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (g) | 9,185,000 | 9,254,806 | ||
GS Mortgage Securities Trust: | ||||
Series 2010-C2 Class D, 5.2273% 12/10/43 (g)(i) | 3,000,000 | 3,113,688 | ||
Series 2011-GC5: | ||||
Class C, 5.308% 8/10/44 (g)(i) | 9,000,000 | 10,070,127 | ||
Class D, 5.308% 8/10/44 (g)(i) | 4,000,000 | 4,197,848 | ||
Series 2012-GC6 Class C, 5.6388% 1/10/45 (g)(i) | 3,600,000 | 4,135,036 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (g)(i) | 2,036,910 | 38,798 | ||
Class X, 0.6341% 10/15/32 (g)(i)(j) | 4,757,212 | 36,629 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (g) | 2,681,387 | 2,686,828 | ||
Series 2009-IWST: | ||||
Class C, 7.4453% 12/5/27 (g)(i) | 3,000,000 | 3,700,470 | ||
Class D, 7.4453% 12/5/27 (g)(i) | 9,550,000 | 11,219,378 | ||
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (g) | 9,000,000 | 9,481,727 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (g)(i) | 4,500,000 | 4,728,600 | ||
Class XB, 0.9305% 8/5/32 (g)(i)(j) | 32,655,000 | 1,604,516 | ||
Series 2012-CBX Class C, 5.1897% 6/16/45 (i) | 4,530,000 | 4,985,821 | ||
JPMorgan Chase Commercial Mortgage Securities Trust: | ||||
Series 2005-LDP5 Class AJ, 5.3206% 12/15/44 (i) | 3,470,000 | 3,638,847 | ||
Series 2011-C5 Class C, 5.3143% 8/15/46 (g)(i) | 6,525,375 | 7,315,402 | ||
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8: | ||||
Class G, 6% 7/15/31 (g) | 833,006 | 844,984 | ||
Class H, 6% 7/15/31 (g) | 1,341,102 | 706,364 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | 2,453,229 | 2,516,191 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 2,096,730 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,937,283 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,607,928 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
sequential payer: | ||||
Series 2006-C7 Class AM, 5.378% 11/15/38 | $ 2,040,000 | $ 2,257,123 | ||
Series 2004-C7 Class E, 4.918% 10/15/36 | 5,120,000 | 5,155,159 | ||
Series 2005-C1 Class E, 4.924% 2/15/40 | 4,000,000 | 3,999,360 | ||
Series 2006-C4: | ||||
Class AJ, 5.8853% 6/15/38 (i) | 7,005,000 | 7,063,198 | ||
Class AM, 5.8853% 6/15/38 (i) | 6,700,000 | 7,507,196 | ||
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2007-LLFA Class E, 1.1057% 6/15/22 (g)(i) | 6,230,000 | 5,986,712 | ||
LStar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.5644% 6/25/43 (g)(i) | 4,699,000 | 4,656,700 | ||
Series 2011-1 Class B, 5.5644% 6/25/43 (g)(i) | 6,165,000 | 6,452,508 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 571,205 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 279,554 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 181,930 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 267,932 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 262,349 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 170,792 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 634,528 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | 710,603 | 284,241 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6836% 5/12/39 (i) | 1,200,000 | 1,345,502 | ||
Mezz Capital Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C1 Class A, 4.836% 1/15/37 (g) | 2,394,649 | 2,155,184 | ||
Series 2004-C2 Class A, 5.318% 10/15/40 (g) | 9,390,396 | 7,794,028 | ||
Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (g) | 306,695 | 31 | ||
Class IO, 9.0255% 1/15/37 (g)(i)(j) | 2,622,993 | 118,035 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2012-C4 Class E, 5.71% 3/15/45 (g) | 4,630,000 | 4,752,213 | ||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | 262,429 | 262,922 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,951,899 | ||
Series 1997-RR Class F, 7.4011% 4/30/39 (g)(i) | 1,139,848 | 1,094,254 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | 2,638,907 | 1,958,829 | ||
Series 2005-HQ5 Class B, 5.272% 1/14/42 | 2,000,000 | 2,074,624 | ||
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) | 2,500,000 | 2,622,265 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 8,479,545 | ||
Series 2011-C1 Class C, 5.2537% 9/15/47 (g)(i) | 4,000,000 | 4,475,560 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Morgan Stanley Capital I Trust: - continued | ||||
Series 2011-C2: | ||||
Class D, 5.3171% 6/15/44 (g)(i) | $ 4,610,000 | $ 4,890,417 | ||
Class E, 5.3171% 6/15/44 (g)(i) | 9,600,000 | 9,754,166 | ||
Class F, 5.3171% 6/15/44 (g)(i) | 4,440,000 | 3,698,906 | ||
Class XB, 0.4644% 6/15/44 (g)(i)(j) | 63,708,222 | 2,293,496 | ||
Series 2011-C3: | ||||
Class C, 5.1844% 7/15/49 (g)(i) | 2,000,000 | 2,222,774 | ||
Class D, 5.357% 7/15/49 (g) | 7,400,000 | 7,865,778 | ||
Series 2012-C4 Class D, 5.5263% 3/15/45 (g)(i) | 6,310,000 | 6,781,281 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (j) | 459,322 | 458,771 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | 3,783,011 | 4,731,790 | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6791% 4/15/24 (g)(i) | 9,049,000 | 9,186,509 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E3, 6.5% 2/18/34 (g)(i) | 217,865 | 222,290 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5654% 8/15/39 (i) | 2,080,000 | 2,273,278 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | 10,630,000 | 10,960,976 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.7807% 7/15/24 (g)(i) | 1,200,000 | 964,133 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8749% 1/10/45 (g)(i) | 3,000,000 | 3,609,783 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (g) | 2,540,000 | 2,897,475 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 2,043,984 | ||
Series 2004-C11: | ||||
Class D, 5.389% 1/15/41 (i) | 5,177,000 | 5,141,988 | ||
Class E, 5.439% 1/15/41 (i) | 3,785,000 | 3,609,319 | ||
Series 2004-C12 Class D, 5.3075% 7/15/41 (i) | 2,750,000 | 2,781,829 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,338,882 | ||
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7802% 10/15/45 (g) | 9,999,000 | 9,775,842 | ||
WF-RBS Commercial Mortgage Trust: | ||||
Series 2011-C3: | ||||
Class C, 5.335% 3/15/44 (g) | 4,900,000 | 5,523,339 | ||
Class D, 5.5486% 3/15/44 (g)(i) | 1,000,000 | 1,060,933 | ||
Class E, 5% 3/15/44 (g) | 2,000,000 | 1,709,712 | ||
Series 2012-C7 Class D, 4.8502% 6/15/45 (g)(i) | 2,380,000 | 2,473,282 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
WF-RBS Commercial Mortgage Trust: - continued | ||||
Series 2013-C11 Class D, 4.1856% 3/15/45 (g)(h)(i) | $ 3,000,000 | $ 2,832,921 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (g) | 4,000,000 | 4,098,140 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $540,351,345) |
| |||
Floating Rate Loans - 8.6% | ||||
| ||||
CONSUMER DISCRETIONARY - 4.2% | ||||
Hotels, Restaurants & Leisure - 4.0% | ||||
Extended Stay America, Inc. REL 9.625% 12/1/19 | 7,000,000 | 7,175,000 | ||
Hilton Hotels Corp.: | ||||
term loan 4.456% 11/12/15 (i) | 36,321,238 | 35,731,018 | ||
Tranche B, term loan 3.5785% 11/12/15 (i) | 12,000,000 | 11,805,000 | ||
Tranche C, term loan 3.706% 11/12/15 (i) | 20,000,000 | 19,675,000 | ||
Tranche D, term loan 3.956% 11/12/15 (i) | 23,097,902 | 22,722,561 | ||
Tranche E, term loan 4.206% 11/12/15 (i) | 30,000,000 | 29,512,500 | ||
Intrawest U.S. Holding, Inc. Tranche 1LN, term loan 7% 12/4/17 (i) | 5,000,000 | 5,031,250 | ||
La Quinta: | ||||
Tranche A, term loan 1.6% 7/6/14 (i) | 5,714,286 | 6,257,143 | ||
Tranche B, term loan 1.6% 7/6/14 (i) | 4,285,714 | 4,692,857 | ||
| 142,602,329 | |||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (i) | 2,807,250 | 2,723,033 | ||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 5% 10/11/18 (i) | 5,355,000 | 5,448,713 | ||
TOTAL CONSUMER DISCRETIONARY | 150,774,075 | |||
ENERGY - 0.2% | ||||
Oil, Gas & Consumable Fuels - 0.2% | ||||
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) | 7,200,000 | 7,308,000 | ||
FINANCIALS - 2.9% | ||||
Diversified Financial Services - 0.9% | ||||
Blackstone REL 10% 10/1/2017 | 17,500,000 | 18,287,500 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (i) | 4,713,188 | 4,783,885 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
Pilot Travel Centers LLC: - continued | ||||
Tranche B, term loan 3.75% 3/30/18 (i) | $ 6,683,669 | $ 6,783,924 | ||
SBA Senior Finance, Inc. Tranche B, term loan 3.75% 6/30/18 (i) | 2,955,000 | 2,977,163 | ||
| 32,832,472 | |||
Real Estate Investment Trusts - 0.6% | ||||
iStar Financial, Inc. Tranche B, term loan 5.75% 10/15/17 (i) | 22,575,217 | 22,970,284 | ||
Real Estate Management & Development - 1.3% | ||||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7047% 9/4/19 (i) | 5,709,629 | 5,738,178 | ||
CityCenter term loan 8.75% 7/1/13 (i) | 4,169,750 | 4,169,750 | ||
EOP Operating LP term loan: | ||||
5% 2/5/13 (i) | 5,000,000 | 5,066,000 | ||
5.25% 2/5/13 (i) | 3,800,000 | 3,840,660 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 10.5% 11/4/13 (i) | 7,896,223 | 7,206,181 | ||
Tranche B 2LN, term loan 7.55% 11/4/13 (i) | 5,000,000 | 4,950,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.2087% 10/10/13 (i) | 433,319 | 422,486 | ||
Credit-Linked Deposit 4.4587% 10/10/16 (i) | 919,537 | 926,434 | ||
term loan 4.4557% 10/10/16 (i) | 13,066,882 | 13,164,883 | ||
| 45,484,572 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Ocwen Financial Corp. Tranche B, term loan 7% 9/1/16 (i) | 2,035,082 | 2,035,082 | ||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 1/23/18 (i) | 1,965,000 | 1,989,563 | ||
| 4,024,645 | |||
TOTAL FINANCIALS | 105,311,973 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc. term loan 3.8105% 1/25/17 (i) | 2,903,247 | 2,925,022 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (i) | $ 1,980,000 | $ 1,999,800 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (i) | 10,249,103 | 10,325,971 | ||
| 15,250,793 | |||
INDUSTRIALS - 0.4% | ||||
Construction & Engineering - 0.4% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (i) | 13,397,233 | 12,827,851 | ||
TELECOMMUNICATION SERVICES - 0.5% | ||||
Wireless Telecommunication Services - 0.5% | ||||
Crown Castle Operating Co.: | ||||
Tranche A, term loan 2.71% 1/31/17 (i) | 5,000,000 | 5,006,250 | ||
Tranche B, term loan 4% 1/31/19 (i) | 8,938,658 | 8,972,625 | ||
SBA Senior Finance II, LLC term loan 3.75% 9/28/19 (i) | 3,345,000 | 3,370,088 | ||
| 17,348,963 | |||
TOTAL FLOATING RATE LOANS (Cost $301,003,987) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g)(i) | 500,000 | 25,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g)(i) | 1,220,000 | 183,000 | |
| 208,000 | ||
TOTAL PREFERRED SECURITIES (Cost $1,292,230) |
| ||
Money Market Funds - 10.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (b) | 345,135,204 | $ 345,135,204 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 14,624,900 | 14,624,900 | |
TOTAL MONEY MARKET FUNDS (Cost $359,760,104) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $3,313,966,916) | 3,634,088,597 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (59,168,030) | ||
NET ASSETS - 100% | $ 3,574,920,567 |
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) Amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $674,573,937 or 18.9% of net assets. |
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(j) 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. |
(k) 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 $4,273,121 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 4,045,277 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 131,602 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 169,353 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 | 6/3/05 | $ 804,218 |
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 | $ 203,960 |
Fidelity Securities Lending Cash Central Fund | 30,199 |
Total | $ 234,159 |
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, |
AmREIT, Inc. | $ 2,818,000 | $ - | $ - | $ 80,000 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 33,404,361 | $ 29,308,870 | $ - | $ 4,095,491 |
Financials | 1,375,986,160 | 1,325,583,972 | 48,328,664 | 2,073,524 |
Health Care | 37,586,258 | 37,586,258 | - | - |
Industrials | 2,595,442 | 2,595,442 | - | - |
Telecommunication Services | 8,839,854 | 8,839,854 | - | - |
Corporate Bonds | 792,944,313 | - | 786,061,444 | 6,882,869 |
Asset-Backed Securities | 106,976,633 | - | 80,804,340 | 26,172,293 |
Collateralized Mortgage Obligations | 19,327,388 | - | 17,915,933 | 1,411,455 |
Commercial Mortgage Securities | 587,638,429 | - | 555,232,850 | 32,405,579 |
Floating Rate Loans | 308,821,655 | - | 254,382,745 | 54,438,910 |
Preferred Securities | 208,000 | - | - | 208,000 |
Money Market Funds | 359,760,104 | 359,760,104 | - | - |
Total Investments in Securities: | $ 3,634,088,597 | $ 1,763,674,500 | $ 1,742,725,976 | $ 127,688,121 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Asset-Backed Securities | |
Beginning Balance | $ 36,313,723 |
Total Realized Gain (Loss) | 738,175 |
Total Unrealized Gain (Loss) | 1,009,514 |
Cost of Purchases | 67,147 |
Proceeds of Sales | (6,154,799) |
Amortization/Accretion | (80,849) |
Transfers in to Level 3 | 9,182,600 |
Transfers out of Level 3 | (14,903,218) |
Ending Balance | $ 26,172,293 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,200,983 |
Commercial Mortgage Securities | |
Beginning Balance | $ 53,984,005 |
Total Realized Gain (Loss) | 306,049 |
Total Unrealized Gain (Loss) | 1,560,260 |
Cost of Purchases | 118 |
Proceeds of Sales | (14,351,947) |
Amortization/Accretion | 394,401 |
Transfers in to Level 3 | 1,045,017 |
Transfers out of Level 3 | (10,532,324) |
Ending Balance | $ 32,405,579 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 623,749 |
Floating Rate Loans | |
Beginning Balance | $ 18,003,477 |
Total Realized Gain (Loss) | 265,546 |
Total Unrealized Gain (Loss) | 1,538,519 |
Cost of Purchases | 44,099,578 |
Proceeds of Sales | (14,260,414) |
Amortization/Accretion | 317,204 |
Transfers in to Level 3 | 4,475,000 |
Transfers out of Level 3 | - |
Ending Balance | $ 54,438,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,678,840 |
Other Investments in Securities | |
Beginning Balance | $ 19,436,383 |
Total Realized Gain (Loss) | (6,447,263) |
Total Unrealized Gain (Loss) | 7,484,659 |
Cost of Purchases | - |
Proceeds of Sales | (638,475) |
Amortization/Accretion | (5,330) |
Transfers in to Level 3 | 4,080,000 |
Transfers out of Level 3 | (9,238,635) |
Ending Balance | $ 14,671,339 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,037,397 |
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 into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. 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. |
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 | 6.7% |
BBB | 11.5% |
BB | 5.9% |
B | 11.7% |
CCC,CC,C | 2.4% |
D | 0.2% |
Not Rated | 12.1% |
Equities | 40.8% |
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, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $13,973,963) - See accompanying schedule: Unaffiliated issuers (cost $2,954,206,812) | $ 3,274,328,493 |
|
Fidelity Central Funds (cost $359,760,104) | 359,760,104 |
|
Total Investments (cost $3,313,966,916) |
| $ 3,634,088,597 |
Cash |
| 5,871,414 |
Foreign currency held at value (cost $26,075) | 26,075 | |
Receivable for investments sold | 789,753 | |
Receivable for fund shares sold | 34,136,339 | |
Dividends receivable | 2,266,080 | |
Interest receivable | 16,766,006 | |
Distributions receivable from Fidelity Central Funds | 46,355 | |
Prepaid expenses | 7,776 | |
Other receivables | 44,334 | |
Total assets | 3,694,042,729 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 84,687,131 | |
Delayed delivery | 14,305,020 | |
Payable for fund shares redeemed | 2,995,906 | |
Accrued management fee | 1,565,313 | |
Distribution and service plan fees payable | 130,583 | |
Other affiliated payables | 722,526 | |
Other payables and accrued expenses | 90,783 | |
Collateral on securities loaned, at value | 14,624,900 | |
Total liabilities | 119,122,162 | |
|
|
|
Net Assets | $ 3,574,920,567 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,235,833,120 | |
Undistributed net investment income | 8,407,320 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 10,533,056 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 320,147,071 | |
Net Assets | $ 3,574,920,567 |
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, 2013 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class T: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class C: | $ 11.57 | |
|
|
|
Real Estate Income: | $ 11.67 | |
|
|
|
Institutional Class: | $ 11.65 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends (including $80,000 earned from other affiliated issuers) |
| $ 28,249,204 |
Interest |
| 60,434,705 |
Income from Fidelity Central Funds |
| 234,159 |
Total income |
| 88,918,068 |
|
|
|
Expenses | ||
Management fee | $ 8,434,635 | |
Transfer agent fees | 3,624,081 | |
Distribution and service plan fees | 618,689 | |
Accounting and security lending fees | 572,593 | |
Custodian fees and expenses | 23,571 | |
Independent trustees' compensation | 9,602 | |
Registration fees | 112,536 | |
Audit | 80,603 | |
Legal | 7,635 | |
Miscellaneous | 10,082 | |
Total expenses before reductions | 13,494,027 | |
Expense reductions | (67,617) | 13,426,410 |
Net investment income (loss) | 75,491,658 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,256,714 | |
Foreign currency transactions | 3,506 | |
Total net realized gain (loss) |
| 31,260,220 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 143,373,801 | |
Assets and liabilities in foreign currencies | (814) | |
Total change in net unrealized appreciation (depreciation) |
| 143,372,987 |
Net gain (loss) | 174,633,207 | |
Net increase (decrease) in net assets resulting from operations | $ 250,124,865 |
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) | $ 75,491,658 | $ 106,081,413 |
Net realized gain (loss) | 31,260,220 | 46,621,459 |
Change in net unrealized appreciation (depreciation) | 143,372,987 | 99,190,890 |
Net increase (decrease) in net assets resulting | 250,124,865 | 251,893,762 |
Distributions to shareholders from net investment income | (95,007,356) | (98,117,663) |
Distributions to shareholders from net realized gain | (51,534,160) | (16,498,521) |
Total distributions | (146,541,516) | (114,616,184) |
Share transactions - net increase (decrease) | 785,319,915 | 755,485,569 |
Redemption fees | 158,419 | 286,688 |
Total increase (decrease) in net assets | 889,061,683 | 893,049,835 |
|
|
|
Net Assets | ||
Beginning of period | 2,685,858,884 | 1,792,809,049 |
End of period (including undistributed net investment income of $8,407,320 and undistributed net investment income of $27,923,018, respectively) | $ 3,574,920,567 | $ 2,685,858,884 |
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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .53 | .18 |
Net realized and unrealized gain (loss) | .66 | .61 | .76 | (.04) |
Total from investment operations | .93 | 1.13 | 1.29 | .14 |
Distributions from net investment income | (.35) | (.51) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.56) L | (.60) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 8.46% | 11.24% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.12% | 1.09% A |
Net investment income (loss) | 4.78% A | 4.89% | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 223,346 | $ 137,352 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 22% A | 27% | 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 $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share.
L Total distributions of $.56 per share is comprised of distributions from net investment income of $.353 and distributions from net realized gain of $.203 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .52 | .17 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.03) |
Total from investment operations | .92 | 1.14 | 1.28 | .14 |
Distributions from net investment income | (.35) | (.50) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.55) | (.60) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 8.43% | 11.33% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.16% | 1.17% A |
Net investment income (loss) | 4.79% A | 4.90% | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,818 | $ 26,143 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 22% A | 27% | 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.20 | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .23 | .44 | .45 | .15 |
Net realized and unrealized gain (loss) | .66 | .62 | .74 | (.03) |
Total from investment operations | .89 | 1.06 | 1.19 | .12 |
Distributions from net investment income | (.31) | (.43) | (.45) | (.14) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.52) K | (.53) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.57 | $ 11.20 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 8.11% | 10.49% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of all reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Net investment income (loss) | 4.04% A | 4.14% | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 107,161 | $ 52,780 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 22% A | 27% | 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.
K Total distributions of $.52 per share is comprised of distributions from net investment income of $.312 and distributions from net realized gain of $.203 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, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .29 | .54 | .55 | .53 | .54 | .59 |
Net realized and unrealized gain (loss) | .66 | .62 | .76 | 1.73 | (1.27) | (1.48) |
Total from investment operations | .95 | 1.16 | 1.31 | 2.26 | (.73) | (.89) |
Distributions from net investment income | (.37) | (.52) | (.51) | (.52) | (.50) | (.66) |
Distributions from net realized gain | (.20) | (.10) | - | - | - | (.24) |
Total distributions | (.57) | (.62) | (.51) | (.52) | (.50) | (.90) |
Redemption fees added to paid in capital D | - H | - H | - H | - H | .01 | - H |
Net asset value, end of period | $ 11.67 | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 |
Total Return B,C | 8.64% | 11.50% | 13.41% | 28.29% | (6.92)% | (8.43)% |
Ratios to Average Net Assets E,G | ||||||
Expenses before reductions | .85% A | .90% | .92% | .97% | 1.00% | .94% |
Expenses net of fee waivers, if any | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Expenses net of all reductions | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Net investment income (loss) | 5.02% A | 5.12% | 5.21% | 5.60% | 7.15% | 5.77% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 2,823,109 | $ 2,252,149 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 |
Portfolio turnover rate F | 22% A | 27% | 25% | 28% | 47% | 32% |
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.
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, | ||
| 2013 | 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.28 | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .29 | .55 | .55 | .19 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.04) |
Total from investment operations | .94 | 1.17 | 1.31 | .15 |
Distributions from net investment income | (.37) | (.53) | (.52) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.57) | (.63) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - | - |
Net asset value, end of period | $ 11.65 | $ 11.28 | $ 10.74 | $ 9.95 |
Total Return B,C | 8.61% | 11.62% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | .81% A | .84% | .89% | .85% A |
Expenses net of fee waivers, if any | .81% A | .84% | .89% | .85% A |
Expenses net of all reductions | .81% A | .84% | .89% | .85% A |
Net investment income (loss) | 5.06% A | 5.17% | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 388,486 | $ 217,435 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 22% A | 27% | 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, 2013
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) website 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 website 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 - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, floating rate loans, preferred securities, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing vendors 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 broker-supplied prices. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value at 01/31/13 | Valuation | Unobservable | Range | Weighted |
Asset-Backed Securities | $ 911,576 | Discounted cash flow | Yield | 5.8% - 10% | 7.4% |
Collateralized Mortgage Obligations | $ 699,848 | Discounted cash flow | Yield | 12% - 53% | 19.2% |
| Market comparable | Transaction price | $37 | $37 | |
Commercial | $ 38,798 | Discounted cash flow | Yield | 20% | 20% |
Common | $ 4,095,516 | Adjusted book value | Book value multiple | 1.0 | 1.0 |
| Market comparable | Transaction price | $0.0001 | $0.0001 | |
Corporate Bonds | $ 6,882,869 | Discounted cash flow | Constant | 25% | 25% |
|
| Market comparable | Broker bids | $108.75 | $108.75 |
Floating Rate Loans | $ 29,632,250 | Discounted cash flow | Yield | 8.9% - 9.5% | 9.3% |
|
| Internal rate of return | 9.2% | 9.2% |
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
For the unobservable inputs listed in the table above, a significant increase in yields, constant prepayment rates or internal rates of return could result in a significant decrease to the fair value measurement. A significant increase in transaction prices, book value multiples or broker bids could result in a significant increase to the fair value measurement.
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, 2013, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications 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 | $ 358,978,591 |
Gross unrealized depreciation | (39,806,751) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 319,171,840 |
|
|
Tax cost | $ 3,314,916,757 |
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.
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. 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.
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $871,060,794 and $306,835,676, 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. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 215,360 | $ 8,646 |
Class T | -% | .25% | 37,225 | - |
Class C | .75% | .25% | 366,104 | 174,393 |
|
|
| $ 618,689 | $ 183,039 |
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
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 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 | $ 46,615 |
Class T | 10,128 |
Class C* | 4,047 |
| $ 60,790 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 195,852 | .23 |
Class T | 33,621 | .23 |
Class C | 80,548 | .22 |
Real Estate Income | 3,053,903 | .24 |
Institutional Class | 260,157 | .20 |
| $ 3,624,081 |
|
* 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 $20,384 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,554 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. 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 $30,199. 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 $64,588 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $3,029.
Semiannual Report
Notes to Financial Statements - 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 | $ 5,271,506 | $ 3,854,404 |
Class T | 870,816 | 609,057 |
Class C | 2,020,773 | 1,139,599 |
Real Estate Income | 78,679,674 | 86,666,891 |
Institutional Class | 8,164,587 | 5,847,712 |
Total | $ 95,007,356 | $ 98,117,663 |
From net realized gain |
|
|
Class A | $ 2,837,075 | $ 603,452 |
Class T | 506,062 | 83,752 |
Class C | 1,181,312 | 208,802 |
Real Estate Income | 42,729,812 | 14,865,902 |
Institutional Class | 4,279,899 | 736,613 |
Total | $ 51,534,160 | $ 16,498,521 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 7,804,959 | 8,276,874 | $ 89,191,291 | $ 88,010,262 |
Reinvestment of distributions | 574,404 | 333,613 | 6,457,367 | 3,436,744 |
Shares redeemed | (1,374,839) | (2,031,559) | (15,673,884) | (21,254,183) |
Net increase (decrease) | 7,004,524 | 6,578,928 | $ 79,974,774 | $ 70,192,823 |
Class T |
|
|
|
|
Shares sold | 1,116,988 | 1,725,200 | $ 12,750,416 | $ 18,422,015 |
Reinvestment of distributions | 90,398 | 49,495 | 1,016,115 | 511,986 |
Shares redeemed | (708,322) | (163,799) | (8,023,147) | (1,727,688) |
Net increase (decrease) | 499,064 | 1,610,896 | $ 5,743,384 | $ 17,206,313 |
Class C |
|
|
|
|
Shares sold | 4,692,263 | 3,117,808 | $ 53,412,376 | $ 33,302,251 |
Reinvestment of distributions | 227,829 | 110,126 | 2,550,008 | 1,128,377 |
Shares redeemed | (366,896) | (534,569) | (4,160,300) | (5,534,157) |
Net increase (decrease) | 4,553,196 | 2,693,365 | $ 51,802,084 | $ 28,896,471 |
Real Estate Income |
|
|
|
|
Shares sold | 60,440,692 | 90,720,847 | $ 692,765,189 | $ 959,813,942 |
Reinvestment of distributions | 9,722,725 | 8,913,831 | 109,588,482 | 91,762,119 |
Shares redeemed | (27,657,077) | (54,623,988) | (316,642,327) | (572,115,634) |
Net increase (decrease) | 42,506,340 | 45,010,690 | $ 485,711,344 | $ 479,460,427 |
Institutional Class |
|
|
|
|
Shares sold | 15,837,574 | 16,926,727 | $ 182,426,024 | $ 177,564,635 |
Reinvestment of distributions | 850,127 | 472,572 | 9,565,473 | 4,899,349 |
Shares redeemed | (2,617,376) | (2,146,783) | (29,903,168) | (22,734,449) |
Net increase (decrease) | 14,070,325 | 15,252,516 | $ 162,088,329 | $ 159,729,535 |
Semiannual Report
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
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, 2013, 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, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012. 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, 2013, 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, 2013, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 22, 2013
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St St., Boston, MA 02210
www.fidelity.com
REI-USAN-0313 1.789734.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Class A, Class T, and Class C
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Class A , Class T, and
Class C are classes of Fidelity® Real Estate Income Fund
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. | |
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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.60 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class T | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.30 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class C | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.10 | $ 9.60 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Real Estate Income | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.40 | $ 4.47 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
Institutional Class | .81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.10 | $ 4.26 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.12 | $ 4.13 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
MFA Financial, Inc. | 2.0 | 1.7 |
Equity Lifestyle Properties, Inc. | 1.8 | 1.8 |
Ventas, Inc. | 1.7 | 1.9 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Lexington Corporate Properties Trust | 0.9 | 0.9 |
| 7.8 | |
Top 5 Bonds as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 | 2.9 | 4.2 |
Hilton Hotels Corp. term loan 4.456% 11/12/15 | 1.0 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 1.0 | 0.8 |
Annaly Capital Management, Inc. 5% 5/15/15 | 1.0 | 1.3 |
iStar Financial, Inc. 5.875% 3/15/16 | 1.0 | 1.2 |
| 6.9 | |
Top Five REIT Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
REITs - Mortgage | 12.7 | 11.9 |
REITs - Management/Investment | 8.2 | 6.8 |
REITs - Health Care Facilities | 6.5 | 6.0 |
REITs - Shopping Centers | 6.1 | 6.5 |
REITs - Industrial Buildings | 4.2 | 3.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Common Stocks 26.1% |
| ![]() | Common Stocks 23.1% |
| ||
![]() | Preferred Stocks 13.5% |
| ![]() | Preferred Stocks 13.3% |
| ||
![]() | Bonds 39.9% |
| ![]() | Bonds 48.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 8.6% |
| ![]() | Other Investments 4.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 3.8% |
| ** Foreign investments | 4.9% |
|
Semiannual Report
Investments January 31, 2013
Showing Percentage of Net Assets
Common Stocks - 26.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.8% | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Hyatt Hotels Corp. Class A (a) | 178,800 | $ 7,164,516 | |
Household Durables - 0.6% | |||
NVR, Inc. (a) | 6,700 | 6,898,722 | |
Standard Pacific Corp. (a)(f) | 844,895 | 7,012,629 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,095,491 | |
Toll Brothers, Inc. (a) | 82,100 | 3,074,645 | |
| 21,081,487 | ||
TOTAL CONSUMER DISCRETIONARY | 28,246,003 | ||
FINANCIALS - 24.0% | |||
Real Estate Investment Trusts - 23.2% | |||
Acadia Realty Trust (SBI) | 1,968,249 | 51,450,029 | |
AG Mortgage Investment Trust, Inc. | 222,700 | 5,656,580 | |
American Campus Communities, Inc. | 215,300 | 10,026,521 | |
American Residential Properties, Inc. (g) | 574,941 | 12,504,967 | |
American Tower Corp. | 246,800 | 18,793,820 | |
AmREIT, Inc. | 200,000 | 3,518,000 | |
Anworth Mortgage Asset Corp. | 1,120,710 | 7,015,645 | |
Apartment Investment & Management Co. Class A | 747,600 | 20,394,528 | |
Arbor Realty Trust, Inc. | 1,002,999 | 7,151,383 | |
Associated Estates Realty Corp. | 309,400 | 4,996,810 | |
AvalonBay Communities, Inc. | 91,100 | 11,823,869 | |
Canadian (REIT) | 131,600 | 5,922,924 | |
CapLease, Inc. | 2,686,300 | 15,553,677 | |
CBL & Associates Properties, Inc. | 1,500,573 | 32,247,314 | |
Cedar Shopping Centers, Inc. | 921,410 | 5,076,969 | |
Chartwell Retirement Residence | 459,700 | 5,000,747 | |
Chartwell Retirement Residence (g) | 78,500 | 853,945 | |
Chesapeake Lodging Trust | 410,800 | 8,770,580 | |
CommonWealth REIT | 598,700 | 9,842,628 | |
Cys Investments, Inc. (f) | 878,839 | 11,424,907 | |
DCT Industrial Trust, Inc. | 1,235,100 | 8,719,806 | |
DiamondRock Hospitality Co. | 483,300 | 4,407,696 | |
Douglas Emmett, Inc. | 729,500 | 17,011,940 | |
Dynex Capital, Inc. | 1,858,043 | 18,784,815 | |
EastGroup Properties, Inc. | 89,600 | 5,021,184 | |
Education Realty Trust, Inc. | 402,600 | 4,327,950 | |
Equity Lifestyle Properties, Inc. | 913,630 | 65,415,908 | |
Equity Residential (SBI) | 109,200 | 6,048,588 | |
Excel Trust, Inc. | 1,278,928 | 16,088,914 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
First Potomac Realty Trust | 1,004,415 | $ 13,760,486 | |
Glimcher Realty Trust | 1,318,000 | 14,656,160 | |
H&R REIT/H&R Finance Trust | 284,100 | 6,736,480 | |
Hatteras Financial Corp. | 185,000 | 5,009,800 | |
HCP, Inc. | 168,300 | 7,807,437 | |
Highwoods Properties, Inc. (SBI) | 157,800 | 5,680,800 | |
Lexington Corporate Properties Trust | 2,998,982 | 32,988,802 | |
LTC Properties, Inc. | 442,113 | 16,464,288 | |
MFA Financial, Inc. | 7,812,493 | 70,234,312 | |
Mid-America Apartment Communities, Inc. | 152,400 | 9,962,388 | |
Monmouth Real Estate Investment Corp. Class A | 249,773 | 2,712,535 | |
National Retail Properties, Inc. | 195,700 | 6,266,314 | |
Newcastle Investment Corp. | 2,437,400 | 25,568,326 | |
NorthStar Realty Finance Corp. | 811,200 | 6,327,360 | |
Parkway Properties, Inc. | 33,908 | 537,103 | |
Piedmont Office Realty Trust, Inc. Class A | 135,800 | 2,625,014 | |
Prologis, Inc. | 732,787 | 29,238,201 | |
RAIT Financial Trust (f) | 348,852 | 2,403,590 | |
Rayonier, Inc. | 187,300 | 10,084,232 | |
Retail Properties America, Inc. | 789,650 | 10,218,071 | |
Select Income (REIT) | 333,500 | 8,394,195 | |
Senior Housing Properties Trust (SBI) | 730,500 | 17,597,745 | |
Simon Property Group, Inc. | 26,000 | 4,164,680 | |
Stag Industrial, Inc. | 1,040,269 | 20,514,105 | |
Summit Hotel Properties, Inc. | 692,000 | 6,359,480 | |
Terreno Realty Corp. | 413,064 | 6,898,169 | |
Two Harbors Investment Corp. | 774,180 | 9,615,316 | |
Ventas, Inc. | 898,146 | 59,538,098 | |
Washington (REIT) (SBI) | 347,800 | 9,905,344 | |
Whitestone REIT Class B (f) | 183,267 | 2,602,391 | |
WP Carey, Inc. | 173,600 | 9,744,168 | |
| 828,468,034 | ||
Real Estate Management & Development - 0.4% | |||
Altisource Residential Corp. Class B (a) | 45,350 | 816,300 | |
Brookfield Asset Management, Inc. Class A (f) | 171,900 | 6,344,134 | |
Kennedy-Wilson Holdings, Inc. | 425,221 | 6,374,063 | |
| 13,534,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.4% | |||
Home Loan Servicing Solutions Ltd. | 693,200 | $ 15,070,168 | |
TOTAL FINANCIALS | 857,072,699 | ||
HEALTH CARE - 1.0% | |||
Health Care Providers & Services - 1.0% | |||
Brookdale Senior Living, Inc. (a) | 909,000 | 24,552,090 | |
Capital Senior Living Corp. (a) | 96,850 | 2,056,126 | |
Emeritus Corp. (a) | 405,393 | 10,978,042 | |
| 37,586,258 | ||
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
CyrusOne, Inc. | 122,600 | 2,595,442 | |
TELECOMMUNICATION SERVICES - 0.2% | |||
Wireless Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 126,900 | 8,839,854 | |
TOTAL COMMON STOCKS (Cost $750,722,840) |
| ||
Preferred Stocks - 14.7% | |||
|
|
|
|
Convertible Preferred Stocks - 1.2% | |||
FINANCIALS - 1.2% | |||
Real Estate Investment Trusts - 1.2% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | 2,565,000 | |
CommonWealth REIT 6.50% | 396,216 | 9,263,530 | |
Excel Trust, Inc. 7.00% (g) | 248,200 | 6,236,025 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,742,190 | |
Lexington Corporate Properties Trust Series C, 6.50% | 380,921 | 18,436,576 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 2,296,800 | |
| 41,540,121 | ||
Nonconvertible Preferred Stocks - 13.5% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,279,760 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | $ 878,598 | |
TOTAL CONSUMER DISCRETIONARY | 5,158,358 | ||
FINANCIALS - 13.4% | |||
Real Estate Investment Trusts - 12.8% | |||
AG Mortgage Investment Trust, Inc. 8.00% (a) | 324,817 | 8,169,148 | |
American Capital Agency Corp. 8.00% | 200,000 | 5,186,000 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 12 | |
Series B, 9.25% (a) | 124,100 | 12 | |
Annaly Capital Management, Inc.: | |||
Series A, 7.875% | 134,900 | 3,506,051 | |
Series C, 7.625% | 77,837 | 1,965,384 | |
Series D, 7.50% | 213,116 | 5,338,556 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,007,032 | |
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% | 235,101 | 6,251,336 | |
Apollo Residential Mortgage, Inc. Series A, 8.00% | 279,276 | 6,979,107 | |
Arbor Realty Trust, Inc. Series A, 8.25% (a) | 189,089 | 4,727,225 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 27,000 | 689,310 | |
Series E, 9.00% | 85,751 | 2,316,992 | |
Campus Crest Communities, Inc. Series A, 8.00% | 248,431 | 6,645,529 | |
CapLease, Inc.: | |||
Series A, 8.125% | 132,510 | 3,359,129 | |
Series B, 8.375% | 439,766 | 11,724,162 | |
Series C, 7.25% (a) | 210,000 | 5,283,600 | |
CBL & Associates Properties, Inc.: | |||
7.375% | 289,876 | 7,310,673 | |
Series E, 6.625% | 95,000 | 2,400,650 | |
Cedar Shopping Centers, Inc.: | |||
8.875% | 65,983 | 1,697,743 | |
Series B, 7.25% | 222,628 | 5,454,386 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,073,500 | |
Chesapeake Lodging Trust Series A, 7.75% | 266,916 | 7,270,792 | |
Colony Financial, Inc. Series A, 8.50% | 282,171 | 7,435,206 | |
CommonWealth REIT 7.50% | 93,300 | 2,007,816 | |
Coresite Realty Corp. Series A, 7.25% (a) | 258,224 | 6,551,143 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Corporate Office Properties Trust: | |||
Series J, 7.625% | 98,523 | $ 2,499,529 | |
Series L, 7.375% | 80,000 | 2,078,400 | |
Cousins Properties, Inc. Series A, 7.75% | 245,420 | 6,145,317 | |
CubeSmart Series A, 7.75% | 40,000 | 1,072,000 | |
Cys Investments, Inc. Series A, 7.75% | 117,824 | 2,964,452 | |
DDR Corp. Series J, 6.50% | 237,721 | 5,919,253 | |
Digital Realty Trust, Inc.: | |||
Series E, 7.00% | 40,000 | 1,071,200 | |
Series F, 6.625% | 40,000 | 1,060,000 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,251,480 | |
Series L, 6.60% | 10,666 | 271,130 | |
Dynex Capital, Inc. Series A, 8.50% | 362,932 | 9,526,965 | |
Equity Lifestyle Properties, Inc. Series C, 6.75% | 800,000 | 20,576,000 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,071,600 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,424,000 | |
First Potomac Realty Trust 7.75% | 415,296 | 10,839,226 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 6,073,024 | |
Glimcher Realty Trust: | |||
Series G, 8.125% | 193,186 | 4,887,606 | |
Series H, 7.50% | 198,527 | 5,108,100 | |
Hatteras Financial Corp. Series A, 7.625% | 104,668 | 2,621,933 | |
Health Care REIT, Inc. Series J, 6.50% | 20,000 | 526,000 | |
Hersha Hospitality Trust: | |||
Series A, 8.00% | 66,551 | 1,683,740 | |
Series B, 8.00% | 162,538 | 4,242,242 | |
Hospitality Properties Trust: | |||
Series C, 7.00% | 109,236 | 2,740,731 | |
Series D, 7.125% | 40,800 | 1,091,400 | |
Hudson Pacific Properties, Inc. 8.375% | 394,069 | 10,482,235 | |
Inland Real Estate Corp. Series A, 8.125% | 423,500 | 11,277,805 | |
Invesco Mortgage Capital, Inc. Series A, 7.75% | 113,342 | 2,861,886 | |
Investors Real Estate Trust Series B, 7.95% | 126,572 | 3,292,138 | |
iStar Financial, Inc.: | |||
Series E, 7.875% | 70,000 | 1,677,200 | |
Series F, 7.80% | 2,500 | 59,175 | |
Kilroy Realty Corp. Series G, 6.875% | 40,000 | 1,035,200 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,508,210 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LaSalle Hotel Properties: | |||
Series G, 7.25% | 114,485 | $ 2,904,484 | |
Series H, 7.50% | 126,308 | 3,251,168 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,725,500 | |
Series B, 7.625% (a) | 31,240 | 593,560 | |
Lexington Realty Trust 7.55% | 23,800 | 599,998 | |
MFA Financial, Inc.: | |||
8.00% | 538,930 | 13,920,562 | |
Series A, 8.50% | 485,381 | 12,716,982 | |
Monmouth Real Estate Investment Corp.: | |||
7.625% | 80,000 | 2,064,800 | |
Series B, 7.875% | 95,000 | 2,508,000 | |
National Retail Properties, Inc. Series D, 6.625% | 62,437 | 1,631,479 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 891,219 | |
NorthStar Realty Finance Corp.: | |||
Series B, 8.25% | 50,000 | 1,245,000 | |
Series C, 8.875% | 275,338 | 6,990,832 | |
Parkway Properties, Inc. Series D, 8.00% | 342,382 | 8,686,231 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,623,640 | |
Series B, 8.00% | 185,085 | 4,876,990 | |
Pennsylvania (REIT) 7.375% | 76,510 | 1,947,180 | |
Prologis, Inc.: | |||
Series Q, 8.54% | 94,446 | 6,050,447 | |
Series R, 6.75% | 75,000 | 1,888,500 | |
PS Business Parks, Inc.: | |||
6.875% | 50,000 | 1,332,500 | |
Series S, 6.45% | 70,536 | 1,839,579 | |
Regency Centers Corp. Series 6, 6.625% | 62,261 | 1,636,842 | |
Retail Properties America, Inc. 7.00% (a) | 194,782 | 4,859,811 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,349,059 | |
Series B (depositary shares) 9.00% | 118,550 | 2,994,573 | |
Series C, 6.875% (a) | 315,478 | 7,886,950 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,702,800 | |
Strategic Hotel & Resorts, Inc. Series A, 8.50% | 92,323 | 2,309,921 | |
Summit Hotel Properties, Inc.: | |||
Series A, 9.25% | 138,340 | 3,775,299 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Summit Hotel Properties, Inc.: - continued | |||
Series B, 7.875% (a) | 190,173 | $ 4,944,498 | |
Sun Communities, Inc. Series A, 7.125% | 360,000 | 9,039,600 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 417,039 | 10,546,916 | |
Series D, 8.00% | 60,362 | 1,593,557 | |
Terreno Realty Corp. Series A 7.75% | 165,690 | 4,331,137 | |
UMH Properties, Inc. Series A, 8.25% | 600,000 | 15,834,000 | |
Urstadt Biddle Properties, Inc. Series F, 7.125% | 210,000 | 5,565,000 | |
Vornado Realty Trust 6.75% | 20,000 | 504,000 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 116,230 | 2,935,970 | |
Winthrop Realty Trust: | |||
7.75% | 540,000 | 13,905,000 | |
Series D, 9.25% | 65,000 | 1,794,000 | |
| 456,087,255 | ||
Real Estate Management & Development - 0.6% | |||
Forest City Enterprises, Inc. 7.375% | 657,000 | 16,247,610 | |
Kennedy-Wilson, Inc. 7.75% (a) | 141,574 | 3,547,844 | |
Vornado Realty LP 7.875% | 54,682 | 1,490,631 | |
| 21,286,085 | ||
TOTAL FINANCIALS | 477,373,340 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 482,531,698 | ||
TOTAL PREFERRED STOCKS (Cost $505,456,488) |
|
Corporate Bonds - 22.2% | ||||
| Principal |
| ||
Convertible Bonds - 2.3% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 4,510,000 | 4,250,675 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - 2.2% | ||||
Real Estate Investment Trusts - 1.9% | ||||
Annaly Capital Management, Inc. 5% 5/15/15 | $ 34,396,000 | $ 35,212,905 | ||
Ares Commercial Real Estate Corp. 7% 12/15/15 (g) | 9,700,000 | 9,991,000 | ||
CapLease, Inc. 7.5% 10/1/27 (g) | 5,180,000 | 5,180,000 | ||
Northstar Realty Finance LP 8.875% 6/15/32 (g) | 11,500,000 | 14,978,750 | ||
ProLogis LP 2.625% 5/15/38 | 1,500,000 | 1,509,450 | ||
| 66,872,105 | |||
Real Estate Management & Development - 0.3% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (g) | 9,460,000 | 9,785,188 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (d)(g) | 5,500,000 | 11,000 | ||
| 9,796,188 | |||
TOTAL FINANCIALS | 76,668,293 | |||
TOTAL CONVERTIBLE BONDS | 80,918,968 | |||
Nonconvertible Bonds - 19.9% | ||||
CONSUMER DISCRETIONARY - 6.7% | ||||
Hotels, Restaurants & Leisure - 0.7% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 3,505,000 | 3,776,638 | ||
FelCor Lodging LP: | ||||
5.625% 3/1/23 (g) | 2,000,000 | 2,017,400 | ||
6.75% 6/1/19 | 5,875,000 | 6,300,938 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,921,000 | ||
Times Square Hotel Trust 8.528% 8/1/26 (g) | 8,884,663 | 11,134,891 | ||
| 25,150,867 | |||
Household Durables - 5.6% | ||||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (g) | 1,615,000 | 1,703,825 | ||
D.R. Horton, Inc. 4.75% 5/15/17 | 2,000,000 | 2,147,500 | ||
KB Home: | ||||
5.875% 1/15/15 | 7,000,000 | 7,350,000 | ||
7.25% 6/15/18 | 7,420,000 | 8,217,650 | ||
8% 3/15/20 | 8,465,000 | 9,777,075 | ||
9.1% 9/15/17 | 17,595,000 | 20,718,113 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Lennar Corp.: | ||||
4.125% 12/1/18 (g) | $ 5,520,000 | $ 5,520,000 | ||
5.6% 5/31/15 | 6,000,000 | 6,450,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,440,000 | ||
6.95% 6/1/18 | 14,280,000 | 16,047,150 | ||
M/I Homes, Inc. 8.625% 11/15/18 | 26,055,000 | 28,660,500 | ||
Meritage Homes Corp.: | ||||
7% 4/1/22 | 7,525,000 | 8,315,125 | ||
7.15% 4/15/20 | 7,060,000 | 7,818,950 | ||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | 1,555,000 | 1,749,375 | ||
8.4% 5/15/17 | 5,420,000 | 6,463,350 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,350,000 | ||
8.375% 5/15/18 | 28,983,000 | 34,199,940 | ||
10.75% 9/15/16 | 8,415,000 | 10,466,156 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,739,875 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 (g) | 11,130,000 | 11,992,575 | ||
| 198,127,159 | |||
Multiline Retail - 0.4% | ||||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 4,720,000 | 3,923,500 | ||
5.75% 2/15/18 | 2,845,000 | 2,532,050 | ||
Sears Holdings Corp. 6.625% 10/15/18 | 9,820,000 | 9,304,450 | ||
| 15,760,000 | |||
TOTAL CONSUMER DISCRETIONARY | 239,038,026 | |||
CONSUMER STAPLES - 0.1% | ||||
Food & Staples Retailing - 0.1% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 907,635 | 1,036,973 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | 3,960,000 | 4,227,300 | ||
| 5,264,273 | |||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - 11.4% | ||||
Diversified Financial Services - 0.5% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | $ 10,820,000 | $ 11,239,275 | ||
8% 1/15/18 | 5,240,000 | 5,613,350 | ||
| 16,852,625 | |||
Real Estate Investment Trusts - 7.6% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,191,423 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,841,725 | ||
6.25% 6/15/14 | 7,355,000 | 7,838,459 | ||
CubeSmart LP 4.8% 7/15/22 | 2,000,000 | 2,181,090 | ||
Developers Diversified Realty Corp.: | ||||
5.5% 5/1/15 | 4,000,000 | 4,336,284 | ||
7.5% 4/1/17 | 6,000,000 | 7,168,704 | ||
7.5% 7/15/18 | 8,756,000 | 10,780,370 | ||
7.875% 9/1/20 | 4,637,000 | 5,893,548 | ||
9.625% 3/15/16 | 3,836,000 | 4,700,266 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 761,396 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,831,632 | ||
6.25% 1/15/17 | 3,000,000 | 3,412,644 | ||
Equity Residential 5.125% 3/15/16 | 7,201,000 | 8,041,796 | ||
Health Care Property Investors, Inc.: | ||||
6% 6/15/14 | 2,340,000 | 2,489,238 | ||
6% 3/1/15 | 1,000,000 | 1,092,368 | ||
7.072% 6/8/15 | 1,500,000 | 1,674,683 | ||
Health Care REIT, Inc.: | ||||
3.625% 3/15/16 | 7,685,000 | 8,142,388 | ||
4.125% 4/1/19 | 2,000,000 | 2,160,278 | ||
6% 11/15/13 | 1,000,000 | 1,039,359 | ||
6.2% 6/1/16 | 2,750,000 | 3,142,827 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,302,749 | ||
5.75% 1/15/21 | 3,095,000 | 3,453,082 | ||
6.5% 1/17/17 | 2,875,000 | 3,280,395 | ||
Highwoods/Forsyth LP: | ||||
3.625% 1/15/23 | 1,607,000 | 1,549,781 | ||
5.85% 3/15/17 | 2,800,000 | 3,148,830 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Hospitality Properties Trust: | ||||
5% 8/15/22 | $ 3,177,000 | $ 3,370,460 | ||
5.625% 3/15/17 | 915,000 | 1,008,669 | ||
7.875% 8/15/14 | 1,000,000 | 1,064,685 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 4,826,000 | 5,169,824 | ||
6.25% 8/15/16 | 9,675,000 | 10,636,250 | ||
6.25% 6/15/17 | 1,055,000 | 1,162,443 | ||
6.65% 1/15/18 | 3,000,000 | 3,416,661 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 3,587,000 | 3,604,935 | ||
5.875% 3/15/16 | 34,260,000 | 34,773,900 | ||
5.95% 10/15/13 | 7,330,000 | 7,485,763 | ||
6.05% 4/15/15 | 14,630,000 | 14,776,300 | ||
7.125% 2/15/18 | 5,725,000 | 5,911,063 | ||
9% 6/1/17 | 9,175,000 | 10,184,250 | ||
MPT Operating Partnership LP/MPT Finance Corp.: | ||||
6.375% 2/15/22 | 3,610,000 | 3,880,750 | ||
6.875% 5/1/21 | 2,000,000 | 2,200,000 | ||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | 5,670,000 | 6,298,565 | ||
6.25% 2/1/13 | 1,000,000 | 1,000,000 | ||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | 2,115,000 | 2,310,638 | ||
7.5% 2/15/20 | 1,000,000 | 1,097,500 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,867,556 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,130,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,800,332 | ||
7.625% 7/1/17 | 4,690,000 | 5,458,306 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,440,200 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 5,192,920 | ||
6.75% 4/15/20 | 13,624,000 | 15,547,464 | ||
6.75% 12/15/21 | 8,000,000 | 9,192,296 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 518,963 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
United Dominion Realty Trust, Inc.: - continued | ||||
5.25% 1/15/15 | $ 1,000,000 | $ 1,075,432 | ||
5.25% 1/15/16 | 4,000,000 | 4,411,680 | ||
| 273,443,120 | |||
Real Estate Management & Development - 3.2% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 409,546 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 2,118,110 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 7,207,488 | ||
7.5% 5/15/15 | 1,000,000 | 1,128,817 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,312,004 | ||
11.625% 6/15/17 | 1,500,000 | 1,635,000 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,513,866 | ||
6.25% 6/15/14 | 3,094,000 | 3,284,355 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,796,530 | ||
ERP Operating LP 5.25% 9/15/14 | 4,815,000 | 5,160,654 | ||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | 17,120,000 | 16,435,200 | ||
7.625% 6/1/15 | 10,156,000 | 10,105,220 | ||
Host Hotels & Resorts LP: | ||||
5.25% 3/15/22 | 2,000,000 | 2,180,000 | ||
5.875% 6/15/19 | 2,725,000 | 2,963,438 | ||
Kennedy-Wilson, Inc.: | ||||
8.75% 4/1/19 | 12,700,000 | 13,430,250 | ||
8.75% 4/1/19 (g) | 7,710,000 | 8,172,600 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (g) | 7,085,000 | 7,811,213 | ||
9% 1/15/20 (g) | 1,920,000 | 2,236,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,923,107 | ||
5.875% 6/15/17 | 400,000 | 459,343 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,676,750 | ||
Ventas Realty LP: | ||||
3.125% 11/30/15 | 7,297,000 | 7,710,638 | ||
3.25% 8/15/22 | 2,000,000 | 1,952,494 | ||
4% 4/30/19 | 2,262,000 | 2,428,574 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Weekley Homes LLC/Weekley Finance Corp. 6% 2/1/23 (g) | $ 2,460,000 | $ 2,509,200 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,091,269 | ||
| 115,652,466 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 (d) | 4,052,590 | 2,532,869 | ||
TOTAL FINANCIALS | 408,481,080 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 10,410,000 | 11,164,725 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 33,008,000 | 35,318,560 | ||
TOTAL HEALTH CARE | 46,483,285 | |||
INDUSTRIALS - 0.2% | ||||
Commercial Services & Supplies - 0.1% | ||||
Iron Mountain, Inc. 5.75% 8/15/24 | 2,235,000 | 2,254,556 | ||
Industrial Conglomerates - 0.1% | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 (g) | 3,050,000 | 3,149,125 | ||
TOTAL INDUSTRIALS | 5,403,681 | |||
INFORMATION TECHNOLOGY - 0.1% | ||||
Internet Software & Services - 0.1% | ||||
Cyrusone LP/Cyrusone Finance Corp. 6.375% 11/15/22 (g) | 3,000,000 | 3,195,000 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Crown Castle International Corp. 5.25% 1/15/23 (g) | $ 4,000,000 | $ 4,160,000 | ||
TOTAL NONCONVERTIBLE BONDS | 712,025,345 | |||
TOTAL CORPORATE BONDS (Cost $731,113,334) |
| |||
Asset-Backed Securities - 3.0% | ||||
| ||||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.5647% 3/23/19 (g)(i) | 207,807 | 204,794 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7047% 3/20/50 (g)(i) | 2,250,000 | 103,500 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | 2,968,280 | 2,990,839 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.555% 1/20/37 (g)(i) | 729,854 | 687,887 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | 1,123,639 | 988,803 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.555% 4/7/52 (g)(i) | 9,687,044 | 8,573,034 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 451,801 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (g) | 563,441 | 563,683 | ||
Class B2, 1.66% 12/28/35 (g)(i) | 565,235 | 548,278 | ||
Class D, 9% 12/28/35 (g) | 518,237 | 347,893 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 1.81% 6/28/38 (g)(i) | 540,919 | 540,107 | ||
Class D, 9% 6/28/38 (g) | 1,033,566 | 744,167 | ||
Crest Ltd. Series 2002-IGA Class B, 1.6505% 7/28/35 (g)(i) | 26,722 | 26,749 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 9,147,797 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6765% 11/28/39 (g)(i) | 577,107 | 17,313 | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | 1,788,179 | 1,649,708 | ||
Asset-Backed Securities - continued | ||||
| Principal | Value | ||
Green Tree Financial Corp.: - continued | ||||
Series 1997-3 Class M1, 7.53% 3/15/28 | $ 7,352,794 | $ 6,256,180 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 (i)(k) | 911,599 | 34,542 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.7537% 8/26/30 (g)(i) | 735,000 | 639,450 | ||
Class E, 2.2037% 8/26/30 (g)(i) | 1,517,957 | 857,646 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,117,245 | 416,169 | ||
Merit Securities Corp. Series 13 Class M1, 7.888% 12/28/33 (i) | 1,923,000 | 2,075,142 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | 899,989 | 764,991 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (g) | 2,757,445 | 2,822,523 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (g) | 2,010,527 | 2,012,537 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (g) | 9,370,000 | 9,463,700 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9628% 2/5/36 (g)(i) | 3,638,732 | 364 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 5.81% 9/25/26 (g)(i) | 2,000,000 | 1,060,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.57% 9/25/26 (g)(i) | 14,382,726 | 13,663,589 | ||
Class A1B, 0.64% 9/25/26 (g)(i) | 22,506,000 | 19,256,134 | ||
Class A2A, 0.53% 9/25/26 (g)(i) | 5,409,203 | 5,311,296 | ||
Class A2B, 0.62% 9/25/26 (g)(i) | 1,550,000 | 1,403,835 | ||
Class B, 0.67% 9/25/26 (g)(i) | 890,000 | 734,695 | ||
Class C 0.84% 9/25/26 (g)(i) | 3,830,000 | 3,111,875 | ||
Class G, 1.66% 9/25/26 (g)(i) | 1,270,000 | 952,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.6315% 11/21/40 (g)(i) | 9,453,458 | 8,508,112 | ||
Class F, 2.2615% 11/21/40 (g)(i) | 250,000 | 45,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $103,710,957) |
| |||
Collateralized Mortgage Obligations - 0.6% | ||||
| Principal | Value | ||
Private Sponsor - 0.6% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.3857% 6/15/22 (g)(i) | $ 1,872,974 | $ 1,855,937 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (g) | 53,650 | 18,005 | ||
Series 2002-R2 Class 2B3, 3.6491% 7/25/33 (g)(i) | 202,886 | 104,372 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | 89,474 | 57,165 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (g) | 1,347,692 | 236,618 | ||
Class B3, 5.5% 11/25/33 | 126,133 | 5,642 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(i) | 102,838 | 3,686 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.4353% 4/25/20 (g)(i) | 3,200,000 | 3,559,456 | ||
Series 2010-K6 Class B, 5.358% 12/25/46 (g)(i) | 4,500,000 | 4,977,045 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | 7,120,000 | 7,445,982 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.1577% 7/10/35 (g)(i) | 270,755 | 223,562 | ||
Series 2005-A Class B6, 2.2077% 3/10/37 (g)(i) | 1,399,369 | 41,701 | ||
Series 2005-B Class B6, 1.8077% 6/10/37 (g)(i) | 845,863 | 6,851 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | 33,310 | 28,961 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7077% 12/10/35 (g)(i) | 259,132 | 131,768 | ||
Series 2004-A Class B7, 4.4577% 2/10/36 (g)(i) | 291,067 | 159,621 | ||
Series 2004-B Class B7, 4.2077% 2/10/36 (g)(i) | 345,619 | 178,651 | ||
TOTAL PRIVATE SPONSOR | 19,035,023 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) | 151,871 | 81,746 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.1891% 2/25/42 (g)(i) | 97,767 | 55,536 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (k) | 224,727 | 63,438 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.194% 6/25/43 (g)(i) | $ 146,486 | $ 59,003 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.166% 10/25/42 (g)(i) | 63,232 | 32,642 | ||
TOTAL U.S. GOVERNMENT AGENCY | 292,365 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $20,555,631) |
| |||
Commercial Mortgage Securities - 16.4% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (k) | 4,177,433 | 4,093,395 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | 2,000,000 | 2,380,245 | ||
Asset Securitization Corp. Series 1997-D4 Class B2, 7.525% 4/14/29 | 171,147 | 171,755 | ||
Banc of America Commercial Mortgage Trust: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 598,374 | 602,256 | ||
Series 2005-1 Class CJ, 5.196% 11/10/42 (i) | 3,580,000 | 3,830,396 | ||
Series 2005-6 Class AJ, 5.1904% 9/10/47 (i) | 5,000,000 | 5,425,525 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 (g)(i) | 104,082,643 | 104,192,018 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.2557% 3/15/22 (g)(i) | 4,691,243 | 4,339,399 | ||
Class K, 2.2057% 3/15/22 (g)(i) | 4,190,000 | 2,493,050 | ||
Banc of America REMIC Trust Series 2012-CLMZ Class A, 7.7057% 8/15/17 (g)(i) | 4,900,000 | 5,230,750 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4516% 3/11/39 (i) | 5,700,000 | 5,766,235 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5729% 4/12/38 (g)(i) | 2,520,000 | 2,558,012 | ||
COMM Mortgage Trust Series 2012-CR5 Class D, 4.334% 12/10/45 (g)(i) | 2,000,000 | 1,972,952 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12: | ||||
Class AJ, 0.3357% 12/15/20 (g)(i) | 8,000,000 | 7,666,296 | ||
Class B, 0.3757% 12/15/20 (g)(i) | 2,990,790 | 2,854,371 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | 4,427,059 | 4,466,903 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Commercial Mortgage Trust pass-thru certificates: | ||||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) | $ 5,000,000 | $ 5,331,480 | ||
Series 2012-CR1: | ||||
Class C, 5.547% 5/15/45 | 1,000,000 | 1,128,121 | ||
Class D, 5.547% 5/15/45 (g) | 2,050,000 | 2,089,387 | ||
Series 2012-CR2: | ||||
Class D, 4.8582% 8/15/45 (g)(i) | 4,500,000 | 4,640,382 | ||
Class E, 4.8582% 8/15/45 (g)(i) | 6,000,000 | 5,869,596 | ||
Series 2012-LC4: | ||||
Class C, 5.6488% 12/10/44 (i) | 2,000,000 | 2,289,906 | ||
Class D, 5.6488% 12/10/44 (g)(i) | 8,000,000 | 8,240,960 | ||
Communication Mortgage Trust Series 2011-THL: | ||||
Class E, 5.949% 6/9/28 (g) | 3,690,000 | 3,782,339 | ||
Class F, 4.867% 6/9/28 (g) | 11,090,000 | 10,252,184 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (g) | 2,045,086 | 2,227,011 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (g) | 3,000,000 | 3,188,484 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5567% 11/10/46 (g)(i) | 12,490,000 | 13,400,833 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 1,206,475 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 Class B4, 7.2214% 6/10/31 (g)(i) | 2,121,985 | 2,143,496 | ||
Extended Stay America Trust Series 2013-ESHM Class M, 7.625% 12/5/19 (g)(h) | 10,950,000 | 11,392,158 | ||
Freddie Mac: | ||||
pass-thru certificates: | ||||
Series K011 Class X3, 2.575% 12/25/43 (i)(j) | 12,206,096 | 1,938,731 | ||
Series K012 Class X3, 2.2878% 1/25/41 (i)(j) | 21,072,886 | 3,012,559 | ||
Series K013 Class X3, 2.7899% 1/25/43 (i)(j) | 14,360,000 | 2,501,785 | ||
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) | 7,430,000 | 1,674,290 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | 9,462,679 | 9,533,649 | ||
GCCFC Commercial Mortgage Trust sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | 2,000,000 | 2,013,774 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2 Class G, 6.75% 4/15/29 (i) | 942,133 | 1,038,841 | ||
Series 1999-C3 Class J, 6.974% 8/15/36 | 1,500,000 | 1,598,671 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 196,574 | 149,555 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 5.4585% 3/6/20 (g)(i) | 1,400,000 | 1,415,791 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
GS Mortgage Securities Corp. II: - continued | ||||
Series 2010-C1: | ||||
Class D, 5.9897% 8/10/43 (g)(i) | $ 4,000,000 | $ 4,332,584 | ||
Class E, 4% 8/10/43 (g) | 3,770,000 | 2,918,187 | ||
Series 2012-GCJ7: | ||||
Class C, 5.7222% 5/10/45 (i) | 6,500,000 | 7,266,355 | ||
Class D, 5.7222% 5/10/45 (g)(i) | 2,000,000 | 2,081,914 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (g) | 9,185,000 | 9,254,806 | ||
GS Mortgage Securities Trust: | ||||
Series 2010-C2 Class D, 5.2273% 12/10/43 (g)(i) | 3,000,000 | 3,113,688 | ||
Series 2011-GC5: | ||||
Class C, 5.308% 8/10/44 (g)(i) | 9,000,000 | 10,070,127 | ||
Class D, 5.308% 8/10/44 (g)(i) | 4,000,000 | 4,197,848 | ||
Series 2012-GC6 Class C, 5.6388% 1/10/45 (g)(i) | 3,600,000 | 4,135,036 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (g)(i) | 2,036,910 | 38,798 | ||
Class X, 0.6341% 10/15/32 (g)(i)(j) | 4,757,212 | 36,629 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (g) | 2,681,387 | 2,686,828 | ||
Series 2009-IWST: | ||||
Class C, 7.4453% 12/5/27 (g)(i) | 3,000,000 | 3,700,470 | ||
Class D, 7.4453% 12/5/27 (g)(i) | 9,550,000 | 11,219,378 | ||
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (g) | 9,000,000 | 9,481,727 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (g)(i) | 4,500,000 | 4,728,600 | ||
Class XB, 0.9305% 8/5/32 (g)(i)(j) | 32,655,000 | 1,604,516 | ||
Series 2012-CBX Class C, 5.1897% 6/16/45 (i) | 4,530,000 | 4,985,821 | ||
JPMorgan Chase Commercial Mortgage Securities Trust: | ||||
Series 2005-LDP5 Class AJ, 5.3206% 12/15/44 (i) | 3,470,000 | 3,638,847 | ||
Series 2011-C5 Class C, 5.3143% 8/15/46 (g)(i) | 6,525,375 | 7,315,402 | ||
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8: | ||||
Class G, 6% 7/15/31 (g) | 833,006 | 844,984 | ||
Class H, 6% 7/15/31 (g) | 1,341,102 | 706,364 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | 2,453,229 | 2,516,191 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 2,096,730 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,937,283 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,607,928 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
sequential payer: | ||||
Series 2006-C7 Class AM, 5.378% 11/15/38 | $ 2,040,000 | $ 2,257,123 | ||
Series 2004-C7 Class E, 4.918% 10/15/36 | 5,120,000 | 5,155,159 | ||
Series 2005-C1 Class E, 4.924% 2/15/40 | 4,000,000 | 3,999,360 | ||
Series 2006-C4: | ||||
Class AJ, 5.8853% 6/15/38 (i) | 7,005,000 | 7,063,198 | ||
Class AM, 5.8853% 6/15/38 (i) | 6,700,000 | 7,507,196 | ||
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2007-LLFA Class E, 1.1057% 6/15/22 (g)(i) | 6,230,000 | 5,986,712 | ||
LStar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.5644% 6/25/43 (g)(i) | 4,699,000 | 4,656,700 | ||
Series 2011-1 Class B, 5.5644% 6/25/43 (g)(i) | 6,165,000 | 6,452,508 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 571,205 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 279,554 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 181,930 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 267,932 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 262,349 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 170,792 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 634,528 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | 710,603 | 284,241 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6836% 5/12/39 (i) | 1,200,000 | 1,345,502 | ||
Mezz Capital Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C1 Class A, 4.836% 1/15/37 (g) | 2,394,649 | 2,155,184 | ||
Series 2004-C2 Class A, 5.318% 10/15/40 (g) | 9,390,396 | 7,794,028 | ||
Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (g) | 306,695 | 31 | ||
Class IO, 9.0255% 1/15/37 (g)(i)(j) | 2,622,993 | 118,035 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2012-C4 Class E, 5.71% 3/15/45 (g) | 4,630,000 | 4,752,213 | ||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | 262,429 | 262,922 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,951,899 | ||
Series 1997-RR Class F, 7.4011% 4/30/39 (g)(i) | 1,139,848 | 1,094,254 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | 2,638,907 | 1,958,829 | ||
Series 2005-HQ5 Class B, 5.272% 1/14/42 | 2,000,000 | 2,074,624 | ||
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) | 2,500,000 | 2,622,265 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 8,479,545 | ||
Series 2011-C1 Class C, 5.2537% 9/15/47 (g)(i) | 4,000,000 | 4,475,560 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Morgan Stanley Capital I Trust: - continued | ||||
Series 2011-C2: | ||||
Class D, 5.3171% 6/15/44 (g)(i) | $ 4,610,000 | $ 4,890,417 | ||
Class E, 5.3171% 6/15/44 (g)(i) | 9,600,000 | 9,754,166 | ||
Class F, 5.3171% 6/15/44 (g)(i) | 4,440,000 | 3,698,906 | ||
Class XB, 0.4644% 6/15/44 (g)(i)(j) | 63,708,222 | 2,293,496 | ||
Series 2011-C3: | ||||
Class C, 5.1844% 7/15/49 (g)(i) | 2,000,000 | 2,222,774 | ||
Class D, 5.357% 7/15/49 (g) | 7,400,000 | 7,865,778 | ||
Series 2012-C4 Class D, 5.5263% 3/15/45 (g)(i) | 6,310,000 | 6,781,281 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (j) | 459,322 | 458,771 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | 3,783,011 | 4,731,790 | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6791% 4/15/24 (g)(i) | 9,049,000 | 9,186,509 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E3, 6.5% 2/18/34 (g)(i) | 217,865 | 222,290 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5654% 8/15/39 (i) | 2,080,000 | 2,273,278 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | 10,630,000 | 10,960,976 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.7807% 7/15/24 (g)(i) | 1,200,000 | 964,133 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8749% 1/10/45 (g)(i) | 3,000,000 | 3,609,783 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (g) | 2,540,000 | 2,897,475 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 2,043,984 | ||
Series 2004-C11: | ||||
Class D, 5.389% 1/15/41 (i) | 5,177,000 | 5,141,988 | ||
Class E, 5.439% 1/15/41 (i) | 3,785,000 | 3,609,319 | ||
Series 2004-C12 Class D, 5.3075% 7/15/41 (i) | 2,750,000 | 2,781,829 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,338,882 | ||
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7802% 10/15/45 (g) | 9,999,000 | 9,775,842 | ||
WF-RBS Commercial Mortgage Trust: | ||||
Series 2011-C3: | ||||
Class C, 5.335% 3/15/44 (g) | 4,900,000 | 5,523,339 | ||
Class D, 5.5486% 3/15/44 (g)(i) | 1,000,000 | 1,060,933 | ||
Class E, 5% 3/15/44 (g) | 2,000,000 | 1,709,712 | ||
Series 2012-C7 Class D, 4.8502% 6/15/45 (g)(i) | 2,380,000 | 2,473,282 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
WF-RBS Commercial Mortgage Trust: - continued | ||||
Series 2013-C11 Class D, 4.1856% 3/15/45 (g)(h)(i) | $ 3,000,000 | $ 2,832,921 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (g) | 4,000,000 | 4,098,140 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $540,351,345) |
| |||
Floating Rate Loans - 8.6% | ||||
| ||||
CONSUMER DISCRETIONARY - 4.2% | ||||
Hotels, Restaurants & Leisure - 4.0% | ||||
Extended Stay America, Inc. REL 9.625% 12/1/19 | 7,000,000 | 7,175,000 | ||
Hilton Hotels Corp.: | ||||
term loan 4.456% 11/12/15 (i) | 36,321,238 | 35,731,018 | ||
Tranche B, term loan 3.5785% 11/12/15 (i) | 12,000,000 | 11,805,000 | ||
Tranche C, term loan 3.706% 11/12/15 (i) | 20,000,000 | 19,675,000 | ||
Tranche D, term loan 3.956% 11/12/15 (i) | 23,097,902 | 22,722,561 | ||
Tranche E, term loan 4.206% 11/12/15 (i) | 30,000,000 | 29,512,500 | ||
Intrawest U.S. Holding, Inc. Tranche 1LN, term loan 7% 12/4/17 (i) | 5,000,000 | 5,031,250 | ||
La Quinta: | ||||
Tranche A, term loan 1.6% 7/6/14 (i) | 5,714,286 | 6,257,143 | ||
Tranche B, term loan 1.6% 7/6/14 (i) | 4,285,714 | 4,692,857 | ||
| 142,602,329 | |||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (i) | 2,807,250 | 2,723,033 | ||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 5% 10/11/18 (i) | 5,355,000 | 5,448,713 | ||
TOTAL CONSUMER DISCRETIONARY | 150,774,075 | |||
ENERGY - 0.2% | ||||
Oil, Gas & Consumable Fuels - 0.2% | ||||
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) | 7,200,000 | 7,308,000 | ||
FINANCIALS - 2.9% | ||||
Diversified Financial Services - 0.9% | ||||
Blackstone REL 10% 10/1/2017 | 17,500,000 | 18,287,500 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (i) | 4,713,188 | 4,783,885 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
Pilot Travel Centers LLC: - continued | ||||
Tranche B, term loan 3.75% 3/30/18 (i) | $ 6,683,669 | $ 6,783,924 | ||
SBA Senior Finance, Inc. Tranche B, term loan 3.75% 6/30/18 (i) | 2,955,000 | 2,977,163 | ||
| 32,832,472 | |||
Real Estate Investment Trusts - 0.6% | ||||
iStar Financial, Inc. Tranche B, term loan 5.75% 10/15/17 (i) | 22,575,217 | 22,970,284 | ||
Real Estate Management & Development - 1.3% | ||||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7047% 9/4/19 (i) | 5,709,629 | 5,738,178 | ||
CityCenter term loan 8.75% 7/1/13 (i) | 4,169,750 | 4,169,750 | ||
EOP Operating LP term loan: | ||||
5% 2/5/13 (i) | 5,000,000 | 5,066,000 | ||
5.25% 2/5/13 (i) | 3,800,000 | 3,840,660 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 10.5% 11/4/13 (i) | 7,896,223 | 7,206,181 | ||
Tranche B 2LN, term loan 7.55% 11/4/13 (i) | 5,000,000 | 4,950,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.2087% 10/10/13 (i) | 433,319 | 422,486 | ||
Credit-Linked Deposit 4.4587% 10/10/16 (i) | 919,537 | 926,434 | ||
term loan 4.4557% 10/10/16 (i) | 13,066,882 | 13,164,883 | ||
| 45,484,572 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Ocwen Financial Corp. Tranche B, term loan 7% 9/1/16 (i) | 2,035,082 | 2,035,082 | ||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 1/23/18 (i) | 1,965,000 | 1,989,563 | ||
| 4,024,645 | |||
TOTAL FINANCIALS | 105,311,973 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc. term loan 3.8105% 1/25/17 (i) | 2,903,247 | 2,925,022 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (i) | $ 1,980,000 | $ 1,999,800 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (i) | 10,249,103 | 10,325,971 | ||
| 15,250,793 | |||
INDUSTRIALS - 0.4% | ||||
Construction & Engineering - 0.4% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (i) | 13,397,233 | 12,827,851 | ||
TELECOMMUNICATION SERVICES - 0.5% | ||||
Wireless Telecommunication Services - 0.5% | ||||
Crown Castle Operating Co.: | ||||
Tranche A, term loan 2.71% 1/31/17 (i) | 5,000,000 | 5,006,250 | ||
Tranche B, term loan 4% 1/31/19 (i) | 8,938,658 | 8,972,625 | ||
SBA Senior Finance II, LLC term loan 3.75% 9/28/19 (i) | 3,345,000 | 3,370,088 | ||
| 17,348,963 | |||
TOTAL FLOATING RATE LOANS (Cost $301,003,987) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g)(i) | 500,000 | 25,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g)(i) | 1,220,000 | 183,000 | |
| 208,000 | ||
TOTAL PREFERRED SECURITIES (Cost $1,292,230) |
| ||
Money Market Funds - 10.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (b) | 345,135,204 | $ 345,135,204 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 14,624,900 | 14,624,900 | |
TOTAL MONEY MARKET FUNDS (Cost $359,760,104) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $3,313,966,916) | 3,634,088,597 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (59,168,030) | ||
NET ASSETS - 100% | $ 3,574,920,567 |
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) Amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $674,573,937 or 18.9% of net assets. |
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(j) 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. |
(k) 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 $4,273,121 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 4,045,277 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 131,602 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 169,353 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 | 6/3/05 | $ 804,218 |
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 | $ 203,960 |
Fidelity Securities Lending Cash Central Fund | 30,199 |
Total | $ 234,159 |
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, |
AmREIT, Inc. | $ 2,818,000 | $ - | $ - | $ 80,000 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 33,404,361 | $ 29,308,870 | $ - | $ 4,095,491 |
Financials | 1,375,986,160 | 1,325,583,972 | 48,328,664 | 2,073,524 |
Health Care | 37,586,258 | 37,586,258 | - | - |
Industrials | 2,595,442 | 2,595,442 | - | - |
Telecommunication Services | 8,839,854 | 8,839,854 | - | - |
Corporate Bonds | 792,944,313 | - | 786,061,444 | 6,882,869 |
Asset-Backed Securities | 106,976,633 | - | 80,804,340 | 26,172,293 |
Collateralized Mortgage Obligations | 19,327,388 | - | 17,915,933 | 1,411,455 |
Commercial Mortgage Securities | 587,638,429 | - | 555,232,850 | 32,405,579 |
Floating Rate Loans | 308,821,655 | - | 254,382,745 | 54,438,910 |
Preferred Securities | 208,000 | - | - | 208,000 |
Money Market Funds | 359,760,104 | 359,760,104 | - | - |
Total Investments in Securities: | $ 3,634,088,597 | $ 1,763,674,500 | $ 1,742,725,976 | $ 127,688,121 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Asset-Backed Securities | |
Beginning Balance | $ 36,313,723 |
Total Realized Gain (Loss) | 738,175 |
Total Unrealized Gain (Loss) | 1,009,514 |
Cost of Purchases | 67,147 |
Proceeds of Sales | (6,154,799) |
Amortization/Accretion | (80,849) |
Transfers in to Level 3 | 9,182,600 |
Transfers out of Level 3 | (14,903,218) |
Ending Balance | $ 26,172,293 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,200,983 |
Commercial Mortgage Securities | |
Beginning Balance | $ 53,984,005 |
Total Realized Gain (Loss) | 306,049 |
Total Unrealized Gain (Loss) | 1,560,260 |
Cost of Purchases | 118 |
Proceeds of Sales | (14,351,947) |
Amortization/Accretion | 394,401 |
Transfers in to Level 3 | 1,045,017 |
Transfers out of Level 3 | (10,532,324) |
Ending Balance | $ 32,405,579 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 623,749 |
Floating Rate Loans | |
Beginning Balance | $ 18,003,477 |
Total Realized Gain (Loss) | 265,546 |
Total Unrealized Gain (Loss) | 1,538,519 |
Cost of Purchases | 44,099,578 |
Proceeds of Sales | (14,260,414) |
Amortization/Accretion | 317,204 |
Transfers in to Level 3 | 4,475,000 |
Transfers out of Level 3 | - |
Ending Balance | $ 54,438,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,678,840 |
Other Investments in Securities | |
Beginning Balance | $ 19,436,383 |
Total Realized Gain (Loss) | (6,447,263) |
Total Unrealized Gain (Loss) | 7,484,659 |
Cost of Purchases | - |
Proceeds of Sales | (638,475) |
Amortization/Accretion | (5,330) |
Transfers in to Level 3 | 4,080,000 |
Transfers out of Level 3 | (9,238,635) |
Ending Balance | $ 14,671,339 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,037,397 |
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 into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. 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. |
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 | 6.7% |
BBB | 11.5% |
BB | 5.9% |
B | 11.7% |
CCC,CC,C | 2.4% |
D | 0.2% |
Not Rated | 12.1% |
Equities | 40.8% |
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, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $13,973,963) - See accompanying schedule: Unaffiliated issuers (cost $2,954,206,812) | $ 3,274,328,493 |
|
Fidelity Central Funds (cost $359,760,104) | 359,760,104 |
|
Total Investments (cost $3,313,966,916) |
| $ 3,634,088,597 |
Cash |
| 5,871,414 |
Foreign currency held at value (cost $26,075) | 26,075 | |
Receivable for investments sold | 789,753 | |
Receivable for fund shares sold | 34,136,339 | |
Dividends receivable | 2,266,080 | |
Interest receivable | 16,766,006 | |
Distributions receivable from Fidelity Central Funds | 46,355 | |
Prepaid expenses | 7,776 | |
Other receivables | 44,334 | |
Total assets | 3,694,042,729 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 84,687,131 | |
Delayed delivery | 14,305,020 | |
Payable for fund shares redeemed | 2,995,906 | |
Accrued management fee | 1,565,313 | |
Distribution and service plan fees payable | 130,583 | |
Other affiliated payables | 722,526 | |
Other payables and accrued expenses | 90,783 | |
Collateral on securities loaned, at value | 14,624,900 | |
Total liabilities | 119,122,162 | |
|
|
|
Net Assets | $ 3,574,920,567 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,235,833,120 | |
Undistributed net investment income | 8,407,320 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 10,533,056 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 320,147,071 | |
Net Assets | $ 3,574,920,567 |
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, 2013 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class T: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class C: | $ 11.57 | |
|
|
|
Real Estate Income: | $ 11.67 | |
|
|
|
Institutional Class: | $ 11.65 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends (including $80,000 earned from other affiliated issuers) |
| $ 28,249,204 |
Interest |
| 60,434,705 |
Income from Fidelity Central Funds |
| 234,159 |
Total income |
| 88,918,068 |
|
|
|
Expenses | ||
Management fee | $ 8,434,635 | |
Transfer agent fees | 3,624,081 | |
Distribution and service plan fees | 618,689 | |
Accounting and security lending fees | 572,593 | |
Custodian fees and expenses | 23,571 | |
Independent trustees' compensation | 9,602 | |
Registration fees | 112,536 | |
Audit | 80,603 | |
Legal | 7,635 | |
Miscellaneous | 10,082 | |
Total expenses before reductions | 13,494,027 | |
Expense reductions | (67,617) | 13,426,410 |
Net investment income (loss) | 75,491,658 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,256,714 | |
Foreign currency transactions | 3,506 | |
Total net realized gain (loss) |
| 31,260,220 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 143,373,801 | |
Assets and liabilities in foreign currencies | (814) | |
Total change in net unrealized appreciation (depreciation) |
| 143,372,987 |
Net gain (loss) | 174,633,207 | |
Net increase (decrease) in net assets resulting from operations | $ 250,124,865 |
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) | $ 75,491,658 | $ 106,081,413 |
Net realized gain (loss) | 31,260,220 | 46,621,459 |
Change in net unrealized appreciation (depreciation) | 143,372,987 | 99,190,890 |
Net increase (decrease) in net assets resulting | 250,124,865 | 251,893,762 |
Distributions to shareholders from net investment income | (95,007,356) | (98,117,663) |
Distributions to shareholders from net realized gain | (51,534,160) | (16,498,521) |
Total distributions | (146,541,516) | (114,616,184) |
Share transactions - net increase (decrease) | 785,319,915 | 755,485,569 |
Redemption fees | 158,419 | 286,688 |
Total increase (decrease) in net assets | 889,061,683 | 893,049,835 |
|
|
|
Net Assets | ||
Beginning of period | 2,685,858,884 | 1,792,809,049 |
End of period (including undistributed net investment income of $8,407,320 and undistributed net investment income of $27,923,018, respectively) | $ 3,574,920,567 | $ 2,685,858,884 |
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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .53 | .18 |
Net realized and unrealized gain (loss) | .66 | .61 | .76 | (.04) |
Total from investment operations | .93 | 1.13 | 1.29 | .14 |
Distributions from net investment income | (.35) | (.51) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.56) L | (.60) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 8.46% | 11.24% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.12% | 1.09% A |
Net investment income (loss) | 4.78% A | 4.89% | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 223,346 | $ 137,352 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 22% A | 27% | 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 $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share.
L Total distributions of $.56 per share is comprised of distributions from net investment income of $.353 and distributions from net realized gain of $.203 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .52 | .17 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.03) |
Total from investment operations | .92 | 1.14 | 1.28 | .14 |
Distributions from net investment income | (.35) | (.50) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.55) | (.60) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 8.43% | 11.33% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.16% | 1.17% A |
Net investment income (loss) | 4.79% A | 4.90% | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,818 | $ 26,143 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 22% A | 27% | 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.20 | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .23 | .44 | .45 | .15 |
Net realized and unrealized gain (loss) | .66 | .62 | .74 | (.03) |
Total from investment operations | .89 | 1.06 | 1.19 | .12 |
Distributions from net investment income | (.31) | (.43) | (.45) | (.14) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.52) K | (.53) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.57 | $ 11.20 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 8.11% | 10.49% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of all reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Net investment income (loss) | 4.04% A | 4.14% | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 107,161 | $ 52,780 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 22% A | 27% | 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.
K Total distributions of $.52 per share is comprised of distributions from net investment income of $.312 and distributions from net realized gain of $.203 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, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .29 | .54 | .55 | .53 | .54 | .59 |
Net realized and unrealized gain (loss) | .66 | .62 | .76 | 1.73 | (1.27) | (1.48) |
Total from investment operations | .95 | 1.16 | 1.31 | 2.26 | (.73) | (.89) |
Distributions from net investment income | (.37) | (.52) | (.51) | (.52) | (.50) | (.66) |
Distributions from net realized gain | (.20) | (.10) | - | - | - | (.24) |
Total distributions | (.57) | (.62) | (.51) | (.52) | (.50) | (.90) |
Redemption fees added to paid in capital D | - H | - H | - H | - H | .01 | - H |
Net asset value, end of period | $ 11.67 | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 |
Total Return B,C | 8.64% | 11.50% | 13.41% | 28.29% | (6.92)% | (8.43)% |
Ratios to Average Net Assets E,G | ||||||
Expenses before reductions | .85% A | .90% | .92% | .97% | 1.00% | .94% |
Expenses net of fee waivers, if any | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Expenses net of all reductions | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Net investment income (loss) | 5.02% A | 5.12% | 5.21% | 5.60% | 7.15% | 5.77% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 2,823,109 | $ 2,252,149 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 |
Portfolio turnover rate F | 22% A | 27% | 25% | 28% | 47% | 32% |
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.
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, | ||
| 2013 | 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.28 | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .29 | .55 | .55 | .19 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.04) |
Total from investment operations | .94 | 1.17 | 1.31 | .15 |
Distributions from net investment income | (.37) | (.53) | (.52) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.57) | (.63) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - | - |
Net asset value, end of period | $ 11.65 | $ 11.28 | $ 10.74 | $ 9.95 |
Total Return B,C | 8.61% | 11.62% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | .81% A | .84% | .89% | .85% A |
Expenses net of fee waivers, if any | .81% A | .84% | .89% | .85% A |
Expenses net of all reductions | .81% A | .84% | .89% | .85% A |
Net investment income (loss) | 5.06% A | 5.17% | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 388,486 | $ 217,435 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 22% A | 27% | 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, 2013
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) website 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 website 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 - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, floating rate loans, preferred securities, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing vendors 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 broker-supplied prices. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value at 01/31/13 | Valuation | Unobservable | Range | Weighted |
Asset-Backed Securities | $ 911,576 | Discounted cash flow | Yield | 5.8% - 10% | 7.4% |
Collateralized Mortgage Obligations | $ 699,848 | Discounted cash flow | Yield | 12% - 53% | 19.2% |
| Market comparable | Transaction price | $37 | $37 | |
Commercial | $ 38,798 | Discounted cash flow | Yield | 20% | 20% |
Common | $ 4,095,516 | Adjusted book value | Book value multiple | 1.0 | 1.0 |
| Market comparable | Transaction price | $0.0001 | $0.0001 | |
Corporate Bonds | $ 6,882,869 | Discounted cash flow | Constant | 25% | 25% |
|
| Market comparable | Broker bids | $108.75 | $108.75 |
Floating Rate Loans | $ 29,632,250 | Discounted cash flow | Yield | 8.9% - 9.5% | 9.3% |
|
| Internal rate of return | 9.2% | 9.2% |
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
For the unobservable inputs listed in the table above, a significant increase in yields, constant prepayment rates or internal rates of return could result in a significant decrease to the fair value measurement. A significant increase in transaction prices, book value multiples or broker bids could result in a significant increase to the fair value measurement.
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, 2013, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications 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 | $ 358,978,591 |
Gross unrealized depreciation | (39,806,751) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 319,171,840 |
|
|
Tax cost | $ 3,314,916,757 |
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.
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. 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.
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $871,060,794 and $306,835,676, 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. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 215,360 | $ 8,646 |
Class T | -% | .25% | 37,225 | - |
Class C | .75% | .25% | 366,104 | 174,393 |
|
|
| $ 618,689 | $ 183,039 |
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
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 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 | $ 46,615 |
Class T | 10,128 |
Class C* | 4,047 |
| $ 60,790 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 195,852 | .23 |
Class T | 33,621 | .23 |
Class C | 80,548 | .22 |
Real Estate Income | 3,053,903 | .24 |
Institutional Class | 260,157 | .20 |
| $ 3,624,081 |
|
* 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 $20,384 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,554 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. 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 $30,199. 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 $64,588 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $3,029.
Semiannual Report
Notes to Financial Statements - 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 | $ 5,271,506 | $ 3,854,404 |
Class T | 870,816 | 609,057 |
Class C | 2,020,773 | 1,139,599 |
Real Estate Income | 78,679,674 | 86,666,891 |
Institutional Class | 8,164,587 | 5,847,712 |
Total | $ 95,007,356 | $ 98,117,663 |
From net realized gain |
|
|
Class A | $ 2,837,075 | $ 603,452 |
Class T | 506,062 | 83,752 |
Class C | 1,181,312 | 208,802 |
Real Estate Income | 42,729,812 | 14,865,902 |
Institutional Class | 4,279,899 | 736,613 |
Total | $ 51,534,160 | $ 16,498,521 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 7,804,959 | 8,276,874 | $ 89,191,291 | $ 88,010,262 |
Reinvestment of distributions | 574,404 | 333,613 | 6,457,367 | 3,436,744 |
Shares redeemed | (1,374,839) | (2,031,559) | (15,673,884) | (21,254,183) |
Net increase (decrease) | 7,004,524 | 6,578,928 | $ 79,974,774 | $ 70,192,823 |
Class T |
|
|
|
|
Shares sold | 1,116,988 | 1,725,200 | $ 12,750,416 | $ 18,422,015 |
Reinvestment of distributions | 90,398 | 49,495 | 1,016,115 | 511,986 |
Shares redeemed | (708,322) | (163,799) | (8,023,147) | (1,727,688) |
Net increase (decrease) | 499,064 | 1,610,896 | $ 5,743,384 | $ 17,206,313 |
Class C |
|
|
|
|
Shares sold | 4,692,263 | 3,117,808 | $ 53,412,376 | $ 33,302,251 |
Reinvestment of distributions | 227,829 | 110,126 | 2,550,008 | 1,128,377 |
Shares redeemed | (366,896) | (534,569) | (4,160,300) | (5,534,157) |
Net increase (decrease) | 4,553,196 | 2,693,365 | $ 51,802,084 | $ 28,896,471 |
Real Estate Income |
|
|
|
|
Shares sold | 60,440,692 | 90,720,847 | $ 692,765,189 | $ 959,813,942 |
Reinvestment of distributions | 9,722,725 | 8,913,831 | 109,588,482 | 91,762,119 |
Shares redeemed | (27,657,077) | (54,623,988) | (316,642,327) | (572,115,634) |
Net increase (decrease) | 42,506,340 | 45,010,690 | $ 485,711,344 | $ 479,460,427 |
Institutional Class |
|
|
|
|
Shares sold | 15,837,574 | 16,926,727 | $ 182,426,024 | $ 177,564,635 |
Reinvestment of distributions | 850,127 | 472,572 | 9,565,473 | 4,899,349 |
Shares redeemed | (2,617,376) | (2,146,783) | (29,903,168) | (22,734,449) |
Net increase (decrease) | 14,070,325 | 15,252,516 | $ 162,088,329 | $ 159,729,535 |
Semiannual Report
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
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, 2013, 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, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012. 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, 2013, 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, 2013, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 22, 2013
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
REIA-USAN-0313 1.907551.102
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Institutional Class
Semiannual Report
January 31, 2013
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Real Estate Income Fund
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. | |
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. © 2013 FMR LLC. All rights reserved.
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, 2012 to January 31, 2013).
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 | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.60 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class T | 1.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,084.30 | $ 5.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.71 | $ 5.55 |
Class C | 1.83% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,081.10 | $ 9.60 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.98 | $ 9.30 |
Real Estate Income | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.40 | $ 4.47 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
Institutional Class | .81% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,086.10 | $ 4.26 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.12 | $ 4.13 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
MFA Financial, Inc. | 2.0 | 1.7 |
Equity Lifestyle Properties, Inc. | 1.8 | 1.8 |
Ventas, Inc. | 1.7 | 1.9 |
Acadia Realty Trust (SBI) | 1.4 | 1.5 |
Lexington Corporate Properties Trust | 0.9 | 0.9 |
| 7.8 | |
Top 5 Bonds as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 | 2.9 | 4.2 |
Hilton Hotels Corp. term loan 4.456% 11/12/15 | 1.0 | 0.5 |
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 1.0 | 0.8 |
Annaly Capital Management, Inc. 5% 5/15/15 | 1.0 | 1.3 |
iStar Financial, Inc. 5.875% 3/15/16 | 1.0 | 1.2 |
| 6.9 | |
Top Five REIT Sectors as of January 31, 2013 | ||
| % of fund's | % of fund's net assets |
REITs - Mortgage | 12.7 | 11.9 |
REITs - Management/Investment | 8.2 | 6.8 |
REITs - Health Care Facilities | 6.5 | 6.0 |
REITs - Shopping Centers | 6.1 | 6.5 |
REITs - Industrial Buildings | 4.2 | 3.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2013* | As of July 31, 2012** | ||||||
![]() | Common Stocks 26.1% |
| ![]() | Common Stocks 23.1% |
| ||
![]() | Preferred Stocks 13.5% |
| ![]() | Preferred Stocks 13.3% |
| ||
![]() | Bonds 39.9% |
| ![]() | Bonds 48.6% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 8.6% |
| ![]() | Other Investments 4.9% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 3.8% |
| ** Foreign investments | 4.9% |
|
Semiannual Report
Investments January 31, 2013
Showing Percentage of Net Assets
Common Stocks - 26.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 0.8% | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Hyatt Hotels Corp. Class A (a) | 178,800 | $ 7,164,516 | |
Household Durables - 0.6% | |||
NVR, Inc. (a) | 6,700 | 6,898,722 | |
Standard Pacific Corp. (a)(f) | 844,895 | 7,012,629 | |
Stanley Martin Communities LLC Class B (a) | 4,620 | 4,095,491 | |
Toll Brothers, Inc. (a) | 82,100 | 3,074,645 | |
| 21,081,487 | ||
TOTAL CONSUMER DISCRETIONARY | 28,246,003 | ||
FINANCIALS - 24.0% | |||
Real Estate Investment Trusts - 23.2% | |||
Acadia Realty Trust (SBI) | 1,968,249 | 51,450,029 | |
AG Mortgage Investment Trust, Inc. | 222,700 | 5,656,580 | |
American Campus Communities, Inc. | 215,300 | 10,026,521 | |
American Residential Properties, Inc. (g) | 574,941 | 12,504,967 | |
American Tower Corp. | 246,800 | 18,793,820 | |
AmREIT, Inc. | 200,000 | 3,518,000 | |
Anworth Mortgage Asset Corp. | 1,120,710 | 7,015,645 | |
Apartment Investment & Management Co. Class A | 747,600 | 20,394,528 | |
Arbor Realty Trust, Inc. | 1,002,999 | 7,151,383 | |
Associated Estates Realty Corp. | 309,400 | 4,996,810 | |
AvalonBay Communities, Inc. | 91,100 | 11,823,869 | |
Canadian (REIT) | 131,600 | 5,922,924 | |
CapLease, Inc. | 2,686,300 | 15,553,677 | |
CBL & Associates Properties, Inc. | 1,500,573 | 32,247,314 | |
Cedar Shopping Centers, Inc. | 921,410 | 5,076,969 | |
Chartwell Retirement Residence | 459,700 | 5,000,747 | |
Chartwell Retirement Residence (g) | 78,500 | 853,945 | |
Chesapeake Lodging Trust | 410,800 | 8,770,580 | |
CommonWealth REIT | 598,700 | 9,842,628 | |
Cys Investments, Inc. (f) | 878,839 | 11,424,907 | |
DCT Industrial Trust, Inc. | 1,235,100 | 8,719,806 | |
DiamondRock Hospitality Co. | 483,300 | 4,407,696 | |
Douglas Emmett, Inc. | 729,500 | 17,011,940 | |
Dynex Capital, Inc. | 1,858,043 | 18,784,815 | |
EastGroup Properties, Inc. | 89,600 | 5,021,184 | |
Education Realty Trust, Inc. | 402,600 | 4,327,950 | |
Equity Lifestyle Properties, Inc. | 913,630 | 65,415,908 | |
Equity Residential (SBI) | 109,200 | 6,048,588 | |
Excel Trust, Inc. | 1,278,928 | 16,088,914 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
First Potomac Realty Trust | 1,004,415 | $ 13,760,486 | |
Glimcher Realty Trust | 1,318,000 | 14,656,160 | |
H&R REIT/H&R Finance Trust | 284,100 | 6,736,480 | |
Hatteras Financial Corp. | 185,000 | 5,009,800 | |
HCP, Inc. | 168,300 | 7,807,437 | |
Highwoods Properties, Inc. (SBI) | 157,800 | 5,680,800 | |
Lexington Corporate Properties Trust | 2,998,982 | 32,988,802 | |
LTC Properties, Inc. | 442,113 | 16,464,288 | |
MFA Financial, Inc. | 7,812,493 | 70,234,312 | |
Mid-America Apartment Communities, Inc. | 152,400 | 9,962,388 | |
Monmouth Real Estate Investment Corp. Class A | 249,773 | 2,712,535 | |
National Retail Properties, Inc. | 195,700 | 6,266,314 | |
Newcastle Investment Corp. | 2,437,400 | 25,568,326 | |
NorthStar Realty Finance Corp. | 811,200 | 6,327,360 | |
Parkway Properties, Inc. | 33,908 | 537,103 | |
Piedmont Office Realty Trust, Inc. Class A | 135,800 | 2,625,014 | |
Prologis, Inc. | 732,787 | 29,238,201 | |
RAIT Financial Trust (f) | 348,852 | 2,403,590 | |
Rayonier, Inc. | 187,300 | 10,084,232 | |
Retail Properties America, Inc. | 789,650 | 10,218,071 | |
Select Income (REIT) | 333,500 | 8,394,195 | |
Senior Housing Properties Trust (SBI) | 730,500 | 17,597,745 | |
Simon Property Group, Inc. | 26,000 | 4,164,680 | |
Stag Industrial, Inc. | 1,040,269 | 20,514,105 | |
Summit Hotel Properties, Inc. | 692,000 | 6,359,480 | |
Terreno Realty Corp. | 413,064 | 6,898,169 | |
Two Harbors Investment Corp. | 774,180 | 9,615,316 | |
Ventas, Inc. | 898,146 | 59,538,098 | |
Washington (REIT) (SBI) | 347,800 | 9,905,344 | |
Whitestone REIT Class B (f) | 183,267 | 2,602,391 | |
WP Carey, Inc. | 173,600 | 9,744,168 | |
| 828,468,034 | ||
Real Estate Management & Development - 0.4% | |||
Altisource Residential Corp. Class B (a) | 45,350 | 816,300 | |
Brookfield Asset Management, Inc. Class A (f) | 171,900 | 6,344,134 | |
Kennedy-Wilson Holdings, Inc. | 425,221 | 6,374,063 | |
| 13,534,497 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - 0.4% | |||
Home Loan Servicing Solutions Ltd. | 693,200 | $ 15,070,168 | |
TOTAL FINANCIALS | 857,072,699 | ||
HEALTH CARE - 1.0% | |||
Health Care Providers & Services - 1.0% | |||
Brookdale Senior Living, Inc. (a) | 909,000 | 24,552,090 | |
Capital Senior Living Corp. (a) | 96,850 | 2,056,126 | |
Emeritus Corp. (a) | 405,393 | 10,978,042 | |
| 37,586,258 | ||
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
CyrusOne, Inc. | 122,600 | 2,595,442 | |
TELECOMMUNICATION SERVICES - 0.2% | |||
Wireless Telecommunication Services - 0.2% | |||
SBA Communications Corp. Class A (a) | 126,900 | 8,839,854 | |
TOTAL COMMON STOCKS (Cost $750,722,840) |
| ||
Preferred Stocks - 14.7% | |||
|
|
|
|
Convertible Preferred Stocks - 1.2% | |||
FINANCIALS - 1.2% | |||
Real Estate Investment Trusts - 1.2% | |||
Alexandria Real Estate Equities, Inc. Series D 7.00% | 95,000 | 2,565,000 | |
CommonWealth REIT 6.50% | 396,216 | 9,263,530 | |
Excel Trust, Inc. 7.00% (g) | 248,200 | 6,236,025 | |
Health Care REIT, Inc. Series I, 6.50% | 46,800 | 2,742,190 | |
Lexington Corporate Properties Trust Series C, 6.50% | 380,921 | 18,436,576 | |
Ramco-Gershenson Properties Trust (SBI) Series D, 7.25% | 40,000 | 2,296,800 | |
| 41,540,121 | ||
Nonconvertible Preferred Stocks - 13.5% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
Red Lion Hotels Capital Trust 9.50% | 163,225 | 4,279,760 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - 0.0% | |||
M/I Homes, Inc. Series A, 9.75% (a) | 36,700 | $ 878,598 | |
TOTAL CONSUMER DISCRETIONARY | 5,158,358 | ||
FINANCIALS - 13.4% | |||
Real Estate Investment Trusts - 12.8% | |||
AG Mortgage Investment Trust, Inc. 8.00% (a) | 324,817 | 8,169,148 | |
American Capital Agency Corp. 8.00% | 200,000 | 5,186,000 | |
American Home Mortgage Investment Corp.: | |||
Series A, 9.375% (a) | 120,300 | 12 | |
Series B, 9.25% (a) | 124,100 | 12 | |
Annaly Capital Management, Inc.: | |||
Series A, 7.875% | 134,900 | 3,506,051 | |
Series C, 7.625% | 77,837 | 1,965,384 | |
Series D, 7.50% | 213,116 | 5,338,556 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 309,630 | 8,007,032 | |
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% | 235,101 | 6,251,336 | |
Apollo Residential Mortgage, Inc. Series A, 8.00% | 279,276 | 6,979,107 | |
Arbor Realty Trust, Inc. Series A, 8.25% (a) | 189,089 | 4,727,225 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 27,000 | 689,310 | |
Series E, 9.00% | 85,751 | 2,316,992 | |
Campus Crest Communities, Inc. Series A, 8.00% | 248,431 | 6,645,529 | |
CapLease, Inc.: | |||
Series A, 8.125% | 132,510 | 3,359,129 | |
Series B, 8.375% | 439,766 | 11,724,162 | |
Series C, 7.25% (a) | 210,000 | 5,283,600 | |
CBL & Associates Properties, Inc.: | |||
7.375% | 289,876 | 7,310,673 | |
Series E, 6.625% | 95,000 | 2,400,650 | |
Cedar Shopping Centers, Inc.: | |||
8.875% | 65,983 | 1,697,743 | |
Series B, 7.25% | 222,628 | 5,454,386 | |
CenterPoint Properties Trust Series D, 5.377% | 3,575 | 2,073,500 | |
Chesapeake Lodging Trust Series A, 7.75% | 266,916 | 7,270,792 | |
Colony Financial, Inc. Series A, 8.50% | 282,171 | 7,435,206 | |
CommonWealth REIT 7.50% | 93,300 | 2,007,816 | |
Coresite Realty Corp. Series A, 7.25% (a) | 258,224 | 6,551,143 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Corporate Office Properties Trust: | |||
Series J, 7.625% | 98,523 | $ 2,499,529 | |
Series L, 7.375% | 80,000 | 2,078,400 | |
Cousins Properties, Inc. Series A, 7.75% | 245,420 | 6,145,317 | |
CubeSmart Series A, 7.75% | 40,000 | 1,072,000 | |
Cys Investments, Inc. Series A, 7.75% | 117,824 | 2,964,452 | |
DDR Corp. Series J, 6.50% | 237,721 | 5,919,253 | |
Digital Realty Trust, Inc.: | |||
Series E, 7.00% | 40,000 | 1,071,200 | |
Series F, 6.625% | 40,000 | 1,060,000 | |
Duke Realty LP: | |||
8.375% | 128,517 | 3,251,480 | |
Series L, 6.60% | 10,666 | 271,130 | |
Dynex Capital, Inc. Series A, 8.50% | 362,932 | 9,526,965 | |
Equity Lifestyle Properties, Inc. Series C, 6.75% | 800,000 | 20,576,000 | |
Essex Property Trust, Inc. Series H, 7.125% | 40,000 | 1,071,600 | |
Excel Trust, Inc. Series B, 8.125% | 400,000 | 10,424,000 | |
First Potomac Realty Trust 7.75% | 415,296 | 10,839,226 | |
Gladstone Commercial Corp. Series C, 7.125% | 232,238 | 6,073,024 | |
Glimcher Realty Trust: | |||
Series G, 8.125% | 193,186 | 4,887,606 | |
Series H, 7.50% | 198,527 | 5,108,100 | |
Hatteras Financial Corp. Series A, 7.625% | 104,668 | 2,621,933 | |
Health Care REIT, Inc. Series J, 6.50% | 20,000 | 526,000 | |
Hersha Hospitality Trust: | |||
Series A, 8.00% | 66,551 | 1,683,740 | |
Series B, 8.00% | 162,538 | 4,242,242 | |
Hospitality Properties Trust: | |||
Series C, 7.00% | 109,236 | 2,740,731 | |
Series D, 7.125% | 40,800 | 1,091,400 | |
Hudson Pacific Properties, Inc. 8.375% | 394,069 | 10,482,235 | |
Inland Real Estate Corp. Series A, 8.125% | 423,500 | 11,277,805 | |
Invesco Mortgage Capital, Inc. Series A, 7.75% | 113,342 | 2,861,886 | |
Investors Real Estate Trust Series B, 7.95% | 126,572 | 3,292,138 | |
iStar Financial, Inc.: | |||
Series E, 7.875% | 70,000 | 1,677,200 | |
Series F, 7.80% | 2,500 | 59,175 | |
Kilroy Realty Corp. Series G, 6.875% | 40,000 | 1,035,200 | |
Kite Realty Group Trust 8.25% | 96,100 | 2,508,210 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
LaSalle Hotel Properties: | |||
Series G, 7.25% | 114,485 | $ 2,904,484 | |
Series H, 7.50% | 126,308 | 3,251,168 | |
LBA Realty Fund II: | |||
Series A, 8.75% (a) | 69,000 | 2,725,500 | |
Series B, 7.625% (a) | 31,240 | 593,560 | |
Lexington Realty Trust 7.55% | 23,800 | 599,998 | |
MFA Financial, Inc.: | |||
8.00% | 538,930 | 13,920,562 | |
Series A, 8.50% | 485,381 | 12,716,982 | |
Monmouth Real Estate Investment Corp.: | |||
7.625% | 80,000 | 2,064,800 | |
Series B, 7.875% | 95,000 | 2,508,000 | |
National Retail Properties, Inc. Series D, 6.625% | 62,437 | 1,631,479 | |
Newcastle Investment Corp. Series B, 9.75% | 34,530 | 891,219 | |
NorthStar Realty Finance Corp.: | |||
Series B, 8.25% | 50,000 | 1,245,000 | |
Series C, 8.875% | 275,338 | 6,990,832 | |
Parkway Properties, Inc. Series D, 8.00% | 342,382 | 8,686,231 | |
Pebblebrook Hotel Trust: | |||
Series A, 7.875% | 372,000 | 9,623,640 | |
Series B, 8.00% | 185,085 | 4,876,990 | |
Pennsylvania (REIT) 7.375% | 76,510 | 1,947,180 | |
Prologis, Inc.: | |||
Series Q, 8.54% | 94,446 | 6,050,447 | |
Series R, 6.75% | 75,000 | 1,888,500 | |
PS Business Parks, Inc.: | |||
6.875% | 50,000 | 1,332,500 | |
Series S, 6.45% | 70,536 | 1,839,579 | |
Regency Centers Corp. Series 6, 6.625% | 62,261 | 1,636,842 | |
Retail Properties America, Inc. 7.00% (a) | 194,782 | 4,859,811 | |
Saul Centers, Inc.: | |||
8.00% | 93,700 | 2,349,059 | |
Series B (depositary shares) 9.00% | 118,550 | 2,994,573 | |
Series C, 6.875% (a) | 315,478 | 7,886,950 | |
Stag Industrial, Inc. Series A, 9.00% | 280,000 | 7,702,800 | |
Strategic Hotel & Resorts, Inc. Series A, 8.50% | 92,323 | 2,309,921 | |
Summit Hotel Properties, Inc.: | |||
Series A, 9.25% | 138,340 | 3,775,299 | |
Preferred Stocks - continued | |||
Shares | Value | ||
Nonconvertible Preferred Stocks - continued | |||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Summit Hotel Properties, Inc.: - continued | |||
Series B, 7.875% (a) | 190,173 | $ 4,944,498 | |
Sun Communities, Inc. Series A, 7.125% | 360,000 | 9,039,600 | |
Sunstone Hotel Investors, Inc.: | |||
Series A, 8.00% | 417,039 | 10,546,916 | |
Series D, 8.00% | 60,362 | 1,593,557 | |
Terreno Realty Corp. Series A 7.75% | 165,690 | 4,331,137 | |
UMH Properties, Inc. Series A, 8.25% | 600,000 | 15,834,000 | |
Urstadt Biddle Properties, Inc. Series F, 7.125% | 210,000 | 5,565,000 | |
Vornado Realty Trust 6.75% | 20,000 | 504,000 | |
Weingarten Realty Investors (SBI) Series F, 6.50% | 116,230 | 2,935,970 | |
Winthrop Realty Trust: | |||
7.75% | 540,000 | 13,905,000 | |
Series D, 9.25% | 65,000 | 1,794,000 | |
| 456,087,255 | ||
Real Estate Management & Development - 0.6% | |||
Forest City Enterprises, Inc. 7.375% | 657,000 | 16,247,610 | |
Kennedy-Wilson, Inc. 7.75% (a) | 141,574 | 3,547,844 | |
Vornado Realty LP 7.875% | 54,682 | 1,490,631 | |
| 21,286,085 | ||
TOTAL FINANCIALS | 477,373,340 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 482,531,698 | ||
TOTAL PREFERRED STOCKS (Cost $505,456,488) |
|
Corporate Bonds - 22.2% | ||||
| Principal |
| ||
Convertible Bonds - 2.3% | ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Hotels, Restaurants & Leisure - 0.1% | ||||
Morgans Hotel Group Co. 2.375% 10/15/14 | $ 4,510,000 | 4,250,675 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Convertible Bonds - continued | ||||
FINANCIALS - 2.2% | ||||
Real Estate Investment Trusts - 1.9% | ||||
Annaly Capital Management, Inc. 5% 5/15/15 | $ 34,396,000 | $ 35,212,905 | ||
Ares Commercial Real Estate Corp. 7% 12/15/15 (g) | 9,700,000 | 9,991,000 | ||
CapLease, Inc. 7.5% 10/1/27 (g) | 5,180,000 | 5,180,000 | ||
Northstar Realty Finance LP 8.875% 6/15/32 (g) | 11,500,000 | 14,978,750 | ||
ProLogis LP 2.625% 5/15/38 | 1,500,000 | 1,509,450 | ||
| 66,872,105 | |||
Real Estate Management & Development - 0.3% | ||||
Corporate Office Properties LP 4.25% 4/15/30 (g) | 9,460,000 | 9,785,188 | ||
Grubb & Ellis Co. 7.95% 5/1/15 (d)(g) | 5,500,000 | 11,000 | ||
| 9,796,188 | |||
TOTAL FINANCIALS | 76,668,293 | |||
TOTAL CONVERTIBLE BONDS | 80,918,968 | |||
Nonconvertible Bonds - 19.9% | ||||
CONSUMER DISCRETIONARY - 6.7% | ||||
Hotels, Restaurants & Leisure - 0.7% | ||||
CityCenter Holdings LLC/CityCenter Finance Corp. 7.625% 1/15/16 | 3,505,000 | 3,776,638 | ||
FelCor Lodging LP: | ||||
5.625% 3/1/23 (g) | 2,000,000 | 2,017,400 | ||
6.75% 6/1/19 | 5,875,000 | 6,300,938 | ||
GWR Operating Partnership LLP/Great Wolf Finance Corp. 10.875% 4/1/17 | 1,700,000 | 1,921,000 | ||
Times Square Hotel Trust 8.528% 8/1/26 (g) | 8,884,663 | 11,134,891 | ||
| 25,150,867 | |||
Household Durables - 5.6% | ||||
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (g) | 1,615,000 | 1,703,825 | ||
D.R. Horton, Inc. 4.75% 5/15/17 | 2,000,000 | 2,147,500 | ||
KB Home: | ||||
5.875% 1/15/15 | 7,000,000 | 7,350,000 | ||
7.25% 6/15/18 | 7,420,000 | 8,217,650 | ||
8% 3/15/20 | 8,465,000 | 9,777,075 | ||
9.1% 9/15/17 | 17,595,000 | 20,718,113 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
CONSUMER DISCRETIONARY - continued | ||||
Household Durables - continued | ||||
Lennar Corp.: | ||||
4.125% 12/1/18 (g) | $ 5,520,000 | $ 5,520,000 | ||
5.6% 5/31/15 | 6,000,000 | 6,450,000 | ||
6.5% 4/15/16 | 4,000,000 | 4,440,000 | ||
6.95% 6/1/18 | 14,280,000 | 16,047,150 | ||
M/I Homes, Inc. 8.625% 11/15/18 | 26,055,000 | 28,660,500 | ||
Meritage Homes Corp.: | ||||
7% 4/1/22 | 7,525,000 | 8,315,125 | ||
7.15% 4/15/20 | 7,060,000 | 7,818,950 | ||
Ryland Group, Inc.: | ||||
6.625% 5/1/20 | 1,555,000 | 1,749,375 | ||
8.4% 5/15/17 | 5,420,000 | 6,463,350 | ||
Standard Pacific Corp.: | ||||
7% 8/15/15 | 4,000,000 | 4,350,000 | ||
8.375% 5/15/18 | 28,983,000 | 34,199,940 | ||
10.75% 9/15/16 | 8,415,000 | 10,466,156 | ||
Toll Brothers Finance Corp. 5.875% 2/15/22 | 1,550,000 | 1,739,875 | ||
William Lyon Homes, Inc. 8.5% 11/15/20 (g) | 11,130,000 | 11,992,575 | ||
| 198,127,159 | |||
Multiline Retail - 0.4% | ||||
JC Penney Corp., Inc.: | ||||
5.65% 6/1/20 | 4,720,000 | 3,923,500 | ||
5.75% 2/15/18 | 2,845,000 | 2,532,050 | ||
Sears Holdings Corp. 6.625% 10/15/18 | 9,820,000 | 9,304,450 | ||
| 15,760,000 | |||
TOTAL CONSUMER DISCRETIONARY | 239,038,026 | |||
CONSUMER STAPLES - 0.1% | ||||
Food & Staples Retailing - 0.1% | ||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 | 907,635 | 1,036,973 | ||
C&S Group Enterprises LLC 8.375% 5/1/17 (g) | 3,960,000 | 4,227,300 | ||
| 5,264,273 | |||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - 11.4% | ||||
Diversified Financial Services - 0.5% | ||||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | ||||
7.75% 1/15/16 | $ 10,820,000 | $ 11,239,275 | ||
8% 1/15/18 | 5,240,000 | 5,613,350 | ||
| 16,852,625 | |||
Real Estate Investment Trusts - 7.6% | ||||
Camden Property Trust 5% 6/15/15 | 1,100,000 | 1,191,423 | ||
Commercial Net Lease Realty, Inc.: | ||||
6.15% 12/15/15 | 2,526,000 | 2,841,725 | ||
6.25% 6/15/14 | 7,355,000 | 7,838,459 | ||
CubeSmart LP 4.8% 7/15/22 | 2,000,000 | 2,181,090 | ||
Developers Diversified Realty Corp.: | ||||
5.5% 5/1/15 | 4,000,000 | 4,336,284 | ||
7.5% 4/1/17 | 6,000,000 | 7,168,704 | ||
7.5% 7/15/18 | 8,756,000 | 10,780,370 | ||
7.875% 9/1/20 | 4,637,000 | 5,893,548 | ||
9.625% 3/15/16 | 3,836,000 | 4,700,266 | ||
Duke Realty LP 6.25% 5/15/13 | 750,000 | 761,396 | ||
Equity One, Inc.: | ||||
5.375% 10/15/15 | 3,500,000 | 3,831,632 | ||
6.25% 1/15/17 | 3,000,000 | 3,412,644 | ||
Equity Residential 5.125% 3/15/16 | 7,201,000 | 8,041,796 | ||
Health Care Property Investors, Inc.: | ||||
6% 6/15/14 | 2,340,000 | 2,489,238 | ||
6% 3/1/15 | 1,000,000 | 1,092,368 | ||
7.072% 6/8/15 | 1,500,000 | 1,674,683 | ||
Health Care REIT, Inc.: | ||||
3.625% 3/15/16 | 7,685,000 | 8,142,388 | ||
4.125% 4/1/19 | 2,000,000 | 2,160,278 | ||
6% 11/15/13 | 1,000,000 | 1,039,359 | ||
6.2% 6/1/16 | 2,750,000 | 3,142,827 | ||
Healthcare Realty Trust, Inc.: | ||||
5.125% 4/1/14 | 5,084,000 | 5,302,749 | ||
5.75% 1/15/21 | 3,095,000 | 3,453,082 | ||
6.5% 1/17/17 | 2,875,000 | 3,280,395 | ||
Highwoods/Forsyth LP: | ||||
3.625% 1/15/23 | 1,607,000 | 1,549,781 | ||
5.85% 3/15/17 | 2,800,000 | 3,148,830 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
Hospitality Properties Trust: | ||||
5% 8/15/22 | $ 3,177,000 | $ 3,370,460 | ||
5.625% 3/15/17 | 915,000 | 1,008,669 | ||
7.875% 8/15/14 | 1,000,000 | 1,064,685 | ||
HRPT Properties Trust: | ||||
5.75% 11/1/15 | 4,826,000 | 5,169,824 | ||
6.25% 8/15/16 | 9,675,000 | 10,636,250 | ||
6.25% 6/15/17 | 1,055,000 | 1,162,443 | ||
6.65% 1/15/18 | 3,000,000 | 3,416,661 | ||
iStar Financial, Inc.: | ||||
5.85% 3/15/17 | 3,587,000 | 3,604,935 | ||
5.875% 3/15/16 | 34,260,000 | 34,773,900 | ||
5.95% 10/15/13 | 7,330,000 | 7,485,763 | ||
6.05% 4/15/15 | 14,630,000 | 14,776,300 | ||
7.125% 2/15/18 | 5,725,000 | 5,911,063 | ||
9% 6/1/17 | 9,175,000 | 10,184,250 | ||
MPT Operating Partnership LP/MPT Finance Corp.: | ||||
6.375% 2/15/22 | 3,610,000 | 3,880,750 | ||
6.875% 5/1/21 | 2,000,000 | 2,200,000 | ||
Nationwide Health Properties, Inc.: | ||||
6% 5/20/15 | 5,670,000 | 6,298,565 | ||
6.25% 2/1/13 | 1,000,000 | 1,000,000 | ||
Omega Healthcare Investors, Inc.: | ||||
6.75% 10/15/22 | 2,115,000 | 2,310,638 | ||
7.5% 2/15/20 | 1,000,000 | 1,097,500 | ||
Pan Pacific Retail Properties, Inc. 5.95% 6/1/14 | 1,750,000 | 1,867,556 | ||
Potlatch Corp. 7.5% 11/1/19 | 1,000,000 | 1,130,000 | ||
ProLogis LP: | ||||
6.625% 5/15/18 | 6,480,000 | 7,800,332 | ||
7.625% 7/1/17 | 4,690,000 | 5,458,306 | ||
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 | 2,000,000 | 2,440,200 | ||
Senior Housing Properties Trust: | ||||
4.3% 1/15/16 | 5,000,000 | 5,192,920 | ||
6.75% 4/15/20 | 13,624,000 | 15,547,464 | ||
6.75% 12/15/21 | 8,000,000 | 9,192,296 | ||
United Dominion Realty Trust, Inc.: | ||||
5.13% 1/15/14 | 500,000 | 518,963 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Investment Trusts - continued | ||||
United Dominion Realty Trust, Inc.: - continued | ||||
5.25% 1/15/15 | $ 1,000,000 | $ 1,075,432 | ||
5.25% 1/15/16 | 4,000,000 | 4,411,680 | ||
| 273,443,120 | |||
Real Estate Management & Development - 3.2% | ||||
AMB Property LP 5.9% 8/15/13 | 400,000 | 409,546 | ||
BioMed Realty LP 3.85% 4/15/16 | 2,000,000 | 2,118,110 | ||
Brandywine Operating Partnership LP: | ||||
5.4% 11/1/14 | 6,750,000 | 7,207,488 | ||
7.5% 5/15/15 | 1,000,000 | 1,128,817 | ||
CB Richard Ellis Services, Inc.: | ||||
6.625% 10/15/20 | 1,205,000 | 1,312,004 | ||
11.625% 6/15/17 | 1,500,000 | 1,635,000 | ||
Colonial Properties Trust: | ||||
6.15% 4/15/13 | 1,500,000 | 1,513,866 | ||
6.25% 6/15/14 | 3,094,000 | 3,284,355 | ||
Colonial Realty LP 6.05% 9/1/16 | 2,500,000 | 2,796,530 | ||
ERP Operating LP 5.25% 9/15/14 | 4,815,000 | 5,160,654 | ||
Forest City Enterprises, Inc.: | ||||
6.5% 2/1/17 | 17,120,000 | 16,435,200 | ||
7.625% 6/1/15 | 10,156,000 | 10,105,220 | ||
Host Hotels & Resorts LP: | ||||
5.25% 3/15/22 | 2,000,000 | 2,180,000 | ||
5.875% 6/15/19 | 2,725,000 | 2,963,438 | ||
Kennedy-Wilson, Inc.: | ||||
8.75% 4/1/19 | 12,700,000 | 13,430,250 | ||
8.75% 4/1/19 (g) | 7,710,000 | 8,172,600 | ||
Realogy Corp.: | ||||
7.875% 2/15/19 (g) | 7,085,000 | 7,811,213 | ||
9% 1/15/20 (g) | 1,920,000 | 2,236,800 | ||
Regency Centers LP: | ||||
5.25% 8/1/15 | 4,509,000 | 4,923,107 | ||
5.875% 6/15/17 | 400,000 | 459,343 | ||
Toys 'R' Us Property Co. I LLC 10.75% 7/15/17 | 2,490,000 | 2,676,750 | ||
Ventas Realty LP: | ||||
3.125% 11/30/15 | 7,297,000 | 7,710,638 | ||
3.25% 8/15/22 | 2,000,000 | 1,952,494 | ||
4% 4/30/19 | 2,262,000 | 2,428,574 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
FINANCIALS - continued | ||||
Real Estate Management & Development - continued | ||||
Weekley Homes LLC/Weekley Finance Corp. 6% 2/1/23 (g) | $ 2,460,000 | $ 2,509,200 | ||
Wells Operating Partnership II LP 5.875% 4/1/18 | 3,000,000 | 3,091,269 | ||
| 115,652,466 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Wrightwood Capital LLC 1.9% 4/20/20 (d) | 4,052,590 | 2,532,869 | ||
TOTAL FINANCIALS | 408,481,080 | |||
HEALTH CARE - 1.3% | ||||
Health Care Equipment & Supplies - 0.3% | ||||
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp. 7.75% 2/15/19 | 10,410,000 | 11,164,725 | ||
Health Care Providers & Services - 1.0% | ||||
Sabra Health Care LP/Sabra Capital Corp. 8.125% 11/1/18 | 33,008,000 | 35,318,560 | ||
TOTAL HEALTH CARE | 46,483,285 | |||
INDUSTRIALS - 0.2% | ||||
Commercial Services & Supplies - 0.1% | ||||
Iron Mountain, Inc. 5.75% 8/15/24 | 2,235,000 | 2,254,556 | ||
Industrial Conglomerates - 0.1% | ||||
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 (g) | 3,050,000 | 3,149,125 | ||
TOTAL INDUSTRIALS | 5,403,681 | |||
INFORMATION TECHNOLOGY - 0.1% | ||||
Internet Software & Services - 0.1% | ||||
Cyrusone LP/Cyrusone Finance Corp. 6.375% 11/15/22 (g) | 3,000,000 | 3,195,000 | ||
Corporate Bonds - continued | ||||
| Principal | Value | ||
Nonconvertible Bonds - continued | ||||
TELECOMMUNICATION SERVICES - 0.1% | ||||
Wireless Telecommunication Services - 0.1% | ||||
Crown Castle International Corp. 5.25% 1/15/23 (g) | $ 4,000,000 | $ 4,160,000 | ||
TOTAL NONCONVERTIBLE BONDS | 712,025,345 | |||
TOTAL CORPORATE BONDS (Cost $731,113,334) |
| |||
Asset-Backed Securities - 3.0% | ||||
| ||||
Anthracite CDO III Ltd./Anthracite CDO III Corp. Series 2004-1A Class A, 0.5647% 3/23/19 (g)(i) | 207,807 | 204,794 | ||
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.7047% 3/20/50 (g)(i) | 2,250,000 | 103,500 | ||
Capital Trust RE CDO Ltd./Capital Trust RE CDO Corp. Series 2005-3A Class A2, 5.16% 6/25/35 (g) | 2,968,280 | 2,990,839 | ||
CapitalSource Real Estate Loan Trust Series 2006-1A Class A2A, 0.555% 1/20/37 (g)(i) | 729,854 | 687,887 | ||
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (g) | 1,123,639 | 988,803 | ||
CBRE Realty Finance CDO LLC Series 2007-1A Class A1, 0.555% 4/7/52 (g)(i) | 9,687,044 | 8,573,034 | ||
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 500,000 | 451,801 | ||
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A: | ||||
Class B1, 6.065% 12/28/35 (g) | 563,441 | 563,683 | ||
Class B2, 1.66% 12/28/35 (g)(i) | 565,235 | 548,278 | ||
Class D, 9% 12/28/35 (g) | 518,237 | 347,893 | ||
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A: | ||||
Class B1, 1.81% 6/28/38 (g)(i) | 540,919 | 540,107 | ||
Class D, 9% 6/28/38 (g) | 1,033,566 | 744,167 | ||
Crest Ltd. Series 2002-IGA Class B, 1.6505% 7/28/35 (g)(i) | 26,722 | 26,749 | ||
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 9,500,000 | 9,147,797 | ||
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6765% 11/28/39 (g)(i) | 577,107 | 17,313 | ||
Green Tree Financial Corp.: | ||||
Series 1996-4 Class M1, 7.75% 6/15/27 | 1,788,179 | 1,649,708 | ||
Asset-Backed Securities - continued | ||||
| Principal | Value | ||
Green Tree Financial Corp.: - continued | ||||
Series 1997-3 Class M1, 7.53% 3/15/28 | $ 7,352,794 | $ 6,256,180 | ||
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 (i)(k) | 911,599 | 34,542 | ||
Guggenheim Structured Real Estate Funding Ltd./Guggenheim Structured Real Estate Funding LLC Series 2005-2A: | ||||
Class D, 1.7537% 8/26/30 (g)(i) | 735,000 | 639,450 | ||
Class E, 2.2037% 8/26/30 (g)(i) | 1,517,957 | 857,646 | ||
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,117,245 | 416,169 | ||
Merit Securities Corp. Series 13 Class M1, 7.888% 12/28/33 (i) | 1,923,000 | 2,075,142 | ||
N-Star Real Estate CDO Ltd. Series 1A Class C1B, 7.696% 8/28/38 (g) | 899,989 | 764,991 | ||
Newcastle Investment Trust Series 2011-MH1 Class A, 2.45% 12/10/33 (g) | 2,757,445 | 2,822,523 | ||
Prima Capital CDO Ltd./Prima Capital CDO Corp. Series 2005-1A Class D, 5.194% 7/24/39 (g) | 2,010,527 | 2,012,537 | ||
Prima Capital Ltd. Series 2006-CR1A Class A2, 5.533% 12/28/48 (g) | 9,370,000 | 9,463,700 | ||
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.9628% 2/5/36 (g)(i) | 3,638,732 | 364 | ||
Wachovia Ltd./Wachovia LLC: | ||||
Series 2006-1 Class 1ML, 5.81% 9/25/26 (g)(i) | 2,000,000 | 1,060,000 | ||
Series 2006-1A: | ||||
Class A1A, 0.57% 9/25/26 (g)(i) | 14,382,726 | 13,663,589 | ||
Class A1B, 0.64% 9/25/26 (g)(i) | 22,506,000 | 19,256,134 | ||
Class A2A, 0.53% 9/25/26 (g)(i) | 5,409,203 | 5,311,296 | ||
Class A2B, 0.62% 9/25/26 (g)(i) | 1,550,000 | 1,403,835 | ||
Class B, 0.67% 9/25/26 (g)(i) | 890,000 | 734,695 | ||
Class C 0.84% 9/25/26 (g)(i) | 3,830,000 | 3,111,875 | ||
Class G, 1.66% 9/25/26 (g)(i) | 1,270,000 | 952,500 | ||
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: | ||||
Class A1, 0.6315% 11/21/40 (g)(i) | 9,453,458 | 8,508,112 | ||
Class F, 2.2615% 11/21/40 (g)(i) | 250,000 | 45,000 | ||
TOTAL ASSET-BACKED SECURITIES (Cost $103,710,957) |
| |||
Collateralized Mortgage Obligations - 0.6% | ||||
| Principal | Value | ||
Private Sponsor - 0.6% | ||||
COMM pass-thru certificates Series 2007-FL14 Class AJ, 0.3857% 6/15/22 (g)(i) | $ 1,872,974 | $ 1,855,937 | ||
Countrywide Home Loans, Inc.: | ||||
Series 2002-38 Class B3, 5% 2/25/18 (g) | 53,650 | 18,005 | ||
Series 2002-R2 Class 2B3, 3.6491% 7/25/33 (g)(i) | 202,886 | 104,372 | ||
Series 2003-40 Class B3, 4.5% 10/25/18 (g) | 89,474 | 57,165 | ||
Series 2003-R3: | ||||
Class B2, 5.5% 11/25/33 (g) | 1,347,692 | 236,618 | ||
Class B3, 5.5% 11/25/33 | 126,133 | 5,642 | ||
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (g)(i) | 102,838 | 3,686 | ||
FREMF Mortgage Trust: | ||||
Series 2010 K7 Class B, 5.4353% 4/25/20 (g)(i) | 3,200,000 | 3,559,456 | ||
Series 2010-K6 Class B, 5.358% 12/25/46 (g)(i) | 4,500,000 | 4,977,045 | ||
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (g) | 7,120,000 | 7,445,982 | ||
RESI Finance LP/RESI Finance DE Corp. floater: | ||||
Series 2003-B Class B9, 12.1577% 7/10/35 (g)(i) | 270,755 | 223,562 | ||
Series 2005-A Class B6, 2.2077% 3/10/37 (g)(i) | 1,399,369 | 41,701 | ||
Series 2005-B Class B6, 1.8077% 6/10/37 (g)(i) | 845,863 | 6,851 | ||
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (g) | 33,310 | 28,961 | ||
RESIX Finance Ltd. floater: | ||||
Series 2003-D Class B8, 6.7077% 12/10/35 (g)(i) | 259,132 | 131,768 | ||
Series 2004-A Class B7, 4.4577% 2/10/36 (g)(i) | 291,067 | 159,621 | ||
Series 2004-B Class B7, 4.2077% 2/10/36 (g)(i) | 345,619 | 178,651 | ||
TOTAL PRIVATE SPONSOR | 19,035,023 | |||
U.S. Government Agency - 0.0% | ||||
Fannie Mae REMIC Trust: | ||||
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) | 151,871 | 81,746 | ||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.1891% 2/25/42 (g)(i) | 97,767 | 55,536 | ||
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 (k) | 224,727 | 63,438 | ||
Collateralized Mortgage Obligations - continued | ||||
| Principal | Value | ||
U.S. Government Agency - continued | ||||
Fannie Mae REMIC Trust: - continued | ||||
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.194% 6/25/43 (g)(i) | $ 146,486 | $ 59,003 | ||
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 3.166% 10/25/42 (g)(i) | 63,232 | 32,642 | ||
TOTAL U.S. GOVERNMENT AGENCY | 292,365 | |||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $20,555,631) |
| |||
Commercial Mortgage Securities - 16.4% | ||||
| ||||
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 (k) | 4,177,433 | 4,093,395 | ||
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (g) | 2,000,000 | 2,380,245 | ||
Asset Securitization Corp. Series 1997-D4 Class B2, 7.525% 4/14/29 | 171,147 | 171,755 | ||
Banc of America Commercial Mortgage Trust: | ||||
sequential payer Series 2002-2 Class F, 5.487% 7/11/43 | 598,374 | 602,256 | ||
Series 2005-1 Class CJ, 5.196% 11/10/42 (i) | 3,580,000 | 3,830,396 | ||
Series 2005-6 Class AJ, 5.1904% 9/10/47 (i) | 5,000,000 | 5,425,525 | ||
Banc of America Large Loan Trust floater Series 2010-HLTN Class HLTN, 2.509% 11/15/15 (g)(i) | 104,082,643 | 104,192,018 | ||
Banc of America Large Loan, Inc. floater Series 2005-MIB1: | ||||
Class J, 1.2557% 3/15/22 (g)(i) | 4,691,243 | 4,339,399 | ||
Class K, 2.2057% 3/15/22 (g)(i) | 4,190,000 | 2,493,050 | ||
Banc of America REMIC Trust Series 2012-CLMZ Class A, 7.7057% 8/15/17 (g)(i) | 4,900,000 | 5,230,750 | ||
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4516% 3/11/39 (i) | 5,700,000 | 5,766,235 | ||
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5729% 4/12/38 (g)(i) | 2,520,000 | 2,558,012 | ||
COMM Mortgage Trust Series 2012-CR5 Class D, 4.334% 12/10/45 (g)(i) | 2,000,000 | 1,972,952 | ||
COMM pass-thru certificates: | ||||
floater Series 2006-FL12: | ||||
Class AJ, 0.3357% 12/15/20 (g)(i) | 8,000,000 | 7,666,296 | ||
Class B, 0.3757% 12/15/20 (g)(i) | 2,990,790 | 2,854,371 | ||
sequential payer Series 2004-RS1 Class A, 5.648% 3/3/41 (g) | 4,427,059 | 4,466,903 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Commercial Mortgage Trust pass-thru certificates: | ||||
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) | $ 5,000,000 | $ 5,331,480 | ||
Series 2012-CR1: | ||||
Class C, 5.547% 5/15/45 | 1,000,000 | 1,128,121 | ||
Class D, 5.547% 5/15/45 (g) | 2,050,000 | 2,089,387 | ||
Series 2012-CR2: | ||||
Class D, 4.8582% 8/15/45 (g)(i) | 4,500,000 | 4,640,382 | ||
Class E, 4.8582% 8/15/45 (g)(i) | 6,000,000 | 5,869,596 | ||
Series 2012-LC4: | ||||
Class C, 5.6488% 12/10/44 (i) | 2,000,000 | 2,289,906 | ||
Class D, 5.6488% 12/10/44 (g)(i) | 8,000,000 | 8,240,960 | ||
Communication Mortgage Trust Series 2011-THL: | ||||
Class E, 5.949% 6/9/28 (g) | 3,690,000 | 3,782,339 | ||
Class F, 4.867% 6/9/28 (g) | 11,090,000 | 10,252,184 | ||
Credit Suisse First Boston Mortgage Securities Corp.: | ||||
Series 1998-C1 Class F, 6% 5/17/40 (g) | 2,045,086 | 2,227,011 | ||
Series 1998-C2 Class F, 6.75% 11/15/30 (g) | 3,000,000 | 3,188,484 | ||
DBUBS Mortgage Trust Series 2011-LC1A Class E, 5.5567% 11/10/46 (g)(i) | 12,490,000 | 13,400,833 | ||
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 | 1,200,000 | 1,206,475 | ||
DLJ Commercial Mortgage Corp. Series 1998-CG1 Class B4, 7.2214% 6/10/31 (g)(i) | 2,121,985 | 2,143,496 | ||
Extended Stay America Trust Series 2013-ESHM Class M, 7.625% 12/5/19 (g)(h) | 10,950,000 | 11,392,158 | ||
Freddie Mac: | ||||
pass-thru certificates: | ||||
Series K011 Class X3, 2.575% 12/25/43 (i)(j) | 12,206,096 | 1,938,731 | ||
Series K012 Class X3, 2.2878% 1/25/41 (i)(j) | 21,072,886 | 3,012,559 | ||
Series K013 Class X3, 2.7899% 1/25/43 (i)(j) | 14,360,000 | 2,501,785 | ||
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) | 7,430,000 | 1,674,290 | ||
G-Force LLC sequential payer Series 2005-RRA Class A2, 4.83% 8/22/36 (g) | 9,462,679 | 9,533,649 | ||
GCCFC Commercial Mortgage Trust sequential payer Series 2003-C1 Class D, 4.29% 7/5/35 (g) | 2,000,000 | 2,013,774 | ||
GMAC Commercial Mortgage Securities, Inc.: | ||||
Series 1997-C2 Class G, 6.75% 4/15/29 (i) | 942,133 | 1,038,841 | ||
Series 1999-C3 Class J, 6.974% 8/15/36 | 1,500,000 | 1,598,671 | ||
Series 2000-C1 Class K, 7% 3/15/33 | 196,574 | 149,555 | ||
GS Mortgage Securities Corp. II: | ||||
floater Series 2007-EOP Class L, 5.4585% 3/6/20 (g)(i) | 1,400,000 | 1,415,791 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
GS Mortgage Securities Corp. II: - continued | ||||
Series 2010-C1: | ||||
Class D, 5.9897% 8/10/43 (g)(i) | $ 4,000,000 | $ 4,332,584 | ||
Class E, 4% 8/10/43 (g) | 3,770,000 | 2,918,187 | ||
Series 2012-GCJ7: | ||||
Class C, 5.7222% 5/10/45 (i) | 6,500,000 | 7,266,355 | ||
Class D, 5.7222% 5/10/45 (g)(i) | 2,000,000 | 2,081,914 | ||
GS Mortgage Securities Corp. Trust Series 2011-ALF Class E, 4.953% 2/10/21 (g) | 9,185,000 | 9,254,806 | ||
GS Mortgage Securities Trust: | ||||
Series 2010-C2 Class D, 5.2273% 12/10/43 (g)(i) | 3,000,000 | 3,113,688 | ||
Series 2011-GC5: | ||||
Class C, 5.308% 8/10/44 (g)(i) | 9,000,000 | 10,070,127 | ||
Class D, 5.308% 8/10/44 (g)(i) | 4,000,000 | 4,197,848 | ||
Series 2012-GC6 Class C, 5.6388% 1/10/45 (g)(i) | 3,600,000 | 4,135,036 | ||
JPMorgan Chase Commercial Mortgage Securities Corp.: | ||||
Series 2001-A: | ||||
Class G, 6% 10/15/32 (g)(i) | 2,036,910 | 38,798 | ||
Class X, 0.6341% 10/15/32 (g)(i)(j) | 4,757,212 | 36,629 | ||
Series 2002-C1 Class E, 6.135% 7/12/37 (g) | 2,681,387 | 2,686,828 | ||
Series 2009-IWST: | ||||
Class C, 7.4453% 12/5/27 (g)(i) | 3,000,000 | 3,700,470 | ||
Class D, 7.4453% 12/5/27 (g)(i) | 9,550,000 | 11,219,378 | ||
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (g) | 9,000,000 | 9,481,727 | ||
Series 2010-CNTR: | ||||
Class D, 6.1838% 8/5/32 (g)(i) | 4,500,000 | 4,728,600 | ||
Class XB, 0.9305% 8/5/32 (g)(i)(j) | 32,655,000 | 1,604,516 | ||
Series 2012-CBX Class C, 5.1897% 6/16/45 (i) | 4,530,000 | 4,985,821 | ||
JPMorgan Chase Commercial Mortgage Securities Trust: | ||||
Series 2005-LDP5 Class AJ, 5.3206% 12/15/44 (i) | 3,470,000 | 3,638,847 | ||
Series 2011-C5 Class C, 5.3143% 8/15/46 (g)(i) | 6,525,375 | 7,315,402 | ||
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8: | ||||
Class G, 6% 7/15/31 (g) | 833,006 | 844,984 | ||
Class H, 6% 7/15/31 (g) | 1,341,102 | 706,364 | ||
LB Commercial Conduit Mortgage Trust Series 1998-C4 Class G, 5.6% 10/15/35 (g) | 2,453,229 | 2,516,191 | ||
LB-UBS Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C2 Class E, 4.487% 3/15/36 | 2,060,000 | 2,096,730 | ||
Series 2005-C3 Class AJ, 4.843% 7/15/40 | 6,620,000 | 6,937,283 | ||
Series 2005-C7 Class AJ, 5.323% 11/15/40 | 8,000,000 | 8,607,928 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
LB-UBS Commercial Mortgage Trust: - continued | ||||
sequential payer: | ||||
Series 2006-C7 Class AM, 5.378% 11/15/38 | $ 2,040,000 | $ 2,257,123 | ||
Series 2004-C7 Class E, 4.918% 10/15/36 | 5,120,000 | 5,155,159 | ||
Series 2005-C1 Class E, 4.924% 2/15/40 | 4,000,000 | 3,999,360 | ||
Series 2006-C4: | ||||
Class AJ, 5.8853% 6/15/38 (i) | 7,005,000 | 7,063,198 | ||
Class AM, 5.8853% 6/15/38 (i) | 6,700,000 | 7,507,196 | ||
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2007-LLFA Class E, 1.1057% 6/15/22 (g)(i) | 6,230,000 | 5,986,712 | ||
LStar Commercial Mortgage Trust: | ||||
Series 2011-1 Class D, 5.5644% 6/25/43 (g)(i) | 4,699,000 | 4,656,700 | ||
Series 2011-1 Class B, 5.5644% 6/25/43 (g)(i) | 6,165,000 | 6,452,508 | ||
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: | ||||
Class F, 4.384% 7/12/37 | CAD | 710,000 | 571,205 | |
Class G, 4.384% 7/12/37 | CAD | 355,000 | 279,554 | |
Class H, 4.384% 7/12/37 | CAD | 236,000 | 181,930 | |
Class J, 4.384% 7/12/37 | CAD | 355,000 | 267,932 | |
Class K, 4.384% 7/12/37 | CAD | 355,000 | 262,349 | |
Class L, 4.384% 7/12/37 | CAD | 236,000 | 170,792 | |
Class M, 4.384% 7/12/37 | CAD | 995,000 | 634,528 | |
Merrill Lynch Mortgage Investors Trust Series 1999-C1 Class G, 6.71% 11/15/31 (g) | 710,603 | 284,241 | ||
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6836% 5/12/39 (i) | 1,200,000 | 1,345,502 | ||
Mezz Capital Commercial Mortgage Trust: | ||||
sequential payer: | ||||
Series 2004-C1 Class A, 4.836% 1/15/37 (g) | 2,394,649 | 2,155,184 | ||
Series 2004-C2 Class A, 5.318% 10/15/40 (g) | 9,390,396 | 7,794,028 | ||
Series 2004-C1: | ||||
Class D, 6.988% 1/15/37 (g) | 306,695 | 31 | ||
Class IO, 9.0255% 1/15/37 (g)(i)(j) | 2,622,993 | 118,035 | ||
Morgan Stanley Capital I Trust: | ||||
sequential payer: | ||||
Series 2012-C4 Class E, 5.71% 3/15/45 (g) | 4,630,000 | 4,752,213 | ||
Series 2004-RR2 Class A2, 5.45% 10/28/33 (g) | 262,429 | 262,922 | ||
Series 2006-HQ10 Class AM, 5.36% 11/12/41 | 8,200,000 | 8,951,899 | ||
Series 1997-RR Class F, 7.4011% 4/30/39 (g)(i) | 1,139,848 | 1,094,254 | ||
Series 1998-CF1 Class G, 7.35% 7/15/32 (g) | 2,638,907 | 1,958,829 | ||
Series 2005-HQ5 Class B, 5.272% 1/14/42 | 2,000,000 | 2,074,624 | ||
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) | 2,500,000 | 2,622,265 | ||
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 | 7,500,000 | 8,479,545 | ||
Series 2011-C1 Class C, 5.2537% 9/15/47 (g)(i) | 4,000,000 | 4,475,560 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
Morgan Stanley Capital I Trust: - continued | ||||
Series 2011-C2: | ||||
Class D, 5.3171% 6/15/44 (g)(i) | $ 4,610,000 | $ 4,890,417 | ||
Class E, 5.3171% 6/15/44 (g)(i) | 9,600,000 | 9,754,166 | ||
Class F, 5.3171% 6/15/44 (g)(i) | 4,440,000 | 3,698,906 | ||
Class XB, 0.4644% 6/15/44 (g)(i)(j) | 63,708,222 | 2,293,496 | ||
Series 2011-C3: | ||||
Class C, 5.1844% 7/15/49 (g)(i) | 2,000,000 | 2,222,774 | ||
Class D, 5.357% 7/15/49 (g) | 7,400,000 | 7,865,778 | ||
Series 2012-C4 Class D, 5.5263% 3/15/45 (g)(i) | 6,310,000 | 6,781,281 | ||
NationsLink Funding Corp. Series 1999-SL Class X, 11/10/30 (j) | 459,322 | 458,771 | ||
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g) | 3,783,011 | 4,731,790 | ||
RBSCF Trust Series 2010-MB1 Class D, 4.6791% 4/15/24 (g)(i) | 9,049,000 | 9,186,509 | ||
Salomon Brothers Mortgage Securities VII, Inc. Series 2001-MMA Class E3, 6.5% 2/18/34 (g)(i) | 217,865 | 222,290 | ||
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5654% 8/15/39 (i) | 2,080,000 | 2,273,278 | ||
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (g) | 10,630,000 | 10,960,976 | ||
UBS Commercial Mortgage Trust Series 2007-FL1 Class F, 0.7807% 7/15/24 (g)(i) | 1,200,000 | 964,133 | ||
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8749% 1/10/45 (g)(i) | 3,000,000 | 3,609,783 | ||
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (g) | 2,540,000 | 2,897,475 | ||
Wachovia Bank Commercial Mortgage Trust: | ||||
Series 2004-C10 Class E, 4.931% 2/15/41 | 2,000,000 | 2,043,984 | ||
Series 2004-C11: | ||||
Class D, 5.389% 1/15/41 (i) | 5,177,000 | 5,141,988 | ||
Class E, 5.439% 1/15/41 (i) | 3,785,000 | 3,609,319 | ||
Series 2004-C12 Class D, 5.3075% 7/15/41 (i) | 2,750,000 | 2,781,829 | ||
Series 2004-C14 Class B, 5.17% 8/15/41 | 3,180,000 | 3,338,882 | ||
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7802% 10/15/45 (g) | 9,999,000 | 9,775,842 | ||
WF-RBS Commercial Mortgage Trust: | ||||
Series 2011-C3: | ||||
Class C, 5.335% 3/15/44 (g) | 4,900,000 | 5,523,339 | ||
Class D, 5.5486% 3/15/44 (g)(i) | 1,000,000 | 1,060,933 | ||
Class E, 5% 3/15/44 (g) | 2,000,000 | 1,709,712 | ||
Series 2012-C7 Class D, 4.8502% 6/15/45 (g)(i) | 2,380,000 | 2,473,282 | ||
Commercial Mortgage Securities - continued | ||||
| Principal | Value | ||
WF-RBS Commercial Mortgage Trust: - continued | ||||
Series 2013-C11 Class D, 4.1856% 3/15/45 (g)(h)(i) | $ 3,000,000 | $ 2,832,921 | ||
WFDB Commercial Mortgage Trust Series 2011-BXR Class D, 5.914% 7/5/24 (g) | 4,000,000 | 4,098,140 | ||
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $540,351,345) |
| |||
Floating Rate Loans - 8.6% | ||||
| ||||
CONSUMER DISCRETIONARY - 4.2% | ||||
Hotels, Restaurants & Leisure - 4.0% | ||||
Extended Stay America, Inc. REL 9.625% 12/1/19 | 7,000,000 | 7,175,000 | ||
Hilton Hotels Corp.: | ||||
term loan 4.456% 11/12/15 (i) | 36,321,238 | 35,731,018 | ||
Tranche B, term loan 3.5785% 11/12/15 (i) | 12,000,000 | 11,805,000 | ||
Tranche C, term loan 3.706% 11/12/15 (i) | 20,000,000 | 19,675,000 | ||
Tranche D, term loan 3.956% 11/12/15 (i) | 23,097,902 | 22,722,561 | ||
Tranche E, term loan 4.206% 11/12/15 (i) | 30,000,000 | 29,512,500 | ||
Intrawest U.S. Holding, Inc. Tranche 1LN, term loan 7% 12/4/17 (i) | 5,000,000 | 5,031,250 | ||
La Quinta: | ||||
Tranche A, term loan 1.6% 7/6/14 (i) | 5,714,286 | 6,257,143 | ||
Tranche B, term loan 1.6% 7/6/14 (i) | 4,285,714 | 4,692,857 | ||
| 142,602,329 | |||
Media - 0.1% | ||||
PRIMEDIA, Inc. Tranche B, term loan 7.5% 1/13/18 (i) | 2,807,250 | 2,723,033 | ||
Specialty Retail - 0.1% | ||||
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 5% 10/11/18 (i) | 5,355,000 | 5,448,713 | ||
TOTAL CONSUMER DISCRETIONARY | 150,774,075 | |||
ENERGY - 0.2% | ||||
Oil, Gas & Consumable Fuels - 0.2% | ||||
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) | 7,200,000 | 7,308,000 | ||
FINANCIALS - 2.9% | ||||
Diversified Financial Services - 0.9% | ||||
Blackstone REL 10% 10/1/2017 | 17,500,000 | 18,287,500 | ||
Pilot Travel Centers LLC: | ||||
Tranche B 2LN, term loan 4.25% 8/7/19 (i) | 4,713,188 | 4,783,885 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
FINANCIALS - continued | ||||
Diversified Financial Services - continued | ||||
Pilot Travel Centers LLC: - continued | ||||
Tranche B, term loan 3.75% 3/30/18 (i) | $ 6,683,669 | $ 6,783,924 | ||
SBA Senior Finance, Inc. Tranche B, term loan 3.75% 6/30/18 (i) | 2,955,000 | 2,977,163 | ||
| 32,832,472 | |||
Real Estate Investment Trusts - 0.6% | ||||
iStar Financial, Inc. Tranche B, term loan 5.75% 10/15/17 (i) | 22,575,217 | 22,970,284 | ||
Real Estate Management & Development - 1.3% | ||||
CB Richard Ellis Services, Inc. Tranche D, term loan 3.7047% 9/4/19 (i) | 5,709,629 | 5,738,178 | ||
CityCenter term loan 8.75% 7/1/13 (i) | 4,169,750 | 4,169,750 | ||
EOP Operating LP term loan: | ||||
5% 2/5/13 (i) | 5,000,000 | 5,066,000 | ||
5.25% 2/5/13 (i) | 3,800,000 | 3,840,660 | ||
Equity Inns Reality LLC: | ||||
Tranche A, term loan 10.5% 11/4/13 (i) | 7,896,223 | 7,206,181 | ||
Tranche B 2LN, term loan 7.55% 11/4/13 (i) | 5,000,000 | 4,950,000 | ||
Realogy Corp.: | ||||
Credit-Linked Deposit 3.2087% 10/10/13 (i) | 433,319 | 422,486 | ||
Credit-Linked Deposit 4.4587% 10/10/16 (i) | 919,537 | 926,434 | ||
term loan 4.4557% 10/10/16 (i) | 13,066,882 | 13,164,883 | ||
| 45,484,572 | |||
Thrifts & Mortgage Finance - 0.1% | ||||
Ocwen Financial Corp. Tranche B, term loan 7% 9/1/16 (i) | 2,035,082 | 2,035,082 | ||
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 1/23/18 (i) | 1,965,000 | 1,989,563 | ||
| 4,024,645 | |||
TOTAL FINANCIALS | 105,311,973 | |||
HEALTH CARE - 0.4% | ||||
Health Care Providers & Services - 0.4% | ||||
Community Health Systems, Inc. term loan 3.8105% 1/25/17 (i) | 2,903,247 | 2,925,022 | ||
Floating Rate Loans - continued | ||||
| Principal | Value | ||
HEALTH CARE - continued | ||||
Health Care Providers & Services - continued | ||||
Health Management Associates, Inc. Tranche B, term loan 4.5% 11/18/18 (i) | $ 1,980,000 | $ 1,999,800 | ||
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (i) | 10,249,103 | 10,325,971 | ||
| 15,250,793 | |||
INDUSTRIALS - 0.4% | ||||
Construction & Engineering - 0.4% | ||||
Drumm Investors LLC Tranche B, term loan 5% 5/4/18 (i) | 13,397,233 | 12,827,851 | ||
TELECOMMUNICATION SERVICES - 0.5% | ||||
Wireless Telecommunication Services - 0.5% | ||||
Crown Castle Operating Co.: | ||||
Tranche A, term loan 2.71% 1/31/17 (i) | 5,000,000 | 5,006,250 | ||
Tranche B, term loan 4% 1/31/19 (i) | 8,938,658 | 8,972,625 | ||
SBA Senior Finance II, LLC term loan 3.75% 9/28/19 (i) | 3,345,000 | 3,370,088 | ||
| 17,348,963 | |||
TOTAL FLOATING RATE LOANS (Cost $301,003,987) |
|
Preferred Securities - 0.0% | |||
|
|
|
|
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g)(i) | 500,000 | 25,000 | |
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (g)(i) | 1,220,000 | 183,000 | |
| 208,000 | ||
TOTAL PREFERRED SECURITIES (Cost $1,292,230) |
| ||
Money Market Funds - 10.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.16% (b) | 345,135,204 | $ 345,135,204 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c) | 14,624,900 | 14,624,900 | |
TOTAL MONEY MARKET FUNDS (Cost $359,760,104) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $3,313,966,916) | 3,634,088,597 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (59,168,030) | ||
NET ASSETS - 100% | $ 3,574,920,567 |
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) Amount is stated in United States dollars unless otherwise noted. |
(f) Security or a portion of the security is on loan at period end. |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $674,573,937 or 18.9% of net assets. |
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(j) 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. |
(k) 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 $4,273,121 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition | Acquisition |
ACGS Series 2004-1 Class P, 7.4651% 8/1/19 | 2/17/11 | $ 4,045,277 |
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 | 5/21/03 | $ 131,602 |
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 5.75% 12/25/42 | 3/25/03 | $ 169,353 |
GSR Mortgage Loan Trust Series 2005-HE3 Class B3, 2.7037% 6/25/35 | 6/3/05 | $ 804,218 |
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 | $ 203,960 |
Fidelity Securities Lending Cash Central Fund | 30,199 |
Total | $ 234,159 |
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, |
AmREIT, Inc. | $ 2,818,000 | $ - | $ - | $ 80,000 | $ - |
Other Information |
The following is a summary of the inputs used, as of January 31, 2013, 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 Investment 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 | $ 33,404,361 | $ 29,308,870 | $ - | $ 4,095,491 |
Financials | 1,375,986,160 | 1,325,583,972 | 48,328,664 | 2,073,524 |
Health Care | 37,586,258 | 37,586,258 | - | - |
Industrials | 2,595,442 | 2,595,442 | - | - |
Telecommunication Services | 8,839,854 | 8,839,854 | - | - |
Corporate Bonds | 792,944,313 | - | 786,061,444 | 6,882,869 |
Asset-Backed Securities | 106,976,633 | - | 80,804,340 | 26,172,293 |
Collateralized Mortgage Obligations | 19,327,388 | - | 17,915,933 | 1,411,455 |
Commercial Mortgage Securities | 587,638,429 | - | 555,232,850 | 32,405,579 |
Floating Rate Loans | 308,821,655 | - | 254,382,745 | 54,438,910 |
Preferred Securities | 208,000 | - | - | 208,000 |
Money Market Funds | 359,760,104 | 359,760,104 | - | - |
Total Investments in Securities: | $ 3,634,088,597 | $ 1,763,674,500 | $ 1,742,725,976 | $ 127,688,121 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Asset-Backed Securities | |
Beginning Balance | $ 36,313,723 |
Total Realized Gain (Loss) | 738,175 |
Total Unrealized Gain (Loss) | 1,009,514 |
Cost of Purchases | 67,147 |
Proceeds of Sales | (6,154,799) |
Amortization/Accretion | (80,849) |
Transfers in to Level 3 | 9,182,600 |
Transfers out of Level 3 | (14,903,218) |
Ending Balance | $ 26,172,293 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,200,983 |
Commercial Mortgage Securities | |
Beginning Balance | $ 53,984,005 |
Total Realized Gain (Loss) | 306,049 |
Total Unrealized Gain (Loss) | 1,560,260 |
Cost of Purchases | 118 |
Proceeds of Sales | (14,351,947) |
Amortization/Accretion | 394,401 |
Transfers in to Level 3 | 1,045,017 |
Transfers out of Level 3 | (10,532,324) |
Ending Balance | $ 32,405,579 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 623,749 |
Floating Rate Loans | |
Beginning Balance | $ 18,003,477 |
Total Realized Gain (Loss) | 265,546 |
Total Unrealized Gain (Loss) | 1,538,519 |
Cost of Purchases | 44,099,578 |
Proceeds of Sales | (14,260,414) |
Amortization/Accretion | 317,204 |
Transfers in to Level 3 | 4,475,000 |
Transfers out of Level 3 | - |
Ending Balance | $ 54,438,910 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,678,840 |
Other Investments in Securities | |
Beginning Balance | $ 19,436,383 |
Total Realized Gain (Loss) | (6,447,263) |
Total Unrealized Gain (Loss) | 7,484,659 |
Cost of Purchases | - |
Proceeds of Sales | (638,475) |
Amortization/Accretion | (5,330) |
Transfers in to Level 3 | 4,080,000 |
Transfers out of Level 3 | (9,238,635) |
Ending Balance | $ 14,671,339 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2013 | $ 1,037,397 |
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 into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. 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. |
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 | 6.7% |
BBB | 11.5% |
BB | 5.9% |
B | 11.7% |
CCC,CC,C | 2.4% |
D | 0.2% |
Not Rated | 12.1% |
Equities | 40.8% |
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, 2013 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $13,973,963) - See accompanying schedule: Unaffiliated issuers (cost $2,954,206,812) | $ 3,274,328,493 |
|
Fidelity Central Funds (cost $359,760,104) | 359,760,104 |
|
Total Investments (cost $3,313,966,916) |
| $ 3,634,088,597 |
Cash |
| 5,871,414 |
Foreign currency held at value (cost $26,075) | 26,075 | |
Receivable for investments sold | 789,753 | |
Receivable for fund shares sold | 34,136,339 | |
Dividends receivable | 2,266,080 | |
Interest receivable | 16,766,006 | |
Distributions receivable from Fidelity Central Funds | 46,355 | |
Prepaid expenses | 7,776 | |
Other receivables | 44,334 | |
Total assets | 3,694,042,729 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 84,687,131 | |
Delayed delivery | 14,305,020 | |
Payable for fund shares redeemed | 2,995,906 | |
Accrued management fee | 1,565,313 | |
Distribution and service plan fees payable | 130,583 | |
Other affiliated payables | 722,526 | |
Other payables and accrued expenses | 90,783 | |
Collateral on securities loaned, at value | 14,624,900 | |
Total liabilities | 119,122,162 | |
|
|
|
Net Assets | $ 3,574,920,567 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,235,833,120 | |
Undistributed net investment income | 8,407,320 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 10,533,056 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 320,147,071 | |
Net Assets | $ 3,574,920,567 |
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, 2013 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class T: | $ 11.63 | |
|
|
|
Maximum offering price per share (100/96.00 of $11.63) | $ 12.11 | |
Class C: | $ 11.57 | |
|
|
|
Real Estate Income: | $ 11.67 | |
|
|
|
Institutional Class: | $ 11.65 |
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, 2013 | |
|
|
|
Investment Income |
|
|
Dividends (including $80,000 earned from other affiliated issuers) |
| $ 28,249,204 |
Interest |
| 60,434,705 |
Income from Fidelity Central Funds |
| 234,159 |
Total income |
| 88,918,068 |
|
|
|
Expenses | ||
Management fee | $ 8,434,635 | |
Transfer agent fees | 3,624,081 | |
Distribution and service plan fees | 618,689 | |
Accounting and security lending fees | 572,593 | |
Custodian fees and expenses | 23,571 | |
Independent trustees' compensation | 9,602 | |
Registration fees | 112,536 | |
Audit | 80,603 | |
Legal | 7,635 | |
Miscellaneous | 10,082 | |
Total expenses before reductions | 13,494,027 | |
Expense reductions | (67,617) | 13,426,410 |
Net investment income (loss) | 75,491,658 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,256,714 | |
Foreign currency transactions | 3,506 | |
Total net realized gain (loss) |
| 31,260,220 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 143,373,801 | |
Assets and liabilities in foreign currencies | (814) | |
Total change in net unrealized appreciation (depreciation) |
| 143,372,987 |
Net gain (loss) | 174,633,207 | |
Net increase (decrease) in net assets resulting from operations | $ 250,124,865 |
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) | $ 75,491,658 | $ 106,081,413 |
Net realized gain (loss) | 31,260,220 | 46,621,459 |
Change in net unrealized appreciation (depreciation) | 143,372,987 | 99,190,890 |
Net increase (decrease) in net assets resulting | 250,124,865 | 251,893,762 |
Distributions to shareholders from net investment income | (95,007,356) | (98,117,663) |
Distributions to shareholders from net realized gain | (51,534,160) | (16,498,521) |
Total distributions | (146,541,516) | (114,616,184) |
Share transactions - net increase (decrease) | 785,319,915 | 755,485,569 |
Redemption fees | 158,419 | 286,688 |
Total increase (decrease) in net assets | 889,061,683 | 893,049,835 |
|
|
|
Net Assets | ||
Beginning of period | 2,685,858,884 | 1,792,809,049 |
End of period (including undistributed net investment income of $8,407,320 and undistributed net investment income of $27,923,018, respectively) | $ 3,574,920,567 | $ 2,685,858,884 |
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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.73 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .53 | .18 |
Net realized and unrealized gain (loss) | .66 | .61 | .76 | (.04) |
Total from investment operations | .93 | 1.13 | 1.29 | .14 |
Distributions from net investment income | (.35) | (.51) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.56) L | (.60) K | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.73 | $ 9.94 |
Total Return B,C,D | 8.46% | 11.24% | 13.27% | 1.46% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of fee waivers, if any | 1.09% A | 1.12% | 1.13% | 1.09% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.12% | 1.09% A |
Net investment income (loss) | 4.78% A | 4.89% | 5.00% | 6.23% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 223,346 | $ 137,352 | $ 60,283 | $ 3,830 |
Portfolio turnover rate G | 22% A | 27% | 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 $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share.
L Total distributions of $.56 per share is comprised of distributions from net investment income of $.353 and distributions from net realized gain of $.203 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.26 | $ 10.72 | $ 9.94 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .27 | .52 | .52 | .17 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.03) |
Total from investment operations | .92 | 1.14 | 1.28 | .14 |
Distributions from net investment income | (.35) | (.50) | (.50) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.55) | (.60) | (.50) | (.15) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.63 | $ 11.26 | $ 10.72 | $ 9.94 |
Total Return B,C,D | 8.43% | 11.33% | 13.11% | 1.45% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of fee waivers, if any | 1.09% A | 1.11% | 1.16% | 1.17% A |
Expenses net of all reductions | 1.08% A | 1.11% | 1.16% | 1.17% A |
Net investment income (loss) | 4.79% A | 4.90% | 4.96% | 5.92% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,818 | $ 26,143 | $ 7,626 | $ 862 |
Portfolio turnover rate G | 22% A | 27% | 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, | ||
| 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.20 | $ 10.67 | $ 9.93 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .23 | .44 | .45 | .15 |
Net realized and unrealized gain (loss) | .66 | .62 | .74 | (.03) |
Total from investment operations | .89 | 1.06 | 1.19 | .12 |
Distributions from net investment income | (.31) | (.43) | (.45) | (.14) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.52) K | (.53) | (.45) | (.14) |
Redemption fees added to paid in capital E,J | - | - | - | - |
Net asset value, end of period | $ 11.57 | $ 11.20 | $ 10.67 | $ 9.93 |
Total Return B,C,D | 8.11% | 10.49% | 12.25% | 1.29% |
Ratios to Average Net Assets F,I |
|
|
|
|
Expenses before reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of fee waivers, if any | 1.83% A | 1.87% | 1.89% | 1.86% A |
Expenses net of all reductions | 1.83% A | 1.87% | 1.89% | 1.86% A |
Net investment income (loss) | 4.04% A | 4.14% | 4.23% | 5.21% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 107,161 | $ 52,780 | $ 21,555 | $ 836 |
Portfolio turnover rate G | 22% A | 27% | 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.
K Total distributions of $.52 per share is comprised of distributions from net investment income of $.312 and distributions from net realized gain of $.203 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, | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 | $ 11.22 |
Income from Investment |
|
|
|
|
| |
Net investment income (loss) D | .29 | .54 | .55 | .53 | .54 | .59 |
Net realized and unrealized gain (loss) | .66 | .62 | .76 | 1.73 | (1.27) | (1.48) |
Total from investment operations | .95 | 1.16 | 1.31 | 2.26 | (.73) | (.89) |
Distributions from net investment income | (.37) | (.52) | (.51) | (.52) | (.50) | (.66) |
Distributions from net realized gain | (.20) | (.10) | - | - | - | (.24) |
Total distributions | (.57) | (.62) | (.51) | (.52) | (.50) | (.90) |
Redemption fees added to paid in capital D | - H | - H | - H | - H | .01 | - H |
Net asset value, end of period | $ 11.67 | $ 11.29 | $ 10.75 | $ 9.95 | $ 8.21 | $ 9.43 |
Total Return B,C | 8.64% | 11.50% | 13.41% | 28.29% | (6.92)% | (8.43)% |
Ratios to Average Net Assets E,G | ||||||
Expenses before reductions | .85% A | .90% | .92% | .97% | 1.00% | .94% |
Expenses net of fee waivers, if any | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Expenses net of all reductions | .85% A | .89% | .92% | .96% | 1.00% | .94% |
Net investment income (loss) | 5.02% A | 5.12% | 5.21% | 5.60% | 7.15% | 5.77% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 2,823,109 | $ 2,252,149 | $ 1,660,063 | $ 1,030,393 | $ 463,269 | $ 393,147 |
Portfolio turnover rate F | 22% A | 27% | 25% | 28% | 47% | 32% |
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.
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, | ||
| 2013 | 2012 | 2011 | 2010 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.28 | $ 10.74 | $ 9.95 | $ 9.95 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .29 | .55 | .55 | .19 |
Net realized and unrealized gain (loss) | .65 | .62 | .76 | (.04) |
Total from investment operations | .94 | 1.17 | 1.31 | .15 |
Distributions from net investment income | (.37) | (.53) | (.52) | (.15) |
Distributions from net realized gain | (.20) | (.10) | - | - |
Total distributions | (.57) | (.63) | (.52) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - | - |
Net asset value, end of period | $ 11.65 | $ 11.28 | $ 10.74 | $ 9.95 |
Total Return B,C | 8.61% | 11.62% | 13.44% | 1.58% |
Ratios to Average Net Assets E,H |
|
|
|
|
Expenses before reductions | .81% A | .84% | .89% | .85% A |
Expenses net of fee waivers, if any | .81% A | .84% | .89% | .85% A |
Expenses net of all reductions | .81% A | .84% | .89% | .85% A |
Net investment income (loss) | 5.06% A | 5.17% | 5.24% | 6.70% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 388,486 | $ 217,435 | $ 43,282 | $ 2,930 |
Portfolio turnover rate F | 22% A | 27% | 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, 2013
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) website 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 website 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 - continued
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Fund's Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
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)
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 a third party pricing vendor 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. 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 these securities are generally categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, floating rate loans, preferred securities, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. For asset backed securities, collateralized mortgage obligations and commercial mortgage securities, pricing vendors 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 broker-supplied prices. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities 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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value at 01/31/13 | Valuation | Unobservable | Range | Weighted |
Asset-Backed Securities | $ 911,576 | Discounted cash flow | Yield | 5.8% - 10% | 7.4% |
Collateralized Mortgage Obligations | $ 699,848 | Discounted cash flow | Yield | 12% - 53% | 19.2% |
| Market comparable | Transaction price | $37 | $37 | |
Commercial | $ 38,798 | Discounted cash flow | Yield | 20% | 20% |
Common | $ 4,095,516 | Adjusted book value | Book value multiple | 1.0 | 1.0 |
| Market comparable | Transaction price | $0.0001 | $0.0001 | |
Corporate Bonds | $ 6,882,869 | Discounted cash flow | Constant | 25% | 25% |
|
| Market comparable | Broker bids | $108.75 | $108.75 |
Floating Rate Loans | $ 29,632,250 | Discounted cash flow | Yield | 8.9% - 9.5% | 9.3% |
|
| Internal rate of return | 9.2% | 9.2% |
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
For the unobservable inputs listed in the table above, a significant increase in yields, constant prepayment rates or internal rates of return could result in a significant decrease to the fair value measurement. A significant increase in transaction prices, book value multiples or broker bids could result in a significant increase to the fair value measurement.
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, 2013, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
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 rates 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis over the remaining life of the security, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. 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 federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. 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 - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications 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 | $ 358,978,591 |
Gross unrealized depreciation | (39,806,751) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 319,171,840 |
|
|
Tax cost | $ 3,314,916,757 |
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.
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. 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.
Semiannual Report
3. Significant Accounting Policies - continued
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $871,060,794 and $306,835,676, 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. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 215,360 | $ 8,646 |
Class T | -% | .25% | 37,225 | - |
Class C | .75% | .25% | 366,104 | 174,393 |
|
|
| $ 618,689 | $ 183,039 |
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
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
deferred sales charges levied on Class A, Class T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 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 | $ 46,615 |
Class T | 10,128 |
Class C* | 4,047 |
| $ 60,790 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 195,852 | .23 |
Class T | 33,621 | .23 |
Class C | 80,548 | .22 |
Real Estate Income | 3,053,903 | .24 |
Institutional Class | 260,157 | .20 |
| $ 3,624,081 |
|
* 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 $20,384 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $3,554 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. 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 $30,199. 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 $64,588 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $3,029.
Semiannual Report
Notes to Financial Statements - 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 | $ 5,271,506 | $ 3,854,404 |
Class T | 870,816 | 609,057 |
Class C | 2,020,773 | 1,139,599 |
Real Estate Income | 78,679,674 | 86,666,891 |
Institutional Class | 8,164,587 | 5,847,712 |
Total | $ 95,007,356 | $ 98,117,663 |
From net realized gain |
|
|
Class A | $ 2,837,075 | $ 603,452 |
Class T | 506,062 | 83,752 |
Class C | 1,181,312 | 208,802 |
Real Estate Income | 42,729,812 | 14,865,902 |
Institutional Class | 4,279,899 | 736,613 |
Total | $ 51,534,160 | $ 16,498,521 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 7,804,959 | 8,276,874 | $ 89,191,291 | $ 88,010,262 |
Reinvestment of distributions | 574,404 | 333,613 | 6,457,367 | 3,436,744 |
Shares redeemed | (1,374,839) | (2,031,559) | (15,673,884) | (21,254,183) |
Net increase (decrease) | 7,004,524 | 6,578,928 | $ 79,974,774 | $ 70,192,823 |
Class T |
|
|
|
|
Shares sold | 1,116,988 | 1,725,200 | $ 12,750,416 | $ 18,422,015 |
Reinvestment of distributions | 90,398 | 49,495 | 1,016,115 | 511,986 |
Shares redeemed | (708,322) | (163,799) | (8,023,147) | (1,727,688) |
Net increase (decrease) | 499,064 | 1,610,896 | $ 5,743,384 | $ 17,206,313 |
Class C |
|
|
|
|
Shares sold | 4,692,263 | 3,117,808 | $ 53,412,376 | $ 33,302,251 |
Reinvestment of distributions | 227,829 | 110,126 | 2,550,008 | 1,128,377 |
Shares redeemed | (366,896) | (534,569) | (4,160,300) | (5,534,157) |
Net increase (decrease) | 4,553,196 | 2,693,365 | $ 51,802,084 | $ 28,896,471 |
Real Estate Income |
|
|
|
|
Shares sold | 60,440,692 | 90,720,847 | $ 692,765,189 | $ 959,813,942 |
Reinvestment of distributions | 9,722,725 | 8,913,831 | 109,588,482 | 91,762,119 |
Shares redeemed | (27,657,077) | (54,623,988) | (316,642,327) | (572,115,634) |
Net increase (decrease) | 42,506,340 | 45,010,690 | $ 485,711,344 | $ 479,460,427 |
Institutional Class |
|
|
|
|
Shares sold | 15,837,574 | 16,926,727 | $ 182,426,024 | $ 177,564,635 |
Reinvestment of distributions | 850,127 | 472,572 | 9,565,473 | 4,899,349 |
Shares redeemed | (2,617,376) | (2,146,783) | (29,903,168) | (22,734,449) |
Net increase (decrease) | 14,070,325 | 15,252,516 | $ 162,088,329 | $ 159,729,535 |
Semiannual Report
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
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, 2013, 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, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012. 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, 2013, 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, 2013, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2013 and for the year ended July 31, 2012, and the financial highlights for the six months ended January 31, 2013 and for each of the five years in the period ended July 31, 2012, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 22, 2013
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
Smithfield, RI
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
(Fidelity Investment logo)(registered trademark)
REII-USAN-0313 1.907543.102
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Securities Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Securities Fund
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 26, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 26, 2013 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 26, 2013 |