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, 2015 |
This report on Form N-CSR relates solely to the Registrant's Fidelity OTC Portfolio, Fidelity Growth & Income Portfolio, Fidelity Blue Chip Growth Fund, Fidelity Blue Chip Value Fund, Fidelity Small Cap Growth Fund, Fidelity Small Cap Value Fund, Fidelity Series Small Cap Opportunities Fund and Fidelity Series Blue Chip Growth Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
OTC | .76% | | | |
Actual | | $ 1,000.00 | $ 1,108.60 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class K | .64% | | | |
Actual | | $ 1,000.00 | $ 1,109.40 | $ 3.40 |
HypotheticalA | | $ 1,000.00 | $ 1,021.98 | $ 3.26 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 10.4 | 10.5 |
Amazon.com, Inc. | 5.8 | 4.5 |
Google, Inc. Class C | 4.3 | 4.3 |
Google, Inc. Class A | 4.2 | 4.5 |
Groupon, Inc. Class A | 3.9 | 3.7 |
Rackspace Hosting, Inc. | 3.5 | 2.7 |
athenahealth, Inc. | 2.7 | 2.7 |
Facebook, Inc. Class A | 2.7 | 3.1 |
Gilead Sciences, Inc. | 2.3 | 2.9 |
Activision Blizzard, Inc. | 2.2 | 2.5 |
�� | 42.0 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 49.9 | 52.1 |
Health Care | 20.8 | 20.1 |
Consumer Discretionary | 17.5 | 15.3 |
Consumer Staples | 3.6 | 4.6 |
Industrials | 3.1 | 2.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
 | Stocks 98.1% | | | Stocks 98.9% | |
 | Convertible
Securities 1.9% | | | Convertible
Securities 0.9% | |
 | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.2% | |
* Foreign investments | 12.4% | | ** Foreign investments | 5.6% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 17.2% |
Automobiles - 1.5% |
Tesla Motors, Inc. (a)(d) | 868,699 | | $ 176,867 |
Volkswagen AG sponsored ADR | 132,100 | | 5,892 |
| | 182,759 |
Hotels, Restaurants & Leisure - 1.4% |
Intrawest Resorts Holdings, Inc. | 764,235 | | 7,719 |
Panera Bread Co. Class A (a) | 540,500 | | 92,890 |
Shake Shack, Inc. Class A | 4,300 | | 197 |
Starbucks Corp. | 664,410 | | 58,156 |
Vail Resorts, Inc. | 89,900 | | 7,890 |
Wynn Resorts Ltd. | 6,215 | | 920 |
| | 167,772 |
Internet & Catalog Retail - 12.6% |
Amazon.com, Inc. (a) | 2,007,898 | | 711,860 |
ASOS PLC ADR (a) | 4,946,252 | | 205,037 |
Groupon, Inc. Class A (a)(d)(e) | 66,933,381 | | 479,243 |
Wayfair LLC: | | | |
Class A (d) | 1,850,500 | | 36,196 |
Class B | 381,300 | | 6,712 |
zulily, Inc. Class A (a)(d) | 5,806,318 | | 107,417 |
| | 1,546,465 |
Media - 0.6% |
Charter Communications, Inc. Class A (a) | 340,400 | | 51,440 |
Liberty Global PLC Class A (a) | 491,800 | | 22,977 |
| | 74,417 |
Specialty Retail - 0.4% |
Ross Stores, Inc. | 526,700 | | 48,304 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 43,215 | | 5,702 |
| | 54,006 |
Textiles, Apparel & Luxury Goods - 0.7% |
adidas AG sponsored ADR | 29,400 | | 1,015 |
lululemon athletica, Inc. (a) | 546,046 | | 36,170 |
LVMH Moet Hennessy - Louis Vuitton SA ADR | 1,330,800 | | 42,865 |
NIKE, Inc. Class B | 400 | | 37 |
| | 80,087 |
TOTAL CONSUMER DISCRETIONARY | | 2,105,506 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 3.6% |
Beverages - 0.4% |
Monster Beverage Corp. (a) | 385,100 | | $ 45,037 |
Food & Staples Retailing - 1.7% |
Costco Wholesale Corp. | 1,292,050 | | 184,750 |
Sprouts Farmers Market LLC (a) | 876,600 | | 31,917 |
| | 216,667 |
Food Products - 1.5% |
Danone SA sponsored ADR | 3,721,723 | | 50,094 |
Diamond Foods, Inc. (a) | 10,595 | | 260 |
Keurig Green Mountain, Inc. | 632,117 | | 77,472 |
Mondelez International, Inc. | 1,518,400 | | 53,508 |
| | 181,334 |
TOTAL CONSUMER STAPLES | | 443,038 |
ENERGY - 0.4% |
Energy Equipment & Services - 0.1% |
Oceaneering International, Inc. | 327,800 | | 17,164 |
Oil, Gas & Consumable Fuels - 0.3% |
Diamondback Energy, Inc. (a) | 85,700 | | 5,912 |
EOG Resources, Inc. | 116,000 | | 10,327 |
Noble Energy, Inc. | 355,700 | | 16,981 |
| | 33,220 |
TOTAL ENERGY | | 50,384 |
FINANCIALS - 2.9% |
Banks - 1.7% |
Bank of America Corp. | 2,179,100 | | 33,013 |
Citigroup, Inc. | 625,700 | | 29,377 |
Commerce Bancshares, Inc. | 785,295 | | 31,412 |
JPMorgan Chase & Co. | 513,400 | | 27,919 |
Signature Bank (a) | 265,300 | | 31,075 |
UMB Financial Corp. | 558,800 | | 27,113 |
Wells Fargo & Co. | 625,000 | | 32,450 |
| | 212,359 |
Capital Markets - 0.2% |
Carlyle Group LP | 630,500 | | 16,582 |
Northern Trust Corp. | 185,600 | | 12,135 |
| | 28,717 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Consumer Finance - 1.0% |
American Express Co. | 733,300 | | $ 59,170 |
Capital One Financial Corp. | 761,000 | | 55,713 |
| | 114,883 |
TOTAL FINANCIALS | | 355,959 |
HEALTH CARE - 20.7% |
Biotechnology - 15.0% |
Acceleron Pharma, Inc. (a) | 167,000 | | 6,591 |
Alexion Pharmaceuticals, Inc. (a) | 707,789 | | 129,695 |
Alkermes PLC (a) | 865,236 | | 62,513 |
Alnylam Pharmaceuticals, Inc. (a) | 141,500 | | 13,277 |
Amgen, Inc. | 89,200 | | 13,582 |
Array BioPharma, Inc. (a) | 4,200,423 | | 30,075 |
Auspex Pharmaceuticals, Inc. | 488,600 | | 30,024 |
Avalanche Biotechnologies, Inc. (a) | 265,599 | | 10,539 |
Avalanche Biotechnologies, Inc. (f) | 700,821 | | 27,809 |
BioCryst Pharmaceuticals, Inc. (a) | 1,582,464 | | 16,109 |
Biogen Idec, Inc. (a) | 178,500 | | 69,465 |
BioMarin Pharmaceutical, Inc. (a) | 1,220,756 | | 118,609 |
Celldex Therapeutics, Inc. (a)(d) | 1,255,985 | | 26,903 |
Clovis Oncology, Inc. (a)(d) | 701,976 | | 45,762 |
Dicerna Pharmaceuticals, Inc. (d) | 253,207 | | 5,398 |
Foundation Medicine, Inc. (a)(d)(e) | 1,706,798 | | 81,346 |
Genocea Biosciences, Inc. | 686,570 | | 5,891 |
Gilead Sciences, Inc. (a) | 2,706,199 | | 283,691 |
Intercept Pharmaceuticals, Inc. (a) | 285,819 | | 57,458 |
Ironwood Pharmaceuticals, Inc. Class A (a) | 3,220,042 | | 50,168 |
Isis Pharmaceuticals, Inc. (a) | 46,249 | | 3,169 |
Juno Therapeutics, Inc. (d) | 66,332 | | 2,836 |
KYTHERA Biopharmaceuticals, Inc. (a)(d)(e) | 1,257,482 | | 46,778 |
Lion Biotechnologies, Inc. (a)(d)(e) | 2,613,600 | | 20,517 |
Medivation, Inc. (a) | 775,904 | | 84,434 |
NPS Pharmaceuticals, Inc. (a) | 422,700 | | 19,385 |
Ophthotech Corp. (a)(d) | 898,400 | | 50,535 |
Otonomy, Inc. | 208,938 | | 6,101 |
OvaScience, Inc. (a)(d) | 901,695 | | 39,188 |
Pharmacyclics, Inc. (a) | 145,800 | | 24,604 |
Portola Pharmaceuticals, Inc. (a)(e) | 2,884,007 | | 81,992 |
PTC Therapeutics, Inc. (a)(e) | 1,959,289 | | 107,585 |
Puma Biotechnology, Inc. (a)(d) | 411,804 | | 86,924 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Seattle Genetics, Inc. (a)(d) | 1,401,386 | | $ 43,667 |
Spark Therapeutics, Inc. | 11,600 | | 580 |
Synageva BioPharma Corp. (a) | 880,783 | | 101,484 |
Ultragenyx Pharmaceutical, Inc. | 257,996 | | 14,990 |
uniQure B.V. | 192,200 | | 4,036 |
Versartis, Inc. (a)(d) | 517,200 | | 9,170 |
XOMA Corp. (a)(d) | 1,521,913 | | 5,418 |
| | 1,838,298 |
Health Care Equipment & Supplies - 0.9% |
Accuray, Inc. (a)(d) | 2,427,800 | | 17,893 |
HeartWare International, Inc. (a) | 22,700 | | 1,896 |
IDEXX Laboratories, Inc. (a) | 207,002 | | 32,793 |
Novadaq Technologies, Inc. (a) | 4,659,873 | | 66,310 |
| | 118,892 |
Health Care Providers & Services - 0.5% |
Accretive Health, Inc. (a)(d)(e) | 9,842,302 | | 57,577 |
Health Care Technology - 2.9% |
athenahealth, Inc. (a)(d)(e) | 2,369,183 | | 330,999 |
Castlight Health, Inc. Class B (a) | 65,400 | | 581 |
Veeva Systems, Inc. Class A (a)(d) | 1,041,100 | | 29,942 |
| | 361,522 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 177,300 | | 34,607 |
Pharmaceuticals - 1.1% |
Achaogen, Inc. (a) | 847,200 | | 9,912 |
Flex Pharma, Inc. | 108,800 | | 1,604 |
GW Pharmaceuticals PLC ADR (a)(d) | 130,327 | | 9,510 |
Intra-Cellular Therapies, Inc. (a) | 263,900 | | 5,125 |
Jazz Pharmaceuticals PLC (a) | 137,000 | | 23,200 |
Relypsa, Inc. (a) | 368,800 | | 12,956 |
Roche Holding AG sponsored ADR | 32,300 | | 1,090 |
Shire PLC sponsored ADR | 293,800 | | 64,419 |
Theravance, Inc. (d) | 326,579 | | 3,681 |
| | 131,497 |
TOTAL HEALTH CARE | | 2,542,393 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - 3.1% |
Airlines - 1.7% |
American Airlines Group, Inc. | 4,350,300 | | $ 213,513 |
Commercial Services & Supplies - 0.2% |
Stericycle, Inc. (a) | 147,000 | | 19,300 |
Electrical Equipment - 0.6% |
SolarCity Corp. (a)(d) | 1,394,048 | | 67,765 |
Professional Services - 0.3% |
Verisk Analytics, Inc. (a) | 533,100 | | 34,305 |
Road & Rail - 0.3% |
J.B. Hunt Transport Services, Inc. | 456,980 | | 36,380 |
TOTAL INDUSTRIALS | | 371,263 |
INFORMATION TECHNOLOGY - 48.7% |
Communications Equipment - 1.5% |
Cisco Systems, Inc. | 2,745,200 | | 72,377 |
QUALCOMM, Inc. | 1,857,553 | | 116,023 |
| | 188,400 |
Electronic Equipment & Components - 1.0% |
Trimble Navigation Ltd. (a) | 5,114,700 | | 121,934 |
Internet Software & Services - 20.5% |
58.com, Inc. ADR (a) | 30,800 | | 1,185 |
Alibaba Group Holding Ltd. sponsored ADR | 443,200 | | 39,480 |
Baidu.com, Inc. sponsored ADR (a) | 390,400 | | 85,076 |
Benefitfocus, Inc. (a)(d) | 3,400 | | 82 |
Constant Contact, Inc. (a) | 724,436 | | 27,398 |
Cornerstone OnDemand, Inc. (a)(d) | 1,724,882 | | 56,835 |
Criteo SA sponsored ADR (a) | 5,294,771 | | 206,231 |
Cvent, Inc. (a) | 176,200 | | 4,401 |
Demandware, Inc. (a) | 94,100 | | 5,040 |
Dropbox, Inc. (a)(g) | 331,524 | | 6,332 |
E2open, Inc. (a)(d) | 1,152,491 | | 6,788 |
Facebook, Inc. Class A (a) | 4,325,738 | | 328,367 |
Google, Inc.: | | | |
Class A (a) | 963,527 | | 517,944 |
Class C (a) | 994,377 | | 531,514 |
Hortonworks, Inc. | 20,800 | | 441 |
LendingClub Corp. | 89,900 | | 1,687 |
Marketo, Inc. (a)(d) | 2,011,478 | | 69,255 |
New Relic, Inc. | 12,500 | | 388 |
Opower, Inc. (d) | 800,048 | | 9,129 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Rackspace Hosting, Inc. (a)(e) | 9,689,146 | | $ 435,624 |
Textura Corp. (a) | 600 | | 15 |
Twitter, Inc. (a) | 1,017,300 | | 38,179 |
Wix.com Ltd. (a)(d) | 364,405 | | 7,208 |
Yahoo!, Inc. (a) | 1,916,500 | | 84,307 |
Yelp, Inc. (a)(d) | 928,800 | | 48,734 |
| | 2,511,640 |
Semiconductors & Semiconductor Equipment - 3.2% |
Analog Devices, Inc. | 233,400 | | 12,161 |
Applied Micro Circuits Corp. (a) | 457,650 | | 2,403 |
Cirrus Logic, Inc. (a) | 568,931 | | 15,077 |
Cree, Inc. (a)(d) | 1,408,400 | | 49,801 |
Cypress Semiconductor Corp. | 427,900 | | 6,303 |
Marvell Technology Group Ltd. | 2,168,300 | | 33,587 |
Micron Technology, Inc. (a) | 2,863,400 | | 83,797 |
NVE Corp. | 116,306 | | 7,689 |
NVIDIA Corp. | 7,942,361 | | 152,533 |
Xilinx, Inc. | 592,100 | | 22,840 |
| | 386,191 |
Software - 11.4% |
Activision Blizzard, Inc. | 12,809,484 | | 267,654 |
CommVault Systems, Inc. (a) | 1,767,267 | | 77,017 |
Fleetmatics Group PLC (a) | 534,349 | | 18,921 |
GameLoft SE (a)(e) | 7,764,787 | | 25,884 |
Interactive Intelligence Group, Inc. (a) | 222,187 | | 9,012 |
Microsoft Corp. | 6,170,939 | | 249,306 |
NetSuite, Inc. (a)(d) | 151,300 | | 14,892 |
salesforce.com, Inc. (a) | 2,217,020 | | 125,151 |
SAP AG sponsored ADR (d) | 3,581,500 | | 234,087 |
Synchronoss Technologies, Inc. (a)(e) | 3,693,807 | | 156,876 |
Tableau Software, Inc. (a) | 12,300 | | 993 |
Ubisoft Entertainment SA (a)(e) | 10,702,456 | | 216,358 |
Xero Ltd. (a)(g) | 661,157 | | 7,523 |
| | 1,403,674 |
Technology Hardware, Storage & Peripherals - 11.1% |
Apple, Inc. | 10,891,020 | | 1,275,993 |
Electronics for Imaging, Inc. (a) | 287,923 | | 11,128 |
Nimble Storage, Inc. (a)(d) | 719,744 | | 16,144 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Technology Hardware, Storage & Peripherals - continued |
SanDisk Corp. | 691,400 | | $ 52,484 |
Silicon Graphics International Corp. (a) | 1,774 | | 17 |
| | 1,355,766 |
TOTAL INFORMATION TECHNOLOGY | | 5,967,605 |
MATERIALS - 0.6% |
Chemicals - 0.3% |
Monsanto Co. | 333,800 | | 39,382 |
Metals & Mining - 0.3% |
Anglo American PLC ADR | 4,430,000 | | 37,168 |
TOTAL MATERIALS | | 76,550 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.6% |
Cogent Communications Group, Inc. | 265,500 | | 9,839 |
Level 3 Communications, Inc. (a) | 1,250,747 | | 62,212 |
| | 72,051 |
Wireless Telecommunication Services - 0.3% |
Vodafone Group PLC sponsored ADR | 1,179,100 | | 41,422 |
TOTAL TELECOMMUNICATION SERVICES | | 113,473 |
TOTAL COMMON STOCKS (Cost $9,522,393) |
12,026,171
|
Convertible Preferred Stocks - 1.9% |
| | | |
CONSUMER DISCRETIONARY - 0.3% |
Household Durables - 0.2% |
Roku, Inc.: | | | |
Series F, 8.00% (a)(g) | 16,562,507 | | 20,372 |
Series G, 8.00% (g) | 3,185,945 | | 3,919 |
| | 24,291 |
Internet & Catalog Retail - 0.0% |
One Kings Lane, Inc. Series E (g) | 648,635 | | 3,970 |
Convertible Preferred Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - 0.1% |
Turn, Inc. Series E (a)(g) | 1,199,041 | | $ 8,801 |
TOTAL CONSUMER DISCRETIONARY | | 37,062 |
FINANCIALS - 0.2% |
Real Estate Management & Development - 0.2% |
Redfin Corp. Series G (g) | 6,064,833 | | 20,000 |
HEALTH CARE - 0.1% |
Biotechnology - 0.1% |
Aduro Biotech, Inc. Series D (g) | 2,692,455 | | 7,277 |
INDUSTRIALS - 0.0% |
Aerospace & Defense - 0.0% |
Space Exploration Technologies Corp. Series G (g) | 62,037 | | 4,805 |
INFORMATION TECHNOLOGY - 1.2% |
Internet Software & Services - 0.6% |
Uber Technologies, Inc. Series D, 8.00% (g) | 2,256,164 | | 75,170 |
Uber Technologies, Inc. Series E, 8.00% (g) | 150,072 | | 5,000 |
| | 80,170 |
IT Services - 0.4% |
AppNexus, Inc. Series E (g) | 1,416,796 | | 40,237 |
Nutanix, Inc. Series E (g) | 311,503 | | 4,271 |
| | 44,508 |
Software - 0.2% |
Cloudera, Inc. Series F (g) | 126,709 | | 2,471 |
Cloudflare, Inc. Series D (g) | 395,787 | | 2,424 |
Taboola.Com Ltd. Series E (g) | 1,918,392 | | 20,000 |
| | 24,895 |
Technology Hardware, Storage & Peripherals - 0.0% |
Pure Storage, Inc. Series E (a)(g) | 184,982 | | 2,808 |
TOTAL INFORMATION TECHNOLOGY | | 152,381 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
Altiostar Networks, Inc. Series D (g) | 1,220,504 | | 15,000 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $181,572) |
236,525
|
Money Market Funds - 4.9% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 75,809,389 | | $ 75,809 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 526,186,171 | | 526,186 |
TOTAL MONEY MARKET FUNDS (Cost $601,995) |
601,995
|
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $10,305,960) | 12,864,691 |
NET OTHER ASSETS (LIABILITIES) - (4.9)% | | (597,229) |
NET ASSETS - 100% | $ 12,267,462 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $27,809,000 or 0.2% 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 $250,380,000 or 2.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aduro Biotech, Inc. Series D | 12/19/14 | $ 7,277 |
Altiostar Networks, Inc. Series D | 1/7/15 | $ 15,000 |
AppNexus, Inc. Series E | 8/1/14 - 9/17/14 | $ 28,382 |
Cloudera, Inc. Series F | 2/5/14 | $ 1,845 |
Cloudflare, Inc. Series D | 11/5/14 | $ 2,424 |
Dropbox, Inc. | 5/2/12 | $ 3,000 |
Nutanix, Inc. Series E | 8/26/14 | $ 4,173 |
One Kings Lane, Inc. Series E | 1/29/14 | $ 10,000 |
Security | Acquisition Date | Acquisition Cost (000s) |
Pure Storage, Inc. Series E | 8/22/13 | $ 1,282 |
Redfin Corp. Series G | 12/16/14 | $ 20,000 |
Roku, Inc. 8.00% | 5/7/13 | $ 15,000 |
Roku, Inc. Series G, 8.00% | 10/1/14 | $ 4,140 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $ 4,805 |
Taboola.Com Ltd. Series E | 12/22/14 | $ 20,000 |
Turn, Inc. Series E | 12/30/13 | $ 10,000 |
Uber Technologies, Inc. | 12/5/14 | $ 5,000 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 35,000 |
Xero Ltd. | 10/14/13 | $ 10,054 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in
thousands) |
Fidelity Cash Central Fund | $ 24 |
Fidelity Securities Lending Cash Central Fund | 2,845 |
Total | $ 2,869 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Accretive Health, Inc. | $ 82,872 | $ - | $ - | $ - | $ 57,577 |
ASOS PLC | - | 162,163 | 180,696 | - | - |
ASOS PLC ADR | - | 187,227 | - | - | 205,037 |
athenahealth, Inc. | 294,726 | - | - | - | 330,999 |
CommVault Systems, Inc. | 159,387 | 5,572 | 82,116 | - | - |
Criteo SA sponsored ADR | - | 181,467 | 3,134 | - | 206,231 |
E2open, Inc. | 25,119 | - | 4,307 | - | - |
Foundation Medicine, Inc. | 35,879 | 11,036 | 22,177 | - | 81,346 |
GameLoft SE | 49,492 | - | - | - | 25,884 |
Groupon, Inc. Class A | 390,059 | 39,856 | - | - | 479,243 |
KYTHERA Biopharmaceuticals, Inc. | 42,226 | - | - | - | 46,778 |
Lion Biotechnologies, Inc. | 12,870 | 5,175 | 585 | - | 20,517 |
Marketo, Inc. | 56,923 | - | 2,249 | - | - |
Novadaq Technologies, Inc. | 38,683 | 27,409 | - | - | 66,310 |
NVE Corp. | 17,620 | - | 10,456 | 244 | - |
Portola Pharmaceuticals, Inc. | 58,747 | 14,580 | - | - | 81,992 |
PTC Therapeutics, Inc. | 55,466 | 2,229 | 8,514 | - | 107,585 |
Rackspace Hosting, Inc. | 293,484 | - | - | - | 435,624 |
Synchronoss Technologies, Inc. | 165,112 | - | 19,125 | - | 156,876 |
Ubisoft Entertainment SA | 169,602 | 9,886 | - | - | 216,358 |
Total | $ 1,948,267 | $ 646,600 | $ 333,359 | $ 244 | $ 2,518,357 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 2,142,568 | $ 2,098,794 | $ 6,712 | $ 37,062 |
Consumer Staples | 443,038 | 443,038 | - | - |
Energy | 50,384 | 50,384 | - | - |
Financials | 375,959 | 355,959 | - | 20,000 |
Health Care | 2,549,670 | 2,542,393 | - | 7,277 |
Industrials | 376,068 | 371,263 | - | 4,805 |
Information Technology | 6,119,986 | 5,961,273 | - | 158,713 |
Materials | 76,550 | 76,550 | - | - |
Telecommunication Services | 128,473 | 113,473 | - | 15,000 |
Money Market Funds | 601,995 | 601,995 | - | - |
Total Investments in Securities: | $ 12,864,691 | $ 12,615,122 | $ 6,712 | $ 242,857 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $ 45,831 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 52,903 |
Cost of Purchases | 59,979 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 158,713 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 52,903 |
Other Investments in Securities | |
Beginning Balance | $ 47,700 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | (4,778) |
Cost of Purchases | 51,222 |
Proceeds of Sales | (10,000) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 84,144 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ (4,778) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.6% |
France | 4.5% |
United Kingdom | 2.6% |
Germany | 2.0% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 2.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $506,675) - See accompanying schedule: Unaffiliated issuers (cost $7,489,478) | $ 9,744,339 | |
Fidelity Central Funds (cost $601,995) | 601,995 | |
Other affiliated issuers (cost $2,214,487) | 2,518,357 | |
Total Investments (cost $10,305,960) | | $ 12,864,691 |
Receivable for investments sold | | 213,170 |
Receivable for fund shares sold | | 14,409 |
Dividends receivable | | 1,191 |
Distributions receivable from Fidelity Central Funds | | 563 |
Prepaid expenses | | 21 |
Other receivables | | 237 |
Total assets | | 13,094,282 |
| | |
Liabilities | | |
Payable for investments purchased | $ 284,966 | |
Payable for fund shares redeemed | 7,566 | |
Accrued management fee | 6,454 | |
Other affiliated payables | 1,417 | |
Other payables and accrued expenses | 231 | |
Collateral on securities loaned, at value | 526,186 | |
Total liabilities | | 826,820 |
| | |
Net Assets | | $ 12,267,462 |
Net Assets consist of: | | |
Paid in capital | | $ 9,582,671 |
Accumulated net investment loss | | (9,173) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 135,263 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,558,701 |
Net Assets | | $ 12,267,462 |
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, 2015 (Unaudited) |
| | |
OTC:
Net Asset Value, offering price and redemption price per share ($8,628,414 ÷ 108,568 shares) | | $ 79.47 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($3,639,048 ÷ 45,352 shares) | | $ 80.24 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $244 earned from other affiliated issuers) | | $ 30,107 |
Income from Fidelity Central Funds (including $2,845 from security lending) | | 2,869 |
Total income | | 32,976 |
| | |
Expenses | | |
Management fee
Basic fee | $ 34,813 | |
Performance adjustment | (1,310) | |
Transfer agent fees | 7,604 | |
Accounting and security lending fees | 728 | |
Custodian fees and expenses | 107 | |
Independent trustees' compensation | 25 | |
Registration fees | 113 | |
Audit | 35 | |
Legal | 29 | |
Interest | 2 | |
Miscellaneous | 30 | |
Total expenses before reductions | 42,176 | |
Expense reductions | (169) | 42,007 |
Net investment income (loss) | | (9,031) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 706,488 | |
Other affiliated issuers | (1,723) | |
Foreign currency transactions | (29) | |
Total net realized gain (loss) | | 704,736 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 477,724 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | | 477,723 |
Net gain (loss) | | 1,182,459 |
Net increase (decrease) in net assets resulting from operations | | $ 1,173,428 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (9,031) | $ (4,591) |
Net realized gain (loss) | 704,736 | 1,439,912 |
Change in net unrealized appreciation (depreciation) | 477,723 | 164,549 |
Net increase (decrease) in net assets resulting
from operations | 1,173,428 | 1,599,870 |
Distributions to shareholders from net investment income | - | (7,143) |
Distributions to shareholders from net realized gain | (1,408,891) | (1,239,587) |
Total distributions | (1,408,891) | (1,246,730) |
Share transactions - net increase (decrease) | 1,727,101 | 1,469,555 |
Total increase (decrease) in net assets | 1,491,638 | 1,822,695 |
| | |
Net Assets | | |
Beginning of period | 10,775,824 | 8,953,129 |
End of period (including accumulated net investment loss of $9,173 and accumulated net investment loss of $142, respectively) | $ 12,267,462 | $ 10,775,824 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 81.23 | $ 78.98 | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.08) | (.06) | .36 G | (.08) H | (.27) | (.23) |
Net realized and unrealized gain (loss) | 8.60 | 12.78 | 21.37 | (1.67) | 14.55 | 6.50 |
Total from investment operations | 8.52 | 12.72 | 21.73 | (1.75) | 14.28 | 6.27 |
Distributions from net investment income | - | (.05) | (.28) | - | - | - |
Distributions from net realized gain | (10.28) | (10.42) | - | - | - | - |
Total distributions | (10.28) | (10.47) | (.28) | - | - | - |
Net asset value, end of period | $ 79.47 | $ 81.23 | $ 78.98 | $ 57.53 | $ 59.28 | $ 45.00 |
Total ReturnB, C | 10.86% | 17.96% | 37.93% | (2.95)% | 31.73% | 16.19% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | .76% A | .77% | .76% | .91% | .94% | 1.06% |
Expenses net of fee waivers, if any | .76% A | .77% | .76% | .91% | .94% | 1.06% |
Expenses net of all reductions | .76% A | .76% | .74% | .90% | .92% | 1.04% |
Net investment income (loss) | (.19)% A | (.08)% | .55%G | (.14)%H | (.49)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 8,628 | $ 7,870 | $ 6,693 | $ 5,499 | $ 6,374 | $ 5,080 |
Portfolio turnover rateF | 74% A | 106% | 116% | 149% | 158% | 163% |
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 .40%.
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
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 81.96 | $ 79.60 | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | .04 | .45H | -I,K | (.19) | (.16) |
Net realized and unrealized gain (loss) | 8.68 | 12.87 | 21.53 | (1.67) | 14.61 | 6.52 |
Total from investment operations | 8.65 | 12.91 | 21.98 | (1.67) | 14.42 | 6.36 |
Distributions from net investment income | - | (.10) | (.32) | - | - | - |
Distributions from net realized gain | (10.37) | (10.46) | - | - | - | - |
Total distributions | (10.37) | (10.55) L | (.32) | - | - | - |
Net asset value, end of period | $ 80.24 | $ 81.96 | $ 79.60 | $ 57.94 | $ 59.61 | $ 45.19 |
Total ReturnB, C | 10.94% | 18.10% | 38.11% | (2.80)% | 31.91% | 16.38% |
Ratios to Average Net Assets E, J | | | | | |
Expenses before reductions | .64% A | .65% | .62% | .77% | .80% | .90% |
Expenses net of fee waivers, if any | .64% A | .65% | .62% | .77% | .80% | .90% |
Expenses net of all reductions | .64% A | .64% | .60% | .76% | .78% | .88% |
Net investment income (loss) | (.07)% A | .05% | .69% H | -%G,I | (.35)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 3,639 | $ 2,906 | $ 2,260 | $ 1,644 | $ 1,363 | $ 936 |
Portfolio turnover rateF | 74% A | 106% | 116% | 149% | 158% | 163% |
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 .53%.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 $10.55 per share is comprised of distributions from net investment income of $.098 and distributions from net realized gain of $10.456 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, 2015 (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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 01/31/2015 (000s) | Valuation
Technique(s) | Unobservable
Input | Amount or Range/Weighted Average | Impact to
Valuation from
an Increase
in Input* |
Equities | $242,857 | Last transaction price | Transaction price | $2.70 - $77.46 / $23.63 | Increase |
| | Market comparable | Discount rate | 10.0% - 20.0% / 15.9% | Decrease |
| | | EV/Sales multiple | 1.5 - 10.7 / 3.7 | Increase |
| | | Discount for lack of marketability | 30.0% | Decrease |
| | | Premium rate | 10.0% | Increase |
| | Tender offer | Tender offer price | $19.10 | Increase |
* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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, 2015, 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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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
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
realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,230,538 |
Gross unrealized depreciation | (721,222) |
Net unrealized appreciation (depreciation) on securities | $ 2,509,316 |
| |
Tax cost | $ 10,355,375 |
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 June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,649,643 and $4,326,366, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Nasdaq Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
OTC | $ 6,820 | .17 |
Class K | 784 | .05 |
| $ 7,604 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $104 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 or other affiliated entities of 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
Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 11,113 | .34% | $ 2 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,658. 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 $110 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $164 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain OTC expenses during the period in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
OTC | $ - | $ 4,344 |
Class K | - | 2,799 |
Total | $ - | $ 7,143 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders - continued
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
OTC | $ 1,012,326 | $ 926,740 |
Class K | 396,565 | 312,847 |
Total | $ 1,408,891 | $ 1,239,587 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 | Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
OTC | | | | |
Shares sold | 11,524 | 26,717 | $ 924,899 | $ 2,114,409 |
Reinvestment of distributions | 12,406 | 12,308 | 984,998 | 905,081 |
Shares redeemed | (12,245) | (26,885) | (959,908) | (2,095,020) |
Net increase (decrease) | 11,685 | 12,140 | $ 949,989 | $ 924,470 |
Class K | | | | |
Shares sold | 10,338 | 11,495 | $ 816,336 | $ 915,992 |
Reinvestment of distributions | 4,953 | 4,258 | 396,565 | 315,646 |
Shares redeemed | (5,394) | (8,692) | (435,789) | (686,553) |
Net increase (decrease) | 9,897 | 7,061 | $ 777,112 | $ 545,085 |
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) 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
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., Boston, MA 02210
www.fidelity.com
OTC-USAN-0315
1.789288.112
Fidelity®
OTC
Portfolio -
Class K
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
OTC | .76% | | | |
Actual | | $ 1,000.00 | $ 1,108.60 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class K | .64% | | | |
Actual | | $ 1,000.00 | $ 1,109.40 | $ 3.40 |
HypotheticalA | | $ 1,000.00 | $ 1,021.98 | $ 3.26 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 10.4 | 10.5 |
Amazon.com, Inc. | 5.8 | 4.5 |
Google, Inc. Class C | 4.3 | 4.3 |
Google, Inc. Class A | 4.2 | 4.5 |
Groupon, Inc. Class A | 3.9 | 3.7 |
Rackspace Hosting, Inc. | 3.5 | 2.7 |
athenahealth, Inc. | 2.7 | 2.7 |
Facebook, Inc. Class A | 2.7 | 3.1 |
Gilead Sciences, Inc. | 2.3 | 2.9 |
Activision Blizzard, Inc. | 2.2 | 2.5 |
| 42.0 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 49.9 | 52.1 |
Health Care | 20.8 | 20.1 |
Consumer Discretionary | 17.5 | 15.3 |
Consumer Staples | 3.6 | 4.6 |
Industrials | 3.1 | 2.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 98.1% | | | Stocks 98.9% | |
| Convertible
Securities 1.9% | | | Convertible
Securities 0.9% | |
| Short-Term
Investments and
Net Other Assets
(Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.2% | |
* Foreign investments | 12.4% | | ** Foreign investments | 5.6% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 17.2% |
Automobiles - 1.5% |
Tesla Motors, Inc. (a)(d) | 868,699 | | $ 176,867 |
Volkswagen AG sponsored ADR | 132,100 | | 5,892 |
| | 182,759 |
Hotels, Restaurants & Leisure - 1.4% |
Intrawest Resorts Holdings, Inc. | 764,235 | | 7,719 |
Panera Bread Co. Class A (a) | 540,500 | | 92,890 |
Shake Shack, Inc. Class A | 4,300 | | 197 |
Starbucks Corp. | 664,410 | | 58,156 |
Vail Resorts, Inc. | 89,900 | | 7,890 |
Wynn Resorts Ltd. | 6,215 | | 920 |
| | 167,772 |
Internet & Catalog Retail - 12.6% |
Amazon.com, Inc. (a) | 2,007,898 | | 711,860 |
ASOS PLC ADR (a) | 4,946,252 | | 205,037 |
Groupon, Inc. Class A (a)(d)(e) | 66,933,381 | | 479,243 |
Wayfair LLC: | | | |
Class A (d) | 1,850,500 | | 36,196 |
Class B | 381,300 | | 6,712 |
zulily, Inc. Class A (a)(d) | 5,806,318 | | 107,417 |
| | 1,546,465 |
Media - 0.6% |
Charter Communications, Inc. Class A (a) | 340,400 | | 51,440 |
Liberty Global PLC Class A (a) | 491,800 | | 22,977 |
| | 74,417 |
Specialty Retail - 0.4% |
Ross Stores, Inc. | 526,700 | | 48,304 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 43,215 | | 5,702 |
| | 54,006 |
Textiles, Apparel & Luxury Goods - 0.7% |
adidas AG sponsored ADR | 29,400 | | 1,015 |
lululemon athletica, Inc. (a) | 546,046 | | 36,170 |
LVMH Moet Hennessy - Louis Vuitton SA ADR | 1,330,800 | | 42,865 |
NIKE, Inc. Class B | 400 | | 37 |
| | 80,087 |
TOTAL CONSUMER DISCRETIONARY | | 2,105,506 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 3.6% |
Beverages - 0.4% |
Monster Beverage Corp. (a) | 385,100 | | $ 45,037 |
Food & Staples Retailing - 1.7% |
Costco Wholesale Corp. | 1,292,050 | | 184,750 |
Sprouts Farmers Market LLC (a) | 876,600 | | 31,917 |
| | 216,667 |
Food Products - 1.5% |
Danone SA sponsored ADR | 3,721,723 | | 50,094 |
Diamond Foods, Inc. (a) | 10,595 | | 260 |
Keurig Green Mountain, Inc. | 632,117 | | 77,472 |
Mondelez International, Inc. | 1,518,400 | | 53,508 |
| | 181,334 |
TOTAL CONSUMER STAPLES | | 443,038 |
ENERGY - 0.4% |
Energy Equipment & Services - 0.1% |
Oceaneering International, Inc. | 327,800 | | 17,164 |
Oil, Gas & Consumable Fuels - 0.3% |
Diamondback Energy, Inc. (a) | 85,700 | | 5,912 |
EOG Resources, Inc. | 116,000 | | 10,327 |
Noble Energy, Inc. | 355,700 | | 16,981 |
| | 33,220 |
TOTAL ENERGY | | 50,384 |
FINANCIALS - 2.9% |
Banks - 1.7% |
Bank of America Corp. | 2,179,100 | | 33,013 |
Citigroup, Inc. | 625,700 | | 29,377 |
Commerce Bancshares, Inc. | 785,295 | | 31,412 |
JPMorgan Chase & Co. | 513,400 | | 27,919 |
Signature Bank (a) | 265,300 | | 31,075 |
UMB Financial Corp. | 558,800 | | 27,113 |
Wells Fargo & Co. | 625,000 | | 32,450 |
| | 212,359 |
Capital Markets - 0.2% |
Carlyle Group LP | 630,500 | | 16,582 |
Northern Trust Corp. | 185,600 | | 12,135 |
| | 28,717 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Consumer Finance - 1.0% |
American Express Co. | 733,300 | | $ 59,170 |
Capital One Financial Corp. | 761,000 | | 55,713 |
| | 114,883 |
TOTAL FINANCIALS | | 355,959 |
HEALTH CARE - 20.7% |
Biotechnology - 15.0% |
Acceleron Pharma, Inc. (a) | 167,000 | | 6,591 |
Alexion Pharmaceuticals, Inc. (a) | 707,789 | | 129,695 |
Alkermes PLC (a) | 865,236 | | 62,513 |
Alnylam Pharmaceuticals, Inc. (a) | 141,500 | | 13,277 |
Amgen, Inc. | 89,200 | | 13,582 |
Array BioPharma, Inc. (a) | 4,200,423 | | 30,075 |
Auspex Pharmaceuticals, Inc. | 488,600 | | 30,024 |
Avalanche Biotechnologies, Inc. (a) | 265,599 | | 10,539 |
Avalanche Biotechnologies, Inc. (f) | 700,821 | | 27,809 |
BioCryst Pharmaceuticals, Inc. (a) | 1,582,464 | | 16,109 |
Biogen Idec, Inc. (a) | 178,500 | | 69,465 |
BioMarin Pharmaceutical, Inc. (a) | 1,220,756 | | 118,609 |
Celldex Therapeutics, Inc. (a)(d) | 1,255,985 | | 26,903 |
Clovis Oncology, Inc. (a)(d) | 701,976 | | 45,762 |
Dicerna Pharmaceuticals, Inc. (d) | 253,207 | | 5,398 |
Foundation Medicine, Inc. (a)(d)(e) | 1,706,798 | | 81,346 |
Genocea Biosciences, Inc. | 686,570 | | 5,891 |
Gilead Sciences, Inc. (a) | 2,706,199 | | 283,691 |
Intercept Pharmaceuticals, Inc. (a) | 285,819 | | 57,458 |
Ironwood Pharmaceuticals, Inc. Class A (a) | 3,220,042 | | 50,168 |
Isis Pharmaceuticals, Inc. (a) | 46,249 | | 3,169 |
Juno Therapeutics, Inc. (d) | 66,332 | | 2,836 |
KYTHERA Biopharmaceuticals, Inc. (a)(d)(e) | 1,257,482 | | 46,778 |
Lion Biotechnologies, Inc. (a)(d)(e) | 2,613,600 | | 20,517 |
Medivation, Inc. (a) | 775,904 | | 84,434 |
NPS Pharmaceuticals, Inc. (a) | 422,700 | | 19,385 |
Ophthotech Corp. (a)(d) | 898,400 | | 50,535 |
Otonomy, Inc. | 208,938 | | 6,101 |
OvaScience, Inc. (a)(d) | 901,695 | | 39,188 |
Pharmacyclics, Inc. (a) | 145,800 | | 24,604 |
Portola Pharmaceuticals, Inc. (a)(e) | 2,884,007 | | 81,992 |
PTC Therapeutics, Inc. (a)(e) | 1,959,289 | | 107,585 |
Puma Biotechnology, Inc. (a)(d) | 411,804 | | 86,924 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Seattle Genetics, Inc. (a)(d) | 1,401,386 | | $ 43,667 |
Spark Therapeutics, Inc. | 11,600 | | 580 |
Synageva BioPharma Corp. (a) | 880,783 | | 101,484 |
Ultragenyx Pharmaceutical, Inc. | 257,996 | | 14,990 |
uniQure B.V. | 192,200 | | 4,036 |
Versartis, Inc. (a)(d) | 517,200 | | 9,170 |
XOMA Corp. (a)(d) | 1,521,913 | | 5,418 |
| | 1,838,298 |
Health Care Equipment & Supplies - 0.9% |
Accuray, Inc. (a)(d) | 2,427,800 | | 17,893 |
HeartWare International, Inc. (a) | 22,700 | | 1,896 |
IDEXX Laboratories, Inc. (a) | 207,002 | | 32,793 |
Novadaq Technologies, Inc. (a) | 4,659,873 | | 66,310 |
| | 118,892 |
Health Care Providers & Services - 0.5% |
Accretive Health, Inc. (a)(d)(e) | 9,842,302 | | 57,577 |
Health Care Technology - 2.9% |
athenahealth, Inc. (a)(d)(e) | 2,369,183 | | 330,999 |
Castlight Health, Inc. Class B (a) | 65,400 | | 581 |
Veeva Systems, Inc. Class A (a)(d) | 1,041,100 | | 29,942 |
| | 361,522 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 177,300 | | 34,607 |
Pharmaceuticals - 1.1% |
Achaogen, Inc. (a) | 847,200 | | 9,912 |
Flex Pharma, Inc. | 108,800 | | 1,604 |
GW Pharmaceuticals PLC ADR (a)(d) | 130,327 | | 9,510 |
Intra-Cellular Therapies, Inc. (a) | 263,900 | | 5,125 |
Jazz Pharmaceuticals PLC (a) | 137,000 | | 23,200 |
Relypsa, Inc. (a) | 368,800 | | 12,956 |
Roche Holding AG sponsored ADR | 32,300 | | 1,090 |
Shire PLC sponsored ADR | 293,800 | | 64,419 |
Theravance, Inc. (d) | 326,579 | | 3,681 |
| | 131,497 |
TOTAL HEALTH CARE | | 2,542,393 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - 3.1% |
Airlines - 1.7% |
American Airlines Group, Inc. | 4,350,300 | | $ 213,513 |
Commercial Services & Supplies - 0.2% |
Stericycle, Inc. (a) | 147,000 | | 19,300 |
Electrical Equipment - 0.6% |
SolarCity Corp. (a)(d) | 1,394,048 | | 67,765 |
Professional Services - 0.3% |
Verisk Analytics, Inc. (a) | 533,100 | | 34,305 |
Road & Rail - 0.3% |
J.B. Hunt Transport Services, Inc. | 456,980 | | 36,380 |
TOTAL INDUSTRIALS | | 371,263 |
INFORMATION TECHNOLOGY - 48.7% |
Communications Equipment - 1.5% |
Cisco Systems, Inc. | 2,745,200 | | 72,377 |
QUALCOMM, Inc. | 1,857,553 | | 116,023 |
| | 188,400 |
Electronic Equipment & Components - 1.0% |
Trimble Navigation Ltd. (a) | 5,114,700 | | 121,934 |
Internet Software & Services - 20.5% |
58.com, Inc. ADR (a) | 30,800 | | 1,185 |
Alibaba Group Holding Ltd. sponsored ADR | 443,200 | | 39,480 |
Baidu.com, Inc. sponsored ADR (a) | 390,400 | | 85,076 |
Benefitfocus, Inc. (a)(d) | 3,400 | | 82 |
Constant Contact, Inc. (a) | 724,436 | | 27,398 |
Cornerstone OnDemand, Inc. (a)(d) | 1,724,882 | | 56,835 |
Criteo SA sponsored ADR (a) | 5,294,771 | | 206,231 |
Cvent, Inc. (a) | 176,200 | | 4,401 |
Demandware, Inc. (a) | 94,100 | | 5,040 |
Dropbox, Inc. (a)(g) | 331,524 | | 6,332 |
E2open, Inc. (a)(d) | 1,152,491 | | 6,788 |
Facebook, Inc. Class A (a) | 4,325,738 | | 328,367 |
Google, Inc.: | | | |
Class A (a) | 963,527 | | 517,944 |
Class C (a) | 994,377 | | 531,514 |
Hortonworks, Inc. | 20,800 | | 441 |
LendingClub Corp. | 89,900 | | 1,687 |
Marketo, Inc. (a)(d) | 2,011,478 | | 69,255 |
New Relic, Inc. | 12,500 | | 388 |
Opower, Inc. (d) | 800,048 | | 9,129 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Rackspace Hosting, Inc. (a)(e) | 9,689,146 | | $ 435,624 |
Textura Corp. (a) | 600 | | 15 |
Twitter, Inc. (a) | 1,017,300 | | 38,179 |
Wix.com Ltd. (a)(d) | 364,405 | | 7,208 |
Yahoo!, Inc. (a) | 1,916,500 | | 84,307 |
Yelp, Inc. (a)(d) | 928,800 | | 48,734 |
| | 2,511,640 |
Semiconductors & Semiconductor Equipment - 3.2% |
Analog Devices, Inc. | 233,400 | | 12,161 |
Applied Micro Circuits Corp. (a) | 457,650 | | 2,403 |
Cirrus Logic, Inc. (a) | 568,931 | | 15,077 |
Cree, Inc. (a)(d) | 1,408,400 | | 49,801 |
Cypress Semiconductor Corp. | 427,900 | | 6,303 |
Marvell Technology Group Ltd. | 2,168,300 | | 33,587 |
Micron Technology, Inc. (a) | 2,863,400 | | 83,797 |
NVE Corp. | 116,306 | | 7,689 |
NVIDIA Corp. | 7,942,361 | | 152,533 |
Xilinx, Inc. | 592,100 | | 22,840 |
| | 386,191 |
Software - 11.4% |
Activision Blizzard, Inc. | 12,809,484 | | 267,654 |
CommVault Systems, Inc. (a) | 1,767,267 | | 77,017 |
Fleetmatics Group PLC (a) | 534,349 | | 18,921 |
GameLoft SE (a)(e) | 7,764,787 | | 25,884 |
Interactive Intelligence Group, Inc. (a) | 222,187 | | 9,012 |
Microsoft Corp. | 6,170,939 | | 249,306 |
NetSuite, Inc. (a)(d) | 151,300 | | 14,892 |
salesforce.com, Inc. (a) | 2,217,020 | | 125,151 |
SAP AG sponsored ADR (d) | 3,581,500 | | 234,087 |
Synchronoss Technologies, Inc. (a)(e) | 3,693,807 | | 156,876 |
Tableau Software, Inc. (a) | 12,300 | | 993 |
Ubisoft Entertainment SA (a)(e) | 10,702,456 | | 216,358 |
Xero Ltd. (a)(g) | 661,157 | | 7,523 |
| | 1,403,674 |
Technology Hardware, Storage & Peripherals - 11.1% |
Apple, Inc. | 10,891,020 | | 1,275,993 |
Electronics for Imaging, Inc. (a) | 287,923 | | 11,128 |
Nimble Storage, Inc. (a)(d) | 719,744 | | 16,144 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Technology Hardware, Storage & Peripherals - continued |
SanDisk Corp. | 691,400 | | $ 52,484 |
Silicon Graphics International Corp. (a) | 1,774 | | 17 |
| | 1,355,766 |
TOTAL INFORMATION TECHNOLOGY | | 5,967,605 |
MATERIALS - 0.6% |
Chemicals - 0.3% |
Monsanto Co. | 333,800 | | 39,382 |
Metals & Mining - 0.3% |
Anglo American PLC ADR | 4,430,000 | | 37,168 |
TOTAL MATERIALS | | 76,550 |
TELECOMMUNICATION SERVICES - 0.9% |
Diversified Telecommunication Services - 0.6% |
Cogent Communications Group, Inc. | 265,500 | | 9,839 |
Level 3 Communications, Inc. (a) | 1,250,747 | | 62,212 |
| | 72,051 |
Wireless Telecommunication Services - 0.3% |
Vodafone Group PLC sponsored ADR | 1,179,100 | | 41,422 |
TOTAL TELECOMMUNICATION SERVICES | | 113,473 |
TOTAL COMMON STOCKS (Cost $9,522,393) |
12,026,171
|
Convertible Preferred Stocks - 1.9% |
| | | |
CONSUMER DISCRETIONARY - 0.3% |
Household Durables - 0.2% |
Roku, Inc.: | | | |
Series F, 8.00% (a)(g) | 16,562,507 | | 20,372 |
Series G, 8.00% (g) | 3,185,945 | | 3,919 |
| | 24,291 |
Internet & Catalog Retail - 0.0% |
One Kings Lane, Inc. Series E (g) | 648,635 | | 3,970 |
Convertible Preferred Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - 0.1% |
Turn, Inc. Series E (a)(g) | 1,199,041 | | $ 8,801 |
TOTAL CONSUMER DISCRETIONARY | | 37,062 |
FINANCIALS - 0.2% |
Real Estate Management & Development - 0.2% |
Redfin Corp. Series G (g) | 6,064,833 | | 20,000 |
HEALTH CARE - 0.1% |
Biotechnology - 0.1% |
Aduro Biotech, Inc. Series D (g) | 2,692,455 | | 7,277 |
INDUSTRIALS - 0.0% |
Aerospace & Defense - 0.0% |
Space Exploration Technologies Corp. Series G (g) | 62,037 | | 4,805 |
INFORMATION TECHNOLOGY - 1.2% |
Internet Software & Services - 0.6% |
Uber Technologies, Inc. Series D, 8.00% (g) | 2,256,164 | | 75,170 |
Uber Technologies, Inc. Series E, 8.00% (g) | 150,072 | | 5,000 |
| | 80,170 |
IT Services - 0.4% |
AppNexus, Inc. Series E (g) | 1,416,796 | | 40,237 |
Nutanix, Inc. Series E (g) | 311,503 | | 4,271 |
| | 44,508 |
Software - 0.2% |
Cloudera, Inc. Series F (g) | 126,709 | | 2,471 |
Cloudflare, Inc. Series D (g) | 395,787 | | 2,424 |
Taboola.Com Ltd. Series E (g) | 1,918,392 | | 20,000 |
| | 24,895 |
Technology Hardware, Storage & Peripherals - 0.0% |
Pure Storage, Inc. Series E (a)(g) | 184,982 | | 2,808 |
TOTAL INFORMATION TECHNOLOGY | | 152,381 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
Altiostar Networks, Inc. Series D (g) | 1,220,504 | | 15,000 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $181,572) |
236,525
|
Money Market Funds - 4.9% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 75,809,389 | | $ 75,809 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 526,186,171 | | 526,186 |
TOTAL MONEY MARKET FUNDS (Cost $601,995) |
601,995
|
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $10,305,960) | 12,864,691 |
NET OTHER ASSETS (LIABILITIES) - (4.9)% | | (597,229) |
NET ASSETS - 100% | $ 12,267,462 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $27,809,000 or 0.2% 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 $250,380,000 or 2.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Aduro Biotech, Inc. Series D | 12/19/14 | $ 7,277 |
Altiostar Networks, Inc. Series D | 1/7/15 | $ 15,000 |
AppNexus, Inc. Series E | 8/1/14 - 9/17/14 | $ 28,382 |
Cloudera, Inc. Series F | 2/5/14 | $ 1,845 |
Cloudflare, Inc. Series D | 11/5/14 | $ 2,424 |
Dropbox, Inc. | 5/2/12 | $ 3,000 |
Nutanix, Inc. Series E | 8/26/14 | $ 4,173 |
One Kings Lane, Inc. Series E | 1/29/14 | $ 10,000 |
Security | Acquisition Date | Acquisition Cost (000s) |
Pure Storage, Inc. Series E | 8/22/13 | $ 1,282 |
Redfin Corp. Series G | 12/16/14 | $ 20,000 |
Roku, Inc. 8.00% | 5/7/13 | $ 15,000 |
Roku, Inc. Series G, 8.00% | 10/1/14 | $ 4,140 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $ 4,805 |
Taboola.Com Ltd. Series E | 12/22/14 | $ 20,000 |
Turn, Inc. Series E | 12/30/13 | $ 10,000 |
Uber Technologies, Inc. | 12/5/14 | $ 5,000 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 35,000 |
Xero Ltd. | 10/14/13 | $ 10,054 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in
thousands) |
Fidelity Cash Central Fund | $ 24 |
Fidelity Securities Lending Cash Central Fund | 2,845 |
Total | $ 2,869 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Accretive Health, Inc. | $ 82,872 | $ - | $ - | $ - | $ 57,577 |
ASOS PLC | - | 162,163 | 180,696 | - | - |
ASOS PLC ADR | - | 187,227 | - | - | 205,037 |
athenahealth, Inc. | 294,726 | - | - | - | 330,999 |
CommVault Systems, Inc. | 159,387 | 5,572 | 82,116 | - | - |
Criteo SA sponsored ADR | - | 181,467 | 3,134 | - | 206,231 |
E2open, Inc. | 25,119 | - | 4,307 | - | - |
Foundation Medicine, Inc. | 35,879 | 11,036 | 22,177 | - | 81,346 |
GameLoft SE | 49,492 | - | - | - | 25,884 |
Groupon, Inc. Class A | 390,059 | 39,856 | - | - | 479,243 |
KYTHERA Biopharmaceuticals, Inc. | 42,226 | - | - | - | 46,778 |
Lion Biotechnologies, Inc. | 12,870 | 5,175 | 585 | - | 20,517 |
Marketo, Inc. | 56,923 | - | 2,249 | - | - |
Novadaq Technologies, Inc. | 38,683 | 27,409 | - | - | 66,310 |
NVE Corp. | 17,620 | - | 10,456 | 244 | - |
Portola Pharmaceuticals, Inc. | 58,747 | 14,580 | - | - | 81,992 |
PTC Therapeutics, Inc. | 55,466 | 2,229 | 8,514 | - | 107,585 |
Rackspace Hosting, Inc. | 293,484 | - | - | - | 435,624 |
Synchronoss Technologies, Inc. | 165,112 | - | 19,125 | - | 156,876 |
Ubisoft Entertainment SA | 169,602 | 9,886 | - | - | 216,358 |
Total | $ 1,948,267 | $ 646,600 | $ 333,359 | $ 244 | $ 2,518,357 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 2,142,568 | $ 2,098,794 | $ 6,712 | $ 37,062 |
Consumer Staples | 443,038 | 443,038 | - | - |
Energy | 50,384 | 50,384 | - | - |
Financials | 375,959 | 355,959 | - | 20,000 |
Health Care | 2,549,670 | 2,542,393 | - | 7,277 |
Industrials | 376,068 | 371,263 | - | 4,805 |
Information Technology | 6,119,986 | 5,961,273 | - | 158,713 |
Materials | 76,550 | 76,550 | - | - |
Telecommunication Services | 128,473 | 113,473 | - | 15,000 |
Money Market Funds | 601,995 | 601,995 | - | - |
Total Investments in Securities: | $ 12,864,691 | $ 12,615,122 | $ 6,712 | $ 242,857 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $ 45,831 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 52,903 |
Cost of Purchases | 59,979 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 158,713 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 52,903 |
Other Investments in Securities | |
Beginning Balance | $ 47,700 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | (4,778) |
Cost of Purchases | 51,222 |
Proceeds of Sales | (10,000) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 84,144 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ (4,778) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.6% |
France | 4.5% |
United Kingdom | 2.6% |
Germany | 2.0% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 2.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $506,675) - See accompanying schedule: Unaffiliated issuers (cost $7,489,478) | $ 9,744,339 | |
Fidelity Central Funds (cost $601,995) | 601,995 | |
Other affiliated issuers (cost $2,214,487) | 2,518,357 | |
Total Investments (cost $10,305,960) | | $ 12,864,691 |
Receivable for investments sold | | 213,170 |
Receivable for fund shares sold | | 14,409 |
Dividends receivable | | 1,191 |
Distributions receivable from Fidelity Central Funds | | 563 |
Prepaid expenses | | 21 |
Other receivables | | 237 |
Total assets | | 13,094,282 |
| | |
Liabilities | | |
Payable for investments purchased | $ 284,966 | |
Payable for fund shares redeemed | 7,566 | |
Accrued management fee | 6,454 | |
Other affiliated payables | 1,417 | |
Other payables and accrued expenses | 231 | |
Collateral on securities loaned, at value | 526,186 | |
Total liabilities | | 826,820 |
| | |
Net Assets | | $ 12,267,462 |
Net Assets consist of: | | |
Paid in capital | | $ 9,582,671 |
Accumulated net investment loss | | (9,173) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 135,263 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,558,701 |
Net Assets | | $ 12,267,462 |
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, 2015 (Unaudited) |
| | |
OTC:
Net Asset Value, offering price and redemption price per share ($8,628,414 ÷ 108,568 shares) | | $ 79.47 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($3,639,048 ÷ 45,352 shares) | | $ 80.24 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $244 earned from other affiliated issuers) | | $ 30,107 |
Income from Fidelity Central Funds (including $2,845 from security lending) | | 2,869 |
Total income | | 32,976 |
| | |
Expenses | | |
Management fee
Basic fee | $ 34,813 | |
Performance adjustment | (1,310) | |
Transfer agent fees | 7,604 | |
Accounting and security lending fees | 728 | |
Custodian fees and expenses | 107 | |
Independent trustees' compensation | 25 | |
Registration fees | 113 | |
Audit | 35 | |
Legal | 29 | |
Interest | 2 | |
Miscellaneous | 30 | |
Total expenses before reductions | 42,176 | |
Expense reductions | (169) | 42,007 |
Net investment income (loss) | | (9,031) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 706,488 | |
Other affiliated issuers | (1,723) | |
Foreign currency transactions | (29) | |
Total net realized gain (loss) | | 704,736 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 477,724 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | | 477,723 |
Net gain (loss) | | 1,182,459 |
Net increase (decrease) in net assets resulting from operations | | $ 1,173,428 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
January 31, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (9,031) | $ (4,591) |
Net realized gain (loss) | 704,736 | 1,439,912 |
Change in net unrealized appreciation (depreciation) | 477,723 | 164,549 |
Net increase (decrease) in net assets resulting
from operations | 1,173,428 | 1,599,870 |
Distributions to shareholders from net investment income | - | (7,143) |
Distributions to shareholders from net realized gain | (1,408,891) | (1,239,587) |
Total distributions | (1,408,891) | (1,246,730) |
Share transactions - net increase (decrease) | 1,727,101 | 1,469,555 |
Total increase (decrease) in net assets | 1,491,638 | 1,822,695 |
| | |
Net Assets | | |
Beginning of period | 10,775,824 | 8,953,129 |
End of period (including accumulated net investment loss of $9,173 and accumulated net investment loss of $142, respectively) | $ 12,267,462 | $ 10,775,824 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - OTC
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 81.23 | $ 78.98 | $ 57.53 | $ 59.28 | $ 45.00 | $ 38.73 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.08) | (.06) | .36 G | (.08) H | (.27) | (.23) |
Net realized and unrealized gain (loss) | 8.60 | 12.78 | 21.37 | (1.67) | 14.55 | 6.50 |
Total from investment operations | 8.52 | 12.72 | 21.73 | (1.75) | 14.28 | 6.27 |
Distributions from net investment income | - | (.05) | (.28) | - | - | - |
Distributions from net realized gain | (10.28) | (10.42) | - | - | - | - |
Total distributions | (10.28) | (10.47) | (.28) | - | - | - |
Net asset value, end of period | $ 79.47 | $ 81.23 | $ 78.98 | $ 57.53 | $ 59.28 | $ 45.00 |
Total ReturnB, C | 10.86% | 17.96% | 37.93% | (2.95)% | 31.73% | 16.19% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | .76% A | .77% | .76% | .91% | .94% | 1.06% |
Expenses net of fee waivers, if any | .76% A | .77% | .76% | .91% | .94% | 1.06% |
Expenses net of all reductions | .76% A | .76% | .74% | .90% | .92% | 1.04% |
Net investment income (loss) | (.19)% A | (.08)% | .55%G | (.14)%H | (.49)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 8,628 | $ 7,870 | $ 6,693 | $ 5,499 | $ 6,374 | $ 5,080 |
Portfolio turnover rateF | 74% A | 106% | 116% | 149% | 158% | 163% |
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 .40%.
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
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 81.96 | $ 79.60 | $ 57.94 | $ 59.61 | $ 45.19 | $ 38.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | .04 | .45H | -I,K | (.19) | (.16) |
Net realized and unrealized gain (loss) | 8.68 | 12.87 | 21.53 | (1.67) | 14.61 | 6.52 |
Total from investment operations | 8.65 | 12.91 | 21.98 | (1.67) | 14.42 | 6.36 |
Distributions from net investment income | - | (.10) | (.32) | - | - | - |
Distributions from net realized gain | (10.37) | (10.46) | - | - | - | - |
Total distributions | (10.37) | (10.55) L | (.32) | - | - | - |
Net asset value, end of period | $ 80.24 | $ 81.96 | $ 79.60 | $ 57.94 | $ 59.61 | $ 45.19 |
Total ReturnB, C | 10.94% | 18.10% | 38.11% | (2.80)% | 31.91% | 16.38% |
Ratios to Average Net Assets E, J | | | | | |
Expenses before reductions | .64% A | .65% | .62% | .77% | .80% | .90% |
Expenses net of fee waivers, if any | .64% A | .65% | .62% | .77% | .80% | .90% |
Expenses net of all reductions | .64% A | .64% | .60% | .76% | .78% | .88% |
Net investment income (loss) | (.07)% A | .05% | .69% H | -%G,I | (.35)% | (.35)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 3,639 | $ 2,906 | $ 2,260 | $ 1,644 | $ 1,363 | $ 936 |
Portfolio turnover rateF | 74% A | 106% | 116% | 149% | 158% | 163% |
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 .53%.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 $10.55 per share is comprised of distributions from net investment income of $.098 and distributions from net realized gain of $10.456 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, 2015 (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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 01/31/2015 (000s) | Valuation
Technique(s) | Unobservable
Input | Amount or Range/Weighted Average | Impact to
Valuation from
an Increase
in Input* |
Equities | $242,857 | Last transaction price | Transaction price | $2.70 - $77.46 / $23.63 | Increase |
| | Market comparable | Discount rate | 10.0% - 20.0% / 15.9% | Decrease |
| | | EV/Sales multiple | 1.5 - 10.7 / 3.7 | Increase |
| | | Discount for lack of marketability | 30.0% | Decrease |
| | | Premium rate | 10.0% | Increase |
| | Tender offer | Tender offer price | $19.10 | Increase |
* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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, 2015, 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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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
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
realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 3,230,538 |
Gross unrealized depreciation | (721,222) |
Net unrealized appreciation (depreciation) on securities | $ 2,509,316 |
| |
Tax cost | $ 10,355,375 |
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 June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement - continued
reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,649,643 and $4,326,366, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Nasdaq Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
OTC | $ 6,820 | .17 |
Class K | 784 | .05 |
| $ 7,604 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $104 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 or other affiliated entities of 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
Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 11,113 | .34% | $ 2 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,658. 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 $110 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $164 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain OTC expenses during the period in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net investment income | | |
OTC | $ - | $ 4,344 |
Class K | - | 2,799 |
Total | $ - | $ 7,143 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders - continued
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 |
From net realized gain | | |
OTC | $ 1,012,326 | $ 926,740 |
Class K | 396,565 | 312,847 |
Total | $ 1,408,891 | $ 1,239,587 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 | Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
OTC | | | | |
Shares sold | 11,524 | 26,717 | $ 924,899 | $ 2,114,409 |
Reinvestment of distributions | 12,406 | 12,308 | 984,998 | 905,081 |
Shares redeemed | (12,245) | (26,885) | (959,908) | (2,095,020) |
Net increase (decrease) | 11,685 | 12,140 | $ 949,989 | $ 924,470 |
Class K | | | | |
Shares sold | 10,338 | 11,495 | $ 816,336 | $ 915,992 |
Reinvestment of distributions | 4,953 | 4,258 | 396,565 | 315,646 |
Shares redeemed | (5,394) | (8,692) | (435,789) | (686,553) |
Net increase (decrease) | 9,897 | 7,061 | $ 777,112 | $ 545,085 |
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) 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
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
OTC-K-USAN-0315
1.863312.106
Fidelity®
Growth & Income
Portfolio
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2015 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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Growth & Income | .64% | | | |
Actual | | $ 1,000.00 | $ 1,003.60 | $ 3.23 |
HypotheticalA | | $ 1,000.00 | $ 1,021.98 | $ 3.26 |
Class K | .52% | | | |
Actual | | $ 1,000.00 | $ 1,004.50 | $ 2.63 |
HypotheticalA | | $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 3.9 | 3.9 |
JPMorgan Chase & Co. | 3.9 | 4.0 |
General Electric Co. | 3.1 | 3.0 |
Microsoft Corp. | 2.9 | 3.2 |
Target Corp. | 2.4 | 2.0 |
Chevron Corp. | 2.3 | 2.8 |
Citigroup, Inc. | 2.2 | 2.2 |
Bank of America Corp. | 2.1 | 1.6 |
Procter & Gamble Co. | 2.1 | 1.8 |
Comcast Corp. Class A | 1.9 | 2.0 |
| 26.8 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.5 | 19.6 |
Information Technology | 20.0 | 19.9 |
Industrials | 13.1 | 11.5 |
Consumer Staples | 11.3 | 11.9 |
Consumer Discretionary | 10.6 | 10.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 98.9% | | | Stocks 98.8% | |
| Convertible
Securities 1.0% | | | Convertible
Securities 1.0% | |
 | Other Investments 0.1% | |  | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 0.2% | |
* Foreign investments | 12.5% | | ** Foreign investments | 12.9% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.6% |
Diversified Consumer Services - 0.4% |
H&R Block, Inc. | 891,907 | | $ 30,575 |
Hotels, Restaurants & Leisure - 1.8% |
Darden Restaurants, Inc. | 646,200 | | 39,664 |
Domino's Pizza, Inc. | 49,600 | | 4,913 |
Las Vegas Sands Corp. | 376,000 | | 20,443 |
McDonald's Corp. | 109,661 | | 10,137 |
Yum! Brands, Inc. | 811,244 | | 58,637 |
| | 133,794 |
Household Durables - 0.3% |
Tupperware Brands Corp. | 302,200 | | 20,432 |
Leisure Products - 0.0% |
Mattel, Inc. | 27,400 | | 737 |
Media - 3.9% |
Comcast Corp. Class A | 2,618,600 | | 139,165 |
Scripps Networks Interactive, Inc. Class A | 200,589 | | 14,260 |
Sinclair Broadcast Group, Inc. Class A (e) | 937,461 | | 23,193 |
Time Warner, Inc. | 1,064,017 | | 82,919 |
Viacom, Inc. Class B (non-vtg.) | 351,700 | | 22,657 |
| | 282,194 |
Multiline Retail - 2.4% |
Target Corp. | 2,388,075 | | 175,786 |
Specialty Retail - 1.7% |
Lowe's Companies, Inc. | 1,486,979 | | 100,758 |
Sally Beauty Holdings, Inc. (a) | 601,300 | | 18,688 |
TJX Companies, Inc. | 14,400 | | 950 |
| | 120,396 |
Textiles, Apparel & Luxury Goods - 0.1% |
adidas AG | 102,000 | | 7,053 |
TOTAL CONSUMER DISCRETIONARY | | 770,967 |
CONSUMER STAPLES - 11.3% |
Beverages - 3.2% |
Diageo PLC | 1,474,788 | | 43,655 |
Molson Coors Brewing Co. Class B | 78,200 | | 5,938 |
PepsiCo, Inc. | 475,814 | | 44,622 |
SABMiller PLC | 504,448 | | 27,547 |
The Coca-Cola Co. | 2,655,703 | | 109,335 |
| | 231,097 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 1.2% |
CVS Health Corp. | 572,104 | | $ 56,158 |
Walgreens Boots Alliance, Inc. | 453,084 | | 33,415 |
| | 89,573 |
Food Products - 0.3% |
Kellogg Co. | 363,154 | | 23,816 |
Household Products - 2.2% |
Procter & Gamble Co. | 1,808,415 | | 152,431 |
Svenska Cellulosa AB (SCA) (B Shares) | 280,091 | | 6,777 |
| | 159,208 |
Personal Products - 0.2% |
Estee Lauder Companies, Inc. Class A | 147,100 | | 10,384 |
Tobacco - 4.2% |
British American Tobacco PLC sponsored ADR | 883,523 | | 99,529 |
Lorillard, Inc. | 1,599,597 | | 104,950 |
Philip Morris International, Inc. | 762,971 | | 61,221 |
Reynolds American, Inc. | 626,400 | | 42,564 |
| | 308,264 |
TOTAL CONSUMER STAPLES | | 822,342 |
ENERGY - 9.1% |
Energy Equipment & Services - 1.1% |
Ensco PLC Class A | 698,223 | | 19,578 |
Helmerich & Payne, Inc. | 111,200 | | 6,623 |
Oceaneering International, Inc. | 433,700 | | 22,709 |
Schlumberger Ltd. | 343,932 | | 28,337 |
| | 77,247 |
Oil, Gas & Consumable Fuels - 8.0% |
Apache Corp. | 616,968 | | 38,604 |
BG Group PLC | 4,331,064 | | 57,767 |
Chevron Corp. | 1,619,296 | | 166,026 |
EQT Midstream Partners LP | 43,200 | | 3,666 |
Golar LNG Ltd. | 379,900 | | 10,774 |
Imperial Oil Ltd. | 1,122,000 | | 41,712 |
Kinder Morgan Holding Co. LLC | 532,000 | | 21,839 |
Markwest Energy Partners LP | 994,182 | | 58,587 |
Peabody Energy Corp. (e) | 358,900 | | 2,236 |
PrairieSky Royalty Ltd. (e) | 466,000 | | 10,037 |
Suncor Energy, Inc. | 3,657,350 | | 109,084 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
The Williams Companies, Inc. | 1,267,572 | | $ 55,596 |
Western Gas Partners LP | 75,700 | | 5,342 |
Williams Partners LP | 102,900 | | 4,364 |
| | 585,634 |
TOTAL ENERGY | | 662,881 |
FINANCIALS - 20.4% |
Banks - 12.6% |
Bank of America Corp. | 10,252,456 | | 155,325 |
Citigroup, Inc. | 3,355,030 | | 157,519 |
Comerica, Inc. | 376,900 | | 15,641 |
Commerce Bancshares, Inc. | 74,200 | | 2,968 |
Fifth Third Bancorp | 566,600 | | 9,802 |
First Republic Bank | 59,700 | | 3,040 |
FirstMerit Corp. | 510,000 | | 8,356 |
JPMorgan Chase & Co. | 5,163,092 | | 280,769 |
PNC Financial Services Group, Inc. | 533,054 | | 45,064 |
Regions Financial Corp. | 1,174,500 | | 10,218 |
Standard Chartered PLC (United Kingdom) | 2,555,118 | | 34,163 |
SunTrust Banks, Inc. | 1,750,066 | | 67,238 |
U.S. Bancorp | 1,455,473 | | 60,999 |
UMB Financial Corp. | 66,200 | | 3,212 |
Wells Fargo & Co. | 1,199,441 | | 62,275 |
| | 916,589 |
Capital Markets - 5.3% |
Artisan Partners Asset Management, Inc. | 150,000 | | 7,241 |
BlackRock, Inc. Class A | 10,800 | | 3,678 |
Carlyle Group LP | 325,200 | | 8,553 |
Charles Schwab Corp. | 1,897,943 | | 49,309 |
Invesco Ltd. | 110,600 | | 4,062 |
KKR & Co. LP | 2,044,543 | | 49,089 |
Morgan Stanley | 1,354,797 | | 45,806 |
Northern Trust Corp. | 717,764 | | 46,927 |
Oaktree Capital Group LLC Class A (e) | 229,300 | | 12,703 |
State Street Corp. | 1,447,227 | | 103,491 |
The Blackstone Group LP | 948,900 | | 35,432 |
TPG Specialty Lending, Inc. | 1,008,200 | | 17,623 |
| | 383,914 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.3% |
IntercontinentalExchange Group, Inc. | 111,217 | | $ 22,881 |
Insurance - 1.2% |
Brown & Brown, Inc. | 163,300 | | 5,038 |
Marsh & McLennan Companies, Inc. | 302,646 | | 16,273 |
MetLife, Inc. | 1,130,140 | | 52,551 |
Principal Financial Group, Inc. | 251,300 | | 11,794 |
| | 85,656 |
Real Estate Investment Trusts - 0.8% |
American Homes 4 Rent (f) | 258,675 | | 4,317 |
First Potomac Realty Trust | 188,418 | | 2,412 |
Lamar Advertising Co. Class A | 104,300 | | 5,843 |
Sabra Health Care REIT, Inc. | 174,800 | | 5,716 |
Sun Communities, Inc. | 441,214 | | 29,883 |
WP Carey, Inc. | 136,100 | | 9,773 |
| | 57,944 |
Thrifts & Mortgage Finance - 0.2% |
Radian Group, Inc. | 1,178,568 | | 18,574 |
TOTAL FINANCIALS | | 1,485,558 |
HEALTH CARE - 9.1% |
Biotechnology - 1.5% |
Amgen, Inc. | 688,903 | | 104,892 |
Intercept Pharmaceuticals, Inc. (a) | 21,626 | | 4,347 |
| | 109,239 |
Health Care Equipment & Supplies - 1.3% |
Abbott Laboratories | 481,704 | | 21,561 |
Ansell Ltd. | 266,311 | | 4,674 |
Medtronic PLC | 282,630 | | 20,180 |
ResMed, Inc. (e) | 190,767 | | 11,917 |
St. Jude Medical, Inc. | 121,800 | | 8,023 |
Zimmer Holdings, Inc. | 250,910 | | 28,127 |
| | 94,482 |
Health Care Providers & Services - 1.8% |
Cardinal Health, Inc. | 304,700 | | 25,348 |
Express Scripts Holding Co. (a) | 119,000 | | 9,604 |
McKesson Corp. | 319,687 | | 67,981 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Patterson Companies, Inc. | 390,370 | | $ 19,554 |
Quest Diagnostics, Inc. | 101,784 | | 7,234 |
| | 129,721 |
Pharmaceuticals - 4.5% |
Astellas Pharma, Inc. | 858,600 | | 13,261 |
GlaxoSmithKline PLC sponsored ADR | 2,175,422 | | 95,719 |
Johnson & Johnson | 1,102,969 | | 110,451 |
Novartis AG sponsored ADR | 271,044 | | 26,400 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,271,020 | | 72,270 |
Theravance, Inc. (e) | 789,400 | | 8,897 |
| | 326,998 |
TOTAL HEALTH CARE | | 660,440 |
INDUSTRIALS - 13.1% |
Aerospace & Defense - 2.7% |
Meggitt PLC | 3,396,200 | | 27,572 |
Rolls-Royce Group PLC | 1,024,900 | | 13,762 |
The Boeing Co. | 683,789 | | 99,402 |
United Technologies Corp. | 480,982 | | 55,207 |
| | 195,943 |
Air Freight & Logistics - 2.0% |
C.H. Robinson Worldwide, Inc. | 339,073 | | 24,149 |
FedEx Corp. | 79,700 | | 13,478 |
PostNL NV (a) | 2,875,400 | | 10,479 |
United Parcel Service, Inc. Class B | 998,004 | | 98,643 |
| | 146,749 |
Airlines - 0.2% |
Copa Holdings SA Class A | 160,200 | | 17,223 |
Building Products - 0.1% |
Lennox International, Inc. | 61,000 | | 5,997 |
Commercial Services & Supplies - 0.8% |
ADT Corp. (e) | 1,120,810 | | 38,556 |
Interface, Inc. | 125,120 | | 1,966 |
KAR Auction Services, Inc. | 606,600 | | 20,691 |
| | 61,213 |
Electrical Equipment - 0.4% |
Hubbell, Inc. Class B | 282,139 | | 29,918 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.1% |
General Electric Co. | 9,490,480 | | $ 226,728 |
Machinery - 0.9% |
Deere & Co. | 336,200 | | 28,641 |
Donaldson Co., Inc. | 219,700 | | 8,032 |
IMI PLC | 628,600 | | 12,081 |
Parker Hannifin Corp. | 57,200 | | 6,662 |
Stanley Black & Decker, Inc. | 30,500 | | 2,856 |
Valmont Industries, Inc. | 44,500 | | 5,345 |
Xylem, Inc. | 53,800 | | 1,835 |
| | 65,452 |
Professional Services - 0.2% |
Acacia Research Corp. | 429,402 | | 5,376 |
Bureau Veritas SA | 313,977 | | 6,679 |
| | 12,055 |
Road & Rail - 2.2% |
CSX Corp. | 2,281,720 | | 75,981 |
J.B. Hunt Transport Services, Inc. | 588,640 | | 46,862 |
Kansas City Southern | 71,700 | | 7,893 |
Norfolk Southern Corp. | 250,199 | | 25,513 |
| | 156,249 |
Trading Companies & Distributors - 0.5% |
Watsco, Inc. | 361,192 | | 39,319 |
TOTAL INDUSTRIALS | | 956,846 |
INFORMATION TECHNOLOGY - 19.9% |
Communications Equipment - 2.8% |
Cisco Systems, Inc. | 4,490,052 | | 118,380 |
QUALCOMM, Inc. | 1,348,846 | | 84,249 |
| | 202,629 |
Internet Software & Services - 3.1% |
Google, Inc.: | | | |
Class A (a) | 187,507 | | 100,794 |
Class C (a) | 161,207 | | 86,168 |
Yahoo!, Inc. (a) | 902,495 | | 39,701 |
| | 226,663 |
IT Services - 5.3% |
Amadeus IT Holding SA Class A | 21,300 | | 857 |
Cognizant Technology Solutions Corp. Class A (a) | 654,172 | | 35,410 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Fidelity National Information Services, Inc. | 249,736 | | $ 15,591 |
IBM Corp. | 344,704 | | 52,847 |
Leidos Holdings, Inc. | 66,000 | | 2,732 |
MasterCard, Inc. Class A | 927,500 | | 76,083 |
Paychex, Inc. | 2,106,857 | | 95,356 |
The Western Union Co. | 1,033,280 | | 17,566 |
Unisys Corp. (a) | 272,300 | | 5,972 |
Visa, Inc. Class A | 342,671 | | 87,350 |
| | 389,764 |
Semiconductors & Semiconductor Equipment - 1.5% |
Applied Materials, Inc. | 2,111,849 | | 48,235 |
Broadcom Corp. Class A | 1,183,782 | | 50,234 |
Maxim Integrated Products, Inc. | 411,300 | | 13,610 |
| | 112,079 |
Software - 3.1% |
Intuit, Inc. | 10,100 | | 877 |
Microsoft Corp. | 5,162,199 | | 208,553 |
Oracle Corp. | 372,653 | | 15,610 |
| | 225,040 |
Technology Hardware, Storage & Peripherals - 4.1% |
Apple, Inc. | 2,401,094 | | 281,309 |
First Data Holdings, Inc. Class B (h) | 5,155,476 | | 17,322 |
| | 298,631 |
TOTAL INFORMATION TECHNOLOGY | | 1,454,806 |
MATERIALS - 3.6% |
Chemicals - 3.2% |
Airgas, Inc. | 411,106 | | 46,307 |
Balchem Corp. | 64,900 | | 3,438 |
E.I. du Pont de Nemours & Co. | 342,746 | | 24,407 |
FMC Corp. | 393,782 | | 22,642 |
LyondellBasell Industries NV Class A | 83,600 | | 6,612 |
Methanex Corp. (e) | 211,100 | | 9,330 |
Monsanto Co. | 618,715 | | 72,996 |
Potash Corp. of Saskatchewan, Inc. | 310,300 | | 11,297 |
Syngenta AG (Switzerland) | 87,636 | | 28,546 |
Tronox Ltd. Class A | 234,800 | | 4,964 |
| | 230,539 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - 0.4% |
Freeport-McMoRan, Inc. | 1,441,800 | | $ 24,237 |
Reliance Steel & Aluminum Co. | 104,400 | | 5,467 |
| | 29,704 |
Paper & Forest Products - 0.0% |
Domtar Corp. | 80,900 | | 3,098 |
TOTAL MATERIALS | | 263,341 |
TELECOMMUNICATION SERVICES - 1.8% |
Diversified Telecommunication Services - 1.8% |
TDC A/S | 403,300 | | 2,991 |
Verizon Communications, Inc. | 2,884,074 | | 131,831 |
| | 134,822 |
TOTAL COMMON STOCKS (Cost $6,129,394) |
7,212,003
|
Convertible Preferred Stocks - 0.8% |
| | | |
CONSUMER DISCRETIONARY - 0.0% |
Leisure Products - 0.0% |
NJOY, Inc. Series D (h) | 68,794 | | 555 |
HEALTH CARE - 0.8% |
Health Care Equipment & Supplies - 0.8% |
Alere, Inc. 3.00% | 185,143 | | 57,209 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $46,947) |
57,764
|
Convertible Bonds - 0.2% |
| Principal
Amount (000s) (d) | | |
ENERGY - 0.1% |
Oil, Gas & Consumable Fuels - 0.1% |
Amyris, Inc.: | | | | |
3% 2/27/17 | | $ 5,615 | | 4,805 |
5% 10/15/18 (h) | | 2,943 | | 2,388 |
Peabody Energy Corp. 4.75% 12/15/41 | | 7,660 | | 3,639 |
| | 10,832 |
Convertible Bonds - continued |
| Principal
Amount (000s) (d) | | Value (000s) |
INFORMATION TECHNOLOGY - 0.1% |
Internet Software & Services - 0.1% |
Twitter, Inc. 0.25% 9/15/19 (f) | | $ 5,130 | | $ 4,620 |
TOTAL CONVERTIBLE BONDS (Cost $19,015) |
15,452
|
Preferred Securities - 0.1% |
|
FINANCIALS - 0.1% |
Diversified Financial Services - 0.1% |
Baggot Securities Ltd. 10.24% (f)(g) (Cost $4,623) | EUR | 3,010 | |
3,907
|
Money Market Funds - 1.2% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,323,831 | | 2,324 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 85,549,468 | | 85,549 |
TOTAL MONEY MARKET FUNDS (Cost $87,873) |
87,873
|
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $6,287,852) | | 7,376,999 |
NET OTHER ASSETS (LIABILITIES) - (1.2)% | | (84,373) |
NET ASSETS - 100% | $ 7,292,626 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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) Amount is stated in United States dollars unless otherwise noted. |
(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 $12,844,000 or 0.2% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(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 $20,265,000 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Amyris, Inc. 5% 10/15/18 | 10/16/13 | $ 2,800 |
First Data Holdings, Inc. Class B | 6/26/14 | $ 20,622 |
NJOY, Inc.
Series D | 2/14/14 | $ 1,164 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 4 |
Fidelity Securities Lending Cash Central Fund | 397 |
Total | $ 401 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 771,522 | $ 770,967 | $ - | $ 555 |
Consumer Staples | 822,342 | 778,687 | 43,655 | - |
Energy | 662,881 | 605,114 | 57,767 | - |
Financials | 1,485,558 | 1,485,558 | - | - |
Health Care | 717,649 | 699,714 | 17,935 | - |
Industrials | 956,846 | 956,846 | - | - |
Information Technology | 1,454,806 | 1,437,484 | - | 17,322 |
Materials | 263,341 | 234,795 | 28,546 | - |
Telecommunication Services | 134,822 | 134,822 | - | - |
Corporate Bonds | 15,452 | - | 15,452 | - |
Preferred Securities | 3,907 | - | 3,907 | - |
Money Market Funds | 87,873 | 87,873 | - | - |
Total Investments in Securities: | $ 7,376,999 | $ 7,191,860 | $ 167,262 | $ 17,877 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.5% |
United Kingdom | 6.1% |
Canada | 2.5% |
Israel | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $82,865) - See accompanying schedule: Unaffiliated issuers (cost $6,199,979) | $ 7,289,126 | |
Fidelity Central Funds (cost $87,873) | 87,873 | |
Total Investments (cost $6,287,852) | | $ 7,376,999 |
Cash | | 393 |
Foreign currency held at value (cost $6) | | 6 |
Receivable for investments sold | | 44,869 |
Receivable for fund shares sold | | 2,511 |
Dividends receivable | | 9,773 |
Interest receivable | | 102 |
Distributions receivable from Fidelity Central Funds | | 73 |
Prepaid expenses | | 13 |
Other receivables | | 849 |
Total assets | | 7,435,588 |
| | |
Liabilities | | |
Payable for investments purchased | $ 43,153 | |
Payable for fund shares redeemed | 5,175 | |
Accrued management fee | 2,796 | |
Notes payable to affiliates | 4,450 | |
Other affiliated payables | 1,062 | |
Other payables and accrued expenses | 777 | |
Collateral on securities loaned, at value | 85,549 | |
Total liabilities | | 142,962 |
| | |
Net Assets | | $ 7,292,626 |
Net Assets consist of: | | |
Paid in capital | | $ 9,293,010 |
Undistributed net investment income | | 125 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,089,585) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,089,076 |
Net Assets | | $ 7,292,626 |
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, 2015 (Unaudited) |
| | |
Growth & Income:
Net Asset Value, offering price and redemption price per share ($6,356,482 ÷ 220,232 shares) | | $ 28.86 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($936,144 ÷ 32,454 shares) | | $ 28.85 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 88,462 |
Interest | | 419 |
Income from Fidelity Central Funds | | 401 |
Total income | | 89,282 |
| | |
Expenses | | |
Management fee | $ 17,033 | |
Transfer agent fees | 5,738 | |
Accounting and security lending fees | 601 | |
Custodian fees and expenses | 94 | |
Independent trustees' compensation | 18 | |
Registration fees | 44 | |
Audit | 49 | |
Legal | 26 | |
Interest | 2 | |
Miscellaneous | 22 | |
Total expenses before reductions | 23,627 | |
Expense reductions | (24) | 23,603 |
Net investment income (loss) | | 65,679 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 338,991 | |
Foreign currency transactions | (61) | |
Total net realized gain (loss) | | 338,930 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (371,396) | |
Assets and liabilities in foreign currencies | (69) | |
Total change in net unrealized appreciation (depreciation) | | (371,465) |
Net gain (loss) | | (32,535) |
Net increase (decrease) in net assets resulting from operations | | $ 33,144 |
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, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 65,679 | $ 138,369 |
Net realized gain (loss) | 338,930 | 863,680 |
Change in net unrealized appreciation (depreciation) | (371,465) | 38,912 |
Net increase (decrease) in net assets resulting from operations | 33,144 | 1,040,961 |
Distributions to shareholders from net investment income | (68,608) | (133,552) |
Distributions to shareholders from net realized gain | - | (1,626) |
Total distributions | (68,608) | (135,178) |
Share transactions - net increase (decrease) | (181,585) | (472,170) |
Total increase (decrease) in net assets | (217,049) | 433,613 |
| | |
Net Assets | | |
Beginning of period | 7,509,675 | 7,076,062 |
End of period (including undistributed net investment income of $125 and undistributed net investment income of $3,054, respectively) | $ 7,292,626 | $ 7,509,675 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.02 | $ 25.66 | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .51 | .46 | .36 | .20 | .10 |
Net realized and unrealized gain (loss) | (.14) K | 3.35 | 5.54 | 1.55 | 2.82 | 1.37 |
Total from investment operations | .11 | 3.86 | 6.00 | 1.91 | 3.02 | 1.47 |
Distributions from net investment income | (.27) | (.50) | (.44) | (.35) | (.19) | (.10) |
Distributions from net realized gain | - | (.01) | (.03) | (.01) | - | (.01) |
Total distributions | (.27) | (.50) J | (.47) | (.36) | (.19) | (.10) I |
Net asset value, end of period | $ 28.86 | $ 29.02 | $ 25.66 | $ 20.13 | $ 18.58 | $ 15.75 |
Total ReturnB, C | .36% K | 15.16% | 30.15% | 10.45% | 19.16% | 10.25% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .64%A | .65% | .68% | .71% | .72% | .75% |
Expenses net of fee waivers, if any | .64%A | .65% | .68% | .71% | .72% | .75% |
Expenses net of all reductions | .64%A | .65% | .67% | .71% | .71% | .74% |
Net investment income (loss) | 1.72%A | 1.86% | 2.04% | 1.95% | 1.09% | .63% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6,356 | $ 6,550 | $ 6,060 | $ 4,863 | $ 5,052 | $ 5,417 |
Portfolio turnover rateF | 37% A | 41% H | 49% | 62% | 129% | 98% |
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 Portfolio turnover rate excludes securities received or delivered in-kind.
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.
J Total distributions of $.50 per share is comprised of distributions from net investment income of $.495 and distributions from net realized gain of $.006 per share.
K Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been .26%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.00 | $ 25.64 | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .27 | .54 | .50 | .40 | .23 | .13 |
Net realized and unrealized gain (loss) | (.13) J | 3.36 | 5.52 | 1.54 | 2.82 | 1.37 |
Total from investment operations | .14 | 3.90 | 6.02 | 1.94 | 3.05 | 1.50 |
Distributions from net investment income | (.29) | (.53) | (.47) | (.38) | (.22) | (.13) |
Distributions from net realized gain | - | (.01) | (.03) | (.01) | - | (.01) |
Total distributions | (.29) | (.54) | (.50) | (.39) | (.22) | (.14) I |
Net asset value, end of period | $ 28.85 | $ 29.00 | $ 25.64 | $ 20.12 | $ 18.57 | $ 15.74 |
Total ReturnB, C | .45% J | 15.32% | 30.28% | 10.66% | 19.40% | 10.41% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .52%A | .52% | .53% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .52%A | .52% | .53% | .54% | .54% | .54% |
Expenses net of all reductions | .52%A | .52% | .52% | .54% | .53% | .53% |
Net investment income (loss) | 1.84%A | 1.99% | 2.19% | 2.13% | 1.27% | .84% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 936 | $ 960 | $ 1,016 | $ 752 | $ 403 | $ 292 |
Portfolio turnover rateF | 37% A | 41% H | 49% | 62% | 129% | 98% |
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 Portfolio turnover rate excludes securities received or delivered in-kind.
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.
J Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been .35%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by 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, 2015, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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
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
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, market discount, equity-debt classifications, redemptions in kind, 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 | $ 1,376,230 |
Gross unrealized depreciation | (304,098) |
Net unrealized appreciation (depreciation) on securities | $ 1,072,132 |
| |
Tax cost | $ 6,304,867 |
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (251,247) |
2018 | (3,168,341) |
Total with expiration | $ (3,419,588) |
Semiannual Report
3. Significant Accounting Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,402,516 and $1,569,128, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Growth & Income | $ 5,512 | .17 |
Class K | 226 | .05 |
| $ 5,738 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $23 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 5,740 | .33% | $ 2 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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, the Fund did not borrow on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $397, including $2 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $22 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Growth & Income expenses during the period in the amount of $2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
From net investment income | | |
Growth & Income | $ 59,379 | $ 113,973 |
Class K | 9,229 | 19,579 |
Total | $ 68,608 | $ 133,552 |
From net realized gain | | |
Growth & Income | $ - | $ 1,391 |
Class K | - | 235 |
Total | $ - | $ 1,626 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Shares | Dollars | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 | Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
Growth & Income | | | | |
Shares sold | 6,759 | 21,786 | $ 200,018 | $ 598,816 |
Reinvestment of distributions | 1,937 | 3,998 | 56,723 | 110,063 |
Shares redeemed | (14,164) | (36,289)A | (419,616) | (997,570)A |
Net increase (decrease) | (5,468) | (10,505) | $ (162,875) | $ (288,691) |
Class K | | | | |
Shares sold | 2,930 | 7,113 | $ 86,779 | $ 195,462 |
Reinvestment of distributions | 315 | 722 | 9,229 | 19,814 |
Shares redeemed | (3,875) | (14,384) | (114,718) | (398,755) |
Net increase (decrease) | (630) | (6,549) | $ (18,710) | $ (183,479) |
A Amount includes in-kind redemptions.
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
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Limited
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., Boston, MA 02210
www.fidelity.com
GAI-USAN-0315
1.789285.112
Fidelity®
Growth & Income
Portfolio -
Class K
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
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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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Growth & Income | .64% | | | |
Actual | | $ 1,000.00 | $ 1,003.60 | $ 3.23 |
HypotheticalA | | $ 1,000.00 | $ 1,021.98 | $ 3.26 |
Class K | .52% | | | |
Actual | | $ 1,000.00 | $ 1,004.50 | $ 2.63 |
HypotheticalA | | $ 1,000.00 | $ 1,022.58 | $ 2.65 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 3.9 | 3.9 |
JPMorgan Chase & Co. | 3.9 | 4.0 |
General Electric Co. | 3.1 | 3.0 |
Microsoft Corp. | 2.9 | 3.2 |
Target Corp. | 2.4 | 2.0 |
Chevron Corp. | 2.3 | 2.8 |
Citigroup, Inc. | 2.2 | 2.2 |
Bank of America Corp. | 2.1 | 1.6 |
Procter & Gamble Co. | 2.1 | 1.8 |
Comcast Corp. Class A | 1.9 | 2.0 |
| 26.8 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.5 | 19.6 |
Information Technology | 20.0 | 19.9 |
Industrials | 13.1 | 11.5 |
Consumer Staples | 11.3 | 11.9 |
Consumer Discretionary | 10.6 | 10.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 98.9% | | | Stocks 98.8% | |
| Convertible
Securities 1.0% | | | Convertible
Securities 1.0% | |
| Other Investments 0.1% | | | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 0.2% | |
* Foreign investments | 12.5% | | ** Foreign investments | 12.9% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.6% |
Diversified Consumer Services - 0.4% |
H&R Block, Inc. | 891,907 | | $ 30,575 |
Hotels, Restaurants & Leisure - 1.8% |
Darden Restaurants, Inc. | 646,200 | | 39,664 |
Domino's Pizza, Inc. | 49,600 | | 4,913 |
Las Vegas Sands Corp. | 376,000 | | 20,443 |
McDonald's Corp. | 109,661 | | 10,137 |
Yum! Brands, Inc. | 811,244 | | 58,637 |
| | 133,794 |
Household Durables - 0.3% |
Tupperware Brands Corp. | 302,200 | | 20,432 |
Leisure Products - 0.0% |
Mattel, Inc. | 27,400 | | 737 |
Media - 3.9% |
Comcast Corp. Class A | 2,618,600 | | 139,165 |
Scripps Networks Interactive, Inc. Class A | 200,589 | | 14,260 |
Sinclair Broadcast Group, Inc. Class A (e) | 937,461 | | 23,193 |
Time Warner, Inc. | 1,064,017 | | 82,919 |
Viacom, Inc. Class B (non-vtg.) | 351,700 | | 22,657 |
| | 282,194 |
Multiline Retail - 2.4% |
Target Corp. | 2,388,075 | | 175,786 |
Specialty Retail - 1.7% |
Lowe's Companies, Inc. | 1,486,979 | | 100,758 |
Sally Beauty Holdings, Inc. (a) | 601,300 | | 18,688 |
TJX Companies, Inc. | 14,400 | | 950 |
| | 120,396 |
Textiles, Apparel & Luxury Goods - 0.1% |
adidas AG | 102,000 | | 7,053 |
TOTAL CONSUMER DISCRETIONARY | | 770,967 |
CONSUMER STAPLES - 11.3% |
Beverages - 3.2% |
Diageo PLC | 1,474,788 | | 43,655 |
Molson Coors Brewing Co. Class B | 78,200 | | 5,938 |
PepsiCo, Inc. | 475,814 | | 44,622 |
SABMiller PLC | 504,448 | | 27,547 |
The Coca-Cola Co. | 2,655,703 | | 109,335 |
| | 231,097 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 1.2% |
CVS Health Corp. | 572,104 | | $ 56,158 |
Walgreens Boots Alliance, Inc. | 453,084 | | 33,415 |
| | 89,573 |
Food Products - 0.3% |
Kellogg Co. | 363,154 | | 23,816 |
Household Products - 2.2% |
Procter & Gamble Co. | 1,808,415 | | 152,431 |
Svenska Cellulosa AB (SCA) (B Shares) | 280,091 | | 6,777 |
| | 159,208 |
Personal Products - 0.2% |
Estee Lauder Companies, Inc. Class A | 147,100 | | 10,384 |
Tobacco - 4.2% |
British American Tobacco PLC sponsored ADR | 883,523 | | 99,529 |
Lorillard, Inc. | 1,599,597 | | 104,950 |
Philip Morris International, Inc. | 762,971 | | 61,221 |
Reynolds American, Inc. | 626,400 | | 42,564 |
| | 308,264 |
TOTAL CONSUMER STAPLES | | 822,342 |
ENERGY - 9.1% |
Energy Equipment & Services - 1.1% |
Ensco PLC Class A | 698,223 | | 19,578 |
Helmerich & Payne, Inc. | 111,200 | | 6,623 |
Oceaneering International, Inc. | 433,700 | | 22,709 |
Schlumberger Ltd. | 343,932 | | 28,337 |
| | 77,247 |
Oil, Gas & Consumable Fuels - 8.0% |
Apache Corp. | 616,968 | | 38,604 |
BG Group PLC | 4,331,064 | | 57,767 |
Chevron Corp. | 1,619,296 | | 166,026 |
EQT Midstream Partners LP | 43,200 | | 3,666 |
Golar LNG Ltd. | 379,900 | | 10,774 |
Imperial Oil Ltd. | 1,122,000 | | 41,712 |
Kinder Morgan Holding Co. LLC | 532,000 | | 21,839 |
Markwest Energy Partners LP | 994,182 | | 58,587 |
Peabody Energy Corp. (e) | 358,900 | | 2,236 |
PrairieSky Royalty Ltd. (e) | 466,000 | | 10,037 |
Suncor Energy, Inc. | 3,657,350 | | 109,084 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
The Williams Companies, Inc. | 1,267,572 | | $ 55,596 |
Western Gas Partners LP | 75,700 | | 5,342 |
Williams Partners LP | 102,900 | | 4,364 |
| | 585,634 |
TOTAL ENERGY | | 662,881 |
FINANCIALS - 20.4% |
Banks - 12.6% |
Bank of America Corp. | 10,252,456 | | 155,325 |
Citigroup, Inc. | 3,355,030 | | 157,519 |
Comerica, Inc. | 376,900 | | 15,641 |
Commerce Bancshares, Inc. | 74,200 | | 2,968 |
Fifth Third Bancorp | 566,600 | | 9,802 |
First Republic Bank | 59,700 | | 3,040 |
FirstMerit Corp. | 510,000 | | 8,356 |
JPMorgan Chase & Co. | 5,163,092 | | 280,769 |
PNC Financial Services Group, Inc. | 533,054 | | 45,064 |
Regions Financial Corp. | 1,174,500 | | 10,218 |
Standard Chartered PLC (United Kingdom) | 2,555,118 | | 34,163 |
SunTrust Banks, Inc. | 1,750,066 | | 67,238 |
U.S. Bancorp | 1,455,473 | | 60,999 |
UMB Financial Corp. | 66,200 | | 3,212 |
Wells Fargo & Co. | 1,199,441 | | 62,275 |
| | 916,589 |
Capital Markets - 5.3% |
Artisan Partners Asset Management, Inc. | 150,000 | | 7,241 |
BlackRock, Inc. Class A | 10,800 | | 3,678 |
Carlyle Group LP | 325,200 | | 8,553 |
Charles Schwab Corp. | 1,897,943 | | 49,309 |
Invesco Ltd. | 110,600 | | 4,062 |
KKR & Co. LP | 2,044,543 | | 49,089 |
Morgan Stanley | 1,354,797 | | 45,806 |
Northern Trust Corp. | 717,764 | | 46,927 |
Oaktree Capital Group LLC Class A (e) | 229,300 | | 12,703 |
State Street Corp. | 1,447,227 | | 103,491 |
The Blackstone Group LP | 948,900 | | 35,432 |
TPG Specialty Lending, Inc. | 1,008,200 | | 17,623 |
| | 383,914 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.3% |
IntercontinentalExchange Group, Inc. | 111,217 | | $ 22,881 |
Insurance - 1.2% |
Brown & Brown, Inc. | 163,300 | | 5,038 |
Marsh & McLennan Companies, Inc. | 302,646 | | 16,273 |
MetLife, Inc. | 1,130,140 | | 52,551 |
Principal Financial Group, Inc. | 251,300 | | 11,794 |
| | 85,656 |
Real Estate Investment Trusts - 0.8% |
American Homes 4 Rent (f) | 258,675 | | 4,317 |
First Potomac Realty Trust | 188,418 | | 2,412 |
Lamar Advertising Co. Class A | 104,300 | | 5,843 |
Sabra Health Care REIT, Inc. | 174,800 | | 5,716 |
Sun Communities, Inc. | 441,214 | | 29,883 |
WP Carey, Inc. | 136,100 | | 9,773 |
| | 57,944 |
Thrifts & Mortgage Finance - 0.2% |
Radian Group, Inc. | 1,178,568 | | 18,574 |
TOTAL FINANCIALS | | 1,485,558 |
HEALTH CARE - 9.1% |
Biotechnology - 1.5% |
Amgen, Inc. | 688,903 | | 104,892 |
Intercept Pharmaceuticals, Inc. (a) | 21,626 | | 4,347 |
| | 109,239 |
Health Care Equipment & Supplies - 1.3% |
Abbott Laboratories | 481,704 | | 21,561 |
Ansell Ltd. | 266,311 | | 4,674 |
Medtronic PLC | 282,630 | | 20,180 |
ResMed, Inc. (e) | 190,767 | | 11,917 |
St. Jude Medical, Inc. | 121,800 | | 8,023 |
Zimmer Holdings, Inc. | 250,910 | | 28,127 |
| | 94,482 |
Health Care Providers & Services - 1.8% |
Cardinal Health, Inc. | 304,700 | | 25,348 |
Express Scripts Holding Co. (a) | 119,000 | | 9,604 |
McKesson Corp. | 319,687 | | 67,981 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Patterson Companies, Inc. | 390,370 | | $ 19,554 |
Quest Diagnostics, Inc. | 101,784 | | 7,234 |
| | 129,721 |
Pharmaceuticals - 4.5% |
Astellas Pharma, Inc. | 858,600 | | 13,261 |
GlaxoSmithKline PLC sponsored ADR | 2,175,422 | | 95,719 |
Johnson & Johnson | 1,102,969 | | 110,451 |
Novartis AG sponsored ADR | 271,044 | | 26,400 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,271,020 | | 72,270 |
Theravance, Inc. (e) | 789,400 | | 8,897 |
| | 326,998 |
TOTAL HEALTH CARE | | 660,440 |
INDUSTRIALS - 13.1% |
Aerospace & Defense - 2.7% |
Meggitt PLC | 3,396,200 | | 27,572 |
Rolls-Royce Group PLC | 1,024,900 | | 13,762 |
The Boeing Co. | 683,789 | | 99,402 |
United Technologies Corp. | 480,982 | | 55,207 |
| | 195,943 |
Air Freight & Logistics - 2.0% |
C.H. Robinson Worldwide, Inc. | 339,073 | | 24,149 |
FedEx Corp. | 79,700 | | 13,478 |
PostNL NV (a) | 2,875,400 | | 10,479 |
United Parcel Service, Inc. Class B | 998,004 | | 98,643 |
| | 146,749 |
Airlines - 0.2% |
Copa Holdings SA Class A | 160,200 | | 17,223 |
Building Products - 0.1% |
Lennox International, Inc. | 61,000 | | 5,997 |
Commercial Services & Supplies - 0.8% |
ADT Corp. (e) | 1,120,810 | | 38,556 |
Interface, Inc. | 125,120 | | 1,966 |
KAR Auction Services, Inc. | 606,600 | | 20,691 |
| | 61,213 |
Electrical Equipment - 0.4% |
Hubbell, Inc. Class B | 282,139 | | 29,918 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.1% |
General Electric Co. | 9,490,480 | | $ 226,728 |
Machinery - 0.9% |
Deere & Co. | 336,200 | | 28,641 |
Donaldson Co., Inc. | 219,700 | | 8,032 |
IMI PLC | 628,600 | | 12,081 |
Parker Hannifin Corp. | 57,200 | | 6,662 |
Stanley Black & Decker, Inc. | 30,500 | | 2,856 |
Valmont Industries, Inc. | 44,500 | | 5,345 |
Xylem, Inc. | 53,800 | | 1,835 |
| | 65,452 |
Professional Services - 0.2% |
Acacia Research Corp. | 429,402 | | 5,376 |
Bureau Veritas SA | 313,977 | | 6,679 |
| | 12,055 |
Road & Rail - 2.2% |
CSX Corp. | 2,281,720 | | 75,981 |
J.B. Hunt Transport Services, Inc. | 588,640 | | 46,862 |
Kansas City Southern | 71,700 | | 7,893 |
Norfolk Southern Corp. | 250,199 | | 25,513 |
| | 156,249 |
Trading Companies & Distributors - 0.5% |
Watsco, Inc. | 361,192 | | 39,319 |
TOTAL INDUSTRIALS | | 956,846 |
INFORMATION TECHNOLOGY - 19.9% |
Communications Equipment - 2.8% |
Cisco Systems, Inc. | 4,490,052 | | 118,380 |
QUALCOMM, Inc. | 1,348,846 | | 84,249 |
| | 202,629 |
Internet Software & Services - 3.1% |
Google, Inc.: | | | |
Class A (a) | 187,507 | | 100,794 |
Class C (a) | 161,207 | | 86,168 |
Yahoo!, Inc. (a) | 902,495 | | 39,701 |
| | 226,663 |
IT Services - 5.3% |
Amadeus IT Holding SA Class A | 21,300 | | 857 |
Cognizant Technology Solutions Corp. Class A (a) | 654,172 | | 35,410 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Fidelity National Information Services, Inc. | 249,736 | | $ 15,591 |
IBM Corp. | 344,704 | | 52,847 |
Leidos Holdings, Inc. | 66,000 | | 2,732 |
MasterCard, Inc. Class A | 927,500 | | 76,083 |
Paychex, Inc. | 2,106,857 | | 95,356 |
The Western Union Co. | 1,033,280 | | 17,566 |
Unisys Corp. (a) | 272,300 | | 5,972 |
Visa, Inc. Class A | 342,671 | | 87,350 |
| | 389,764 |
Semiconductors & Semiconductor Equipment - 1.5% |
Applied Materials, Inc. | 2,111,849 | | 48,235 |
Broadcom Corp. Class A | 1,183,782 | | 50,234 |
Maxim Integrated Products, Inc. | 411,300 | | 13,610 |
| | 112,079 |
Software - 3.1% |
Intuit, Inc. | 10,100 | | 877 |
Microsoft Corp. | 5,162,199 | | 208,553 |
Oracle Corp. | 372,653 | | 15,610 |
| | 225,040 |
Technology Hardware, Storage & Peripherals - 4.1% |
Apple, Inc. | 2,401,094 | | 281,309 |
First Data Holdings, Inc. Class B (h) | 5,155,476 | | 17,322 |
| | 298,631 |
TOTAL INFORMATION TECHNOLOGY | | 1,454,806 |
MATERIALS - 3.6% |
Chemicals - 3.2% |
Airgas, Inc. | 411,106 | | 46,307 |
Balchem Corp. | 64,900 | | 3,438 |
E.I. du Pont de Nemours & Co. | 342,746 | | 24,407 |
FMC Corp. | 393,782 | | 22,642 |
LyondellBasell Industries NV Class A | 83,600 | | 6,612 |
Methanex Corp. (e) | 211,100 | | 9,330 |
Monsanto Co. | 618,715 | | 72,996 |
Potash Corp. of Saskatchewan, Inc. | 310,300 | | 11,297 |
Syngenta AG (Switzerland) | 87,636 | | 28,546 |
Tronox Ltd. Class A | 234,800 | | 4,964 |
| | 230,539 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - 0.4% |
Freeport-McMoRan, Inc. | 1,441,800 | | $ 24,237 |
Reliance Steel & Aluminum Co. | 104,400 | | 5,467 |
| | 29,704 |
Paper & Forest Products - 0.0% |
Domtar Corp. | 80,900 | | 3,098 |
TOTAL MATERIALS | | 263,341 |
TELECOMMUNICATION SERVICES - 1.8% |
Diversified Telecommunication Services - 1.8% |
TDC A/S | 403,300 | | 2,991 |
Verizon Communications, Inc. | 2,884,074 | | 131,831 |
| | 134,822 |
TOTAL COMMON STOCKS (Cost $6,129,394) |
7,212,003
|
Convertible Preferred Stocks - 0.8% |
| | | |
CONSUMER DISCRETIONARY - 0.0% |
Leisure Products - 0.0% |
NJOY, Inc. Series D (h) | 68,794 | | 555 |
HEALTH CARE - 0.8% |
Health Care Equipment & Supplies - 0.8% |
Alere, Inc. 3.00% | 185,143 | | 57,209 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $46,947) |
57,764
|
Convertible Bonds - 0.2% |
| Principal
Amount (000s) (d) | | |
ENERGY - 0.1% |
Oil, Gas & Consumable Fuels - 0.1% |
Amyris, Inc.: | | | | |
3% 2/27/17 | | $ 5,615 | | 4,805 |
5% 10/15/18 (h) | | 2,943 | | 2,388 |
Peabody Energy Corp. 4.75% 12/15/41 | | 7,660 | | 3,639 |
| | 10,832 |
Convertible Bonds - continued |
| Principal
Amount (000s) (d) | | Value (000s) |
INFORMATION TECHNOLOGY - 0.1% |
Internet Software & Services - 0.1% |
Twitter, Inc. 0.25% 9/15/19 (f) | | $ 5,130 | | $ 4,620 |
TOTAL CONVERTIBLE BONDS (Cost $19,015) |
15,452
|
Preferred Securities - 0.1% |
|
FINANCIALS - 0.1% |
Diversified Financial Services - 0.1% |
Baggot Securities Ltd. 10.24% (f)(g) (Cost $4,623) | EUR | 3,010 | |
3,907
|
Money Market Funds - 1.2% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 2,323,831 | | 2,324 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 85,549,468 | | 85,549 |
TOTAL MONEY MARKET FUNDS (Cost $87,873) |
87,873
|
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $6,287,852) | | 7,376,999 |
NET OTHER ASSETS (LIABILITIES) - (1.2)% | | (84,373) |
NET ASSETS - 100% | $ 7,292,626 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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) Amount is stated in United States dollars unless otherwise noted. |
(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 $12,844,000 or 0.2% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(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 $20,265,000 or 0.3% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Amyris, Inc. 5% 10/15/18 | 10/16/13 | $ 2,800 |
First Data Holdings, Inc. Class B | 6/26/14 | $ 20,622 |
NJOY, Inc.
Series D | 2/14/14 | $ 1,164 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 4 |
Fidelity Securities Lending Cash Central Fund | 397 |
Total | $ 401 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 771,522 | $ 770,967 | $ - | $ 555 |
Consumer Staples | 822,342 | 778,687 | 43,655 | - |
Energy | 662,881 | 605,114 | 57,767 | - |
Financials | 1,485,558 | 1,485,558 | - | - |
Health Care | 717,649 | 699,714 | 17,935 | - |
Industrials | 956,846 | 956,846 | - | - |
Information Technology | 1,454,806 | 1,437,484 | - | 17,322 |
Materials | 263,341 | 234,795 | 28,546 | - |
Telecommunication Services | 134,822 | 134,822 | - | - |
Corporate Bonds | 15,452 | - | 15,452 | - |
Preferred Securities | 3,907 | - | 3,907 | - |
Money Market Funds | 87,873 | 87,873 | - | - |
Total Investments in Securities: | $ 7,376,999 | $ 7,191,860 | $ 167,262 | $ 17,877 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 87.5% |
United Kingdom | 6.1% |
Canada | 2.5% |
Israel | 1.0% |
Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $82,865) - See accompanying schedule: Unaffiliated issuers (cost $6,199,979) | $ 7,289,126 | |
Fidelity Central Funds (cost $87,873) | 87,873 | |
Total Investments (cost $6,287,852) | | $ 7,376,999 |
Cash | | 393 |
Foreign currency held at value (cost $6) | | 6 |
Receivable for investments sold | | 44,869 |
Receivable for fund shares sold | | 2,511 |
Dividends receivable | | 9,773 |
Interest receivable | | 102 |
Distributions receivable from Fidelity Central Funds | | 73 |
Prepaid expenses | | 13 |
Other receivables | | 849 |
Total assets | | 7,435,588 |
| | |
Liabilities | | |
Payable for investments purchased | $ 43,153 | |
Payable for fund shares redeemed | 5,175 | |
Accrued management fee | 2,796 | |
Notes payable to affiliates | 4,450 | |
Other affiliated payables | 1,062 | |
Other payables and accrued expenses | 777 | |
Collateral on securities loaned, at value | 85,549 | |
Total liabilities | | 142,962 |
| | |
Net Assets | | $ 7,292,626 |
Net Assets consist of: | | |
Paid in capital | | $ 9,293,010 |
Undistributed net investment income | | 125 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,089,585) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,089,076 |
Net Assets | | $ 7,292,626 |
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, 2015 (Unaudited) |
| | |
Growth & Income:
Net Asset Value, offering price and redemption price per share ($6,356,482 ÷ 220,232 shares) | | $ 28.86 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($936,144 ÷ 32,454 shares) | | $ 28.85 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 88,462 |
Interest | | 419 |
Income from Fidelity Central Funds | | 401 |
Total income | | 89,282 |
| | |
Expenses | | |
Management fee | $ 17,033 | |
Transfer agent fees | 5,738 | |
Accounting and security lending fees | 601 | |
Custodian fees and expenses | 94 | |
Independent trustees' compensation | 18 | |
Registration fees | 44 | |
Audit | 49 | |
Legal | 26 | |
Interest | 2 | |
Miscellaneous | 22 | |
Total expenses before reductions | 23,627 | |
Expense reductions | (24) | 23,603 |
Net investment income (loss) | | 65,679 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 338,991 | |
Foreign currency transactions | (61) | |
Total net realized gain (loss) | | 338,930 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (371,396) | |
Assets and liabilities in foreign currencies | (69) | |
Total change in net unrealized appreciation (depreciation) | | (371,465) |
Net gain (loss) | | (32,535) |
Net increase (decrease) in net assets resulting from operations | | $ 33,144 |
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, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 65,679 | $ 138,369 |
Net realized gain (loss) | 338,930 | 863,680 |
Change in net unrealized appreciation (depreciation) | (371,465) | 38,912 |
Net increase (decrease) in net assets resulting from operations | 33,144 | 1,040,961 |
Distributions to shareholders from net investment income | (68,608) | (133,552) |
Distributions to shareholders from net realized gain | - | (1,626) |
Total distributions | (68,608) | (135,178) |
Share transactions - net increase (decrease) | (181,585) | (472,170) |
Total increase (decrease) in net assets | (217,049) | 433,613 |
| | |
Net Assets | | |
Beginning of period | 7,509,675 | 7,076,062 |
End of period (including undistributed net investment income of $125 and undistributed net investment income of $3,054, respectively) | $ 7,292,626 | $ 7,509,675 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Growth & Income
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.02 | $ 25.66 | $ 20.13 | $ 18.58 | $ 15.75 | $ 14.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .51 | .46 | .36 | .20 | .10 |
Net realized and unrealized gain (loss) | (.14) K | 3.35 | 5.54 | 1.55 | 2.82 | 1.37 |
Total from investment operations | .11 | 3.86 | 6.00 | 1.91 | 3.02 | 1.47 |
Distributions from net investment income | (.27) | (.50) | (.44) | (.35) | (.19) | (.10) |
Distributions from net realized gain | - | (.01) | (.03) | (.01) | - | (.01) |
Total distributions | (.27) | (.50) J | (.47) | (.36) | (.19) | (.10) I |
Net asset value, end of period | $ 28.86 | $ 29.02 | $ 25.66 | $ 20.13 | $ 18.58 | $ 15.75 |
Total ReturnB, C | .36% K | 15.16% | 30.15% | 10.45% | 19.16% | 10.25% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .64%A | .65% | .68% | .71% | .72% | .75% |
Expenses net of fee waivers, if any | .64%A | .65% | .68% | .71% | .72% | .75% |
Expenses net of all reductions | .64%A | .65% | .67% | .71% | .71% | .74% |
Net investment income (loss) | 1.72%A | 1.86% | 2.04% | 1.95% | 1.09% | .63% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6,356 | $ 6,550 | $ 6,060 | $ 4,863 | $ 5,052 | $ 5,417 |
Portfolio turnover rateF | 37% A | 41% H | 49% | 62% | 129% | 98% |
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 Portfolio turnover rate excludes securities received or delivered in-kind.
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.
J Total distributions of $.50 per share is comprised of distributions from net investment income of $.495 and distributions from net realized gain of $.006 per share.
K Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been .26%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 29.00 | $ 25.64 | $ 20.12 | $ 18.57 | $ 15.74 | $ 14.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .27 | .54 | .50 | .40 | .23 | .13 |
Net realized and unrealized gain (loss) | (.13) J | 3.36 | 5.52 | 1.54 | 2.82 | 1.37 |
Total from investment operations | .14 | 3.90 | 6.02 | 1.94 | 3.05 | 1.50 |
Distributions from net investment income | (.29) | (.53) | (.47) | (.38) | (.22) | (.13) |
Distributions from net realized gain | - | (.01) | (.03) | (.01) | - | (.01) |
Total distributions | (.29) | (.54) | (.50) | (.39) | (.22) | (.14) I |
Net asset value, end of period | $ 28.85 | $ 29.00 | $ 25.64 | $ 20.12 | $ 18.57 | $ 15.74 |
Total ReturnB, C | .45% J | 15.32% | 30.28% | 10.66% | 19.40% | 10.41% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .52%A | .52% | .53% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .52%A | .52% | .53% | .54% | .54% | .54% |
Expenses net of all reductions | .52%A | .52% | .52% | .54% | .53% | .53% |
Net investment income (loss) | 1.84%A | 1.99% | 2.19% | 2.13% | 1.27% | .84% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 936 | $ 960 | $ 1,016 | $ 752 | $ 403 | $ 292 |
Portfolio turnover rateF | 37% A | 41% H | 49% | 62% | 129% | 98% |
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 Portfolio turnover rate excludes securities received or delivered in-kind.
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.
J Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been .35%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by 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, 2015, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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
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
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, market discount, equity-debt classifications, redemptions in kind, 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 | $ 1,376,230 |
Gross unrealized depreciation | (304,098) |
Net unrealized appreciation (depreciation) on securities | $ 1,072,132 |
| |
Tax cost | $ 6,304,867 |
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (251,247) |
2018 | (3,168,341) |
Total with expiration | $ (3,419,588) |
Semiannual Report
3. Significant Accounting Policies - continued
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,402,516 and $1,569,128, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Growth & Income | $ 5,512 | .17 |
Class K | 226 | .05 |
| $ 5,738 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $23 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 or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 5,740 | .33% | $ 2 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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, the Fund did not borrow on this line of credit.
Semiannual Report
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $397, including $2 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $22 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Growth & Income expenses during the period in the amount of $2.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
From net investment income | | |
Growth & Income | $ 59,379 | $ 113,973 |
Class K | 9,229 | 19,579 |
Total | $ 68,608 | $ 133,552 |
From net realized gain | | |
Growth & Income | $ - | $ 1,391 |
Class K | - | 235 |
Total | $ - | $ 1,626 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Shares | Dollars | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 | Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
Growth & Income | | | | |
Shares sold | 6,759 | 21,786 | $ 200,018 | $ 598,816 |
Reinvestment of distributions | 1,937 | 3,998 | 56,723 | 110,063 |
Shares redeemed | (14,164) | (36,289)A | (419,616) | (997,570)A |
Net increase (decrease) | (5,468) | (10,505) | $ (162,875) | $ (288,691) |
Class K | | | | |
Shares sold | 2,930 | 7,113 | $ 86,779 | $ 195,462 |
Reinvestment of distributions | 315 | 722 | 9,229 | 19,814 |
Shares redeemed | (3,875) | (14,384) | (114,718) | (398,755) |
Net increase (decrease) | (630) | (6,549) | $ (18,710) | $ (183,479) |
A Amount includes in-kind redemptions.
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
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Limited
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., Boston, MA 02210
www.fidelity.com
GAI-K-USAN-0315
1.863232.106
Fidelity®
Blue Chip Growth
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Blue Chip Growth | .89% | | | |
Actual | | $ 1,000.00 | $ 1,079.90 | $ 4.67 |
HypotheticalA | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Class K | .77% | | | |
Actual | | $ 1,000.00 | $ 1,080.60 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.32 | $ 3.92 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.6 | 6.5 |
Amazon.com, Inc. | 2.9 | 2.3 |
Google, Inc. Class A | 2.7 | 2.9 |
Gilead Sciences, Inc. | 2.6 | 2.7 |
Facebook, Inc. Class A | 2.4 | 2.4 |
Google, Inc. Class C | 2.2 | 2.7 |
Home Depot, Inc. | 1.9 | 1.6 |
Biogen Idec, Inc. | 1.8 | 1.5 |
Visa, Inc. Class A | 1.7 | 1.4 |
The Walt Disney Co. | 1.5 | 1.6 |
| 26.3 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 33.4 | 33.5 |
Consumer Discretionary | 23.3 | 21.2 |
Health Care | 16.4 | 15.3 |
Consumer Staples | 9.8 | 8.9 |
Industrials | 8.3 | 9.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 98.6% | | | Stocks 99.3% | |
| Convertible
Securities 1.4% | | | Convertible
Securities 0.6% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 0.1% | |
* Foreign investments | 12.2% | | ** Foreign investments | 10.8% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 23.2% |
Auto Components - 0.3% |
Magna International, Inc. Class A (sub. vtg.) | 210,025 | | $ 20,179 |
Motherson Sumi Systems Ltd. | 787,172 | | 5,711 |
The Goodyear Tire & Rubber Co. | 1,206,100 | | 29,236 |
| | 55,126 |
Automobiles - 1.4% |
Harley-Davidson, Inc. | 684,100 | | 42,209 |
Mahindra & Mahindra Ltd. (a) | 247,500 | | 5,036 |
Suzuki Motor Corp. | 119,900 | | 3,791 |
Tata Motors Ltd. (a) | 1,444,431 | | 13,603 |
Tata Motors Ltd. sponsored ADR | 265,500 | | 13,094 |
Tesla Motors, Inc. (a)(d) | 902,356 | | 183,720 |
| | 261,453 |
Diversified Consumer Services - 0.2% |
H&R Block, Inc. | 1,116,200 | | 38,263 |
Houghton Mifflin Harcourt Co. (a) | 186,100 | | 3,662 |
| | 41,925 |
Hotels, Restaurants & Leisure - 4.7% |
ARAMARK Holdings Corp. | 186,700 | | 5,847 |
Boyd Gaming Corp. (a) | 284,800 | | 3,719 |
Buffalo Wild Wings, Inc. (a) | 316,038 | | 56,356 |
Chipotle Mexican Grill, Inc. (a) | 237,817 | | 168,812 |
DineEquity, Inc. | 17,600 | | 1,879 |
Domino's Pizza, Inc. | 345,400 | | 34,212 |
Fiesta Restaurant Group, Inc. (a) | 253,700 | | 14,986 |
Habit Restaurants, Inc. Class A (d) | 398,373 | | 13,146 |
Hilton Worldwide Holdings, Inc. (a) | 935,100 | | 24,285 |
Homeinns Hotel Group ADR (a) | 248,294 | | 6,185 |
Hyatt Hotels Corp. Class A (a) | 888,600 | | 49,993 |
Jack in the Box, Inc. | 22,100 | | 1,874 |
Las Vegas Sands Corp. | 1,703,194 | | 92,603 |
McDonald's Corp. | 417,000 | | 38,547 |
Panera Bread Co. Class A (a) | 344,256 | | 59,164 |
Papa John's International, Inc. | 370,600 | | 23,518 |
Penn National Gaming, Inc. (a) | 371,300 | | 5,558 |
Sonic Corp. | 326,800 | | 9,892 |
Starbucks Corp. | 2,743,722 | | 240,158 |
Whitbread PLC | 310,250 | | 23,388 |
Zoe's Kitchen, Inc. (d) | 338,800 | | 10,482 |
| | 884,604 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Household Durables - 1.2% |
D.R. Horton, Inc. | 1,304,300 | | $ 31,981 |
GoPro, Inc. Class A (d) | 458,700 | | 22,820 |
Harman International Industries, Inc. | 67,800 | | 8,789 |
Jarden Corp. (a) | 398,500 | | 19,136 |
KB Home (d) | 671,900 | | 8,372 |
Sony Corp. | 443,100 | | 10,422 |
Sony Corp. sponsored ADR | 175,400 | | 4,085 |
TRI Pointe Homes, Inc. (a) | 1,741,600 | | 24,957 |
Whirlpool Corp. | 524,800 | | 104,477 |
| | 235,039 |
Internet & Catalog Retail - 4.3% |
Amazon.com, Inc. (a) | 1,529,244 | | 542,163 |
Ctrip.com International Ltd. sponsored ADR (a) | 324,684 | | 15,440 |
Expedia, Inc. | 285,489 | | 24,532 |
Groupon, Inc. Class A (a) | 6,659,600 | | 47,683 |
MakeMyTrip Ltd. (a) | 327,100 | | 8,128 |
Netflix, Inc. (a) | 54,023 | | 23,867 |
Priceline Group, Inc. (a) | 119,800 | | 120,936 |
The Honest Co., Inc. (f) | 150,143 | | 4,069 |
Travelport Worldwide Ltd. | 383,800 | | 5,983 |
Vipshop Holdings Ltd. ADR (a)(d) | 1,104,100 | | 24,721 |
Wayfair LLC Class A | 34,600 | | 677 |
zulily, Inc. Class A (a)(d) | 155,300 | | 2,873 |
| | 821,072 |
Leisure Products - 0.1% |
NJOY, Inc. (f) | 1,178,168 | | 9,508 |
Media - 2.6% |
Comcast Corp. Class A | 3,188,036 | | 169,428 |
Lions Gate Entertainment Corp. (d) | 338,900 | | 9,737 |
Naspers Ltd. Class N | 161,400 | | 23,284 |
New Media Investment Group, Inc. | 89,300 | | 2,089 |
The Walt Disney Co. | 3,185,700 | | 289,771 |
| | 494,309 |
Multiline Retail - 1.2% |
B&M European Value Retail S.A. | 411,895 | | 1,959 |
Macy's, Inc. | 1,361,085 | | 86,946 |
Target Corp. | 1,829,823 | | 134,693 |
Tuesday Morning Corp. (a) | 299,500 | | 5,301 |
| | 228,899 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - 5.1% |
Advance Auto Parts, Inc. | 12,300 | | $ 1,956 |
AutoZone, Inc. (a) | 3,200 | | 1,910 |
CST Brands, Inc. | 43,200 | | 1,862 |
GNC Holdings, Inc. | 606,800 | | 26,906 |
Home Depot, Inc. | 3,442,900 | | 359,508 |
L Brands, Inc. | 1,032,282 | | 87,362 |
Lumber Liquidators Holdings, Inc. (a) | 129,200 | | 8,159 |
Michaels Companies, Inc. | 417,700 | | 10,777 |
Murphy U.S.A., Inc. (a) | 724,370 | | 50,568 |
Restoration Hardware Holdings, Inc. (a) | 1,779,022 | | 155,718 |
Ross Stores, Inc. | 891,863 | | 81,793 |
TJX Companies, Inc. | 2,020,352 | | 133,222 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 161,500 | | 21,308 |
Williams-Sonoma, Inc. | 168,400 | | 13,177 |
| | 954,226 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 318,500 | | 21,037 |
G-III Apparel Group Ltd. (a) | 65,000 | | 6,318 |
Hanesbrands, Inc. | 273,600 | | 30,474 |
Kate Spade & Co. (a) | 1,646,504 | | 51,914 |
lululemon athletica, Inc. (a) | 864,281 | | 57,250 |
Michael Kors Holdings Ltd. (a) | 1,053,872 | | 74,604 |
NIKE, Inc. Class B | 795,475 | | 73,383 |
Ralph Lauren Corp. | 298,100 | | 49,750 |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 519,500 | | 31,352 |
| | 396,082 |
TOTAL CONSUMER DISCRETIONARY | | 4,382,243 |
CONSUMER STAPLES - 9.8% |
Beverages - 3.3% |
Anheuser-Busch InBev SA NV ADR (d) | 428,091 | | 52,257 |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 202,600 | | 22,377 |
Kweichow Moutai Co. Ltd. | 66,400 | | 1,869 |
Monster Beverage Corp. (a) | 1,179,335 | | 137,923 |
PepsiCo, Inc. | 2,044,054 | | 191,691 |
The Coca-Cola Co. | 5,109,752 | | 210,368 |
United Spirits Ltd. (a) | 41,658 | | 2,322 |
| | 618,807 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 3.0% |
Costco Wholesale Corp. | 876,900 | | $ 125,388 |
CVS Health Corp. | 1,890,500 | | 185,571 |
Diplomat Pharmacy, Inc. (d) | 68,700 | | 1,688 |
Kroger Co. | 2,014,687 | | 139,114 |
Rite Aid Corp. (a) | 978,300 | | 6,829 |
Sprouts Farmers Market LLC (a) | 1,585,677 | | 57,734 |
Tesco PLC | 6,116,000 | | 20,682 |
Wal-Mart Stores, Inc. | 43,500 | | 3,697 |
Whole Foods Market, Inc. | 578,910 | | 30,158 |
| | 570,861 |
Food Products - 2.2% |
Associated British Foods PLC | 40,800 | | 1,907 |
Bunge Ltd. | 379,867 | | 34,009 |
China Modern Dairy Holdings Ltd. (a) | 7,498,000 | | 2,421 |
Dean Foods Co. | 810,800 | | 14,692 |
Keurig Green Mountain, Inc. | 2,071,188 | | 253,845 |
Mead Johnson Nutrition Co. Class A | 882,094 | | 86,877 |
The Hain Celestial Group, Inc. (a) | 230,600 | | 12,169 |
WhiteWave Foods Co. (a) | 420,869 | | 13,876 |
| | 419,796 |
Household Products - 0.7% |
Energizer Holdings, Inc. | 217,500 | | 27,842 |
Procter & Gamble Co. | 1,354,304 | | 114,154 |
| | 141,996 |
Personal Products - 0.4% |
AMOREPACIFIC Group, Inc. | 5,438 | | 6,149 |
Herbalife Ltd. | 2,091,358 | | 63,745 |
| | 69,894 |
Tobacco - 0.2% |
Lorillard, Inc. | 615,227 | | 40,365 |
TOTAL CONSUMER STAPLES | | 1,861,719 |
ENERGY - 1.9% |
Energy Equipment & Services - 0.1% |
Halliburton Co. | 711,876 | | 28,468 |
Oil, Gas & Consumable Fuels - 1.8% |
Anadarko Petroleum Corp. | 594,800 | | 48,625 |
Cimarex Energy Co. | 436,607 | | 45,058 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Continental Resources, Inc. (a) | 837,900 | | $ 38,041 |
Diamondback Energy, Inc. (a) | 59,700 | | 4,119 |
EOG Resources, Inc. | 942,924 | | 83,949 |
Hess Corp. | 156,978 | | 10,594 |
Petronet LNG Ltd. (a) | 297,334 | | 861 |
Pioneer Natural Resources Co. | 458,800 | | 69,063 |
Rice Energy, Inc. | 796,100 | | 13,597 |
SM Energy Co. | 329,200 | | 12,450 |
Whiting Petroleum Corp. (a) | 271,400 | | 8,147 |
| | 334,504 |
TOTAL ENERGY | | 362,972 |
FINANCIALS - 4.2% |
Banks - 2.2% |
Axis Bank Ltd. (a) | 953,180 | | 9,091 |
Bank of America Corp. | 6,513,087 | | 98,673 |
Citigroup, Inc. | 2,197,990 | | 103,196 |
HDFC Bank Ltd. sponsored ADR | 514,000 | | 29,288 |
ICICI Bank Ltd. sponsored ADR | 3,118,145 | | 37,449 |
JPMorgan Chase & Co. | 2,448,377 | | 133,143 |
Punjab National Bank (a) | 948,000 | | 2,916 |
Yes Bank Ltd. | 170,103 | | 2,358 |
| | 416,114 |
Capital Markets - 1.2% |
Ameriprise Financial, Inc. | 187,753 | | 23,458 |
BlackRock, Inc. Class A | 184,500 | | 62,824 |
Carlyle Group LP | 275,200 | | 7,238 |
Charles Schwab Corp. | 710,400 | | 18,456 |
Fairfax India Holdings Corp. (a) | 926,100 | | 9,076 |
Invesco Ltd. | 620,572 | | 22,794 |
Morgan Stanley | 1,468,851 | | 49,662 |
The Blackstone Group LP | 802,200 | | 29,954 |
| | 223,462 |
Consumer Finance - 0.3% |
American Express Co. | 587,644 | | 47,417 |
Shriram Transport Finance Co. Ltd. | 339,455 | | 6,233 |
Synchrony Financial | 127,700 | | 3,941 |
| | 57,591 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.1% |
McGraw Hill Financial, Inc. | 81,000 | | $ 7,245 |
Moody's Corp. | 94,900 | | 8,667 |
| | 15,912 |
Real Estate Investment Trusts - 0.2% |
Duke Realty LP | 597,200 | | 13,037 |
Extra Space Storage, Inc. | 197,700 | | 13,048 |
Gaming & Leisure Properties | 241,900 | | 7,893 |
| | 33,978 |
Real Estate Management & Development - 0.1% |
CBRE Group, Inc. (a) | 111,700 | | 3,612 |
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | | 6,308 |
Realogy Holdings Corp. (a) | 282,767 | | 13,149 |
| | 23,069 |
Thrifts & Mortgage Finance - 0.1% |
Housing Development Finance Corp. Ltd. | 697,722 | | 14,159 |
LIC Housing Finance Ltd. | 351,944 | | 2,709 |
| | 16,868 |
TOTAL FINANCIALS | | 786,994 |
HEALTH CARE - 16.4% |
Biotechnology - 9.5% |
Acceleron Pharma, Inc. (a) | 42,800 | | 1,689 |
Agios Pharmaceuticals, Inc. (a) | 195,640 | | 22,679 |
Alexion Pharmaceuticals, Inc. (a) | 624,996 | | 114,524 |
Alkermes PLC (a) | 711,400 | | 51,399 |
Alnylam Pharmaceuticals, Inc. (a) | 690,163 | | 64,758 |
Amgen, Inc. | 632,902 | | 96,366 |
Ascendis Pharma A/S | 214,200 | | 4,248 |
Avalanche Biotechnologies, Inc. (a) | 44,300 | | 1,758 |
BioCryst Pharmaceuticals, Inc. (a) | 833,700 | | 8,487 |
Biogen Idec, Inc. (a) | 854,700 | | 332,615 |
BioMarin Pharmaceutical, Inc. (a) | 323,504 | | 31,432 |
Bluebird Bio, Inc. (a) | 163,700 | | 15,209 |
Calithera Biosciences, Inc. | 266,400 | | 5,299 |
Celgene Corp. (a) | 1,161,000 | | 138,345 |
Dicerna Pharmaceuticals, Inc. | 161,260 | | 3,438 |
FibroGen, Inc. | 71,642 | | 2,116 |
Gilead Sciences, Inc. (a) | 4,676,060 | | 490,191 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Intercept Pharmaceuticals, Inc. (a) | 88,100 | | $ 17,711 |
Intrexon Corp. (a)(d) | 446,559 | | 12,821 |
Ironwood Pharmaceuticals, Inc. Class A (a) | 907,481 | | 14,139 |
Isis Pharmaceuticals, Inc. (a) | 63,700 | | 4,364 |
Karyopharm Therapeutics, Inc. (a) | 50,800 | | 1,348 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 817,473 | | 9,940 |
Kite Pharma, Inc. | 99,100 | | 6,655 |
KYTHERA Biopharmaceuticals, Inc. (a)(d) | 263,156 | | 9,789 |
Medivation, Inc. (a) | 35,100 | | 3,820 |
Merrimack Pharmaceuticals, Inc. (a) | 1,594,658 | | 15,038 |
Neurocrine Biosciences, Inc. (a) | 442,100 | | 14,881 |
Pharmacyclics, Inc. (a) | 242,400 | | 40,905 |
Puma Biotechnology, Inc. (a) | 85,600 | | 18,068 |
Receptos, Inc. (a) | 31,200 | | 3,437 |
Regeneron Pharmaceuticals, Inc. (a) | 361,889 | | 150,785 |
Seattle Genetics, Inc. (a) | 158,900 | | 4,951 |
Spark Therapeutics, Inc. | 18,000 | | 900 |
Synageva BioPharma Corp. (a) | 170,200 | | 19,610 |
Ultragenyx Pharmaceutical, Inc. | 26,500 | | 1,540 |
uniQure B.V. | 305,687 | | 6,419 |
Versartis, Inc. (a) | 179,700 | | 3,186 |
Vertex Pharmaceuticals, Inc. (a) | 421,660 | | 46,442 |
ZIOPHARM Oncology, Inc. (a)(d) | 652,600 | | 5,841 |
| | 1,797,143 |
Health Care Equipment & Supplies - 0.9% |
Abiomed, Inc. (a) | 49,300 | | 2,551 |
Accuray, Inc. (a)(d) | 935,165 | | 6,892 |
Boston Scientific Corp. (a) | 2,645,700 | | 39,183 |
Hologic, Inc. (a) | 967,000 | | 29,363 |
Intuitive Surgical, Inc. (a) | 120,107 | | 59,391 |
Medtronic PLC | 274,370 | | 19,590 |
Novadaq Technologies, Inc. (a) | 478,519 | | 6,809 |
Zeltiq Aesthetics, Inc. (a) | 504,000 | | 16,234 |
| | 180,013 |
Health Care Providers & Services - 0.8% |
AmerisourceBergen Corp. | 144,600 | | 13,744 |
Apollo Hospitals Enterprise Ltd. (a) | 936,371 | | 19,793 |
Cardinal Health, Inc. | 313,331 | | 26,066 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
HCA Holdings, Inc. (a) | 879,900 | | $ 62,297 |
McKesson Corp. | 132,700 | | 28,219 |
| | 150,119 |
Health Care Technology - 0.4% |
athenahealth, Inc. (a) | 76,475 | | 10,684 |
Castlight Health, Inc. Class B (a)(d) | 419,838 | | 3,728 |
Cerner Corp. (a) | 747,918 | | 49,624 |
Medidata Solutions, Inc. (a) | 40,000 | | 1,720 |
Veeva Systems, Inc. Class A (a) | 194,300 | | 5,588 |
| | 71,344 |
Life Sciences Tools & Services - 0.3% |
Genfit (a)(d) | 173,652 | | 11,283 |
Illumina, Inc. (a) | 198,935 | | 38,830 |
Lonza Group AG | 38,412 | | 4,568 |
| | 54,681 |
Pharmaceuticals - 4.5% |
AbbVie, Inc. | 1,746,406 | | 105,396 |
Achaogen, Inc. (a) | 331,200 | | 3,875 |
Actavis PLC (a) | 1,078,255 | | 287,398 |
Akorn, Inc. (a) | 89,900 | | 3,828 |
Bristol-Myers Squibb Co. | 1,650,200 | | 99,458 |
Dermira, Inc. | 317,800 | | 5,355 |
GW Pharmaceuticals PLC ADR (a)(d) | 265,666 | | 19,386 |
Hospira, Inc. (a) | 58,100 | | 3,685 |
Jazz Pharmaceuticals PLC (a) | 101,355 | | 17,163 |
Johnson & Johnson | 181,200 | | 18,145 |
Mallinckrodt PLC (a) | 187,200 | | 19,841 |
Pacira Pharmaceuticals, Inc. (a) | 117,166 | | 12,578 |
Perrigo Co. PLC | 135,440 | | 20,552 |
Shire PLC sponsored ADR | 285,659 | | 62,634 |
Tetraphase Pharmaceuticals, Inc. (a) | 57,100 | | 2,076 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,095,700 | | 62,302 |
Valeant Pharmaceuticals International (Canada) (a) | 674,100 | | 107,781 |
| | 851,453 |
TOTAL HEALTH CARE | | 3,104,753 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - 8.2% |
Aerospace & Defense - 1.3% |
Honeywell International, Inc. | 1,037,400 | | $ 101,416 |
L-3 Communications Holdings, Inc. | 94,800 | | 11,672 |
The Boeing Co. | 948,426 | | 137,873 |
| | 250,961 |
Air Freight & Logistics - 0.5% |
FedEx Corp. | 329,878 | | 55,786 |
United Parcel Service, Inc. Class B | 284,000 | | 28,071 |
XPO Logistics, Inc. (a)(d) | 524,500 | | 19,296 |
| | 103,153 |
Airlines - 2.6% |
American Airlines Group, Inc. | 4,765,593 | | 233,895 |
Azul-Linhas Aereas Brasileiras warrants (a)(f) | 165,571 | | 0 |
Delta Air Lines, Inc. | 1,897,100 | | 89,752 |
Southwest Airlines Co. | 642,902 | | 29,046 |
Spirit Airlines, Inc. (a) | 802,400 | | 59,490 |
United Continental Holdings, Inc. (a) | 936,200 | | 64,944 |
Virgin America, Inc. | 324,700 | | 10,890 |
| | 488,017 |
Building Products - 0.1% |
A.O. Smith Corp. | 276,054 | | 16,400 |
Construction & Engineering - 0.0% |
Larsen & Toubro Ltd. (a) | 204,799 | | 5,598 |
Electrical Equipment - 0.3% |
Acuity Brands, Inc. | 131,300 | | 19,681 |
SolarCity Corp. (a)(d) | 643,332 | | 31,272 |
TCP International Holdings Ltd. | 695,200 | | 4,401 |
| | 55,354 |
Industrial Conglomerates - 0.8% |
Danaher Corp. | 1,797,600 | | 148,086 |
General Electric Co. | 156,400 | | 3,736 |
| | 151,822 |
Machinery - 0.8% |
Cummins, Inc. | 648,661 | | 90,462 |
Deere & Co. | 42,700 | | 3,638 |
Eicher Motors Ltd. | 14,288 | | 3,742 |
Fanuc Corp. | 21,300 | | 3,577 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Ingersoll-Rand PLC | 507,884 | | $ 33,723 |
Manitowoc Co., Inc. | 387,100 | | 7,239 |
| | 142,381 |
Professional Services - 0.2% |
Huron Consulting Group, Inc. (a) | 194,520 | | 14,632 |
Manpower, Inc. | 276,500 | | 20,151 |
| | 34,783 |
Road & Rail - 1.4% |
Canadian Pacific Railway Ltd. | 197,600 | | 34,440 |
Container Corp. of India Ltd. | 242,276 | | 5,713 |
CSX Corp. | 597,600 | | 19,900 |
Hertz Global Holdings, Inc. (a) | 1,178,396 | | 24,181 |
J.B. Hunt Transport Services, Inc. | 578,700 | | 46,070 |
Union Pacific Corp. | 1,167,500 | | 136,843 |
| | 267,147 |
Trading Companies & Distributors - 0.2% |
HD Supply Holdings, Inc. (a) | 199,400 | | 5,749 |
United Rentals, Inc. (a) | 333,600 | | 27,639 |
| | 33,388 |
TOTAL INDUSTRIALS | | 1,549,004 |
INFORMATION TECHNOLOGY - 32.2% |
Communications Equipment - 1.5% |
Arista Networks, Inc. (d) | 112,200 | | 7,082 |
Cisco Systems, Inc. | 1,804,700 | | 47,581 |
Palo Alto Networks, Inc. (a) | 216,091 | | 27,312 |
QUALCOMM, Inc. | 3,355,314 | | 209,573 |
| | 291,548 |
Internet Software & Services - 11.0% |
Akamai Technologies, Inc. (a) | 416,430 | | 24,217 |
Alibaba Group Holding Ltd. sponsored ADR | 1,067,900 | | 95,129 |
Baidu.com, Inc. sponsored ADR (a) | 422,100 | | 91,984 |
Cornerstone OnDemand, Inc. (a)(d) | 264,000 | | 8,699 |
Dropbox, Inc. (a)(f) | 1,003,814 | | 19,173 |
Facebook, Inc. Class A (a) | 5,867,401 | | 445,394 |
Gogo, Inc. (a)(d) | 1,022,200 | | 14,858 |
Google, Inc.: | | | |
Class A (a) | 951,554 | | 511,508 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Google, Inc.: - continued | | | |
Class C (a) | 768,554 | | $ 410,807 |
HomeAway, Inc. (a) | 97,500 | | 2,485 |
Info Edge India Ltd. | 661,765 | | 9,064 |
Just Dial Ltd. | 578,216 | | 14,486 |
LendingClub Corp. | 138,700 | | 2,603 |
LinkedIn Corp. (a) | 268,300 | | 60,298 |
NAVER Corp. | 42,162 | | 27,110 |
New Relic, Inc. | 19,300 | | 599 |
New Relic, Inc. | 156,117 | | 4,364 |
Rackspace Hosting, Inc. (a) | 1,801,901 | | 81,013 |
Tencent Holdings Ltd. | 3,299,800 | | 55,656 |
Twitter, Inc. (a) | 2,324,500 | | 87,238 |
Yahoo!, Inc. (a) | 2,659,076 | | 116,973 |
| | 2,083,658 |
IT Services - 4.3% |
Cognizant Technology Solutions Corp. Class A (a) | 3,910,254 | | 211,662 |
MasterCard, Inc. Class A | 2,803,400 | | 229,963 |
Total System Services, Inc. | 165,900 | | 5,868 |
VeriFone Systems, Inc. (a) | 991,400 | | 31,120 |
Visa, Inc. Class A | 1,274,799 | | 324,959 |
| | 803,572 |
Semiconductors & Semiconductor Equipment - 4.3% |
Ambarella, Inc. (a)(d) | 543,700 | | 30,072 |
Atmel Corp. | 2,006,000 | | 16,710 |
Avago Technologies Ltd. | 235,100 | | 24,187 |
Broadcom Corp. Class A | 1,083,700 | | 45,987 |
Cavium, Inc. (a) | 919,701 | | 54,088 |
Cirrus Logic, Inc. (a) | 2,021,500 | | 53,570 |
Cree, Inc. (a) | 550,502 | | 19,466 |
Cypress Semiconductor Corp. | 513,085 | | 7,558 |
First Solar, Inc. (a) | 1,083,400 | | 45,849 |
Freescale Semiconductor, Inc. (a) | 2,115,454 | | 67,885 |
Himax Technologies, Inc. sponsored ADR | 988,300 | | 8,480 |
Lam Research Corp. | 261,000 | | 19,951 |
Marvell Technology Group Ltd. | 939,800 | | 14,558 |
Maxim Integrated Products, Inc. | 703,700 | | 23,285 |
Monolithic Power Systems, Inc. | 201,194 | | 9,555 |
NVIDIA Corp. | 1,103,570 | | 21,194 |
NXP Semiconductors NV (a) | 3,564,207 | | 282,784 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Qorvo, Inc. (a) | 425,786 | | $ 31,453 |
Skyworks Solutions, Inc. | 341,600 | | 28,370 |
| | 805,002 |
Software - 4.0% |
Activision Blizzard, Inc. | 4,837,816 | | 101,086 |
Adobe Systems, Inc. (a) | 973,050 | | 68,240 |
Fortinet, Inc. (a) | 568,596 | | 16,998 |
Intuit, Inc. | 224,800 | | 19,517 |
Microsoft Corp. | 4,854,244 | | 196,111 |
Qlik Technologies, Inc. (a) | 377,200 | | 10,712 |
Red Hat, Inc. (a) | 383,200 | | 24,444 |
salesforce.com, Inc. (a) | 4,641,269 | | 262,000 |
Splunk, Inc. (a) | 65,200 | | 3,368 |
Tableau Software, Inc. (a) | 467,300 | | 37,739 |
Workiva, Inc. | 259,999 | | 3,193 |
Yodlee, inc. | 197,599 | | 1,822 |
Zynga, Inc. (a) | 6,116,783 | | 15,659 |
| | 760,889 |
Technology Hardware, Storage & Peripherals - 7.1% |
Apple, Inc. | 10,671,309 | | 1,250,250 |
BlackBerry Ltd. (a)(d) | 3,328,200 | | 33,781 |
Hewlett-Packard Co. | 1,054,000 | | 38,081 |
Nimble Storage, Inc. (a) | 221,200 | | 4,962 |
Samsung Electronics Co. Ltd. | 14,461 | | 17,809 |
| | 1,344,883 |
TOTAL INFORMATION TECHNOLOGY | | 6,089,552 |
MATERIALS - 2.5% |
Chemicals - 2.0% |
Agrium, Inc. | 130,100 | | 13,880 |
Air Products & Chemicals, Inc. | 64,900 | | 9,450 |
Ashland, Inc. | 148,900 | | 17,648 |
CF Industries Holdings, Inc. | 107,600 | | 32,859 |
E.I. du Pont de Nemours & Co. | 1,897,600 | | 135,128 |
Intrepid Potash, Inc. (a)(d) | 509,165 | | 6,777 |
Monsanto Co. | 1,116,000 | | 131,666 |
Potash Corp. of Saskatchewan, Inc. | 785,400 | | 28,593 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
PPG Industries, Inc. | 35,100 | | $ 7,823 |
The Mosaic Co. | 40,500 | | 1,972 |
| | 385,796 |
Construction Materials - 0.1% |
Caesarstone Sdot-Yam Ltd. | 255,800 | | 15,885 |
Containers & Packaging - 0.3% |
Berry Plastics Group, Inc. (a) | 172,500 | | 5,834 |
Rock-Tenn Co. Class A | 159,100 | | 10,326 |
Sealed Air Corp. | 866,900 | | 35,109 |
| | 51,269 |
Metals & Mining - 0.1% |
United States Steel Corp. (d) | 505,300 | | 12,350 |
TOTAL MATERIALS | | 465,300 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
Bharti Infratel Ltd. | 4,990,661 | | 29,040 |
UTILITIES - 0.1% |
Electric Utilities - 0.0% |
Power Grid Corp. of India Ltd. | 757,980 | | 1,853 |
Independent Power Producers & Renewable Electricity Producers - 0.1% |
Dynegy, Inc. (a) | 390,232 | | 10,661 |
TOTAL UTILITIES | | 12,514 |
TOTAL COMMON STOCKS (Cost $12,494,803) |
18,644,091
|
Preferred Stocks - 1.4% |
| | | |
Convertible Preferred Stocks - 1.4% |
CONSUMER DISCRETIONARY - 0.1% |
Internet & Catalog Retail - 0.1% |
The Honest Co., Inc. Series C (f) | 350,333 | | 9,494 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Convertible Preferred Stocks - continued |
CONSUMER DISCRETIONARY - continued |
Leisure Products - 0.0% |
NJOY, Inc.: | | | |
Series C (a)(f) | 607,766 | | $ 4,905 |
Series D (f) | 149,114 | | 1,203 |
| | 6,108 |
TOTAL CONSUMER DISCRETIONARY | | 15,602 |
HEALTH CARE - 0.0% |
Biotechnology - 0.0% |
Pronutria Biosciences, Inc. Series C (f) | 545,634 | | 5,500 |
INDUSTRIALS - 0.1% |
Aerospace & Defense - 0.0% |
Space Exploration Technologies Corp. Series G (f) | 97,277 | | 7,535 |
Airlines - 0.0% |
Azul-Linhas Aereas Brasileiras Series B (a)(f) | 165,571 | | 7,405 |
Professional Services - 0.1% |
Meituan Corp. Series D (f)(g) | 1,581,852 | | 10,000 |
TOTAL INDUSTRIALS | | 24,940 |
INFORMATION TECHNOLOGY - 1.2% |
Internet Software & Services - 0.9% |
Uber Technologies, Inc. (f) | 102,648 | | 3,420 |
Uber Technologies, Inc. Series E, 8.00% (f) | 5,156,948 | | 171,817 |
| | 175,237 |
IT Services - 0.2% |
AppNexus, Inc. Series E (f) | 646,522 | | 18,361 |
Nutanix, Inc. Series E (f) | 482,746 | | 6,618 |
| | 24,979 |
Software - 0.1% |
Cloudera, Inc. Series F (f) | 186,078 | | 3,629 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Convertible Preferred Stocks - continued |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Cloudflare, Inc. Series D (f) | 603,356 | | $ 3,696 |
Taboola.Com Ltd. Series E (f) | 634,902 | | 6,619 |
| | 13,944 |
TOTAL INFORMATION TECHNOLOGY | | 214,160 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 260,202 |
Nonconvertible Preferred Stocks - 0.0% |
CONSUMER DISCRETIONARY - 0.0% |
Automobiles - 0.0% |
Volkswagen AG | 42,000 | | 9,411 |
TOTAL PREFERRED STOCKS (Cost $172,246) |
269,613
|
Money Market Funds - 1.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 23,871,606 | | 23,872 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 266,191,021 | | 266,191 |
TOTAL MONEY MARKET FUNDS (Cost $290,063) |
290,063
|
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $12,957,112) | | 19,203,767 |
NET OTHER ASSETS (LIABILITIES) - (1.5)% | | (287,227) |
NET ASSETS - 100% | $ 18,916,540 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 $292,952,000 or 1.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
AppNexus, Inc. Series E | 8/1/14 | $ 12,951 |
Azul-Linhas Aereas Brasileiras Series B | 12/24/13 | $ 7,023 |
Azul-Linhas Aereas Brasileiras warrants | 12/24/13 | $ 0* |
Cloudera, Inc. Series F | 2/5/14 | $ 2,709 |
Cloudflare, Inc. Series D | 11/5/14 | $ 3,696 |
Security | Acquisition Date | Acquisition Cost (000s) |
Dropbox, Inc. | 5/2/12 | $ 9,084 |
Meituan Corp. Series D | 1/26/15 | $ 10,000 |
NJOY, Inc. | 9/11/13 | $ 9,520 |
NJOY, Inc.
Series C | 6/7/13 | $ 4,913 |
NJOY, Inc.
Series D | 2/14/14 | $ 2,524 |
Nutanix, Inc. Series E | 8/26/14 | $ 6,467 |
Pronutria Biosciences, Inc. Series C | 1/30/15 | $ 5,500 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $ 7,535 |
Taboola.Com Ltd. Series E | 12/22/14 | $ 6,619 |
The Honest Co., Inc. | 8/21/14 | $ 4,062 |
The Honest Co., Inc. Series C | 8/21/14 | $ 9,479 |
Uber Technologies, Inc. | 12/5/14 | $ 3,420 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 80,000 |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
* Amount represents less than $1,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 32 |
Fidelity Securities Lending Cash Central Fund | 2,386 |
Total | $ 2,418 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Parsvnath Developers Ltd. | $ 9,495 | $ - | $ - | $ - | $ 6,308 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 4,407,256 | $ 4,316,230 | $ 61,847 | $ 29,179 |
Consumer Staples | 1,861,719 | 1,828,276 | 33,443 | - |
Energy | 362,972 | 362,111 | 861 | - |
Financials | 786,994 | 743,220 | 43,774 | - |
Health Care | 3,110,253 | 3,084,960 | 19,793 | 5,500 |
Industrials | 1,573,944 | 1,530,374 | 18,630 | 24,940 |
Information Technology | 6,303,712 | 5,941,890 | 128,489 | 233,333 |
Materials | 465,300 | 465,300 | - | - |
Telecommunication Services | 29,040 | - | 29,040 | - |
Utilities | 12,514 | 10,661 | 1,853 | - |
Money Market Funds | 290,063 | 290,063 | - | - |
Total Investments in Securities: | $ 19,203,767 | $ 18,573,085 | $ 337,730 | $ 292,952 |
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $ 106,211 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 98,393 |
Cost of Purchases | 33,153 |
Proceeds of Sales | (4,424) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 233,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 98,096 |
(Amounts in thousands) | |
Investments in Securities: - continued | |
Equities - Other Investments in Securities | |
Beginning Balance | $ 40,051 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | (17,009) |
Cost of Purchases | 36,577 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 59,619 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ (17,009) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
United States of America | 87.8% |
Ireland | 2.4% |
Cayman Islands | 2.2% |
Canada | 1.6% |
Netherlands | 1.5% |
India | 1.2% |
Others (Individually Less Than 1%) | 3.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $256,812) - See accompanying schedule: Unaffiliated issuers (cost $12,636,198) | $ 18,907,396 | |
Fidelity Central Funds (cost $290,063) | 290,063 | |
Other affiliated issuers (cost $30,851) | 6,308 | |
Total Investments (cost $12,957,112) | | $ 19,203,767 |
Foreign currency held at value (cost $2,695) | | 2,695 |
Receivable for investments sold | | 220,907 |
Receivable for fund shares sold | | 21,021 |
Dividends receivable | | 5,762 |
Distributions receivable from Fidelity Central Funds | | 805 |
Prepaid expenses | | 18 |
Other receivables | | 789 |
Total assets | | 19,455,764 |
| | |
Liabilities | | |
Payable to custodian bank | $ 621 | |
Payable for investments purchased: | | |
Regular delivery | 227,294 | |
Delayed delivery | 10,000 | |
Payable for fund shares redeemed | 16,696 | |
Accrued management fee | 11,447 | |
Other affiliated payables | 2,163 | |
Other payables and accrued expenses | 4,812 | |
Collateral on securities loaned, at value | 266,191 | |
Total liabilities | | 539,224 |
| | |
Net Assets | | $ 18,916,540 |
Net Assets consist of: | | |
Paid in capital | | $ 12,493,487 |
Distributions in excess of net investment income | | (2,931) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 183,291 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 6,242,693 |
Net Assets | | $ 18,916,540 |
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, 2015 (Unaudited) |
| | |
Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($13,372,055 ÷ 196,989 shares) | | $ 67.88 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($5,544,485 ÷ 81,600 shares) | | $ 67.95 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 81,621 |
Income from Fidelity Central Funds | | 2,418 |
Total income | | 84,039 |
| | |
Expenses | | |
Management fee
Basic fee | $ 49,324 | |
Performance adjustment | 14,468 | |
Transfer agent fees | 11,711 | |
Accounting and security lending fees | 831 | |
Custodian fees and expenses | 175 | |
Independent trustees' compensation | 38 | |
Registration fees | 166 | |
Audit | 48 | |
Legal | 31 | |
Interest | 1 | |
Miscellaneous | 57 | |
Total expenses before reductions | 76,850 | |
Expense reductions | (128) | 76,722 |
Net investment income (loss) | | 7,317 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 366,360 | |
Foreign currency transactions | (492) | |
Total net realized gain (loss) | | 365,868 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,508) | 985,836 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | | 985,820 |
Net gain (loss) | | 1,351,688 |
Net increase (decrease) in net assets resulting from operations | | $ 1,359,005 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,317 | $ 47,516 |
Net realized gain (loss) | 365,868 | 4,690,305 |
Change in net unrealized appreciation (depreciation) | 985,820 | (1,368,277) |
Net increase (decrease) in net assets resulting
from operations | 1,359,005 | 3,369,544 |
Distributions to shareholders from net investment income | (27,789) | (80,757) |
Distributions to shareholders from net realized gain | (1,011,245) | (1,378,625) |
Total distributions | (1,039,034) | (1,459,382) |
Share transactions - net increase (decrease) | 2,014,598 | (5,511,393) |
Total increase (decrease) in net assets | 2,334,569 | (3,601,231) |
| | |
Net Assets | | |
Beginning of period | 16,581,971 | 20,183,202 |
End of period (including distributions in excess of net investment income of $2,931 and undistributed net investment income of $17,541, respectively) | $ 18,916,540 | $ 16,581,971 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31,2015 | Years ended July 31, |
January 31, | (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 66.72 | $ 59.65 | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .15 | .39 | .10 | (.03) | .04 |
Net realized and unrealized gain (loss) | 5.22 | 11.63 | 12.79 | .75 | 10.61 | 5.80 |
Total from investment operations | 5.24 | 11.78 | 13.18 | .85 | 10.58 | 5.84 |
Distributions from net investment income | (.09) | (.24) | (.23) | (.04) | .00 G,I | (.18) |
Distributions from net realized gain | (3.99) | (4.47) | (.68) | (1.60) | (.04) G | - |
Total distributions | (4.08) | (4.71) | (.91) | (1.64) | (.04) | (.18) |
Net asset value, end of period | $ 67.88 | $ 66.72 | $ 59.65 | $ 47.38 | $ 48.17 | $ 37.63 |
Total ReturnB, C | 7.99% | 21.07% | 28.25% | 2.27% | 28.12% | 18.29% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .89%A | .80% | .76% | .90% | .94% | .94% |
Expenses net of fee waivers, if any | .89%A | .80% | .76% | .90% | .94% | .94% |
Expenses net of all reductions | .89%A | .80% | .74% | .89% | .92% | .93% |
Net investment income (loss) | .05% A | .23% | .75% | .21% | (.06)% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 13,372 | $ 11,970 | $ 12,927 | $ 10,595 | $ 12,024 | $ 10,295 |
Portfolio turnover rate F | 43% A | 57%J | 75% | 95% | 132% | 135% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31,2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 66.82 | $ 59.74 | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .23 | .47 | .17 | .05 | .11 |
Net realized and unrealized gain (loss) | 5.23 | 11.64 | 12.79 | .75 | 10.62 | 5.79 |
Total from investment operations | 5.29 | 11.87 | 13.26 | .92 | 10.67 | 5.90 |
Distributions from net investment income | (.17) | (.33) | (.30) | (.08) | (.05) G | (.25) |
Distributions from net realized gain | (3.99) | (4.47) | (.68) | (1.60) | (.07) G | - |
Total distributions | (4.16) | (4.79) K | (.98) | (1.67) J | (.12) | (.25) |
Net asset value, end of period | $ 67.95 | $ 66.82 | $ 59.74 | $ 47.46 | $ 48.21 | $ 37.66 |
Total ReturnB, C | 8.06% | 21.23% | 28.42% | 2.43% | 28.37% | 18.48% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .77%A | .68% | .61% | .74% | .77% | .75% |
Expenses net of fee waivers, if any | .77%A | .68% | .61% | .74% | .77% | .75% |
Expenses net of all reductions | .77%A | .67% | .60% | .73% | .76% | .74% |
Net investment income (loss) | .17% A | .36% | .89% | .37% | .11% | .30% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 5,544 | $ 4,612 | $ 3,506 | $ 2,467 | $ 1,455 | $ 932 |
Portfolio turnover rate F | 43% A | 57% I | 75% | 95% | 132% | 135% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 $1.67 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $1.598 per share.
K Total distributions of $4.79 per share is comprised of distributions from net investment income of $.325 and distributions from net realized gain of $4.466 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, 2015 (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 and Class K shares, each of which has equal rights as to assets and voting privileges. The Fund offered Class F shares during the period June 26, 2009 through November 19, 2013 and all outstanding shares were redeemed by November 19, 2013. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
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.
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
01/31/2015
(000s) | Valuation
Technique (s) | Unobservable
Input | Amount or Range /
Weighted Average | Impact to Valuation from an Increase in Input* |
Equities | $ 292,952 | Last
transaction
price Market
comparable Tender offer | Discount rate Transaction price Put premium Discount rate EV/Sales multiple Premium rate FCF yield Tender offer price | 15.0% $0.00 - $100.00 / $34.14 38.0% 10.0% 2.8 - 10.7 / 5.3 10.0% 4.0% $19.10 | Decrease Increase Increase Decrease Increase Increase Decrease Increase |
* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding
input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or
lower fair value measurements.
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, 2015, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, redemptions in kind, partnerships, deferred trustees compensation 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 | $ 6,528,051 |
Gross unrealized depreciation | (320,422) |
Net unrealized appreciation (depreciation) on securities | $ 6,207,629 |
| |
Tax cost | $ 12,996,138 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,846,176 and $3,847,844, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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 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-Level Average
Net Assets* |
Blue Chip Growth | $ 10,496 | .16 |
Class K | 1,215 | .05 |
| $ 11,711 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $61 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 or other affiliated entities of 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
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 17,744 | .32% | $ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $11,419. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent
Semiannual Report
7. Security Lending - continued
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 $2,386, including $156 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $124 for the period.
In addition, the investment advisor reimbursed a portion of the Fund's operating expenses, including certain Blue Chip Growth expenses during the period in the amount of $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 A |
From net investment income | | |
Blue Chip Growth | $ 15,581 | $ 47,730 |
Class K | 12,208 | 19,791 |
Class F | - | 13,236 |
Total | $ 27,789 | $ 80,757 |
From net realized gain | | |
Blue Chip Growth | $ 722,638 | $ 908,543 |
Class K | 288,607 | 269,912 |
Class F | - | 200,170 |
Total | $ 1,011,245 | $ 1,378,625 |
A All Class F shares were redeemed on November 19, 2013.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31,
2014 A | Six months ended January 31, 2015 | Year ended
July 31,
2014 A |
Blue Chip Growth | | | | |
Shares sold | 22,498 | 30,779 | $ 1,505,347 | $ 1,939,078 |
Reinvestment of distributions | 10,699 | 16,131 | 715,067 | 933,288 |
Shares redeemed | (15,614) | (84,222) B | (1,047,120) | (5,182,185) B |
Net increase (decrease) | 17,583 | (37,312) | $ 1,173,294 | $ (2,309,819) |
Class K | | | | |
Shares sold | 15,348 | 17,861 | $ 1,026,882 | $ 1,132,520 |
Reinvestment of distributions | 4,497 | 4,984 | 300,815 | 289,703 |
Shares redeemed | (7,278) | (12,491) | (486,393) | (788,832) |
Net increase (decrease) | 12,567 | 10,354 | $ 841,304 | $ 633,391 |
Class F | | | | |
Shares sold | - | 3,759 | $ - | $ 226,491 |
Reinvestment of distributions | - | 3,740 | - | 213,405 |
Shares redeemed | - | (70,205) B | - | (4,274,861) B |
Net increase (decrease) | - | (62,706) | $ - | $ (3,834,965) |
A All Class F shares were redeemed on November 19, 2013.
B 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) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
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BCF-USAN-0315
1.789282.112
Fidelity®
Blue Chip Growth
Fund -
Class K
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Blue Chip Growth | .89% | | | |
Actual | | $ 1,000.00 | $ 1,079.90 | $ 4.67 |
HypotheticalA | | $ 1,000.00 | $ 1,020.72 | $ 4.53 |
Class K | .77% | | | |
Actual | | $ 1,000.00 | $ 1,080.60 | $ 4.04 |
HypotheticalA | | $ 1,000.00 | $ 1,021.32 | $ 3.92 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.6 | 6.5 |
Amazon.com, Inc. | 2.9 | 2.3 |
Google, Inc. Class A | 2.7 | 2.9 |
Gilead Sciences, Inc. | 2.6 | 2.7 |
Facebook, Inc. Class A | 2.4 | 2.4 |
Google, Inc. Class C | 2.2 | 2.7 |
Home Depot, Inc. | 1.9 | 1.6 |
Biogen Idec, Inc. | 1.8 | 1.5 |
Visa, Inc. Class A | 1.7 | 1.4 |
The Walt Disney Co. | 1.5 | 1.6 |
| 26.3 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 33.4 | 33.5 |
Consumer Discretionary | 23.3 | 21.2 |
Health Care | 16.4 | 15.3 |
Consumer Staples | 9.8 | 8.9 |
Industrials | 8.3 | 9.1 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 98.6% | | | Stocks 99.3% | |
| Convertible
Securities 1.4% | | | Convertible
Securities 0.6% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 0.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 0.1% | |
* Foreign investments | 12.2% | | ** Foreign investments | 10.8% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 23.2% |
Auto Components - 0.3% |
Magna International, Inc. Class A (sub. vtg.) | 210,025 | | $ 20,179 |
Motherson Sumi Systems Ltd. | 787,172 | | 5,711 |
The Goodyear Tire & Rubber Co. | 1,206,100 | | 29,236 |
| | 55,126 |
Automobiles - 1.4% |
Harley-Davidson, Inc. | 684,100 | | 42,209 |
Mahindra & Mahindra Ltd. (a) | 247,500 | | 5,036 |
Suzuki Motor Corp. | 119,900 | | 3,791 |
Tata Motors Ltd. (a) | 1,444,431 | | 13,603 |
Tata Motors Ltd. sponsored ADR | 265,500 | | 13,094 |
Tesla Motors, Inc. (a)(d) | 902,356 | | 183,720 |
| | 261,453 |
Diversified Consumer Services - 0.2% |
H&R Block, Inc. | 1,116,200 | | 38,263 |
Houghton Mifflin Harcourt Co. (a) | 186,100 | | 3,662 |
| | 41,925 |
Hotels, Restaurants & Leisure - 4.7% |
ARAMARK Holdings Corp. | 186,700 | | 5,847 |
Boyd Gaming Corp. (a) | 284,800 | | 3,719 |
Buffalo Wild Wings, Inc. (a) | 316,038 | | 56,356 |
Chipotle Mexican Grill, Inc. (a) | 237,817 | | 168,812 |
DineEquity, Inc. | 17,600 | | 1,879 |
Domino's Pizza, Inc. | 345,400 | | 34,212 |
Fiesta Restaurant Group, Inc. (a) | 253,700 | | 14,986 |
Habit Restaurants, Inc. Class A (d) | 398,373 | | 13,146 |
Hilton Worldwide Holdings, Inc. (a) | 935,100 | | 24,285 |
Homeinns Hotel Group ADR (a) | 248,294 | | 6,185 |
Hyatt Hotels Corp. Class A (a) | 888,600 | | 49,993 |
Jack in the Box, Inc. | 22,100 | | 1,874 |
Las Vegas Sands Corp. | 1,703,194 | | 92,603 |
McDonald's Corp. | 417,000 | | 38,547 |
Panera Bread Co. Class A (a) | 344,256 | | 59,164 |
Papa John's International, Inc. | 370,600 | | 23,518 |
Penn National Gaming, Inc. (a) | 371,300 | | 5,558 |
Sonic Corp. | 326,800 | | 9,892 |
Starbucks Corp. | 2,743,722 | | 240,158 |
Whitbread PLC | 310,250 | | 23,388 |
Zoe's Kitchen, Inc. (d) | 338,800 | | 10,482 |
| | 884,604 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Household Durables - 1.2% |
D.R. Horton, Inc. | 1,304,300 | | $ 31,981 |
GoPro, Inc. Class A (d) | 458,700 | | 22,820 |
Harman International Industries, Inc. | 67,800 | | 8,789 |
Jarden Corp. (a) | 398,500 | | 19,136 |
KB Home (d) | 671,900 | | 8,372 |
Sony Corp. | 443,100 | | 10,422 |
Sony Corp. sponsored ADR | 175,400 | | 4,085 |
TRI Pointe Homes, Inc. (a) | 1,741,600 | | 24,957 |
Whirlpool Corp. | 524,800 | | 104,477 |
| | 235,039 |
Internet & Catalog Retail - 4.3% |
Amazon.com, Inc. (a) | 1,529,244 | | 542,163 |
Ctrip.com International Ltd. sponsored ADR (a) | 324,684 | | 15,440 |
Expedia, Inc. | 285,489 | | 24,532 |
Groupon, Inc. Class A (a) | 6,659,600 | | 47,683 |
MakeMyTrip Ltd. (a) | 327,100 | | 8,128 |
Netflix, Inc. (a) | 54,023 | | 23,867 |
Priceline Group, Inc. (a) | 119,800 | | 120,936 |
The Honest Co., Inc. (f) | 150,143 | | 4,069 |
Travelport Worldwide Ltd. | 383,800 | | 5,983 |
Vipshop Holdings Ltd. ADR (a)(d) | 1,104,100 | | 24,721 |
Wayfair LLC Class A | 34,600 | | 677 |
zulily, Inc. Class A (a)(d) | 155,300 | | 2,873 |
| | 821,072 |
Leisure Products - 0.1% |
NJOY, Inc. (f) | 1,178,168 | | 9,508 |
Media - 2.6% |
Comcast Corp. Class A | 3,188,036 | | 169,428 |
Lions Gate Entertainment Corp. (d) | 338,900 | | 9,737 |
Naspers Ltd. Class N | 161,400 | | 23,284 |
New Media Investment Group, Inc. | 89,300 | | 2,089 |
The Walt Disney Co. | 3,185,700 | | 289,771 |
| | 494,309 |
Multiline Retail - 1.2% |
B&M European Value Retail S.A. | 411,895 | | 1,959 |
Macy's, Inc. | 1,361,085 | | 86,946 |
Target Corp. | 1,829,823 | | 134,693 |
Tuesday Morning Corp. (a) | 299,500 | | 5,301 |
| | 228,899 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - 5.1% |
Advance Auto Parts, Inc. | 12,300 | | $ 1,956 |
AutoZone, Inc. (a) | 3,200 | | 1,910 |
CST Brands, Inc. | 43,200 | | 1,862 |
GNC Holdings, Inc. | 606,800 | | 26,906 |
Home Depot, Inc. | 3,442,900 | | 359,508 |
L Brands, Inc. | 1,032,282 | | 87,362 |
Lumber Liquidators Holdings, Inc. (a) | 129,200 | | 8,159 |
Michaels Companies, Inc. | 417,700 | | 10,777 |
Murphy U.S.A., Inc. (a) | 724,370 | | 50,568 |
Restoration Hardware Holdings, Inc. (a) | 1,779,022 | | 155,718 |
Ross Stores, Inc. | 891,863 | | 81,793 |
TJX Companies, Inc. | 2,020,352 | | 133,222 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 161,500 | | 21,308 |
Williams-Sonoma, Inc. | 168,400 | | 13,177 |
| | 954,226 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 318,500 | | 21,037 |
G-III Apparel Group Ltd. (a) | 65,000 | | 6,318 |
Hanesbrands, Inc. | 273,600 | | 30,474 |
Kate Spade & Co. (a) | 1,646,504 | | 51,914 |
lululemon athletica, Inc. (a) | 864,281 | | 57,250 |
Michael Kors Holdings Ltd. (a) | 1,053,872 | | 74,604 |
NIKE, Inc. Class B | 795,475 | | 73,383 |
Ralph Lauren Corp. | 298,100 | | 49,750 |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 519,500 | | 31,352 |
| | 396,082 |
TOTAL CONSUMER DISCRETIONARY | | 4,382,243 |
CONSUMER STAPLES - 9.8% |
Beverages - 3.3% |
Anheuser-Busch InBev SA NV ADR (d) | 428,091 | | 52,257 |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 202,600 | | 22,377 |
Kweichow Moutai Co. Ltd. | 66,400 | | 1,869 |
Monster Beverage Corp. (a) | 1,179,335 | | 137,923 |
PepsiCo, Inc. | 2,044,054 | | 191,691 |
The Coca-Cola Co. | 5,109,752 | | 210,368 |
United Spirits Ltd. (a) | 41,658 | | 2,322 |
| | 618,807 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 3.0% |
Costco Wholesale Corp. | 876,900 | | $ 125,388 |
CVS Health Corp. | 1,890,500 | | 185,571 |
Diplomat Pharmacy, Inc. (d) | 68,700 | | 1,688 |
Kroger Co. | 2,014,687 | | 139,114 |
Rite Aid Corp. (a) | 978,300 | | 6,829 |
Sprouts Farmers Market LLC (a) | 1,585,677 | | 57,734 |
Tesco PLC | 6,116,000 | | 20,682 |
Wal-Mart Stores, Inc. | 43,500 | | 3,697 |
Whole Foods Market, Inc. | 578,910 | | 30,158 |
| | 570,861 |
Food Products - 2.2% |
Associated British Foods PLC | 40,800 | | 1,907 |
Bunge Ltd. | 379,867 | | 34,009 |
China Modern Dairy Holdings Ltd. (a) | 7,498,000 | | 2,421 |
Dean Foods Co. | 810,800 | | 14,692 |
Keurig Green Mountain, Inc. | 2,071,188 | | 253,845 |
Mead Johnson Nutrition Co. Class A | 882,094 | | 86,877 |
The Hain Celestial Group, Inc. (a) | 230,600 | | 12,169 |
WhiteWave Foods Co. (a) | 420,869 | | 13,876 |
| | 419,796 |
Household Products - 0.7% |
Energizer Holdings, Inc. | 217,500 | | 27,842 |
Procter & Gamble Co. | 1,354,304 | | 114,154 |
| | 141,996 |
Personal Products - 0.4% |
AMOREPACIFIC Group, Inc. | 5,438 | | 6,149 |
Herbalife Ltd. | 2,091,358 | | 63,745 |
| | 69,894 |
Tobacco - 0.2% |
Lorillard, Inc. | 615,227 | | 40,365 |
TOTAL CONSUMER STAPLES | | 1,861,719 |
ENERGY - 1.9% |
Energy Equipment & Services - 0.1% |
Halliburton Co. | 711,876 | | 28,468 |
Oil, Gas & Consumable Fuels - 1.8% |
Anadarko Petroleum Corp. | 594,800 | | 48,625 |
Cimarex Energy Co. | 436,607 | | 45,058 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Continental Resources, Inc. (a) | 837,900 | | $ 38,041 |
Diamondback Energy, Inc. (a) | 59,700 | | 4,119 |
EOG Resources, Inc. | 942,924 | | 83,949 |
Hess Corp. | 156,978 | | 10,594 |
Petronet LNG Ltd. (a) | 297,334 | | 861 |
Pioneer Natural Resources Co. | 458,800 | | 69,063 |
Rice Energy, Inc. | 796,100 | | 13,597 |
SM Energy Co. | 329,200 | | 12,450 |
Whiting Petroleum Corp. (a) | 271,400 | | 8,147 |
| | 334,504 |
TOTAL ENERGY | | 362,972 |
FINANCIALS - 4.2% |
Banks - 2.2% |
Axis Bank Ltd. (a) | 953,180 | | 9,091 |
Bank of America Corp. | 6,513,087 | | 98,673 |
Citigroup, Inc. | 2,197,990 | | 103,196 |
HDFC Bank Ltd. sponsored ADR | 514,000 | | 29,288 |
ICICI Bank Ltd. sponsored ADR | 3,118,145 | | 37,449 |
JPMorgan Chase & Co. | 2,448,377 | | 133,143 |
Punjab National Bank (a) | 948,000 | | 2,916 |
Yes Bank Ltd. | 170,103 | | 2,358 |
| | 416,114 |
Capital Markets - 1.2% |
Ameriprise Financial, Inc. | 187,753 | | 23,458 |
BlackRock, Inc. Class A | 184,500 | | 62,824 |
Carlyle Group LP | 275,200 | | 7,238 |
Charles Schwab Corp. | 710,400 | | 18,456 |
Fairfax India Holdings Corp. (a) | 926,100 | | 9,076 |
Invesco Ltd. | 620,572 | | 22,794 |
Morgan Stanley | 1,468,851 | | 49,662 |
The Blackstone Group LP | 802,200 | | 29,954 |
| | 223,462 |
Consumer Finance - 0.3% |
American Express Co. | 587,644 | | 47,417 |
Shriram Transport Finance Co. Ltd. | 339,455 | | 6,233 |
Synchrony Financial | 127,700 | | 3,941 |
| | 57,591 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.1% |
McGraw Hill Financial, Inc. | 81,000 | | $ 7,245 |
Moody's Corp. | 94,900 | | 8,667 |
| | 15,912 |
Real Estate Investment Trusts - 0.2% |
Duke Realty LP | 597,200 | | 13,037 |
Extra Space Storage, Inc. | 197,700 | | 13,048 |
Gaming & Leisure Properties | 241,900 | | 7,893 |
| | 33,978 |
Real Estate Management & Development - 0.1% |
CBRE Group, Inc. (a) | 111,700 | | 3,612 |
Parsvnath Developers Ltd. (a)(e) | 21,771,340 | | 6,308 |
Realogy Holdings Corp. (a) | 282,767 | | 13,149 |
| | 23,069 |
Thrifts & Mortgage Finance - 0.1% |
Housing Development Finance Corp. Ltd. | 697,722 | | 14,159 |
LIC Housing Finance Ltd. | 351,944 | | 2,709 |
| | 16,868 |
TOTAL FINANCIALS | | 786,994 |
HEALTH CARE - 16.4% |
Biotechnology - 9.5% |
Acceleron Pharma, Inc. (a) | 42,800 | | 1,689 |
Agios Pharmaceuticals, Inc. (a) | 195,640 | | 22,679 |
Alexion Pharmaceuticals, Inc. (a) | 624,996 | | 114,524 |
Alkermes PLC (a) | 711,400 | | 51,399 |
Alnylam Pharmaceuticals, Inc. (a) | 690,163 | | 64,758 |
Amgen, Inc. | 632,902 | | 96,366 |
Ascendis Pharma A/S | 214,200 | | 4,248 |
Avalanche Biotechnologies, Inc. (a) | 44,300 | | 1,758 |
BioCryst Pharmaceuticals, Inc. (a) | 833,700 | | 8,487 |
Biogen Idec, Inc. (a) | 854,700 | | 332,615 |
BioMarin Pharmaceutical, Inc. (a) | 323,504 | | 31,432 |
Bluebird Bio, Inc. (a) | 163,700 | | 15,209 |
Calithera Biosciences, Inc. | 266,400 | | 5,299 |
Celgene Corp. (a) | 1,161,000 | | 138,345 |
Dicerna Pharmaceuticals, Inc. | 161,260 | | 3,438 |
FibroGen, Inc. | 71,642 | | 2,116 |
Gilead Sciences, Inc. (a) | 4,676,060 | | 490,191 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Biotechnology - continued |
Intercept Pharmaceuticals, Inc. (a) | 88,100 | | $ 17,711 |
Intrexon Corp. (a)(d) | 446,559 | | 12,821 |
Ironwood Pharmaceuticals, Inc. Class A (a) | 907,481 | | 14,139 |
Isis Pharmaceuticals, Inc. (a) | 63,700 | | 4,364 |
Karyopharm Therapeutics, Inc. (a) | 50,800 | | 1,348 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 817,473 | | 9,940 |
Kite Pharma, Inc. | 99,100 | | 6,655 |
KYTHERA Biopharmaceuticals, Inc. (a)(d) | 263,156 | | 9,789 |
Medivation, Inc. (a) | 35,100 | | 3,820 |
Merrimack Pharmaceuticals, Inc. (a) | 1,594,658 | | 15,038 |
Neurocrine Biosciences, Inc. (a) | 442,100 | | 14,881 |
Pharmacyclics, Inc. (a) | 242,400 | | 40,905 |
Puma Biotechnology, Inc. (a) | 85,600 | | 18,068 |
Receptos, Inc. (a) | 31,200 | | 3,437 |
Regeneron Pharmaceuticals, Inc. (a) | 361,889 | | 150,785 |
Seattle Genetics, Inc. (a) | 158,900 | | 4,951 |
Spark Therapeutics, Inc. | 18,000 | | 900 |
Synageva BioPharma Corp. (a) | 170,200 | | 19,610 |
Ultragenyx Pharmaceutical, Inc. | 26,500 | | 1,540 |
uniQure B.V. | 305,687 | | 6,419 |
Versartis, Inc. (a) | 179,700 | | 3,186 |
Vertex Pharmaceuticals, Inc. (a) | 421,660 | | 46,442 |
ZIOPHARM Oncology, Inc. (a)(d) | 652,600 | | 5,841 |
| | 1,797,143 |
Health Care Equipment & Supplies - 0.9% |
Abiomed, Inc. (a) | 49,300 | | 2,551 |
Accuray, Inc. (a)(d) | 935,165 | | 6,892 |
Boston Scientific Corp. (a) | 2,645,700 | | 39,183 |
Hologic, Inc. (a) | 967,000 | | 29,363 |
Intuitive Surgical, Inc. (a) | 120,107 | | 59,391 |
Medtronic PLC | 274,370 | | 19,590 |
Novadaq Technologies, Inc. (a) | 478,519 | | 6,809 |
Zeltiq Aesthetics, Inc. (a) | 504,000 | | 16,234 |
| | 180,013 |
Health Care Providers & Services - 0.8% |
AmerisourceBergen Corp. | 144,600 | | 13,744 |
Apollo Hospitals Enterprise Ltd. (a) | 936,371 | | 19,793 |
Cardinal Health, Inc. | 313,331 | | 26,066 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
HCA Holdings, Inc. (a) | 879,900 | | $ 62,297 |
McKesson Corp. | 132,700 | | 28,219 |
| | 150,119 |
Health Care Technology - 0.4% |
athenahealth, Inc. (a) | 76,475 | | 10,684 |
Castlight Health, Inc. Class B (a)(d) | 419,838 | | 3,728 |
Cerner Corp. (a) | 747,918 | | 49,624 |
Medidata Solutions, Inc. (a) | 40,000 | | 1,720 |
Veeva Systems, Inc. Class A (a) | 194,300 | | 5,588 |
| | 71,344 |
Life Sciences Tools & Services - 0.3% |
Genfit (a)(d) | 173,652 | | 11,283 |
Illumina, Inc. (a) | 198,935 | | 38,830 |
Lonza Group AG | 38,412 | | 4,568 |
| | 54,681 |
Pharmaceuticals - 4.5% |
AbbVie, Inc. | 1,746,406 | | 105,396 |
Achaogen, Inc. (a) | 331,200 | | 3,875 |
Actavis PLC (a) | 1,078,255 | | 287,398 |
Akorn, Inc. (a) | 89,900 | | 3,828 |
Bristol-Myers Squibb Co. | 1,650,200 | | 99,458 |
Dermira, Inc. | 317,800 | | 5,355 |
GW Pharmaceuticals PLC ADR (a)(d) | 265,666 | | 19,386 |
Hospira, Inc. (a) | 58,100 | | 3,685 |
Jazz Pharmaceuticals PLC (a) | 101,355 | | 17,163 |
Johnson & Johnson | 181,200 | | 18,145 |
Mallinckrodt PLC (a) | 187,200 | | 19,841 |
Pacira Pharmaceuticals, Inc. (a) | 117,166 | | 12,578 |
Perrigo Co. PLC | 135,440 | | 20,552 |
Shire PLC sponsored ADR | 285,659 | | 62,634 |
Tetraphase Pharmaceuticals, Inc. (a) | 57,100 | | 2,076 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,095,700 | | 62,302 |
Valeant Pharmaceuticals International (Canada) (a) | 674,100 | | 107,781 |
| | 851,453 |
TOTAL HEALTH CARE | | 3,104,753 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - 8.2% |
Aerospace & Defense - 1.3% |
Honeywell International, Inc. | 1,037,400 | | $ 101,416 |
L-3 Communications Holdings, Inc. | 94,800 | | 11,672 |
The Boeing Co. | 948,426 | | 137,873 |
| | 250,961 |
Air Freight & Logistics - 0.5% |
FedEx Corp. | 329,878 | | 55,786 |
United Parcel Service, Inc. Class B | 284,000 | | 28,071 |
XPO Logistics, Inc. (a)(d) | 524,500 | | 19,296 |
| | 103,153 |
Airlines - 2.6% |
American Airlines Group, Inc. | 4,765,593 | | 233,895 |
Azul-Linhas Aereas Brasileiras warrants (a)(f) | 165,571 | | 0 |
Delta Air Lines, Inc. | 1,897,100 | | 89,752 |
Southwest Airlines Co. | 642,902 | | 29,046 |
Spirit Airlines, Inc. (a) | 802,400 | | 59,490 |
United Continental Holdings, Inc. (a) | 936,200 | | 64,944 |
Virgin America, Inc. | 324,700 | | 10,890 |
| | 488,017 |
Building Products - 0.1% |
A.O. Smith Corp. | 276,054 | | 16,400 |
Construction & Engineering - 0.0% |
Larsen & Toubro Ltd. (a) | 204,799 | | 5,598 |
Electrical Equipment - 0.3% |
Acuity Brands, Inc. | 131,300 | | 19,681 |
SolarCity Corp. (a)(d) | 643,332 | | 31,272 |
TCP International Holdings Ltd. | 695,200 | | 4,401 |
| | 55,354 |
Industrial Conglomerates - 0.8% |
Danaher Corp. | 1,797,600 | | 148,086 |
General Electric Co. | 156,400 | | 3,736 |
| | 151,822 |
Machinery - 0.8% |
Cummins, Inc. | 648,661 | | 90,462 |
Deere & Co. | 42,700 | | 3,638 |
Eicher Motors Ltd. | 14,288 | | 3,742 |
Fanuc Corp. | 21,300 | | 3,577 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Ingersoll-Rand PLC | 507,884 | | $ 33,723 |
Manitowoc Co., Inc. | 387,100 | | 7,239 |
| | 142,381 |
Professional Services - 0.2% |
Huron Consulting Group, Inc. (a) | 194,520 | | 14,632 |
Manpower, Inc. | 276,500 | | 20,151 |
| | 34,783 |
Road & Rail - 1.4% |
Canadian Pacific Railway Ltd. | 197,600 | | 34,440 |
Container Corp. of India Ltd. | 242,276 | | 5,713 |
CSX Corp. | 597,600 | | 19,900 |
Hertz Global Holdings, Inc. (a) | 1,178,396 | | 24,181 |
J.B. Hunt Transport Services, Inc. | 578,700 | | 46,070 |
Union Pacific Corp. | 1,167,500 | | 136,843 |
| | 267,147 |
Trading Companies & Distributors - 0.2% |
HD Supply Holdings, Inc. (a) | 199,400 | | 5,749 |
United Rentals, Inc. (a) | 333,600 | | 27,639 |
| | 33,388 |
TOTAL INDUSTRIALS | | 1,549,004 |
INFORMATION TECHNOLOGY - 32.2% |
Communications Equipment - 1.5% |
Arista Networks, Inc. (d) | 112,200 | | 7,082 |
Cisco Systems, Inc. | 1,804,700 | | 47,581 |
Palo Alto Networks, Inc. (a) | 216,091 | | 27,312 |
QUALCOMM, Inc. | 3,355,314 | | 209,573 |
| | 291,548 |
Internet Software & Services - 11.0% |
Akamai Technologies, Inc. (a) | 416,430 | | 24,217 |
Alibaba Group Holding Ltd. sponsored ADR | 1,067,900 | | 95,129 |
Baidu.com, Inc. sponsored ADR (a) | 422,100 | | 91,984 |
Cornerstone OnDemand, Inc. (a)(d) | 264,000 | | 8,699 |
Dropbox, Inc. (a)(f) | 1,003,814 | | 19,173 |
Facebook, Inc. Class A (a) | 5,867,401 | | 445,394 |
Gogo, Inc. (a)(d) | 1,022,200 | | 14,858 |
Google, Inc.: | | | |
Class A (a) | 951,554 | | 511,508 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Google, Inc.: - continued | | | |
Class C (a) | 768,554 | | $ 410,807 |
HomeAway, Inc. (a) | 97,500 | | 2,485 |
Info Edge India Ltd. | 661,765 | | 9,064 |
Just Dial Ltd. | 578,216 | | 14,486 |
LendingClub Corp. | 138,700 | | 2,603 |
LinkedIn Corp. (a) | 268,300 | | 60,298 |
NAVER Corp. | 42,162 | | 27,110 |
New Relic, Inc. | 19,300 | | 599 |
New Relic, Inc. | 156,117 | | 4,364 |
Rackspace Hosting, Inc. (a) | 1,801,901 | | 81,013 |
Tencent Holdings Ltd. | 3,299,800 | | 55,656 |
Twitter, Inc. (a) | 2,324,500 | | 87,238 |
Yahoo!, Inc. (a) | 2,659,076 | | 116,973 |
| | 2,083,658 |
IT Services - 4.3% |
Cognizant Technology Solutions Corp. Class A (a) | 3,910,254 | | 211,662 |
MasterCard, Inc. Class A | 2,803,400 | | 229,963 |
Total System Services, Inc. | 165,900 | | 5,868 |
VeriFone Systems, Inc. (a) | 991,400 | | 31,120 |
Visa, Inc. Class A | 1,274,799 | | 324,959 |
| | 803,572 |
Semiconductors & Semiconductor Equipment - 4.3% |
Ambarella, Inc. (a)(d) | 543,700 | | 30,072 |
Atmel Corp. | 2,006,000 | | 16,710 |
Avago Technologies Ltd. | 235,100 | | 24,187 |
Broadcom Corp. Class A | 1,083,700 | | 45,987 |
Cavium, Inc. (a) | 919,701 | | 54,088 |
Cirrus Logic, Inc. (a) | 2,021,500 | | 53,570 |
Cree, Inc. (a) | 550,502 | | 19,466 |
Cypress Semiconductor Corp. | 513,085 | | 7,558 |
First Solar, Inc. (a) | 1,083,400 | | 45,849 |
Freescale Semiconductor, Inc. (a) | 2,115,454 | | 67,885 |
Himax Technologies, Inc. sponsored ADR | 988,300 | | 8,480 |
Lam Research Corp. | 261,000 | | 19,951 |
Marvell Technology Group Ltd. | 939,800 | | 14,558 |
Maxim Integrated Products, Inc. | 703,700 | | 23,285 |
Monolithic Power Systems, Inc. | 201,194 | | 9,555 |
NVIDIA Corp. | 1,103,570 | | 21,194 |
NXP Semiconductors NV (a) | 3,564,207 | | 282,784 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Qorvo, Inc. (a) | 425,786 | | $ 31,453 |
Skyworks Solutions, Inc. | 341,600 | | 28,370 |
| | 805,002 |
Software - 4.0% |
Activision Blizzard, Inc. | 4,837,816 | | 101,086 |
Adobe Systems, Inc. (a) | 973,050 | | 68,240 |
Fortinet, Inc. (a) | 568,596 | | 16,998 |
Intuit, Inc. | 224,800 | | 19,517 |
Microsoft Corp. | 4,854,244 | | 196,111 |
Qlik Technologies, Inc. (a) | 377,200 | | 10,712 |
Red Hat, Inc. (a) | 383,200 | | 24,444 |
salesforce.com, Inc. (a) | 4,641,269 | | 262,000 |
Splunk, Inc. (a) | 65,200 | | 3,368 |
Tableau Software, Inc. (a) | 467,300 | | 37,739 |
Workiva, Inc. | 259,999 | | 3,193 |
Yodlee, inc. | 197,599 | | 1,822 |
Zynga, Inc. (a) | 6,116,783 | | 15,659 |
| | 760,889 |
Technology Hardware, Storage & Peripherals - 7.1% |
Apple, Inc. | 10,671,309 | | 1,250,250 |
BlackBerry Ltd. (a)(d) | 3,328,200 | | 33,781 |
Hewlett-Packard Co. | 1,054,000 | | 38,081 |
Nimble Storage, Inc. (a) | 221,200 | | 4,962 |
Samsung Electronics Co. Ltd. | 14,461 | | 17,809 |
| | 1,344,883 |
TOTAL INFORMATION TECHNOLOGY | | 6,089,552 |
MATERIALS - 2.5% |
Chemicals - 2.0% |
Agrium, Inc. | 130,100 | | 13,880 |
Air Products & Chemicals, Inc. | 64,900 | | 9,450 |
Ashland, Inc. | 148,900 | | 17,648 |
CF Industries Holdings, Inc. | 107,600 | | 32,859 |
E.I. du Pont de Nemours & Co. | 1,897,600 | | 135,128 |
Intrepid Potash, Inc. (a)(d) | 509,165 | | 6,777 |
Monsanto Co. | 1,116,000 | | 131,666 |
Potash Corp. of Saskatchewan, Inc. | 785,400 | | 28,593 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
PPG Industries, Inc. | 35,100 | | $ 7,823 |
The Mosaic Co. | 40,500 | | 1,972 |
| | 385,796 |
Construction Materials - 0.1% |
Caesarstone Sdot-Yam Ltd. | 255,800 | | 15,885 |
Containers & Packaging - 0.3% |
Berry Plastics Group, Inc. (a) | 172,500 | | 5,834 |
Rock-Tenn Co. Class A | 159,100 | | 10,326 |
Sealed Air Corp. | 866,900 | | 35,109 |
| | 51,269 |
Metals & Mining - 0.1% |
United States Steel Corp. (d) | 505,300 | | 12,350 |
TOTAL MATERIALS | | 465,300 |
TELECOMMUNICATION SERVICES - 0.1% |
Wireless Telecommunication Services - 0.1% |
Bharti Infratel Ltd. | 4,990,661 | | 29,040 |
UTILITIES - 0.1% |
Electric Utilities - 0.0% |
Power Grid Corp. of India Ltd. | 757,980 | | 1,853 |
Independent Power Producers & Renewable Electricity Producers - 0.1% |
Dynegy, Inc. (a) | 390,232 | | 10,661 |
TOTAL UTILITIES | | 12,514 |
TOTAL COMMON STOCKS (Cost $12,494,803) |
18,644,091
|
Preferred Stocks - 1.4% |
| | | |
Convertible Preferred Stocks - 1.4% |
CONSUMER DISCRETIONARY - 0.1% |
Internet & Catalog Retail - 0.1% |
The Honest Co., Inc. Series C (f) | 350,333 | | 9,494 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Convertible Preferred Stocks - continued |
CONSUMER DISCRETIONARY - continued |
Leisure Products - 0.0% |
NJOY, Inc.: | | | |
Series C (a)(f) | 607,766 | | $ 4,905 |
Series D (f) | 149,114 | | 1,203 |
| | 6,108 |
TOTAL CONSUMER DISCRETIONARY | | 15,602 |
HEALTH CARE - 0.0% |
Biotechnology - 0.0% |
Pronutria Biosciences, Inc. Series C (f) | 545,634 | | 5,500 |
INDUSTRIALS - 0.1% |
Aerospace & Defense - 0.0% |
Space Exploration Technologies Corp. Series G (f) | 97,277 | | 7,535 |
Airlines - 0.0% |
Azul-Linhas Aereas Brasileiras Series B (a)(f) | 165,571 | | 7,405 |
Professional Services - 0.1% |
Meituan Corp. Series D (f)(g) | 1,581,852 | | 10,000 |
TOTAL INDUSTRIALS | | 24,940 |
INFORMATION TECHNOLOGY - 1.2% |
Internet Software & Services - 0.9% |
Uber Technologies, Inc. (f) | 102,648 | | 3,420 |
Uber Technologies, Inc. Series E, 8.00% (f) | 5,156,948 | | 171,817 |
| | 175,237 |
IT Services - 0.2% |
AppNexus, Inc. Series E (f) | 646,522 | | 18,361 |
Nutanix, Inc. Series E (f) | 482,746 | | 6,618 |
| | 24,979 |
Software - 0.1% |
Cloudera, Inc. Series F (f) | 186,078 | | 3,629 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Convertible Preferred Stocks - continued |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Cloudflare, Inc. Series D (f) | 603,356 | | $ 3,696 |
Taboola.Com Ltd. Series E (f) | 634,902 | | 6,619 |
| | 13,944 |
TOTAL INFORMATION TECHNOLOGY | | 214,160 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 260,202 |
Nonconvertible Preferred Stocks - 0.0% |
CONSUMER DISCRETIONARY - 0.0% |
Automobiles - 0.0% |
Volkswagen AG | 42,000 | | 9,411 |
TOTAL PREFERRED STOCKS (Cost $172,246) |
269,613
|
Money Market Funds - 1.5% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 23,871,606 | | 23,872 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 266,191,021 | | 266,191 |
TOTAL MONEY MARKET FUNDS (Cost $290,063) |
290,063
|
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $12,957,112) | | 19,203,767 |
NET OTHER ASSETS (LIABILITIES) - (1.5)% | | (287,227) |
NET ASSETS - 100% | $ 18,916,540 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 $292,952,000 or 1.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
AppNexus, Inc. Series E | 8/1/14 | $ 12,951 |
Azul-Linhas Aereas Brasileiras Series B | 12/24/13 | $ 7,023 |
Azul-Linhas Aereas Brasileiras warrants | 12/24/13 | $ 0* |
Cloudera, Inc. Series F | 2/5/14 | $ 2,709 |
Cloudflare, Inc. Series D | 11/5/14 | $ 3,696 |
Security | Acquisition Date | Acquisition Cost (000s) |
Dropbox, Inc. | 5/2/12 | $ 9,084 |
Meituan Corp. Series D | 1/26/15 | $ 10,000 |
NJOY, Inc. | 9/11/13 | $ 9,520 |
NJOY, Inc.
Series C | 6/7/13 | $ 4,913 |
NJOY, Inc.
Series D | 2/14/14 | $ 2,524 |
Nutanix, Inc. Series E | 8/26/14 | $ 6,467 |
Pronutria Biosciences, Inc. Series C | 1/30/15 | $ 5,500 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $ 7,535 |
Taboola.Com Ltd. Series E | 12/22/14 | $ 6,619 |
The Honest Co., Inc. | 8/21/14 | $ 4,062 |
The Honest Co., Inc. Series C | 8/21/14 | $ 9,479 |
Uber Technologies, Inc. | 12/5/14 | $ 3,420 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 80,000 |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
* Amount represents less than $1,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 32 |
Fidelity Securities Lending Cash Central Fund | 2,386 |
Total | $ 2,418 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Parsvnath Developers Ltd. | $ 9,495 | $ - | $ - | $ - | $ 6,308 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 4,407,256 | $ 4,316,230 | $ 61,847 | $ 29,179 |
Consumer Staples | 1,861,719 | 1,828,276 | 33,443 | - |
Energy | 362,972 | 362,111 | 861 | - |
Financials | 786,994 | 743,220 | 43,774 | - |
Health Care | 3,110,253 | 3,084,960 | 19,793 | 5,500 |
Industrials | 1,573,944 | 1,530,374 | 18,630 | 24,940 |
Information Technology | 6,303,712 | 5,941,890 | 128,489 | 233,333 |
Materials | 465,300 | 465,300 | - | - |
Telecommunication Services | 29,040 | - | 29,040 | - |
Utilities | 12,514 | 10,661 | 1,853 | - |
Money Market Funds | 290,063 | 290,063 | - | - |
Total Investments in Securities: | $ 19,203,767 | $ 18,573,085 | $ 337,730 | $ 292,952 |
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $ 106,211 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 98,393 |
Cost of Purchases | 33,153 |
Proceeds of Sales | (4,424) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 233,333 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 98,096 |
(Amounts in thousands) | |
Investments in Securities: - continued | |
Equities - Other Investments in Securities | |
Beginning Balance | $ 40,051 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | (17,009) |
Cost of Purchases | 36,577 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 59,619 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ (17,009) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
United States of America | 87.8% |
Ireland | 2.4% |
Cayman Islands | 2.2% |
Canada | 1.6% |
Netherlands | 1.5% |
India | 1.2% |
Others (Individually Less Than 1%) | 3.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $256,812) - See accompanying schedule: Unaffiliated issuers (cost $12,636,198) | $ 18,907,396 | |
Fidelity Central Funds (cost $290,063) | 290,063 | |
Other affiliated issuers (cost $30,851) | 6,308 | |
Total Investments (cost $12,957,112) | | $ 19,203,767 |
Foreign currency held at value (cost $2,695) | | 2,695 |
Receivable for investments sold | | 220,907 |
Receivable for fund shares sold | | 21,021 |
Dividends receivable | | 5,762 |
Distributions receivable from Fidelity Central Funds | | 805 |
Prepaid expenses | | 18 |
Other receivables | | 789 |
Total assets | | 19,455,764 |
| | |
Liabilities | | |
Payable to custodian bank | $ 621 | |
Payable for investments purchased: | | |
Regular delivery | 227,294 | |
Delayed delivery | 10,000 | |
Payable for fund shares redeemed | 16,696 | |
Accrued management fee | 11,447 | |
Other affiliated payables | 2,163 | |
Other payables and accrued expenses | 4,812 | |
Collateral on securities loaned, at value | 266,191 | |
Total liabilities | | 539,224 |
| | |
Net Assets | | $ 18,916,540 |
Net Assets consist of: | | |
Paid in capital | | $ 12,493,487 |
Distributions in excess of net investment income | | (2,931) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 183,291 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 6,242,693 |
Net Assets | | $ 18,916,540 |
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, 2015 (Unaudited) |
| | |
Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($13,372,055 ÷ 196,989 shares) | | $ 67.88 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($5,544,485 ÷ 81,600 shares) | | $ 67.95 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 81,621 |
Income from Fidelity Central Funds | | 2,418 |
Total income | | 84,039 |
| | |
Expenses | | |
Management fee
Basic fee | $ 49,324 | |
Performance adjustment | 14,468 | |
Transfer agent fees | 11,711 | |
Accounting and security lending fees | 831 | |
Custodian fees and expenses | 175 | |
Independent trustees' compensation | 38 | |
Registration fees | 166 | |
Audit | 48 | |
Legal | 31 | |
Interest | 1 | |
Miscellaneous | 57 | |
Total expenses before reductions | 76,850 | |
Expense reductions | (128) | 76,722 |
Net investment income (loss) | | 7,317 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 366,360 | |
Foreign currency transactions | (492) | |
Total net realized gain (loss) | | 365,868 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,508) | 985,836 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | | 985,820 |
Net gain (loss) | | 1,351,688 |
Net increase (decrease) in net assets resulting from operations | | $ 1,359,005 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,317 | $ 47,516 |
Net realized gain (loss) | 365,868 | 4,690,305 |
Change in net unrealized appreciation (depreciation) | 985,820 | (1,368,277) |
Net increase (decrease) in net assets resulting
from operations | 1,359,005 | 3,369,544 |
Distributions to shareholders from net investment income | (27,789) | (80,757) |
Distributions to shareholders from net realized gain | (1,011,245) | (1,378,625) |
Total distributions | (1,039,034) | (1,459,382) |
Share transactions - net increase (decrease) | 2,014,598 | (5,511,393) |
Total increase (decrease) in net assets | 2,334,569 | (3,601,231) |
| | |
Net Assets | | |
Beginning of period | 16,581,971 | 20,183,202 |
End of period (including distributions in excess of net investment income of $2,931 and undistributed net investment income of $17,541, respectively) | $ 18,916,540 | $ 16,581,971 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Blue Chip Growth
| Six months ended January 31,2015 | Years ended July 31, |
January 31, | (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 66.72 | $ 59.65 | $ 47.38 | $ 48.17 | $ 37.63 | $ 31.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .15 | .39 | .10 | (.03) | .04 |
Net realized and unrealized gain (loss) | 5.22 | 11.63 | 12.79 | .75 | 10.61 | 5.80 |
Total from investment operations | 5.24 | 11.78 | 13.18 | .85 | 10.58 | 5.84 |
Distributions from net investment income | (.09) | (.24) | (.23) | (.04) | .00 G,I | (.18) |
Distributions from net realized gain | (3.99) | (4.47) | (.68) | (1.60) | (.04) G | - |
Total distributions | (4.08) | (4.71) | (.91) | (1.64) | (.04) | (.18) |
Net asset value, end of period | $ 67.88 | $ 66.72 | $ 59.65 | $ 47.38 | $ 48.17 | $ 37.63 |
Total ReturnB, C | 7.99% | 21.07% | 28.25% | 2.27% | 28.12% | 18.29% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .89%A | .80% | .76% | .90% | .94% | .94% |
Expenses net of fee waivers, if any | .89%A | .80% | .76% | .90% | .94% | .94% |
Expenses net of all reductions | .89%A | .80% | .74% | .89% | .92% | .93% |
Net investment income (loss) | .05% A | .23% | .75% | .21% | (.06)% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 13,372 | $ 11,970 | $ 12,927 | $ 10,595 | $ 12,024 | $ 10,295 |
Portfolio turnover rate F | 43% A | 57%J | 75% | 95% | 132% | 135% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended January 31,2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 66.82 | $ 59.74 | $ 47.46 | $ 48.21 | $ 37.66 | $ 32.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .23 | .47 | .17 | .05 | .11 |
Net realized and unrealized gain (loss) | 5.23 | 11.64 | 12.79 | .75 | 10.62 | 5.79 |
Total from investment operations | 5.29 | 11.87 | 13.26 | .92 | 10.67 | 5.90 |
Distributions from net investment income | (.17) | (.33) | (.30) | (.08) | (.05) G | (.25) |
Distributions from net realized gain | (3.99) | (4.47) | (.68) | (1.60) | (.07) G | - |
Total distributions | (4.16) | (4.79) K | (.98) | (1.67) J | (.12) | (.25) |
Net asset value, end of period | $ 67.95 | $ 66.82 | $ 59.74 | $ 47.46 | $ 48.21 | $ 37.66 |
Total ReturnB, C | 8.06% | 21.23% | 28.42% | 2.43% | 28.37% | 18.48% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .77%A | .68% | .61% | .74% | .77% | .75% |
Expenses net of fee waivers, if any | .77%A | .68% | .61% | .74% | .77% | .75% |
Expenses net of all reductions | .77%A | .67% | .60% | .73% | .76% | .74% |
Net investment income (loss) | .17% A | .36% | .89% | .37% | .11% | .30% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 5,544 | $ 4,612 | $ 3,506 | $ 2,467 | $ 1,455 | $ 932 |
Portfolio turnover rate F | 43% A | 57% I | 75% | 95% | 132% | 135% |
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 The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 $1.67 per share is comprised of distributions from net investment income of $.076 and distributions from net realized gain of $1.598 per share.
K Total distributions of $4.79 per share is comprised of distributions from net investment income of $.325 and distributions from net realized gain of $4.466 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, 2015 (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 and Class K shares, each of which has equal rights as to assets and voting privileges. The Fund offered Class F shares during the period June 26, 2009 through November 19, 2013 and all outstanding shares were redeemed by November 19, 2013. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
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.
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
01/31/2015
(000s) | Valuation
Technique (s) | Unobservable
Input | Amount or Range /
Weighted Average | Impact to Valuation from an Increase in Input* |
Equities | $ 292,952 | Last
transaction
price Market
comparable Tender offer | Discount rate Transaction price Put premium Discount rate EV/Sales multiple Premium rate FCF yield Tender offer price | 15.0% $0.00 - $100.00 / $34.14 38.0% 10.0% 2.8 - 10.7 / 5.3 10.0% 4.0% $19.10 | Decrease Increase Increase Decrease Increase Increase Decrease Increase |
* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding
input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or
lower fair value measurements.
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, 2015, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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
Semiannual Report
3. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, redemptions in kind, partnerships, deferred trustees compensation 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 | $ 6,528,051 |
Gross unrealized depreciation | (320,422) |
Net unrealized appreciation (depreciation) on securities | $ 6,207,629 |
| |
Tax cost | $ 12,996,138 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,846,176 and $3,847,844, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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 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-Level Average
Net Assets* |
Blue Chip Growth | $ 10,496 | .16 |
Class K | 1,215 | .05 |
| $ 11,711 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $61 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 or other affiliated entities of 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
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 17,744 | .32% | $ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $11,419. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent
Semiannual Report
7. Security Lending - continued
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 $2,386, including $156 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $124 for the period.
In addition, the investment advisor reimbursed a portion of the Fund's operating expenses, including certain Blue Chip Growth expenses during the period in the amount of $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 A |
From net investment income | | |
Blue Chip Growth | $ 15,581 | $ 47,730 |
Class K | 12,208 | 19,791 |
Class F | - | 13,236 |
Total | $ 27,789 | $ 80,757 |
From net realized gain | | |
Blue Chip Growth | $ 722,638 | $ 908,543 |
Class K | 288,607 | 269,912 |
Class F | - | 200,170 |
Total | $ 1,011,245 | $ 1,378,625 |
A All Class F shares were redeemed on November 19, 2013.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended January 31, 2015 | Year ended
July 31,
2014 A | Six months ended January 31, 2015 | Year ended
July 31,
2014 A |
Blue Chip Growth | | | | |
Shares sold | 22,498 | 30,779 | $ 1,505,347 | $ 1,939,078 |
Reinvestment of distributions | 10,699 | 16,131 | 715,067 | 933,288 |
Shares redeemed | (15,614) | (84,222) B | (1,047,120) | (5,182,185) B |
Net increase (decrease) | 17,583 | (37,312) | $ 1,173,294 | $ (2,309,819) |
Class K | | | | |
Shares sold | 15,348 | 17,861 | $ 1,026,882 | $ 1,132,520 |
Reinvestment of distributions | 4,497 | 4,984 | 300,815 | 289,703 |
Shares redeemed | (7,278) | (12,491) | (486,393) | (788,832) |
Net increase (decrease) | 12,567 | 10,354 | $ 841,304 | $ 633,391 |
Class F | | | | |
Shares sold | - | 3,759 | $ - | $ 226,491 |
Reinvestment of distributions | - | 3,740 | - | 213,405 |
Shares redeemed | - | (70,205) B | - | (4,274,861) B |
Net increase (decrease) | - | (62,706) | $ - | $ (3,834,965) |
A All Class F shares were redeemed on November 19, 2013.
B 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) 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., Boston, MA 02210
www.fidelity.com
BCF-K-USAN-0315
1.863115.106
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Class A, Class T, Class B
and Class C are classes of
Fidelity® Small Cap Value Fund
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,057.80 | $ 7.42 |
HypotheticalA | | $ 1,000.00 | $ 1,018.00 | $ 7.27 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,056.40 | $ 8.71 |
HypotheticalA | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.26% | | | |
Actual | | $ 1,000.00 | $ 1,053.20 | $ 11.70 |
HypotheticalA | | $ 1,000.00 | $ 1,013.81 | $ 11.47 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,054.40 | $ 11.39 |
HypotheticalA | | $ 1,000.00 | $ 1,014.12 | $ 11.17 |
Small Cap Value | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.50 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.40 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Rouse Properties, Inc. | 2.9 | 2.1 |
World Fuel Services Corp. | 2.9 | 2.8 |
Federated Investors, Inc. Class B (non-vtg.) | 2.9 | 2.9 |
First Citizen Bancshares, Inc. | 2.8 | 2.3 |
DCT Industrial Trust, Inc. | 2.8 | 2.3 |
Aarons, Inc. Class A | 2.6 | 2.1 |
Aspen Insurance Holdings Ltd. | 2.5 | 2.3 |
City National Corp. | 2.5 | 2.2 |
Tech Data Corp. | 2.4 | 2.9 |
SS&C Technologies Holdings, Inc. | 2.4 | 2.2 |
| 26.7 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 40.5 | 40.8 |
Industrials | 13.0 | 14.3 |
Information Technology | 12.8 | 13.1 |
Consumer Discretionary | 11.6 | 10.4 |
Health Care | 6.7 | 6.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 99.2% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets
(Liabilities) 0.8% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.5% | |
* Foreign investments | 11.9% | | ** Foreign investments | 8.9% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.6% |
Auto Components - 0.8% |
Standard Motor Products, Inc. | 613,301 | | $ 22,360,954 |
Hotels, Restaurants & Leisure - 1.4% |
DineEquity, Inc. | 373,100 | | 39,828,425 |
Specialty Retail - 8.8% |
Aarons, Inc. Class A | 2,295,100 | | 72,662,866 |
Genesco, Inc. (a) | 617,728 | | 44,136,666 |
Murphy U.S.A., Inc. (a) | 840,715 | | 58,690,314 |
Rent-A-Center, Inc. | 1,656,367 | | 56,780,261 |
Tsutsumi Jewelry Co. Ltd. | 520,900 | | 11,123,615 |
| | 243,393,722 |
Textiles, Apparel & Luxury Goods - 0.6% |
Vera Bradley, Inc. (a) | 831,000 | | 15,847,170 |
TOTAL CONSUMER DISCRETIONARY | | 321,430,271 |
CONSUMER STAPLES - 3.3% |
Food Products - 1.6% |
Post Holdings, Inc. (a) | 931,300 | | 44,003,925 |
Tobacco - 1.7% |
Universal Corp. (e) | 1,170,000 | | 46,987,200 |
TOTAL CONSUMER STAPLES | | 90,991,125 |
ENERGY - 4.2% |
Energy Equipment & Services - 0.9% |
ShawCor Ltd. Class A | 871,000 | | 23,922,169 |
Oil, Gas & Consumable Fuels - 3.3% |
Northern Oil & Gas, Inc. (a)(d) | 1,958,249 | | 12,297,804 |
World Fuel Services Corp. | 1,623,800 | | 79,517,486 |
| | 91,815,290 |
TOTAL ENERGY | | 115,737,459 |
FINANCIALS - 40.5% |
Banks - 9.6% |
Associated Banc-Corp. | 2,929,400 | | 49,243,214 |
City National Corp. | 790,300 | | 68,511,107 |
CVB Financial Corp. | 3,161,688 | | 46,192,262 |
First Citizen Bancshares, Inc. | 321,324 | | 78,419,123 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Banks - continued |
First Niagara Financial Group, Inc. | 400,000 | | $ 3,248,000 |
National Penn Bancshares, Inc. | 2,100,000 | | 20,370,000 |
| | 265,983,706 |
Capital Markets - 5.9% |
Federated Investors, Inc. Class B (non-vtg.) (d) | 2,499,963 | | 79,023,830 |
OM Asset Management Ltd. (a) | 1,823,200 | | 27,639,712 |
Waddell & Reed Financial, Inc. Class A | 1,264,100 | | 56,517,911 |
| | 163,181,453 |
Consumer Finance - 0.9% |
Enova International, Inc. (a) | 506,203 | | 9,744,408 |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,390,088 | | 14,331,807 |
| | 24,076,215 |
Insurance - 10.8% |
Aspen Insurance Holdings Ltd. | 1,599,400 | | 69,286,008 |
Endurance Specialty Holdings Ltd. | 902,400 | | 55,154,688 |
First American Financial Corp. | 1,163,087 | | 39,568,220 |
Platinum Underwriters Holdings Ltd. | 805,499 | | 59,469,991 |
ProAssurance Corp. | 793,200 | | 35,194,284 |
StanCorp Financial Group, Inc. | 631,300 | | 39,165,852 |
| | 297,839,043 |
Real Estate Investment Trusts - 8.8% |
DCT Industrial Trust, Inc. | 2,057,271 | | 77,682,553 |
National Retail Properties, Inc. (d) | 683,400 | | 29,276,856 |
Rouse Properties, Inc. (d)(e) | 4,350,000 | | 80,866,500 |
Sabra Health Care REIT, Inc. | 1,642,700 | | 53,716,290 |
| | 241,542,199 |
Real Estate Management & Development - 1.2% |
Kennedy Wilson Europe Real Estate PLC | 2,159,540 | | 33,828,071 |
Thrifts & Mortgage Finance - 3.3% |
Astoria Financial Corp. | 3,403,499 | | 41,624,793 |
Washington Federal, Inc. | 2,447,100 | | 48,599,406 |
| | 90,224,199 |
TOTAL FINANCIALS | | 1,116,674,886 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - 6.7% |
Health Care Equipment & Supplies - 2.5% |
Hill-Rom Holdings, Inc. | 630,000 | | $ 30,088,800 |
Integra LifeSciences Holdings Corp. (a) | 709,200 | | 39,516,624 |
| | 69,605,424 |
Health Care Providers & Services - 3.4% |
AmSurg Corp. (a) | 673,800 | | 37,180,284 |
Civitas Solutions, Inc. (e) | 2,940,700 | | 55,843,893 |
| | 93,024,177 |
Pharmaceuticals - 0.8% |
Theravance, Inc. (d) | 1,994,553 | | 22,478,612 |
TOTAL HEALTH CARE | | 185,108,213 |
INDUSTRIALS - 13.0% |
Air Freight & Logistics - 1.3% |
Atlas Air Worldwide Holdings, Inc. (a) | 800,146 | | 36,166,599 |
Commercial Services & Supplies - 3.5% |
Knoll, Inc. | 1,269,800 | | 26,018,202 |
Quad/Graphics, Inc. | 922,355 | | 18,483,994 |
United Stationers, Inc. | 1,295,298 | | 52,213,462 |
| | 96,715,658 |
Electrical Equipment - 2.9% |
AZZ, Inc. | 770,000 | | 32,486,300 |
EnerSys | 843,700 | | 49,255,206 |
| | 81,741,506 |
Machinery - 3.4% |
Columbus McKinnon Corp. (NY Shares) | 776,000 | | 19,438,800 |
Mueller Industries, Inc. | 1,600,400 | | 50,236,556 |
Valmont Industries, Inc. | 200,000 | | 24,024,000 |
| | 93,699,356 |
Trading Companies & Distributors - 1.9% |
WESCO International, Inc. (a)(d) | 777,933 | | 51,934,807 |
TOTAL INDUSTRIALS | | 360,257,926 |
INFORMATION TECHNOLOGY - 12.8% |
Electronic Equipment & Components - 5.7% |
Ingram Micro, Inc. Class A (a) | 2,048,300 | | 51,576,194 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Electronic Equipment & Components - continued |
SYNNEX Corp. | 527,200 | | $ 39,112,968 |
Tech Data Corp. (a) | 1,186,373 | | 67,741,898 |
| | 158,431,060 |
Internet Software & Services - 2.9% |
Cimpress NV (a) | 600,000 | | 48,330,000 |
j2 Global, Inc. | 574,300 | | 32,987,792 |
| | 81,317,792 |
IT Services - 1.8% |
CACI International, Inc. Class A (a) | 578,334 | | 48,921,273 |
Software - 2.4% |
SS&C Technologies Holdings, Inc. | 1,188,900 | | 65,781,837 |
TOTAL INFORMATION TECHNOLOGY | | 354,451,962 |
MATERIALS - 2.8% |
Containers & Packaging - 2.3% |
Silgan Holdings, Inc. | 1,200,000 | | 61,692,000 |
Metals & Mining - 0.5% |
Haynes International, Inc. | 376,903 | | 14,672,834 |
TOTAL MATERIALS | | 76,364,834 |
UTILITIES - 4.3% |
Electric Utilities - 3.5% |
El Paso Electric Co. | 974,121 | | 39,023,287 |
IDACORP, Inc. | 822,000 | | 55,822,020 |
| | 94,845,307 |
Gas Utilities - 0.8% |
Southwest Gas Corp. | 372,656 | | 22,903,438 |
TOTAL UTILITIES | | 117,748,745 |
TOTAL COMMON STOCKS (Cost $2,208,818,119) |
2,738,765,421
|
Money Market Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 23,304,072 | | $ 23,304,072 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 57,040,586 | | 57,040,586 |
TOTAL MONEY MARKET FUNDS (Cost $80,344,658) |
80,344,658
|
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $2,289,162,777) | | 2,819,110,079 |
NET OTHER ASSETS (LIABILITIES) - (2.1)% | | (58,695,566) |
NET ASSETS - 100% | $ 2,760,414,513 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 14,146 |
Fidelity Securities Lending Cash Central Fund | 1,404,872 |
Total | $ 1,419,018 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
ACCO Brands Corp. | $ 50,386,144 | $ - | $ 54,199,221 | $ - | $ - |
Civitas Solutions, Inc. | - | 49,470,245 | - | - | 55,843,893 |
Rouse Properties, Inc. | 61,020,000 | 12,779,885 | - | 604,922 | 80,866,500 |
Universal Corp. | 34,273,800 | 21,914,020 | - | 985,800 | 46,987,200 |
Total | $ 145,679,944 | $ 84,164,150 | $ 54,199,221 | $ 1,590,722 | $ 183,697,593 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 321,430,271 | $ 310,306,656 | $ 11,123,615 | $ - |
Consumer Staples | 90,991,125 | 90,991,125 | - | - |
Energy | 115,737,459 | 115,737,459 | - | - |
Financials | 1,116,674,886 | 1,116,674,886 | - | - |
Health Care | 185,108,213 | 185,108,213 | - | - |
Industrials | 360,257,926 | 360,257,926 | - | - |
Information Technology | 354,451,962 | 354,451,962 | - | - |
Materials | 76,364,834 | 76,364,834 | - | - |
Utilities | 117,748,745 | 117,748,745 | - | - |
Money Market Funds | 80,344,658 | 80,344,658 | - | - |
Total Investments in Securities: | $ 2,819,110,079 | $ 2,807,986,464 | $ 11,123,615 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 88.1% |
Bermuda | 6.7% |
Netherlands | 1.7% |
Bailiwick of Jersey | 1.2% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 1.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $54,778,769) - See accompanying schedule: Unaffiliated issuers (cost $2,027,817,397) | $ 2,555,067,828 | |
Fidelity Central Funds (cost $80,344,658) | 80,344,658 | |
Other affiliated issuers (cost $181,000,722) | 183,697,593 | |
Total Investments (cost $2,289,162,777) | | $ 2,819,110,079 |
Cash | | 805,401 |
Receivable for investments sold | | 4,848,490 |
Receivable for fund shares sold | | 3,063,814 |
Dividends receivable | | 2,129,253 |
Distributions receivable from Fidelity Central Funds | | 155,304 |
Prepaid expenses | | 1,484 |
Other receivables | | 46,678 |
Total assets | | 2,830,160,503 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,674,219 | |
Payable for fund shares redeemed | 4,220,118 | |
Accrued management fee | 2,081,738 | |
Distribution and service plan fees payable | 150,576 | |
Other affiliated payables | 537,481 | |
Other payables and accrued expenses | 41,272 | |
Collateral on securities loaned, at value | 57,040,586 | |
Total liabilities | | 69,745,990 |
| | |
Net Assets | | $ 2,760,414,513 |
Net Assets consist of: | | |
Paid in capital | | $ 2,143,986,393 |
Undistributed net investment income | | 4,951,032 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 81,529,786 |
Net unrealized appreciation (depreciation) on investments | | 529,947,302 |
Net Assets | | $ 2,760,414,513 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($242,125,604 ÷ 13,374,876 shares) | | $ 18.10 |
| | |
Maximum offering price per share (100/94.25 of $18.10) | | $ 19.20 |
Class T:
Net Asset Value and redemption price per share ($94,677,823 ÷ 5,324,880 shares) | | $ 17.78 |
| | |
Maximum offering price per share (100/96.50 of $17.78) | | $ 18.42 |
Class B:
Net Asset Value and offering price per share ($4,125,024 ÷ 244,186 shares)A | | $ 16.89 |
| | |
Class C:
Net Asset Value and offering price per share ($66,297,251 ÷ 3,919,347 shares)A | | $ 16.92 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,004,244,267 ÷ 109,117,052 shares) | | $ 18.37 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($348,944,544 ÷ 18,994,150 shares) | | $ 18.37 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $1,590,722 earned from other affiliated issuers) | | $ 23,466,454 |
Income from Fidelity Central Funds (including $1,404,872 from security lending) | | 1,419,018 |
Total income | | 24,885,472 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,758,435 | |
Performance adjustment | 2,986,108 | |
Transfer agent fees | 2,839,182 | |
Distribution and service plan fees | 923,275 | |
Accounting and security lending fees | 426,632 | |
Custodian fees and expenses | 31,580 | |
Independent trustees' compensation | 5,970 | |
Registration fees | 95,615 | |
Audit | 37,251 | |
Legal | 5,225 | |
Interest | 136 | |
Miscellaneous | 10,624 | |
Total expenses before reductions | 17,120,033 | |
Expense reductions | (475,604) | 16,644,429 |
Net investment income (loss) | | 8,241,043 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 131,756,460 | |
Other affiliated issuers | (2,940,192) | |
Foreign currency transactions | 32,170 | |
Total net realized gain (loss) | | 128,848,438 |
Change in net unrealized appreciation (depreciation) on investment securities | | 22,549,442 |
Net gain (loss) | | 151,397,880 |
Net increase (decrease) in net assets resulting from operations | | $ 159,638,923 |
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, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 8,241,043 | $ 11,952,766 |
Net realized gain (loss) | 128,848,438 | 925,842,288 |
Change in net unrealized appreciation (depreciation) | 22,549,442 | (668,249,080) |
Net increase (decrease) in net assets resulting
from operations | 159,638,923 | 269,545,974 |
Distributions to shareholders from net investment income | (9,146,893) | (10,662,065) |
Distributions to shareholders from net realized gain | (322,480,175) | (362,625,477) |
Total distributions | (331,627,068) | (373,287,542) |
Share transactions - net increase (decrease) | 94,774,122 | (1,289,647,794) |
Redemption fees | 74,338 | 536,076 |
Total increase (decrease) in net assets | (77,139,685) | (1,392,853,286) |
| | |
Net Assets | | |
Beginning of period | 2,837,554,198 | 4,230,407,484 |
End of period (including undistributed net investment income of $4,951,032 and undistributed net investment income of $5,856,882, respectively) | $ 2,760,414,513 | $ 2,837,554,198 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .03 | .07 | .01 | .01H | .02 I |
Net realized and unrealized gain (loss) | 1.04 | 1.24 | 5.57 | .30 | 2.22 | 2.33 |
Total from investment operations | 1.07 | 1.27 | 5.64 | .31 | 2.23 | 2.35 |
Distributions from net investment income | (.02) | (.01) | (.07) | (.01) | (.08) | (.03) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.26)N | (1.94) | (.54) | (.93)M | (.20) | (.03) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 18.10 | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 |
Total ReturnB, C, D | 5.78% | 6.83% | 39.09% | 3.24% | 16.72% | 21.16% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.43%A | 1.36% | 1.36% | 1.44% | 1.44% | 1.47% |
Expenses net of fee waivers, if any | 1.43%A | 1.35% | 1.36% | 1.44% | 1.43% | 1.40% |
Expenses net of all reductions | 1.43%A | 1.34% | 1.36% | 1.44% | 1.43% | 1.39% |
Net investment income (loss) | .36%A | .13% | .41% | .09% | .06%H | .17%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 242,126 | $ 258,183 | $ 275,265 | $ 150,285 | $ 140,707 | $ 96,994 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. MTotal 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. NTotal distributions of $2.26 per share is comprised of distributions from net investment income of $0.016 and distributions from net realized gain of $2.248 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.02) | .03 | (.02) | (.03)H | (.01) I |
Net realized and unrealized gain (loss) | 1.02 | 1.23 | 5.50 | .31 | 2.20 | 2.31 |
Total from investment operations | 1.03 | 1.21 | 5.53 | .29 | 2.17 | 2.30 |
Distributions from net investment income | - | - | (.06) | - | (.05) | (.01) |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.53) | (.93) | (.17) | (.01) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.78 | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 |
Total ReturnB, C, D | 5.64% | 6.58% | 38.70% | 3.08% | 16.36% | 20.87% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.68%A | 1.61% | 1.60% | 1.67% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68%A | 1.59% | 1.60% | 1.67% | 1.69% | 1.65% |
Expenses net of all reductions | 1.67%A | 1.59% | 1.59% | 1.67% | 1.69% | 1.64% |
Net investment income (loss) | .11%A | (.11)% | .18% | (.14)% | (.19)%H | (.08)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 94,678 | $ 100,975 | $ 107,444 | $ 57,514 | $ 55,845 | $ 44,091 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.13) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .98 | 1.18 | 5.34 | .29 | 2.15 | 2.27 |
Total from investment operations | .94 | 1.05 | 5.28 | .20 | 2.05 | 2.20 |
Distributions from net investment income | - | - | (.02) | - | (.01) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.49) | (.93) | (.13) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.89 | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 |
Total ReturnB, C, D | 5.32% | 5.92% | 38.07% | 2.51% | 15.80% | 20.22% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.26%A | 2.18% | 2.15% | 2.19% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.26%A | 2.17% | 2.15% | 2.19% | 2.19% | 2.15% |
Expenses net of all reductions | 2.25%A | 2.16% | 2.14% | 2.19% | 2.19% | 2.14% |
Net investment income (loss) | (.47)%A | (.69)% | (.37)% | (.66)% | (.69)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,125 | $ 4,808 | $ 7,052 | $ 6,675 | $ 8,549 | $ 9,747 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.12) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .99 | 1.18 | 5.34 | .29 | 2.17 | 2.26 |
Total from investment operations | .96 | 1.06 | 5.28 | .20 | 2.07 | 2.19 |
Distributions from net investment income | - | - | (.03) | - | (.02) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.50) | (.93) | (.14) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 |
Total ReturnB, C, D | 5.44% | 5.97% | 38.00% | 2.52% | 15.91% | 20.11% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.20%A | 2.12% | 2.13% | 2.19% | 2.18% | 2.22% |
Expenses net of fee waivers, if any | 2.20%A | 2.11% | 2.13% | 2.19% | 2.18% | 2.15% |
Expenses net of all reductions | 2.19%A | 2.10% | 2.12% | 2.19% | 2.18% | 2.14% |
Net investment income (loss) | (.41)%A | (.63)% | (.35)% | (.66)% | (.68)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 66,297 | $ 70,541 | $ 76,018 | $ 47,265 | $ 47,457 | $ 37,346 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .05H |
Net realized and unrealized gain (loss) | 1.06 | 1.26 | 5.63 | .32 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.34 | 5.75 | .38 | 2.29 | 2.39 |
Distributions from net investment income | (.07) | (.06) | (.11) | (.02) | (.10) | (.05) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.58) | (.95) | (.23) | (.05) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 |
Total ReturnB, C | 5.95% | 7.12% | 39.45% | 3.67% | 17.03% | 21.32% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.08% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of fee waivers, if any | 1.16%A | 1.06% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of all reductions | 1.15%A | 1.06% | 1.06% | 1.13% | 1.13% | 1.17% |
Net investment income (loss) | .63%A | .41% | .71% | .41% | .37%G | .39%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,004,244 | $ 2,060,546 | $ 2,672,854 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .06H |
Net realized and unrealized gain (loss) | 1.06 | 1.25 | 5.65 | .31 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.33 | 5.77 | .37 | 2.29 | 2.40 |
Distributions from net investment income | (.07) | (.06) | (.12) | (.02) | (.11) | (.06) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.59) | (.95) | (.24) | (.06) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 |
Total ReturnB, C | 5.94% | 7.08% | 39.54% | 3.59% | 17.02% | 21.42% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.09% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of fee waivers, if any | 1.16%A | 1.07% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of all reductions | 1.16%A | 1.07% | 1.06% | 1.14% | 1.10% | 1.12% |
Net investment income (loss) | .63%A | .40% | .70% | .39% | .39%G | .45%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 348,945 | $ 342,500 | $ 359,582 | $ 138,981 | $ 101,565 | $ 78,440 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 and Institutional Class shares, each of which 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. The Fund's other share classes are also closed to new accounts with certain exceptions. The Fund offered Class F shares during the period June 26, 2009 through November 19, 2013 and all outstanding shares were redeemed by November 19, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be 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, 2015, 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. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 644,745,757 |
Gross unrealized depreciation | (115,024,321) |
Net unrealized appreciation (depreciation) on securities | $ 529,721,436 |
| |
Tax cost | $ 2,289,388,643 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $517,518,797 and $752,381,950, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 its benchmark index, the Russell 2000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .91% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
During the period, the investment adviser waived a portion of its management fee as described in the Expense Reductions note.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 310,648 | $ - |
Class T | .25% | .25% | 248,982 | - |
Class B | .75% | .25% | 22,585 | 16,939 |
Class C | .75% | .25% | 341,060 | 5,490 |
| | | $ 923,275 | $ 22,429 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 3,582 |
Class T | 1,505 |
Class B* | 1,037 |
Class C* | 592 |
| $ 6,716 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 274,590 | .22 |
Class T | 108,196 | .22 |
Class B | 6,755 | .30 |
Class C | 80,870 | .24 |
Small Cap Value | 2,014,411 | .20 |
Institutional Class | 354,360 | .21 |
| $ 2,839,182 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions - continued
(depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13,637 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 or other affiliated entities of 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
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 14,895,000 | .33% | $ 136 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $1,926 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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, and includes $20 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser has contractually agreed to waive a portion of the Fund's management fee until May 31, 2015. During the period, this waiver reduced the Fund's management fee by $403,800.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $68,052 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Value expenses during the period in the amount of $3,752.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 A |
From net investment income | | |
Class A | $ 207,059 | $ 171,608 |
Small Cap Value | 7,655,420 | 7,284,772 |
Class F | - | 2,011,606 |
Institutional Class | 1,284,414 | 1,194,079 |
Total | $ 9,146,893 | $ 10,662,065 |
From net realized gain | | |
Class A | $ 29,002,450 | $ 26,941,211 |
Class T | 11,758,987 | 10,672,388 |
Class B | 573,044 | 695,128 |
Class C | 8,461,258 | 7,761,033 |
Small Cap Value | 233,242,234 | 236,012,007 |
Class F | - | 44,973,770 |
Institutional Class | 39,442,202 | 35,569,940 |
Total | $ 322,480,175 | $ 362,625,477 |
A All Class F Shares were redeemed on November 19, 2013.
Semiannual Report
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Class A | | | | |
Shares sold | 890,568 | 2,364,232 | $ 16,226,904 | $ 46,165,166 |
Reinvestment of distributions | 1,578,405 | 1,371,738 | 28,466,035 | 25,837,208 |
Shares redeemed | (2,479,606) | (4,138,116) | (45,704,792) | (80,966,690) |
Net increase (decrease) | (10,633) | (402,146) | $ (1,011,853) | $ (8,964,316) |
Class T | | | | |
Shares sold | 319,831 | 987,146 | $ 5,705,928 | $ 19,000,773 |
Reinvestment of distributions | 655,614 | 566,918 | 11,618,864 | 10,525,159 |
Shares redeemed | (971,917) | (1,685,516) | (17,433,892) | (32,399,109) |
Net increase (decrease) | 3,528 | (131,452) | $ (109,100) | $ (2,873,177) |
Class B | | | | |
Shares sold | 4,229 | 9,527 | $ 74,912 | $ 174,532 |
Reinvestment of distributions | 31,870 | 33,965 | 537,830 | 607,035 |
Shares redeemed | (56,422) | (149,029) | (956,867) | (2,755,578) |
Net increase (decrease) | (20,323) | (105,537) | $ (344,125) | $ (1,974,011) |
Class C | | | | |
Shares sold | 107,073 | 268,818 | $ 1,827,489 | $ 4,960,750 |
Reinvestment of distributions | 447,025 | 378,946 | 7,553,140 | 6,778,684 |
Shares redeemed | (512,194) | (758,615) | (8,732,955) | (14,057,302) |
Net increase (decrease) | 41,904 | (110,851) | $ 647,674 | $ (2,317,868) |
Small Cap Value | | | | |
Shares sold | 6,271,959 | 19,542,379 | $ 115,895,569 | $ 386,966,432 |
Reinvestment of distributions | 12,098,173 | 11,711,859 | 221,448,638 | 222,752,806 |
Shares redeemed | (14,550,875) | (58,131,122)B | (268,971,352) | (1,153,341,425)B |
Net increase (decrease) | 3,819,257 | (26,876,884) | $ 68,372,855 | $ (543,622,187) |
Class F | | | | |
Shares sold | - | 879,716 | $ - | $ 17,395,091 |
Reinvestment of distributions | - | 2,497,893 | - | 46,985,376 |
Shares redeemed | - | (39,476,567)B | - | (787,183,278)B |
Net increase (decrease) | - | (36,098,958) | $ - | $ (722,802,811) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Institutional Class | | | | |
Shares sold | 1,888,133 | 4,292,555 | $ 35,159,875 | $ 84,987,281 |
Reinvestment of distributions | 1,996,970 | 1,739,424 | 36,554,847 | 33,193,654 |
Shares redeemed | (2,390,770) | (6,306,791) | (44,496,051) | (125,274,359) |
Net increase (decrease) | 1,494,333 | (274,812) | $ 27,218,671 | $ (7,093,424) |
A All Class F Shares were redeemed on November 19, 2013.
B 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) 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)
ASCV-USAN-0315
1.803737.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Value
Fund - Institutional Class
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,057.80 | $ 7.42 |
HypotheticalA | | $ 1,000.00 | $ 1,018.00 | $ 7.27 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,056.40 | $ 8.71 |
HypotheticalA | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.26% | | | |
Actual | | $ 1,000.00 | $ 1,053.20 | $ 11.70 |
HypotheticalA | | $ 1,000.00 | $ 1,013.81 | $ 11.47 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,054.40 | $ 11.39 |
HypotheticalA | | $ 1,000.00 | $ 1,014.12 | $ 11.17 |
Small Cap Value | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.50 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.40 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Rouse Properties, Inc. | 2.9 | 2.1 |
World Fuel Services Corp. | 2.9 | 2.8 |
Federated Investors, Inc. Class B (non-vtg.) | 2.9 | 2.9 |
First Citizen Bancshares, Inc. | 2.8 | 2.3 |
DCT Industrial Trust, Inc. | 2.8 | 2.3 |
Aarons, Inc. Class A | 2.6 | 2.1 |
Aspen Insurance Holdings Ltd. | 2.5 | 2.3 |
City National Corp. | 2.5 | 2.2 |
Tech Data Corp. | 2.4 | 2.9 |
SS&C Technologies Holdings, Inc. | 2.4 | 2.2 |
| 26.7 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 40.5 | 40.8 |
Industrials | 13.0 | 14.3 |
Information Technology | 12.8 | 13.1 |
Consumer Discretionary | 11.6 | 10.4 |
Health Care | 6.7 | 6.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 99.2% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets
(Liabilities) 0.8% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.5% | |
* Foreign investments | 11.9% | | ** Foreign investments | 8.9% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.6% |
Auto Components - 0.8% |
Standard Motor Products, Inc. | 613,301 | | $ 22,360,954 |
Hotels, Restaurants & Leisure - 1.4% |
DineEquity, Inc. | 373,100 | | 39,828,425 |
Specialty Retail - 8.8% |
Aarons, Inc. Class A | 2,295,100 | | 72,662,866 |
Genesco, Inc. (a) | 617,728 | | 44,136,666 |
Murphy U.S.A., Inc. (a) | 840,715 | | 58,690,314 |
Rent-A-Center, Inc. | 1,656,367 | | 56,780,261 |
Tsutsumi Jewelry Co. Ltd. | 520,900 | | 11,123,615 |
| | 243,393,722 |
Textiles, Apparel & Luxury Goods - 0.6% |
Vera Bradley, Inc. (a) | 831,000 | | 15,847,170 |
TOTAL CONSUMER DISCRETIONARY | | 321,430,271 |
CONSUMER STAPLES - 3.3% |
Food Products - 1.6% |
Post Holdings, Inc. (a) | 931,300 | | 44,003,925 |
Tobacco - 1.7% |
Universal Corp. (e) | 1,170,000 | | 46,987,200 |
TOTAL CONSUMER STAPLES | | 90,991,125 |
ENERGY - 4.2% |
Energy Equipment & Services - 0.9% |
ShawCor Ltd. Class A | 871,000 | | 23,922,169 |
Oil, Gas & Consumable Fuels - 3.3% |
Northern Oil & Gas, Inc. (a)(d) | 1,958,249 | | 12,297,804 |
World Fuel Services Corp. | 1,623,800 | | 79,517,486 |
| | 91,815,290 |
TOTAL ENERGY | | 115,737,459 |
FINANCIALS - 40.5% |
Banks - 9.6% |
Associated Banc-Corp. | 2,929,400 | | 49,243,214 |
City National Corp. | 790,300 | | 68,511,107 |
CVB Financial Corp. | 3,161,688 | | 46,192,262 |
First Citizen Bancshares, Inc. | 321,324 | | 78,419,123 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Banks - continued |
First Niagara Financial Group, Inc. | 400,000 | | $ 3,248,000 |
National Penn Bancshares, Inc. | 2,100,000 | | 20,370,000 |
| | 265,983,706 |
Capital Markets - 5.9% |
Federated Investors, Inc. Class B (non-vtg.) (d) | 2,499,963 | | 79,023,830 |
OM Asset Management Ltd. (a) | 1,823,200 | | 27,639,712 |
Waddell & Reed Financial, Inc. Class A | 1,264,100 | | 56,517,911 |
| | 163,181,453 |
Consumer Finance - 0.9% |
Enova International, Inc. (a) | 506,203 | | 9,744,408 |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,390,088 | | 14,331,807 |
| | 24,076,215 |
Insurance - 10.8% |
Aspen Insurance Holdings Ltd. | 1,599,400 | | 69,286,008 |
Endurance Specialty Holdings Ltd. | 902,400 | | 55,154,688 |
First American Financial Corp. | 1,163,087 | | 39,568,220 |
Platinum Underwriters Holdings Ltd. | 805,499 | | 59,469,991 |
ProAssurance Corp. | 793,200 | | 35,194,284 |
StanCorp Financial Group, Inc. | 631,300 | | 39,165,852 |
| | 297,839,043 |
Real Estate Investment Trusts - 8.8% |
DCT Industrial Trust, Inc. | 2,057,271 | | 77,682,553 |
National Retail Properties, Inc. (d) | 683,400 | | 29,276,856 |
Rouse Properties, Inc. (d)(e) | 4,350,000 | | 80,866,500 |
Sabra Health Care REIT, Inc. | 1,642,700 | | 53,716,290 |
| | 241,542,199 |
Real Estate Management & Development - 1.2% |
Kennedy Wilson Europe Real Estate PLC | 2,159,540 | | 33,828,071 |
Thrifts & Mortgage Finance - 3.3% |
Astoria Financial Corp. | 3,403,499 | | 41,624,793 |
Washington Federal, Inc. | 2,447,100 | | 48,599,406 |
| | 90,224,199 |
TOTAL FINANCIALS | | 1,116,674,886 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - 6.7% |
Health Care Equipment & Supplies - 2.5% |
Hill-Rom Holdings, Inc. | 630,000 | | $ 30,088,800 |
Integra LifeSciences Holdings Corp. (a) | 709,200 | | 39,516,624 |
| | 69,605,424 |
Health Care Providers & Services - 3.4% |
AmSurg Corp. (a) | 673,800 | | 37,180,284 |
Civitas Solutions, Inc. (e) | 2,940,700 | | 55,843,893 |
| | 93,024,177 |
Pharmaceuticals - 0.8% |
Theravance, Inc. (d) | 1,994,553 | | 22,478,612 |
TOTAL HEALTH CARE | | 185,108,213 |
INDUSTRIALS - 13.0% |
Air Freight & Logistics - 1.3% |
Atlas Air Worldwide Holdings, Inc. (a) | 800,146 | | 36,166,599 |
Commercial Services & Supplies - 3.5% |
Knoll, Inc. | 1,269,800 | | 26,018,202 |
Quad/Graphics, Inc. | 922,355 | | 18,483,994 |
United Stationers, Inc. | 1,295,298 | | 52,213,462 |
| | 96,715,658 |
Electrical Equipment - 2.9% |
AZZ, Inc. | 770,000 | | 32,486,300 |
EnerSys | 843,700 | | 49,255,206 |
| | 81,741,506 |
Machinery - 3.4% |
Columbus McKinnon Corp. (NY Shares) | 776,000 | | 19,438,800 |
Mueller Industries, Inc. | 1,600,400 | | 50,236,556 |
Valmont Industries, Inc. | 200,000 | | 24,024,000 |
| | 93,699,356 |
Trading Companies & Distributors - 1.9% |
WESCO International, Inc. (a)(d) | 777,933 | | 51,934,807 |
TOTAL INDUSTRIALS | | 360,257,926 |
INFORMATION TECHNOLOGY - 12.8% |
Electronic Equipment & Components - 5.7% |
Ingram Micro, Inc. Class A (a) | 2,048,300 | | 51,576,194 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Electronic Equipment & Components - continued |
SYNNEX Corp. | 527,200 | | $ 39,112,968 |
Tech Data Corp. (a) | 1,186,373 | | 67,741,898 |
| | 158,431,060 |
Internet Software & Services - 2.9% |
Cimpress NV (a) | 600,000 | | 48,330,000 |
j2 Global, Inc. | 574,300 | | 32,987,792 |
| | 81,317,792 |
IT Services - 1.8% |
CACI International, Inc. Class A (a) | 578,334 | | 48,921,273 |
Software - 2.4% |
SS&C Technologies Holdings, Inc. | 1,188,900 | | 65,781,837 |
TOTAL INFORMATION TECHNOLOGY | | 354,451,962 |
MATERIALS - 2.8% |
Containers & Packaging - 2.3% |
Silgan Holdings, Inc. | 1,200,000 | | 61,692,000 |
Metals & Mining - 0.5% |
Haynes International, Inc. | 376,903 | | 14,672,834 |
TOTAL MATERIALS | | 76,364,834 |
UTILITIES - 4.3% |
Electric Utilities - 3.5% |
El Paso Electric Co. | 974,121 | | 39,023,287 |
IDACORP, Inc. | 822,000 | | 55,822,020 |
| | 94,845,307 |
Gas Utilities - 0.8% |
Southwest Gas Corp. | 372,656 | | 22,903,438 |
TOTAL UTILITIES | | 117,748,745 |
TOTAL COMMON STOCKS (Cost $2,208,818,119) |
2,738,765,421
|
Money Market Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 23,304,072 | | $ 23,304,072 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 57,040,586 | | 57,040,586 |
TOTAL MONEY MARKET FUNDS (Cost $80,344,658) |
80,344,658
|
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $2,289,162,777) | | 2,819,110,079 |
NET OTHER ASSETS (LIABILITIES) - (2.1)% | | (58,695,566) |
NET ASSETS - 100% | $ 2,760,414,513 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 14,146 |
Fidelity Securities Lending Cash Central Fund | 1,404,872 |
Total | $ 1,419,018 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
ACCO Brands Corp. | $ 50,386,144 | $ - | $ 54,199,221 | $ - | $ - |
Civitas Solutions, Inc. | - | 49,470,245 | - | - | 55,843,893 |
Rouse Properties, Inc. | 61,020,000 | 12,779,885 | - | 604,922 | 80,866,500 |
Universal Corp. | 34,273,800 | 21,914,020 | - | 985,800 | 46,987,200 |
Total | $ 145,679,944 | $ 84,164,150 | $ 54,199,221 | $ 1,590,722 | $ 183,697,593 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 321,430,271 | $ 310,306,656 | $ 11,123,615 | $ - |
Consumer Staples | 90,991,125 | 90,991,125 | - | - |
Energy | 115,737,459 | 115,737,459 | - | - |
Financials | 1,116,674,886 | 1,116,674,886 | - | - |
Health Care | 185,108,213 | 185,108,213 | - | - |
Industrials | 360,257,926 | 360,257,926 | - | - |
Information Technology | 354,451,962 | 354,451,962 | - | - |
Materials | 76,364,834 | 76,364,834 | - | - |
Utilities | 117,748,745 | 117,748,745 | - | - |
Money Market Funds | 80,344,658 | 80,344,658 | - | - |
Total Investments in Securities: | $ 2,819,110,079 | $ 2,807,986,464 | $ 11,123,615 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 88.1% |
Bermuda | 6.7% |
Netherlands | 1.7% |
Bailiwick of Jersey | 1.2% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 1.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $54,778,769) - See accompanying schedule: Unaffiliated issuers (cost $2,027,817,397) | $ 2,555,067,828 | |
Fidelity Central Funds (cost $80,344,658) | 80,344,658 | |
Other affiliated issuers (cost $181,000,722) | 183,697,593 | |
Total Investments (cost $2,289,162,777) | | $ 2,819,110,079 |
Cash | | 805,401 |
Receivable for investments sold | | 4,848,490 |
Receivable for fund shares sold | | 3,063,814 |
Dividends receivable | | 2,129,253 |
Distributions receivable from Fidelity Central Funds | | 155,304 |
Prepaid expenses | | 1,484 |
Other receivables | | 46,678 |
Total assets | | 2,830,160,503 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,674,219 | |
Payable for fund shares redeemed | 4,220,118 | |
Accrued management fee | 2,081,738 | |
Distribution and service plan fees payable | 150,576 | |
Other affiliated payables | 537,481 | |
Other payables and accrued expenses | 41,272 | |
Collateral on securities loaned, at value | 57,040,586 | |
Total liabilities | | 69,745,990 |
| | |
Net Assets | | $ 2,760,414,513 |
Net Assets consist of: | | |
Paid in capital | | $ 2,143,986,393 |
Undistributed net investment income | | 4,951,032 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 81,529,786 |
Net unrealized appreciation (depreciation) on investments | | 529,947,302 |
Net Assets | | $ 2,760,414,513 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($242,125,604 ÷ 13,374,876 shares) | | $ 18.10 |
| | |
Maximum offering price per share (100/94.25 of $18.10) | | $ 19.20 |
Class T:
Net Asset Value and redemption price per share ($94,677,823 ÷ 5,324,880 shares) | | $ 17.78 |
| | |
Maximum offering price per share (100/96.50 of $17.78) | | $ 18.42 |
Class B:
Net Asset Value and offering price per share ($4,125,024 ÷ 244,186 shares)A | | $ 16.89 |
| | |
Class C:
Net Asset Value and offering price per share ($66,297,251 ÷ 3,919,347 shares)A | | $ 16.92 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,004,244,267 ÷ 109,117,052 shares) | | $ 18.37 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($348,944,544 ÷ 18,994,150 shares) | | $ 18.37 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $1,590,722 earned from other affiliated issuers) | | $ 23,466,454 |
Income from Fidelity Central Funds (including $1,404,872 from security lending) | | 1,419,018 |
Total income | | 24,885,472 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,758,435 | |
Performance adjustment | 2,986,108 | |
Transfer agent fees | 2,839,182 | |
Distribution and service plan fees | 923,275 | |
Accounting and security lending fees | 426,632 | |
Custodian fees and expenses | 31,580 | |
Independent trustees' compensation | 5,970 | |
Registration fees | 95,615 | |
Audit | 37,251 | |
Legal | 5,225 | |
Interest | 136 | |
Miscellaneous | 10,624 | |
Total expenses before reductions | 17,120,033 | |
Expense reductions | (475,604) | 16,644,429 |
Net investment income (loss) | | 8,241,043 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 131,756,460 | |
Other affiliated issuers | (2,940,192) | |
Foreign currency transactions | 32,170 | |
Total net realized gain (loss) | | 128,848,438 |
Change in net unrealized appreciation (depreciation) on investment securities | | 22,549,442 |
Net gain (loss) | | 151,397,880 |
Net increase (decrease) in net assets resulting from operations | | $ 159,638,923 |
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, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 8,241,043 | $ 11,952,766 |
Net realized gain (loss) | 128,848,438 | 925,842,288 |
Change in net unrealized appreciation (depreciation) | 22,549,442 | (668,249,080) |
Net increase (decrease) in net assets resulting
from operations | 159,638,923 | 269,545,974 |
Distributions to shareholders from net investment income | (9,146,893) | (10,662,065) |
Distributions to shareholders from net realized gain | (322,480,175) | (362,625,477) |
Total distributions | (331,627,068) | (373,287,542) |
Share transactions - net increase (decrease) | 94,774,122 | (1,289,647,794) |
Redemption fees | 74,338 | 536,076 |
Total increase (decrease) in net assets | (77,139,685) | (1,392,853,286) |
| | |
Net Assets | | |
Beginning of period | 2,837,554,198 | 4,230,407,484 |
End of period (including undistributed net investment income of $4,951,032 and undistributed net investment income of $5,856,882, respectively) | $ 2,760,414,513 | $ 2,837,554,198 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .03 | .07 | .01 | .01H | .02 I |
Net realized and unrealized gain (loss) | 1.04 | 1.24 | 5.57 | .30 | 2.22 | 2.33 |
Total from investment operations | 1.07 | 1.27 | 5.64 | .31 | 2.23 | 2.35 |
Distributions from net investment income | (.02) | (.01) | (.07) | (.01) | (.08) | (.03) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.26)N | (1.94) | (.54) | (.93)M | (.20) | (.03) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 18.10 | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 |
Total ReturnB, C, D | 5.78% | 6.83% | 39.09% | 3.24% | 16.72% | 21.16% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.43%A | 1.36% | 1.36% | 1.44% | 1.44% | 1.47% |
Expenses net of fee waivers, if any | 1.43%A | 1.35% | 1.36% | 1.44% | 1.43% | 1.40% |
Expenses net of all reductions | 1.43%A | 1.34% | 1.36% | 1.44% | 1.43% | 1.39% |
Net investment income (loss) | .36%A | .13% | .41% | .09% | .06%H | .17%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 242,126 | $ 258,183 | $ 275,265 | $ 150,285 | $ 140,707 | $ 96,994 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. MTotal 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. NTotal distributions of $2.26 per share is comprised of distributions from net investment income of $0.016 and distributions from net realized gain of $2.248 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.02) | .03 | (.02) | (.03)H | (.01) I |
Net realized and unrealized gain (loss) | 1.02 | 1.23 | 5.50 | .31 | 2.20 | 2.31 |
Total from investment operations | 1.03 | 1.21 | 5.53 | .29 | 2.17 | 2.30 |
Distributions from net investment income | - | - | (.06) | - | (.05) | (.01) |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.53) | (.93) | (.17) | (.01) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.78 | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 |
Total ReturnB, C, D | 5.64% | 6.58% | 38.70% | 3.08% | 16.36% | 20.87% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.68%A | 1.61% | 1.60% | 1.67% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68%A | 1.59% | 1.60% | 1.67% | 1.69% | 1.65% |
Expenses net of all reductions | 1.67%A | 1.59% | 1.59% | 1.67% | 1.69% | 1.64% |
Net investment income (loss) | .11%A | (.11)% | .18% | (.14)% | (.19)%H | (.08)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 94,678 | $ 100,975 | $ 107,444 | $ 57,514 | $ 55,845 | $ 44,091 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.13) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .98 | 1.18 | 5.34 | .29 | 2.15 | 2.27 |
Total from investment operations | .94 | 1.05 | 5.28 | .20 | 2.05 | 2.20 |
Distributions from net investment income | - | - | (.02) | - | (.01) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.49) | (.93) | (.13) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.89 | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 |
Total ReturnB, C, D | 5.32% | 5.92% | 38.07% | 2.51% | 15.80% | 20.22% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.26%A | 2.18% | 2.15% | 2.19% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.26%A | 2.17% | 2.15% | 2.19% | 2.19% | 2.15% |
Expenses net of all reductions | 2.25%A | 2.16% | 2.14% | 2.19% | 2.19% | 2.14% |
Net investment income (loss) | (.47)%A | (.69)% | (.37)% | (.66)% | (.69)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,125 | $ 4,808 | $ 7,052 | $ 6,675 | $ 8,549 | $ 9,747 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.12) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .99 | 1.18 | 5.34 | .29 | 2.17 | 2.26 |
Total from investment operations | .96 | 1.06 | 5.28 | .20 | 2.07 | 2.19 |
Distributions from net investment income | - | - | (.03) | - | (.02) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.50) | (.93) | (.14) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 |
Total ReturnB, C, D | 5.44% | 5.97% | 38.00% | 2.52% | 15.91% | 20.11% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.20%A | 2.12% | 2.13% | 2.19% | 2.18% | 2.22% |
Expenses net of fee waivers, if any | 2.20%A | 2.11% | 2.13% | 2.19% | 2.18% | 2.15% |
Expenses net of all reductions | 2.19%A | 2.10% | 2.12% | 2.19% | 2.18% | 2.14% |
Net investment income (loss) | (.41)%A | (.63)% | (.35)% | (.66)% | (.68)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 66,297 | $ 70,541 | $ 76,018 | $ 47,265 | $ 47,457 | $ 37,346 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .05H |
Net realized and unrealized gain (loss) | 1.06 | 1.26 | 5.63 | .32 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.34 | 5.75 | .38 | 2.29 | 2.39 |
Distributions from net investment income | (.07) | (.06) | (.11) | (.02) | (.10) | (.05) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.58) | (.95) | (.23) | (.05) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 |
Total ReturnB, C | 5.95% | 7.12% | 39.45% | 3.67% | 17.03% | 21.32% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.08% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of fee waivers, if any | 1.16%A | 1.06% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of all reductions | 1.15%A | 1.06% | 1.06% | 1.13% | 1.13% | 1.17% |
Net investment income (loss) | .63%A | .41% | .71% | .41% | .37%G | .39%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,004,244 | $ 2,060,546 | $ 2,672,854 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .06H |
Net realized and unrealized gain (loss) | 1.06 | 1.25 | 5.65 | .31 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.33 | 5.77 | .37 | 2.29 | 2.40 |
Distributions from net investment income | (.07) | (.06) | (.12) | (.02) | (.11) | (.06) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.59) | (.95) | (.24) | (.06) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 |
Total ReturnB, C | 5.94% | 7.08% | 39.54% | 3.59% | 17.02% | 21.42% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.09% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of fee waivers, if any | 1.16%A | 1.07% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of all reductions | 1.16%A | 1.07% | 1.06% | 1.14% | 1.10% | 1.12% |
Net investment income (loss) | .63%A | .40% | .70% | .39% | .39%G | .45%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 348,945 | $ 342,500 | $ 359,582 | $ 138,981 | $ 101,565 | $ 78,440 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 and Institutional Class shares, each of which 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. The Fund's other share classes are also closed to new accounts with certain exceptions. The Fund offered Class F shares during the period June 26, 2009 through November 19, 2013 and all outstanding shares were redeemed by November 19, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be 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, 2015, 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. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 644,745,757 |
Gross unrealized depreciation | (115,024,321) |
Net unrealized appreciation (depreciation) on securities | $ 529,721,436 |
| |
Tax cost | $ 2,289,388,643 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $517,518,797 and $752,381,950, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 its benchmark index, the Russell 2000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .91% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
During the period, the investment adviser waived a portion of its management fee as described in the Expense Reductions note.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 310,648 | $ - |
Class T | .25% | .25% | 248,982 | - |
Class B | .75% | .25% | 22,585 | 16,939 |
Class C | .75% | .25% | 341,060 | 5,490 |
| | | $ 923,275 | $ 22,429 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 3,582 |
Class T | 1,505 |
Class B* | 1,037 |
Class C* | 592 |
| $ 6,716 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 274,590 | .22 |
Class T | 108,196 | .22 |
Class B | 6,755 | .30 |
Class C | 80,870 | .24 |
Small Cap Value | 2,014,411 | .20 |
Institutional Class | 354,360 | .21 |
| $ 2,839,182 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions - continued
(depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13,637 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 or other affiliated entities of 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
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 14,895,000 | .33% | $ 136 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $1,926 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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, and includes $20 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser has contractually agreed to waive a portion of the Fund's management fee until May 31, 2015. During the period, this waiver reduced the Fund's management fee by $403,800.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $68,052 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Value expenses during the period in the amount of $3,752.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 A |
From net investment income | | |
Class A | $ 207,059 | $ 171,608 |
Small Cap Value | 7,655,420 | 7,284,772 |
Class F | - | 2,011,606 |
Institutional Class | 1,284,414 | 1,194,079 |
Total | $ 9,146,893 | $ 10,662,065 |
From net realized gain | | |
Class A | $ 29,002,450 | $ 26,941,211 |
Class T | 11,758,987 | 10,672,388 |
Class B | 573,044 | 695,128 |
Class C | 8,461,258 | 7,761,033 |
Small Cap Value | 233,242,234 | 236,012,007 |
Class F | - | 44,973,770 |
Institutional Class | 39,442,202 | 35,569,940 |
Total | $ 322,480,175 | $ 362,625,477 |
A All Class F Shares were redeemed on November 19, 2013.
Semiannual Report
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Class A | | | | |
Shares sold | 890,568 | 2,364,232 | $ 16,226,904 | $ 46,165,166 |
Reinvestment of distributions | 1,578,405 | 1,371,738 | 28,466,035 | 25,837,208 |
Shares redeemed | (2,479,606) | (4,138,116) | (45,704,792) | (80,966,690) |
Net increase (decrease) | (10,633) | (402,146) | $ (1,011,853) | $ (8,964,316) |
Class T | | | | |
Shares sold | 319,831 | 987,146 | $ 5,705,928 | $ 19,000,773 |
Reinvestment of distributions | 655,614 | 566,918 | 11,618,864 | 10,525,159 |
Shares redeemed | (971,917) | (1,685,516) | (17,433,892) | (32,399,109) |
Net increase (decrease) | 3,528 | (131,452) | $ (109,100) | $ (2,873,177) |
Class B | | | | |
Shares sold | 4,229 | 9,527 | $ 74,912 | $ 174,532 |
Reinvestment of distributions | 31,870 | 33,965 | 537,830 | 607,035 |
Shares redeemed | (56,422) | (149,029) | (956,867) | (2,755,578) |
Net increase (decrease) | (20,323) | (105,537) | $ (344,125) | $ (1,974,011) |
Class C | | | | |
Shares sold | 107,073 | 268,818 | $ 1,827,489 | $ 4,960,750 |
Reinvestment of distributions | 447,025 | 378,946 | 7,553,140 | 6,778,684 |
Shares redeemed | (512,194) | (758,615) | (8,732,955) | (14,057,302) |
Net increase (decrease) | 41,904 | (110,851) | $ 647,674 | $ (2,317,868) |
Small Cap Value | | | | |
Shares sold | 6,271,959 | 19,542,379 | $ 115,895,569 | $ 386,966,432 |
Reinvestment of distributions | 12,098,173 | 11,711,859 | 221,448,638 | 222,752,806 |
Shares redeemed | (14,550,875) | (58,131,122)B | (268,971,352) | (1,153,341,425)B |
Net increase (decrease) | 3,819,257 | (26,876,884) | $ 68,372,855 | $ (543,622,187) |
Class F | | | | |
Shares sold | - | 879,716 | $ - | $ 17,395,091 |
Reinvestment of distributions | - | 2,497,893 | - | 46,985,376 |
Shares redeemed | - | (39,476,567)B | - | (787,183,278)B |
Net increase (decrease) | - | (36,098,958) | $ - | $ (722,802,811) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Institutional Class | | | | |
Shares sold | 1,888,133 | 4,292,555 | $ 35,159,875 | $ 84,987,281 |
Reinvestment of distributions | 1,996,970 | 1,739,424 | 36,554,847 | 33,193,654 |
Shares redeemed | (2,390,770) | (6,306,791) | (44,496,051) | (125,274,359) |
Net increase (decrease) | 1,494,333 | (274,812) | $ 27,218,671 | $ (7,093,424) |
A All Class F Shares were redeemed on November 19, 2013.
B 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) 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)
ASCVI-USAN-0315
1.803748.111
Fidelity®
Small Cap Value
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2015 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, 2014 to January 31, 2015).
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 B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.43% | | | |
Actual | | $ 1,000.00 | $ 1,057.80 | $ 7.42 |
HypotheticalA | | $ 1,000.00 | $ 1,018.00 | $ 7.27 |
Class T | 1.68% | | | |
Actual | | $ 1,000.00 | $ 1,056.40 | $ 8.71 |
HypotheticalA | | $ 1,000.00 | $ 1,016.74 | $ 8.54 |
Class B | 2.26% | | | |
Actual | | $ 1,000.00 | $ 1,053.20 | $ 11.70 |
HypotheticalA | | $ 1,000.00 | $ 1,013.81 | $ 11.47 |
Class C | 2.20% | | | |
Actual | | $ 1,000.00 | $ 1,054.40 | $ 11.39 |
HypotheticalA | | $ 1,000.00 | $ 1,014.12 | $ 11.17 |
Small Cap Value | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.50 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Institutional Class | 1.16% | | | |
Actual | | $ 1,000.00 | $ 1,059.40 | $ 6.02 |
HypotheticalA | | $ 1,000.00 | $ 1,019.36 | $ 5.90 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Rouse Properties, Inc. | 2.9 | 2.1 |
World Fuel Services Corp. | 2.9 | 2.8 |
Federated Investors, Inc. Class B (non-vtg.) | 2.9 | 2.9 |
First Citizen Bancshares, Inc. | 2.8 | 2.3 |
DCT Industrial Trust, Inc. | 2.8 | 2.3 |
Aarons, Inc. Class A | 2.6 | 2.1 |
Aspen Insurance Holdings Ltd. | 2.5 | 2.3 |
City National Corp. | 2.5 | 2.2 |
Tech Data Corp. | 2.4 | 2.9 |
SS&C Technologies Holdings, Inc. | 2.4 | 2.2 |
| 26.7 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 40.5 | 40.8 |
Industrials | 13.0 | 14.3 |
Information Technology | 12.8 | 13.1 |
Consumer Discretionary | 11.6 | 10.4 |
Health Care | 6.7 | 6.6 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 99.2% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets
(Liabilities) 0.8% | | | Short-Term
Investments and
Net Other Assets
(Liabilities) 0.5% | |
* Foreign investments | 11.9% | | ** Foreign investments | 8.9% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.2% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 11.6% |
Auto Components - 0.8% |
Standard Motor Products, Inc. | 613,301 | | $ 22,360,954 |
Hotels, Restaurants & Leisure - 1.4% |
DineEquity, Inc. | 373,100 | | 39,828,425 |
Specialty Retail - 8.8% |
Aarons, Inc. Class A | 2,295,100 | | 72,662,866 |
Genesco, Inc. (a) | 617,728 | | 44,136,666 |
Murphy U.S.A., Inc. (a) | 840,715 | | 58,690,314 |
Rent-A-Center, Inc. | 1,656,367 | | 56,780,261 |
Tsutsumi Jewelry Co. Ltd. | 520,900 | | 11,123,615 |
| | 243,393,722 |
Textiles, Apparel & Luxury Goods - 0.6% |
Vera Bradley, Inc. (a) | 831,000 | | 15,847,170 |
TOTAL CONSUMER DISCRETIONARY | | 321,430,271 |
CONSUMER STAPLES - 3.3% |
Food Products - 1.6% |
Post Holdings, Inc. (a) | 931,300 | | 44,003,925 |
Tobacco - 1.7% |
Universal Corp. (e) | 1,170,000 | | 46,987,200 |
TOTAL CONSUMER STAPLES | | 90,991,125 |
ENERGY - 4.2% |
Energy Equipment & Services - 0.9% |
ShawCor Ltd. Class A | 871,000 | | 23,922,169 |
Oil, Gas & Consumable Fuels - 3.3% |
Northern Oil & Gas, Inc. (a)(d) | 1,958,249 | | 12,297,804 |
World Fuel Services Corp. | 1,623,800 | | 79,517,486 |
| | 91,815,290 |
TOTAL ENERGY | | 115,737,459 |
FINANCIALS - 40.5% |
Banks - 9.6% |
Associated Banc-Corp. | 2,929,400 | | 49,243,214 |
City National Corp. | 790,300 | | 68,511,107 |
CVB Financial Corp. | 3,161,688 | | 46,192,262 |
First Citizen Bancshares, Inc. | 321,324 | | 78,419,123 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Banks - continued |
First Niagara Financial Group, Inc. | 400,000 | | $ 3,248,000 |
National Penn Bancshares, Inc. | 2,100,000 | | 20,370,000 |
| | 265,983,706 |
Capital Markets - 5.9% |
Federated Investors, Inc. Class B (non-vtg.) (d) | 2,499,963 | | 79,023,830 |
OM Asset Management Ltd. (a) | 1,823,200 | | 27,639,712 |
Waddell & Reed Financial, Inc. Class A | 1,264,100 | | 56,517,911 |
| | 163,181,453 |
Consumer Finance - 0.9% |
Enova International, Inc. (a) | 506,203 | | 9,744,408 |
EZCORP, Inc. (non-vtg.) Class A (a) | 1,390,088 | | 14,331,807 |
| | 24,076,215 |
Insurance - 10.8% |
Aspen Insurance Holdings Ltd. | 1,599,400 | | 69,286,008 |
Endurance Specialty Holdings Ltd. | 902,400 | | 55,154,688 |
First American Financial Corp. | 1,163,087 | | 39,568,220 |
Platinum Underwriters Holdings Ltd. | 805,499 | | 59,469,991 |
ProAssurance Corp. | 793,200 | | 35,194,284 |
StanCorp Financial Group, Inc. | 631,300 | | 39,165,852 |
| | 297,839,043 |
Real Estate Investment Trusts - 8.8% |
DCT Industrial Trust, Inc. | 2,057,271 | | 77,682,553 |
National Retail Properties, Inc. (d) | 683,400 | | 29,276,856 |
Rouse Properties, Inc. (d)(e) | 4,350,000 | | 80,866,500 |
Sabra Health Care REIT, Inc. | 1,642,700 | | 53,716,290 |
| | 241,542,199 |
Real Estate Management & Development - 1.2% |
Kennedy Wilson Europe Real Estate PLC | 2,159,540 | | 33,828,071 |
Thrifts & Mortgage Finance - 3.3% |
Astoria Financial Corp. | 3,403,499 | | 41,624,793 |
Washington Federal, Inc. | 2,447,100 | | 48,599,406 |
| | 90,224,199 |
TOTAL FINANCIALS | | 1,116,674,886 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - 6.7% |
Health Care Equipment & Supplies - 2.5% |
Hill-Rom Holdings, Inc. | 630,000 | | $ 30,088,800 |
Integra LifeSciences Holdings Corp. (a) | 709,200 | | 39,516,624 |
| | 69,605,424 |
Health Care Providers & Services - 3.4% |
AmSurg Corp. (a) | 673,800 | | 37,180,284 |
Civitas Solutions, Inc. (e) | 2,940,700 | | 55,843,893 |
| | 93,024,177 |
Pharmaceuticals - 0.8% |
Theravance, Inc. (d) | 1,994,553 | | 22,478,612 |
TOTAL HEALTH CARE | | 185,108,213 |
INDUSTRIALS - 13.0% |
Air Freight & Logistics - 1.3% |
Atlas Air Worldwide Holdings, Inc. (a) | 800,146 | | 36,166,599 |
Commercial Services & Supplies - 3.5% |
Knoll, Inc. | 1,269,800 | | 26,018,202 |
Quad/Graphics, Inc. | 922,355 | | 18,483,994 |
United Stationers, Inc. | 1,295,298 | | 52,213,462 |
| | 96,715,658 |
Electrical Equipment - 2.9% |
AZZ, Inc. | 770,000 | | 32,486,300 |
EnerSys | 843,700 | | 49,255,206 |
| | 81,741,506 |
Machinery - 3.4% |
Columbus McKinnon Corp. (NY Shares) | 776,000 | | 19,438,800 |
Mueller Industries, Inc. | 1,600,400 | | 50,236,556 |
Valmont Industries, Inc. | 200,000 | | 24,024,000 |
| | 93,699,356 |
Trading Companies & Distributors - 1.9% |
WESCO International, Inc. (a)(d) | 777,933 | | 51,934,807 |
TOTAL INDUSTRIALS | | 360,257,926 |
INFORMATION TECHNOLOGY - 12.8% |
Electronic Equipment & Components - 5.7% |
Ingram Micro, Inc. Class A (a) | 2,048,300 | | 51,576,194 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Electronic Equipment & Components - continued |
SYNNEX Corp. | 527,200 | | $ 39,112,968 |
Tech Data Corp. (a) | 1,186,373 | | 67,741,898 |
| | 158,431,060 |
Internet Software & Services - 2.9% |
Cimpress NV (a) | 600,000 | | 48,330,000 |
j2 Global, Inc. | 574,300 | | 32,987,792 |
| | 81,317,792 |
IT Services - 1.8% |
CACI International, Inc. Class A (a) | 578,334 | | 48,921,273 |
Software - 2.4% |
SS&C Technologies Holdings, Inc. | 1,188,900 | | 65,781,837 |
TOTAL INFORMATION TECHNOLOGY | | 354,451,962 |
MATERIALS - 2.8% |
Containers & Packaging - 2.3% |
Silgan Holdings, Inc. | 1,200,000 | | 61,692,000 |
Metals & Mining - 0.5% |
Haynes International, Inc. | 376,903 | | 14,672,834 |
TOTAL MATERIALS | | 76,364,834 |
UTILITIES - 4.3% |
Electric Utilities - 3.5% |
El Paso Electric Co. | 974,121 | | 39,023,287 |
IDACORP, Inc. | 822,000 | | 55,822,020 |
| | 94,845,307 |
Gas Utilities - 0.8% |
Southwest Gas Corp. | 372,656 | | 22,903,438 |
TOTAL UTILITIES | | 117,748,745 |
TOTAL COMMON STOCKS (Cost $2,208,818,119) |
2,738,765,421
|
Money Market Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 23,304,072 | | $ 23,304,072 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 57,040,586 | | 57,040,586 |
TOTAL MONEY MARKET FUNDS (Cost $80,344,658) |
80,344,658
|
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $2,289,162,777) | | 2,819,110,079 |
NET OTHER ASSETS (LIABILITIES) - (2.1)% | | (58,695,566) |
NET ASSETS - 100% | $ 2,760,414,513 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 14,146 |
Fidelity Securities Lending Cash Central Fund | 1,404,872 |
Total | $ 1,419,018 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
ACCO Brands Corp. | $ 50,386,144 | $ - | $ 54,199,221 | $ - | $ - |
Civitas Solutions, Inc. | - | 49,470,245 | - | - | 55,843,893 |
Rouse Properties, Inc. | 61,020,000 | 12,779,885 | - | 604,922 | 80,866,500 |
Universal Corp. | 34,273,800 | 21,914,020 | - | 985,800 | 46,987,200 |
Total | $ 145,679,944 | $ 84,164,150 | $ 54,199,221 | $ 1,590,722 | $ 183,697,593 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 321,430,271 | $ 310,306,656 | $ 11,123,615 | $ - |
Consumer Staples | 90,991,125 | 90,991,125 | - | - |
Energy | 115,737,459 | 115,737,459 | - | - |
Financials | 1,116,674,886 | 1,116,674,886 | - | - |
Health Care | 185,108,213 | 185,108,213 | - | - |
Industrials | 360,257,926 | 360,257,926 | - | - |
Information Technology | 354,451,962 | 354,451,962 | - | - |
Materials | 76,364,834 | 76,364,834 | - | - |
Utilities | 117,748,745 | 117,748,745 | - | - |
Money Market Funds | 80,344,658 | 80,344,658 | - | - |
Total Investments in Securities: | $ 2,819,110,079 | $ 2,807,986,464 | $ 11,123,615 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 88.1% |
Bermuda | 6.7% |
Netherlands | 1.7% |
Bailiwick of Jersey | 1.2% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 1.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $54,778,769) - See accompanying schedule: Unaffiliated issuers (cost $2,027,817,397) | $ 2,555,067,828 | |
Fidelity Central Funds (cost $80,344,658) | 80,344,658 | |
Other affiliated issuers (cost $181,000,722) | 183,697,593 | |
Total Investments (cost $2,289,162,777) | | $ 2,819,110,079 |
Cash | | 805,401 |
Receivable for investments sold | | 4,848,490 |
Receivable for fund shares sold | | 3,063,814 |
Dividends receivable | | 2,129,253 |
Distributions receivable from Fidelity Central Funds | | 155,304 |
Prepaid expenses | | 1,484 |
Other receivables | | 46,678 |
Total assets | | 2,830,160,503 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,674,219 | |
Payable for fund shares redeemed | 4,220,118 | |
Accrued management fee | 2,081,738 | |
Distribution and service plan fees payable | 150,576 | |
Other affiliated payables | 537,481 | |
Other payables and accrued expenses | 41,272 | |
Collateral on securities loaned, at value | 57,040,586 | |
Total liabilities | | 69,745,990 |
| | |
Net Assets | | $ 2,760,414,513 |
Net Assets consist of: | | |
Paid in capital | | $ 2,143,986,393 |
Undistributed net investment income | | 4,951,032 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 81,529,786 |
Net unrealized appreciation (depreciation) on investments | | 529,947,302 |
Net Assets | | $ 2,760,414,513 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($242,125,604 ÷ 13,374,876 shares) | | $ 18.10 |
| | |
Maximum offering price per share (100/94.25 of $18.10) | | $ 19.20 |
Class T:
Net Asset Value and redemption price per share ($94,677,823 ÷ 5,324,880 shares) | | $ 17.78 |
| | |
Maximum offering price per share (100/96.50 of $17.78) | | $ 18.42 |
Class B:
Net Asset Value and offering price per share ($4,125,024 ÷ 244,186 shares)A | | $ 16.89 |
| | |
Class C:
Net Asset Value and offering price per share ($66,297,251 ÷ 3,919,347 shares)A | | $ 16.92 |
| | |
Small Cap Value:
Net Asset Value, offering price and redemption price per share ($2,004,244,267 ÷ 109,117,052 shares) | | $ 18.37 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($348,944,544 ÷ 18,994,150 shares) | | $ 18.37 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $1,590,722 earned from other affiliated issuers) | | $ 23,466,454 |
Income from Fidelity Central Funds (including $1,404,872 from security lending) | | 1,419,018 |
Total income | | 24,885,472 |
| | |
Expenses | | |
Management fee
Basic fee | $ 9,758,435 | |
Performance adjustment | 2,986,108 | |
Transfer agent fees | 2,839,182 | |
Distribution and service plan fees | 923,275 | |
Accounting and security lending fees | 426,632 | |
Custodian fees and expenses | 31,580 | |
Independent trustees' compensation | 5,970 | |
Registration fees | 95,615 | |
Audit | 37,251 | |
Legal | 5,225 | |
Interest | 136 | |
Miscellaneous | 10,624 | |
Total expenses before reductions | 17,120,033 | |
Expense reductions | (475,604) | 16,644,429 |
Net investment income (loss) | | 8,241,043 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 131,756,460 | |
Other affiliated issuers | (2,940,192) | |
Foreign currency transactions | 32,170 | |
Total net realized gain (loss) | | 128,848,438 |
Change in net unrealized appreciation (depreciation) on investment securities | | 22,549,442 |
Net gain (loss) | | 151,397,880 |
Net increase (decrease) in net assets resulting from operations | | $ 159,638,923 |
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, 2015
(Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 8,241,043 | $ 11,952,766 |
Net realized gain (loss) | 128,848,438 | 925,842,288 |
Change in net unrealized appreciation (depreciation) | 22,549,442 | (668,249,080) |
Net increase (decrease) in net assets resulting
from operations | 159,638,923 | 269,545,974 |
Distributions to shareholders from net investment income | (9,146,893) | (10,662,065) |
Distributions to shareholders from net realized gain | (322,480,175) | (362,625,477) |
Total distributions | (331,627,068) | (373,287,542) |
Share transactions - net increase (decrease) | 94,774,122 | (1,289,647,794) |
Redemption fees | 74,338 | 536,076 |
Total increase (decrease) in net assets | (77,139,685) | (1,392,853,286) |
| | |
Net Assets | | |
Beginning of period | 2,837,554,198 | 4,230,407,484 |
End of period (including undistributed net investment income of $4,951,032 and undistributed net investment income of $5,856,882, respectively) | $ 2,760,414,513 | $ 2,837,554,198 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 | $ 11.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .03 | .07 | .01 | .01H | .02 I |
Net realized and unrealized gain (loss) | 1.04 | 1.24 | 5.57 | .30 | 2.22 | 2.33 |
Total from investment operations | 1.07 | 1.27 | 5.64 | .31 | 2.23 | 2.35 |
Distributions from net investment income | (.02) | (.01) | (.07) | (.01) | (.08) | (.03) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.26)N | (1.94) | (.54) | (.93)M | (.20) | (.03) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 18.10 | $ 19.29 | $ 19.96 | $ 14.86 | $ 15.48 | $ 13.45 |
Total ReturnB, C, D | 5.78% | 6.83% | 39.09% | 3.24% | 16.72% | 21.16% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.43%A | 1.36% | 1.36% | 1.44% | 1.44% | 1.47% |
Expenses net of fee waivers, if any | 1.43%A | 1.35% | 1.36% | 1.44% | 1.43% | 1.40% |
Expenses net of all reductions | 1.43%A | 1.34% | 1.36% | 1.44% | 1.43% | 1.39% |
Net investment income (loss) | .36%A | .13% | .41% | .09% | .06%H | .17%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 242,126 | $ 258,183 | $ 275,265 | $ 150,285 | $ 140,707 | $ 96,994 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.31)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. MTotal 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. NTotal distributions of $2.26 per share is comprised of distributions from net investment income of $0.016 and distributions from net realized gain of $2.248 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 | $ 11.05 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.02) | .03 | (.02) | (.03)H | (.01) I |
Net realized and unrealized gain (loss) | 1.02 | 1.23 | 5.50 | .31 | 2.20 | 2.31 |
Total from investment operations | 1.03 | 1.21 | 5.53 | .29 | 2.17 | 2.30 |
Distributions from net investment income | - | - | (.06) | - | (.05) | (.01) |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.53) | (.93) | (.17) | (.01) |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.78 | $ 18.98 | $ 19.70 | $ 14.70 | $ 15.34 | $ 13.34 |
Total ReturnB, C, D | 5.64% | 6.58% | 38.70% | 3.08% | 16.36% | 20.87% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 1.68%A | 1.61% | 1.60% | 1.67% | 1.70% | 1.72% |
Expenses net of fee waivers, if any | 1.68%A | 1.59% | 1.60% | 1.67% | 1.69% | 1.65% |
Expenses net of all reductions | 1.67%A | 1.59% | 1.59% | 1.67% | 1.69% | 1.64% |
Net investment income (loss) | .11%A | (.11)% | .18% | (.14)% | (.19)%H | (.08)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 94,678 | $ 100,975 | $ 107,444 | $ 57,514 | $ 55,845 | $ 44,091 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.13) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .98 | 1.18 | 5.34 | .29 | 2.15 | 2.27 |
Total from investment operations | .94 | 1.05 | 5.28 | .20 | 2.05 | 2.20 |
Distributions from net investment income | - | - | (.02) | - | (.01) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.49) | (.93) | (.13) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.89 | $ 18.18 | $ 19.06 | $ 14.27 | $ 15.00 | $ 13.08 |
Total ReturnB, C, D | 5.32% | 5.92% | 38.07% | 2.51% | 15.80% | 20.22% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.26%A | 2.18% | 2.15% | 2.19% | 2.20% | 2.22% |
Expenses net of fee waivers, if any | 2.26%A | 2.17% | 2.15% | 2.19% | 2.19% | 2.15% |
Expenses net of all reductions | 2.25%A | 2.16% | 2.14% | 2.19% | 2.19% | 2.14% |
Net investment income (loss) | (.47)%A | (.69)% | (.37)% | (.66)% | (.69)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,125 | $ 4,808 | $ 7,052 | $ 6,675 | $ 8,549 | $ 9,747 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.12) | (.06) | (.09) | (.10) H | (.07) I |
Net realized and unrealized gain (loss) | .99 | 1.18 | 5.34 | .29 | 2.17 | 2.26 |
Total from investment operations | .96 | 1.06 | 5.28 | .20 | 2.07 | 2.19 |
Distributions from net investment income | - | - | (.03) | - | (.02) | - |
Distributions from net realized gain | (2.23) | (1.93) | (.47) | (.93) | (.12) | - |
Total distributions | (2.23) | (1.93) | (.50) | (.93) | (.14) | - |
Redemption fees added to paid in capital E,K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.92 | $ 18.19 | $ 19.06 | $ 14.28 | $ 15.01 | $ 13.08 |
Total ReturnB, C, D | 5.44% | 5.97% | 38.00% | 2.52% | 15.91% | 20.11% |
Ratios to Average Net Assets F, J | | | | | |
Expenses before reductions | 2.20%A | 2.12% | 2.13% | 2.19% | 2.18% | 2.22% |
Expenses net of fee waivers, if any | 2.20%A | 2.11% | 2.13% | 2.19% | 2.18% | 2.15% |
Expenses net of all reductions | 2.19%A | 2.10% | 2.12% | 2.19% | 2.18% | 2.14% |
Net investment income (loss) | (.41)%A | (.63)% | (.35)% | (.66)% | (.68)%H | (.58)%I |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 66,297 | $ 70,541 | $ 76,018 | $ 47,265 | $ 47,457 | $ 37,346 |
Portfolio turnover rateG | 37%A | 26%L | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.06)%. IInvestment 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)%. JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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. KAmount represents less than $.01 per share. LPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 | $ 11.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .05H |
Net realized and unrealized gain (loss) | 1.06 | 1.26 | 5.63 | .32 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.34 | 5.75 | .38 | 2.29 | 2.39 |
Distributions from net investment income | (.07) | (.06) | (.11) | (.02) | (.10) | (.05) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.58) | (.95) | (.23) | (.05) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.22 | $ 15.05 | $ 15.62 | $ 13.56 |
Total ReturnB, C | 5.95% | 7.12% | 39.45% | 3.67% | 17.03% | 21.32% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.08% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of fee waivers, if any | 1.16%A | 1.06% | 1.07% | 1.13% | 1.13% | 1.18% |
Expenses net of all reductions | 1.15%A | 1.06% | 1.06% | 1.13% | 1.13% | 1.17% |
Net investment income (loss) | .63%A | .41% | .71% | .41% | .37%G | .39%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,004,244 | $ 2,060,546 | $ 2,672,854 | $ 1,756,962 | $ 1,899,805 | $ 1,770,675 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01)%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 | $ 11.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .06 | .08 | .12 | .06 | .06G | .06H |
Net realized and unrealized gain (loss) | 1.06 | 1.25 | 5.65 | .31 | 2.23 | 2.34 |
Total from investment operations | 1.12 | 1.33 | 5.77 | .37 | 2.29 | 2.40 |
Distributions from net investment income | (.07) | (.06) | (.12) | (.02) | (.11) | (.06) |
Distributions from net realized gain | (2.25) | (1.93) | (.47) | (.93) | (.13) | - |
Total distributions | (2.32) | (1.99) | (.59) | (.95) | (.24) | (.06) |
Redemption fees added to paid in capital D,J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.37 | $ 19.57 | $ 20.23 | $ 15.05 | $ 15.63 | $ 13.58 |
Total ReturnB, C | 5.94% | 7.08% | 39.54% | 3.59% | 17.02% | 21.42% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.16%A | 1.09% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of fee waivers, if any | 1.16%A | 1.07% | 1.07% | 1.14% | 1.10% | 1.12% |
Expenses net of all reductions | 1.16%A | 1.07% | 1.06% | 1.14% | 1.10% | 1.12% |
Net investment income (loss) | .63%A | .40% | .70% | .39% | .39%G | .45%H |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 348,945 | $ 342,500 | $ 359,582 | $ 138,981 | $ 101,565 | $ 78,440 |
Portfolio turnover rateF | 37%A | 26%K | 29% | 27% | 22% | 49% |
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 $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%. HInvestment 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%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 and Institutional Class shares, each of which 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. The Fund's other share classes are also closed to new accounts with certain exceptions. The Fund offered Class F shares during the period June 26, 2009 through November 19, 2013 and all outstanding shares were redeemed by November 19, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be 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, 2015, 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. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC) 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 | $ 644,745,757 |
Gross unrealized depreciation | (115,024,321) |
Net unrealized appreciation (depreciation) on securities | $ 529,721,436 |
| |
Tax cost | $ 2,289,388,643 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $517,518,797 and $752,381,950, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 its benchmark index, the Russell 2000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .91% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
During the period, the investment adviser waived a portion of its management fee as described in the Expense Reductions note.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 310,648 | $ - |
Class T | .25% | .25% | 248,982 | - |
Class B | .75% | .25% | 22,585 | 16,939 |
Class C | .75% | .25% | 341,060 | 5,490 |
| | | $ 923,275 | $ 22,429 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 3,582 |
Class T | 1,505 |
Class B* | 1,037 |
Class C* | 592 |
| $ 6,716 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 274,590 | .22 |
Class T | 108,196 | .22 |
Class B | 6,755 | .30 |
Class C | 80,870 | .24 |
Small Cap Value | 2,014,411 | .20 |
Institutional Class | 354,360 | .21 |
| $ 2,839,182 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions - continued
(depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13,637 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 or other affiliated entities of 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
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 14,895,000 | .33% | $ 136 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $1,926 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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, and includes $20 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser has contractually agreed to waive a portion of the Fund's management fee until May 31, 2015. During the period, this waiver reduced the Fund's management fee by $403,800.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $68,052 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Value expenses during the period in the amount of $3,752.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 A |
From net investment income | | |
Class A | $ 207,059 | $ 171,608 |
Small Cap Value | 7,655,420 | 7,284,772 |
Class F | - | 2,011,606 |
Institutional Class | 1,284,414 | 1,194,079 |
Total | $ 9,146,893 | $ 10,662,065 |
From net realized gain | | |
Class A | $ 29,002,450 | $ 26,941,211 |
Class T | 11,758,987 | 10,672,388 |
Class B | 573,044 | 695,128 |
Class C | 8,461,258 | 7,761,033 |
Small Cap Value | 233,242,234 | 236,012,007 |
Class F | - | 44,973,770 |
Institutional Class | 39,442,202 | 35,569,940 |
Total | $ 322,480,175 | $ 362,625,477 |
A All Class F Shares were redeemed on November 19, 2013.
Semiannual Report
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Class A | | | | |
Shares sold | 890,568 | 2,364,232 | $ 16,226,904 | $ 46,165,166 |
Reinvestment of distributions | 1,578,405 | 1,371,738 | 28,466,035 | 25,837,208 |
Shares redeemed | (2,479,606) | (4,138,116) | (45,704,792) | (80,966,690) |
Net increase (decrease) | (10,633) | (402,146) | $ (1,011,853) | $ (8,964,316) |
Class T | | | | |
Shares sold | 319,831 | 987,146 | $ 5,705,928 | $ 19,000,773 |
Reinvestment of distributions | 655,614 | 566,918 | 11,618,864 | 10,525,159 |
Shares redeemed | (971,917) | (1,685,516) | (17,433,892) | (32,399,109) |
Net increase (decrease) | 3,528 | (131,452) | $ (109,100) | $ (2,873,177) |
Class B | | | | |
Shares sold | 4,229 | 9,527 | $ 74,912 | $ 174,532 |
Reinvestment of distributions | 31,870 | 33,965 | 537,830 | 607,035 |
Shares redeemed | (56,422) | (149,029) | (956,867) | (2,755,578) |
Net increase (decrease) | (20,323) | (105,537) | $ (344,125) | $ (1,974,011) |
Class C | | | | |
Shares sold | 107,073 | 268,818 | $ 1,827,489 | $ 4,960,750 |
Reinvestment of distributions | 447,025 | 378,946 | 7,553,140 | 6,778,684 |
Shares redeemed | (512,194) | (758,615) | (8,732,955) | (14,057,302) |
Net increase (decrease) | 41,904 | (110,851) | $ 647,674 | $ (2,317,868) |
Small Cap Value | | | | |
Shares sold | 6,271,959 | 19,542,379 | $ 115,895,569 | $ 386,966,432 |
Reinvestment of distributions | 12,098,173 | 11,711,859 | 221,448,638 | 222,752,806 |
Shares redeemed | (14,550,875) | (58,131,122)B | (268,971,352) | (1,153,341,425)B |
Net increase (decrease) | 3,819,257 | (26,876,884) | $ 68,372,855 | $ (543,622,187) |
Class F | | | | |
Shares sold | - | 879,716 | $ - | $ 17,395,091 |
Reinvestment of distributions | - | 2,497,893 | - | 46,985,376 |
Shares redeemed | - | (39,476,567)B | - | (787,183,278)B |
Net increase (decrease) | - | (36,098,958) | $ - | $ (722,802,811) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014A | Six months ended
January 31,
2015 | Year ended
July 31,
2014A |
Institutional Class | | | | |
Shares sold | 1,888,133 | 4,292,555 | $ 35,159,875 | $ 84,987,281 |
Reinvestment of distributions | 1,996,970 | 1,739,424 | 36,554,847 | 33,193,654 |
Shares redeemed | (2,390,770) | (6,306,791) | (44,496,051) | (125,274,359) |
Net increase (decrease) | 1,494,333 | (274,812) | $ 27,218,671 | $ (7,093,424) |
A All Class F Shares were redeemed on November 19, 2013.
B 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) 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
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., Boston, MA 02210
www.fidelity.com
SCV-USAN-0315
1.803708.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,067.70 | $ 5.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,066.10 | $ 7.39 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.10 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.40 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Small Cap Growth | .84% | | | |
Actual | | $ 1,000.00 | $ 1,069.40 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,069.20 | $ 4.49 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Global Payments, Inc. | 1.8 | 1.3 |
Huron Consulting Group, Inc. | 1.7 | 1.4 |
G-III Apparel Group Ltd. | 1.6 | 1.5 |
Gartner, Inc. Class A | 1.6 | 0.0 |
DineEquity, Inc. | 1.5 | 0.0 |
Graphic Packaging Holding Co. | 1.4 | 1.4 |
Vail Resorts, Inc. | 1.4 | 0.0 |
athenahealth, Inc. | 1.4 | 0.4 |
Stamps.com, Inc. | 1.4 | 1.0 |
Buffalo Wild Wings, Inc. | 1.4 | 0.0 |
| 15.2 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.3 | 22.7 |
Health Care | 26.3 | 21.8 |
Consumer Discretionary | 17.5 | 13.5 |
Industrials | 14.0 | 16.0 |
Financials | 7.3 | 6.8 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 * | As of July 31, 2014 ** |
| Stocks 97.5% | | | Stocks 98.0% | |
| Other Investments 1.2% | |  | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.3% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.0% | |
* Foreign investments | 3.1% | | ** Foreign investments | 5.8% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 17.5% |
Auto Components - 1.2% |
Tenneco, Inc. (a) | 180,400 | | $ 9,276,168 |
Visteon Corp. (a) | 49,100 | | 4,760,245 |
| | 14,036,413 |
Distributors - 1.0% |
Core-Mark Holding Co., Inc. | 172,100 | | 11,475,628 |
Diversified Consumer Services - 2.3% |
2U, Inc. (d) | 807,700 | | 14,368,983 |
Service Corp. International | 510,300 | | 11,548,089 |
| | 25,917,072 |
Hotels, Restaurants & Leisure - 6.7% |
Buffalo Wild Wings, Inc. (a) | 85,000 | | 15,157,200 |
DineEquity, Inc. | 160,000 | | 17,080,000 |
Domino's Pizza, Inc. | 80,000 | | 7,924,000 |
Sonic Corp. | 150,000 | | 4,540,500 |
Texas Roadhouse, Inc. Class A | 450,000 | | 15,115,500 |
Vail Resorts, Inc. | 175,800 | | 15,428,208 |
| | 75,245,408 |
Household Durables - 1.2% |
Universal Electronics, Inc. (a) | 214,209 | | 13,653,682 |
Leisure Products - 1.9% |
Brunswick Corp. | 253,500 | | 13,759,980 |
Malibu Boats, Inc. Class A (a) | 327,300 | | 7,141,686 |
| | 20,901,666 |
Media - 0.7% |
Live Nation Entertainment, Inc. (a) | 355,200 | | 8,443,104 |
Specialty Retail - 0.9% |
Office Depot, Inc. (a) | 450,000 | | 3,420,000 |
Sally Beauty Holdings, Inc. (a) | 213,961 | | 6,649,908 |
| | 10,069,908 |
Textiles, Apparel & Luxury Goods - 1.6% |
G-III Apparel Group Ltd. (a) | 180,900 | | 17,583,480 |
TOTAL CONSUMER DISCRETIONARY | | 197,326,361 |
CONSUMER STAPLES - 1.3% |
Food Products - 0.5% |
Ingredion, Inc. | 75,100 | | 6,056,064 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Household Products - 0.8% |
Spectrum Brands Holdings, Inc. | 95,000 | | $ 8,519,600 |
TOTAL CONSUMER STAPLES | | 14,575,664 |
ENERGY - 1.8% |
Energy Equipment & Services - 1.0% |
Dril-Quip, Inc. (a) | 73,900 | | 5,485,597 |
Superior Drilling Products, Inc. (d)(e) | 1,295,344 | | 4,533,704 |
Xtreme Drilling & Coil Services Corp. (a) | 1,289,000 | | 1,673,762 |
| | 11,693,063 |
Oil, Gas & Consumable Fuels - 0.8% |
Energy XXI (Bermuda) Ltd. (d) | 500,000 | | 1,470,000 |
Golar LNG Ltd. | 78,100 | | 2,214,916 |
StealthGas, Inc. (a) | 890,400 | | 4,701,312 |
| | 8,386,228 |
TOTAL ENERGY | | 20,079,291 |
FINANCIALS - 7.3% |
Banks - 2.5% |
Investors Bancorp, Inc. | 1,000,000 | | 11,010,000 |
Lakeland Financial Corp. | 183,500 | | 6,925,290 |
Pacific Premier Bancorp, Inc. (a) | 642,186 | | 9,542,884 |
| | 27,478,174 |
Capital Markets - 0.9% |
E*TRADE Financial Corp. (a) | 310,200 | | 7,150,110 |
Value Partners Group Ltd. | 4,000,000 | | 3,399,086 |
| | 10,549,196 |
Consumer Finance - 1.0% |
PRA Group, Inc. (a) | 136,139 | | 6,741,603 |
Springleaf Holdings, Inc. (a) | 140,000 | | 4,424,000 |
| | 11,165,603 |
Insurance - 1.6% |
First American Financial Corp. | 300,000 | | 10,206,000 |
Primerica, Inc. | 153,919 | | 7,640,539 |
| | 17,846,539 |
Real Estate Investment Trusts - 0.3% |
Colony Financial, Inc. | 150,000 | | 3,757,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 1.0% |
Meridian Bancorp, Inc. (a) | 992,280 | | $ 11,520,371 |
TOTAL FINANCIALS | | 82,317,383 |
HEALTH CARE - 26.3% |
Biotechnology - 10.5% |
Achillion Pharmaceuticals, Inc. (a) | 310,000 | | 4,603,500 |
Array BioPharma, Inc. (a)(d) | 800,000 | | 5,728,000 |
Auspex Pharmaceuticals, Inc. | 75,635 | | 4,647,771 |
BioCryst Pharmaceuticals, Inc. (a) | 260,200 | | 2,648,836 |
Celldex Therapeutics, Inc. (a)(d) | 293,400 | | 6,284,628 |
Chimerix, Inc. (a) | 210,100 | | 8,427,111 |
Dyax Corp. (a) | 480,400 | | 7,258,844 |
Insmed, Inc. (a) | 223,400 | | 3,453,764 |
Intercept Pharmaceuticals, Inc. (a) | 30,600 | | 6,151,518 |
Isis Pharmaceuticals, Inc. (a) | 187,157 | | 12,822,126 |
La Jolla Pharmaceutical Co. (a) | 111,412 | | 2,433,238 |
Lion Biotechnologies, Inc. (a)(d) | 360,000 | | 2,826,000 |
Mirati Therapeutics, Inc. (a) | 169,700 | | 3,521,275 |
Novavax, Inc. (a)(d) | 1,097,100 | | 8,568,351 |
Otonomy, Inc. | 95,500 | | 2,788,600 |
Puma Biotechnology, Inc. (a) | 44,500 | | 9,393,060 |
Receptos, Inc. (a) | 55,100 | | 6,070,367 |
Stemline Therapeutics, Inc. (a)(d) | 104,500 | | 1,617,660 |
Synageva BioPharma Corp. (a)(d) | 70,014 | | 8,067,013 |
Threshold Pharmaceuticals, Inc. (a) | 669,900 | | 2,492,028 |
Ultragenyx Pharmaceutical, Inc. | 100,000 | | 5,810,000 |
XOMA Corp. (a)(d) | 800,400 | | 2,849,424 |
| | 118,463,114 |
Health Care Equipment & Supplies - 4.8% |
Abaxis, Inc. | 120,000 | | 7,377,600 |
Cyberonics, Inc. (a) | 100,000 | | 5,557,000 |
ICU Medical, Inc. (a) | 120,008 | | 10,030,269 |
Ldr Holding Corp. (a) | 153,755 | | 5,146,180 |
Novadaq Technologies, Inc. (a) | 326,300 | | 4,643,249 |
NxStage Medical, Inc. (a) | 625,300 | | 11,186,617 |
Steris Corp. | 163,400 | | 10,656,948 |
| | 54,597,863 |
Health Care Providers & Services - 5.3% |
Accretive Health, Inc. (a)(d) | 1,087,226 | | 6,360,272 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
AMN Healthcare Services, Inc. (a) | 450,300 | | $ 8,474,646 |
Civitas Solutions, Inc. | 303,757 | | 5,768,345 |
ExamWorks Group, Inc. (a)(d) | 200,000 | | 7,392,000 |
Healthways, Inc. (a) | 440,000 | | 9,072,800 |
Omnicare, Inc. | 121,100 | | 9,080,078 |
Team Health Holdings, Inc. (a) | 264,200 | | 13,659,140 |
| | 59,807,281 |
Health Care Technology - 2.2% |
athenahealth, Inc. (a)(d) | 109,857 | | 15,348,121 |
Omnicell, Inc. (a) | 301,384 | | 9,593,053 |
| | 24,941,174 |
Life Sciences Tools & Services - 1.9% |
Bruker Corp. (a) | 211,500 | | 3,988,890 |
Charles River Laboratories International, Inc. (a) | 100,000 | | 6,935,000 |
Fluidigm Corp. (a)(d) | 260,000 | | 10,017,800 |
| | 20,941,690 |
Pharmaceuticals - 1.6% |
Akorn, Inc. (a)(d) | 174,200 | | 7,417,436 |
Assembly Biosciences, Inc. (a) | 100,000 | | 840,000 |
Cardiome Pharma Corp. (a) | 153,100 | | 1,531,000 |
Impax Laboratories, Inc. (a) | 160,000 | | 5,867,200 |
Tetraphase Pharmaceuticals, Inc. (a) | 60,000 | | 2,181,600 |
| | 17,837,236 |
TOTAL HEALTH CARE | | 296,588,358 |
INDUSTRIALS - 14.0% |
Aerospace & Defense - 2.0% |
Esterline Technologies Corp. (a) | 58,100 | | 6,512,429 |
Huntington Ingalls Industries, Inc. | 70,000 | | 8,162,000 |
Teledyne Technologies, Inc. (a) | 88,000 | | 8,363,520 |
| | 23,037,949 |
Building Products - 1.5% |
A.O. Smith Corp. | 170,000 | | 10,099,700 |
Universal Forest Products, Inc. | 130,000 | | 6,507,800 |
| | 16,607,500 |
Commercial Services & Supplies - 3.0% |
ABM Industries, Inc. | 130,000 | | 3,753,100 |
KAR Auction Services, Inc. | 300,000 | | 10,233,000 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Commercial Services & Supplies - continued |
Knoll, Inc. | 420,000 | | $ 8,605,800 |
Multi-Color Corp. | 186,900 | | 10,881,318 |
| | 33,473,218 |
Construction & Engineering - 0.6% |
AECOM Technology Corp. (a) | 270,000 | | 6,863,400 |
Machinery - 1.6% |
Allison Transmission Holdings, Inc. | 270,200 | | 8,462,664 |
Luxfer Holdings PLC sponsored ADR | 165,630 | | 2,229,380 |
Mueller Industries, Inc. | 233,400 | | 7,326,426 |
| | 18,018,470 |
Professional Services - 4.6% |
CBIZ, Inc. (a) | 1,316,100 | | 10,897,308 |
GP Strategies Corp. (a) | 385,592 | | 12,871,061 |
Huron Consulting Group, Inc. (a) | 261,200 | | 19,647,464 |
WageWorks, Inc. (a) | 165,000 | | 9,081,600 |
| | 52,497,433 |
Road & Rail - 0.7% |
ArcBest Corp. | 200,000 | | 7,452,000 |
TOTAL INDUSTRIALS | | 157,949,970 |
INFORMATION TECHNOLOGY - 26.3% |
Communications Equipment - 1.0% |
Infinera Corp. (a) | 358,377 | | 5,777,037 |
InterDigital, Inc. | 100,000 | | 4,998,000 |
| | 10,775,037 |
Electronic Equipment & Components - 1.7% |
Ingram Micro, Inc. Class A (a) | 340,300 | | 8,568,754 |
Neonode, Inc. (a)(d) | 750,371 | | 1,943,461 |
RealD, Inc. (a)(d) | 792,300 | | 8,596,455 |
| | 19,108,670 |
Internet Software & Services - 4.7% |
comScore, Inc. (a) | 204,641 | | 8,504,880 |
Cvent, Inc. (a)(d) | 436,160 | | 10,895,277 |
Demandware, Inc. (a)(d) | 210,000 | | 11,247,600 |
E2open, Inc. (a)(d) | 662,094 | | 3,899,734 |
HomeAway, Inc. (a) | 126,100 | | 3,214,289 |
Stamps.com, Inc. (a) | 335,796 | | 15,302,224 |
| | 53,064,004 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - 6.0% |
Broadridge Financial Solutions, Inc. | 125,100 | | $ 6,003,549 |
EVERTEC, Inc. | 300,700 | | 6,032,042 |
Gartner, Inc. Class A (a) | 207,130 | | 17,444,489 |
Genpact Ltd. (a) | 300,000 | | 6,021,000 |
Global Payments, Inc. | 230,500 | | 20,124,954 |
Maximus, Inc. | 220,000 | | 12,258,400 |
| | 67,884,434 |
Semiconductors & Semiconductor Equipment - 5.9% |
Brooks Automation, Inc. | 280,000 | | 3,614,800 |
Cavium, Inc. (a) | 108,210 | | 6,363,830 |
Cirrus Logic, Inc. (a) | 420,000 | | 11,130,000 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 58,500 | | 1,901,835 |
MKS Instruments, Inc. | 353,264 | | 12,367,773 |
Monolithic Power Systems, Inc. | 170,000 | | 8,073,300 |
PDF Solutions, Inc. (a) | 526,872 | | 8,756,613 |
Qorvo, Inc. (a) | 119,170 | | 8,803,088 |
Tessera Technologies, Inc. | 150,200 | | 5,569,416 |
| | 66,580,655 |
Software - 7.0% |
Cadence Design Systems, Inc. (a) | 366,200 | | 6,587,938 |
Ebix, Inc. (d) | 130,017 | | 2,970,888 |
Evolving Systems, Inc. | 301,901 | | 2,702,014 |
Fortinet, Inc. (a) | 185,000 | | 5,530,575 |
Interactive Intelligence Group, Inc. (a) | 157,409 | | 6,384,509 |
Manhattan Associates, Inc. (a) | 150,000 | | 6,696,000 |
Progress Software Corp. (a) | 270,000 | | 6,763,500 |
Proofpoint, Inc. (a) | 140,000 | | 7,000,000 |
Qlik Technologies, Inc. (a) | 520,000 | | 14,768,000 |
Tableau Software, Inc. (a) | 70,000 | | 5,653,200 |
Vasco Data Security International, Inc. (a)(d) | 150,000 | | 3,225,000 |
Verint Systems, Inc. (a) | 210,200 | | 11,220,476 |
| | 79,502,100 |
TOTAL INFORMATION TECHNOLOGY | | 296,914,900 |
MATERIALS - 2.0% |
Containers & Packaging - 1.4% |
Graphic Packaging Holding Co. | 1,150,200 | | 16,654,896 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Paper & Forest Products - 0.6% |
Boise Cascade Co. (a) | 100,000 | | $ 4,044,000 |
TFS Corp. Ltd. (d) | 2,400,000 | | 2,734,316 |
| | 6,778,316 |
TOTAL MATERIALS | | 23,433,212 |
TELECOMMUNICATION SERVICES - 1.0% |
Diversified Telecommunication Services - 1.0% |
inContact, Inc. (a) | 1,314,000 | | 11,260,980 |
TOTAL COMMON STOCKS (Cost $991,233,707) |
1,100,446,119
|
Money Market Funds - 8.9% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 35,821,134 | | 35,821,134 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 64,188,850 | | 64,188,850 |
TOTAL MONEY MARKET FUNDS (Cost $100,009,984) |
100,009,984
|
Equity Funds - 1.2% |
| | | |
Domestic Equity Funds - 1.2% |
iShares Russell 2000 Growth Index ETF
(Cost $13,992,085) | 100,000 | |
13,910,000
|
TOTAL INVESTMENT PORTFOLIO - 107.6% (Cost $1,105,235,776) | | 1,214,366,103 |
NET OTHER ASSETS (LIABILITIES) - (7.6)% | | (86,060,356) |
NET ASSETS - 100% | $ 1,128,305,747 |
Security Type Abbreviations |
ETF | - | Exchange Traded Fund |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 17,984 |
Fidelity Securities Lending Cash Central Fund | 197,883 |
Total | $ 215,867 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Superior Drilling Products, Inc. | $ 8,049,395 | $ 212,441 | $ 146,509 | $ - | $ 4,533,704 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 197,326,361 | $ 197,326,361 | $ - | $ - |
Consumer Staples | 14,575,664 | 14,575,664 | - | - |
Energy | 20,079,291 | 20,079,291 | - | - |
Financials | 82,317,383 | 78,918,297 | 3,399,086 | - |
Health Care | 296,588,358 | 296,588,358 | - | - |
Industrials | 157,949,970 | 157,949,970 | - | - |
Information Technology | 296,914,900 | 296,914,900 | - | - |
Materials | 23,433,212 | 20,698,896 | 2,734,316 | - |
Telecommunication Services | 11,260,980 | 11,260,980 | - | - |
Money Market Funds | 100,009,984 | 100,009,984 | - | - |
Equity Funds | 13,910,000 | 13,910,000 | - | - |
Total Investments in Securities: | $ 1,214,366,103 | $ 1,208,232,701 | $ 6,133,402 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $60,718,876) - See accompanying schedule: Unaffiliated issuers (cost $999,654,099) | $ 1,109,822,415 | |
Fidelity Central Funds (cost $100,009,984) | 100,009,984 | |
Other affiliated issuers (cost $5,571,693) | 4,533,704 | |
Total Investments (cost $1,105,235,776) | | $ 1,214,366,103 |
Receivable for investments sold | | 7,838,850 |
Receivable for fund shares sold | | 1,187,967 |
Dividends receivable | | 108,877 |
Distributions receivable from Fidelity Central Funds | | 27,681 |
Other receivables | | 33,224 |
Total assets | | 1,223,562,702 |
| | |
Liabilities | | |
Payable to custodian bank | $ 36,479 | |
Payable for investments purchased | 28,286,829 | |
Payable for fund shares redeemed | 1,737,726 | |
Accrued management fee | 660,804 | |
Distribution and service plan fees payable | 70,146 | |
Other affiliated payables | 235,550 | |
Other payables and accrued expenses | 40,571 | |
Collateral on securities loaned, at value | 64,188,850 | |
Total liabilities | | 95,256,955 |
| | |
Net Assets | | $ 1,128,305,747 |
Net Assets consist of: | | |
Paid in capital | | $ 1,004,164,719 |
Accumulated net investment loss | | (6,747,596) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 21,769,978 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 109,118,646 |
Net Assets | | $ 1,128,305,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($85,291,998 ÷ 4,838,987 shares) | | $ 17.63 |
| | |
Maximum offering price per share (100/94.25 of $17.63) | | $ 18.71 |
Class T:
Net Asset Value and redemption price per share ($41,674,321 ÷ 2,416,240 shares) | | $ 17.25 |
| | |
Maximum offering price per share (100/96.50 of $17.25) | | $ 17.88 |
Class B:
Net Asset Value and offering price per share ($2,331,615 ÷ 142,585 shares)A | | $ 16.35 |
| | |
Class C:
Net Asset Value and offering price per share ($39,106,360 ÷ 2,403,770 shares)A | | $ 16.27 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($903,951,384 ÷ 49,803,487 shares) | | $ 18.15 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($55,950,069 ÷ 3,076,654 shares) | | $ 18.19 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,484,517 |
Income from Fidelity Central Funds (including $197,883 from security lending) | | 215,867 |
Total income | | 2,700,384 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,106,108 | |
Performance adjustment | (761,422) | |
Transfer agent fees | 1,284,619 | |
Distribution and service plan fees | 425,208 | |
Accounting and security lending fees | 195,620 | |
Custodian fees and expenses | 28,922 | |
Independent trustees' compensation | 2,587 | |
Registration fees | 96,411 | |
Audit | 34,460 | |
Legal | 2,323 | |
Interest | 4,117 | |
Miscellaneous | 5,864 | |
Total expenses before reductions | 5,424,817 | |
Expense reductions | (59,058) | 5,365,759 |
Net investment income (loss) | | (2,665,375) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 45,788,982 | |
Other affiliated issuers | (67,538) | |
Foreign currency transactions | 6,240 | |
Total net realized gain (loss) | | 45,727,684 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,180,758 | |
Assets and liabilities in foreign currencies | (7,979) | |
Total change in net unrealized appreciation (depreciation) | | 28,172,779 |
Net gain (loss) | | 73,900,463 |
Net increase (decrease) in net assets resulting from operations | | $ 71,235,088 |
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, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (2,665,375) | $ (5,539,870) |
Net realized gain (loss) | 45,727,684 | 529,975,803 |
Change in net unrealized appreciation (depreciation) | 28,172,779 | (344,219,184) |
Net increase (decrease) in net assets resulting
from operations | 71,235,088 | 180,216,749 |
Distributions to shareholders from net realized gain | (103,188,497) | (306,246,236) |
Share transactions - net increase (decrease) | (136,909,589) | (817,676,738) |
Redemption fees | 70,131 | 398,744 |
Total increase (decrease) in net assets | (168,792,867) | (943,307,481) |
| | |
Net Assets | | |
Beginning of period | 1,297,098,614 | 2,240,406,095 |
End of period (including accumulated net investment loss of $6,747,596 and accumulated net investment loss of $4,082,221, respectively) | $ 1,128,305,747 | $ 1,297,098,614 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) | (.04) | (.07) H | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 1.24 | 1.69 | 4.87 | (.16) | 3.84 | 1.94 |
Total from investment operations | 1.18 | 1.57 | 4.83 | (.23) | 3.77 | 1.87 |
Distributions from net realized gain | (1.54) | (3.24) | (1.04) | (.32) | (.01) K | - |
Redemption fees added to paid in capital E,M | - | - | - | - | - | - |
Net asset value, end of period | $ 17.63 | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 |
Total ReturnB, C, D | 6.77% | 8.58% | 32.20% | (1.14)% | 29.78% | 17.33% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of fee waivers, if any | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of all reductions | 1.14% A | 1.22% | 1.22% | 1.34% | 1.23% | 1.34% |
Net investment income (loss) | (.68)% A | (.62)% | (.26)% | (.49)% H | (.47)% I | (.56)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 85,292 | $ 88,822 | $ 74,978 | $ 59,684 | $ 67,272 | $ 50,620 |
Portfolio turnover rate G | 161% A | 148% N | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. 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 (.61)%. 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 (.67)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. NPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | (.16) | (.09) | (.11) H | (.11) I | (.10) J |
Net realized and unrealized gain (loss) | 1.21 | 1.66 | 4.82 | (.16) | 3.81 | 1.93 |
Total from investment operations | 1.13 | 1.50 | 4.73 | (.27) | 3.70 | 1.83 |
Distributions from net realized gain | (1.54) | (3.22) | (1.03) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 17.25 | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 |
Total ReturnB, C, D | 6.61% | 8.30% | 31.87% | (1.41)% | 29.44% | 17.04% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of fee waivers, if any | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of all reductions | 1.41%A | 1.49% | 1.48% | 1.60% | 1.49% | 1.60% |
Net investment income (loss) | (.95)% A | (.90)% | (.52)% | (.74)% H | (.73)%I | (.82)%J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 41,674 | $ 42,586 | $ 34,686 | $ 27,658 | $ 30,764 | $ 23,930 |
Portfolio turnover rate G | 161% A | 148%M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.83)%. 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 (.86)%. 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 (.93)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.60 | 4.64 | (.17) | 3.74 | 1.89 |
Total from investment operations | 1.03 | 1.35 | 4.48 | (.35) | 3.56 | 1.73 |
Distributions from net realized gain | (1.54) | (3.14) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.35 | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 |
Total ReturnB, C, D | 6.31% | 7.73% | 31.25% | (1.96)% | 28.94% | 16.37% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.93%A | 2.01% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.23)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,332 | $ 2,764 | $ 3,486 | $ 4,123 | $ 5,295 | $ 5,142 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.59 | 4.64 | (.17) | 3.73 | 1.89 |
Total from investment operations | 1.03 | 1.34 | 4.48 | (.35) | 3.55 | 1.73 |
Distributions from net realized gain | (1.54) | (3.18) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.27 | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 |
Total ReturnB, C, D | 6.34% | 7.70% | 31.32% | (1.96)% | 28.91% | 16.40% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.00% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.92%A | 2.00% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.24)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39,106 | $ 42,215 | $ 32,756 | $ 24,683 | $ 24,914 | $ 18,091 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | (.06) | .01 | (.03) G | (.03) H | (.04) I |
Net realized and unrealized gain (loss) | 1.27 | 1.71 | 4.98 | (.16) | 3.90 | 1.96 |
Total from investment operations | 1.24 | 1.65 | 4.99 | (.19) | 3.87 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.15 | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 |
Total ReturnB, C | 6.94% | 8.87% | 32.74% | (.88)% | 30.20% | 17.63% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .84%A | .91% | .90% | 1.03% | .95% | 1.08% |
Expenses net of fee waivers, if any | .84%A | .90% | .90% | 1.03% | .95% | 1.08% |
Expenses net of all reductions | .83%A | .90% | .88% | 1.02% | .93% | 1.07% |
Net investment income (loss) | (.37)% A | (.31)% | .08% | (.16)% G | (.17)% H | (.29)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 903,951 | $ 1,069,105 | $ 1,315,659 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25)%. 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 (.31)%. 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 (.39)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.04) | (.06) | .01 | (.03) G | (.03) H | (.03) I |
Net realized and unrealized gain (loss) | 1.28 | 1.72 | 4.98 | (.16) | 3.91 | 1.95 |
Total from investment operations | 1.24 | 1.66 | 4.99 | (.19) | 3.88 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.19 | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 |
Total ReturnB, C | 6.92% | 8.89% | 32.65% | (.88)% | 30.24% | 17.60% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of fee waivers, if any | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of all reductions | .85%A | .92% | .91% | 1.05% | .93% | 1.02% |
Net investment income (loss) | (.39)% A | (.32)% | .06% | (.19)% G | (.17)% H | (.24)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 55,950 | $ 51,607 | $ 51,158 | $ 36,694 | $ 41,440 | $ 25,650 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. 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 (.30)%. 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 (.34)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 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. The Fund offered Class F shares during the period June 26, 2009 through November 15, 2013, and outstanding shares were redeemed by November 15, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, 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 may be categorized as Level 3 in the hierarchy.
Exchange-Traded Funds (ETFs) are valued at their last 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (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, 2015 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to are primarily due to in-kind transactions, futures transactions, foreign currency transactions, partnerships 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 | $ 158,730,442 |
Gross unrealized depreciation | (53,847,120) |
Net unrealized appreciation (depreciation) on securities | $ 104,883,322 |
| |
Tax cost | $ 1,109,482,781 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $929,705,861 and $1,159,124,908, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000® Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .57% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 108,097 | $ 2,048 |
Class T | .25% | .25% | 105,664 | - |
Class B | .75% | .25% | 12,896 | 9,715 |
Class C | .75% | .25% | 198,551 | 30,971 |
| | | $ 425,208 | $ 42,734 |
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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
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
by FDC |
Class A | $ 16,537 |
Class T | 3,958 |
Class B* | 426 |
Class C* | 3,808 |
| $ 24,729 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 113,986 | .26 |
Class T | 60,742 | .29 |
Class B | 3,891 | .30 |
Class C | 59,007 | .30 |
Small Cap Growth | 986,387 | .21 |
Institutional Class | 60,606 | .23 |
| $ 1,284,619 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $45,478 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 or other affiliated entities of 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
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 66,799,000 | .32% | $ 4,117 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $828 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the
Semiannual Report
7. Security Lending - continued
obligation. The Fund may experience delays and costs in recovering the securities loaned. 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, and includes $18,455 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $56,139 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 $105.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Growth expenses, during the period in the amount of $2,814.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 A |
From net realized gain | | |
Class A | $ 7,463,668 | $ 13,043,180 |
Class T | 3,715,268 | 6,310,012 |
Class B | 242,938 | 574,582 |
Class C | 3,707,592 | 6,249,863 |
Small Cap Growth | 83,762,458 | 191,545,684 |
Class F | - | 80,609,253 |
Institutional Class | 4,296,573 | 7,913,662 |
Total | $ 103,188,497 | $ 306,246,236 |
A All Class F shares were redeemed on November 15, 2013.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| January 31,
2015 | Year ended
July 31,
2014 A | January 31,
2015 | Year ended
July 31,
2014 A |
Class A | | | | |
Shares sold | 448,471 | 1,706,264 | $ 7,880,247 | $ 32,017,468 |
Reinvestment of distributions | 412,447 | 685,582 | 7,203,492 | 12,377,436 |
Shares redeemed | (959,519) | (1,267,150) | (16,767,235) | (23,663,751) |
Net increase (decrease) | (98,601) | 1,124,696 | $ (1,683,496) | $ 20,731,153 |
Class T | | | | |
Shares sold | 207,463 | 787,491 | $ 3,570,359 | $ 14,539,628 |
Reinvestment of distributions | 211,200 | 341,036 | 3,613,802 | 6,061,090 |
Shares redeemed | (414,282) | (506,140) | (7,061,307) | (9,192,820) |
Net increase (decrease) | 4,381 | 622,387 | $ 122,854 | $ 11,407,898 |
Class B | | | | |
Shares sold | 283 | 11,205 | $ 4,600 | $ 198,217 |
Reinvestment of distributions | 14,482 | 32,147 | 235,501 | 548,598 |
Shares redeemed | (36,113) | (66,282) | (587,193) | (1,168,208) |
Net increase (decrease) | (21,348) | (22,930) | $ (347,092) | $ (421,393) |
Class C | | | | |
Shares sold | 218,009 | 918,904 | $ 3,557,556 | $ 16,220,240 |
Reinvestment of distributions | 216,825 | 347,970 | 3,508,500 | 5,911,022 |
Shares redeemed | (546,976) | (510,512) | (8,872,274) | (8,883,388) |
Net increase (decrease) | (112,142) | 756,362 | $ (1,806,218) | $ 13,247,874 |
Small Cap Growth | | | | |
Shares sold | 5,250,358 | 30,614,664 | $ 94,522,624 | $ 589,831,022 |
Reinvestment of distributions | 4,527,816 | 10,184,956 | 81,276,349 | 187,557,177 |
Shares redeemed | (17,910,518) | (48,426,256) B | (314,041,746) | (934,113,968) B |
Net increase (decrease) | (8,132,344) | (7,626,636) | $ (138,242,773) | $ (156,725,769) |
Class F | | | | |
Shares sold | - | 768,083 | $ - | $ 15,293,461 |
Reinvestment of distributions | - | 4,357,257 | - | 80,609,253 |
Shares redeemed | - | (41,060,113) B | - | (806,457,595) B |
Net increase (decrease) | - | (35,934,773) | $ - | $ (710,554,881) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| January 31, 2015 | Year ended
July 31,
2014 A | January 31, 2015 | Year ended
July 31,
2014 A |
Institutional Class | | | | |
Shares sold | 489,854 | 933,934 | $ 8,866,350 | $ 18,129,031 |
Reinvestment of distributions | 220,272 | 381,830 | 3,963,647 | 7,062,159 |
Shares redeemed | (424,862) | (1,069,577) | (7,782,861) | (20,552,810) |
Net increase (decrease) | 285,264 | 246,187 | $ 5,047,136 | $ 4,638,380 |
A All Class F shares were redeemed on November 15, 2013.
B 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) 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)
ASCP-USAN-0315
1.803716.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Small Cap Growth
Fund - Institutional Class
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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. © 2015 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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,067.70 | $ 5.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,066.10 | $ 7.39 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.10 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.40 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Small Cap Growth | .84% | | | |
Actual | | $ 1,000.00 | $ 1,069.40 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,069.20 | $ 4.49 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Global Payments, Inc. | 1.8 | 1.3 |
Huron Consulting Group, Inc. | 1.7 | 1.4 |
G-III Apparel Group Ltd. | 1.6 | 1.5 |
Gartner, Inc. Class A | 1.6 | 0.0 |
DineEquity, Inc. | 1.5 | 0.0 |
Graphic Packaging Holding Co. | 1.4 | 1.4 |
Vail Resorts, Inc. | 1.4 | 0.0 |
athenahealth, Inc. | 1.4 | 0.4 |
Stamps.com, Inc. | 1.4 | 1.0 |
Buffalo Wild Wings, Inc. | 1.4 | 0.0 |
| 15.2 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.3 | 22.7 |
Health Care | 26.3 | 21.8 |
Consumer Discretionary | 17.5 | 13.5 |
Industrials | 14.0 | 16.0 |
Financials | 7.3 | 6.8 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 * | As of July 31, 2014 ** |
| Stocks 97.5% | | | Stocks 98.0% | |
| Other Investments 1.2% | | | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.3% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.0% | |
* Foreign investments | 3.1% | | ** Foreign investments | 5.8% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 17.5% |
Auto Components - 1.2% |
Tenneco, Inc. (a) | 180,400 | | $ 9,276,168 |
Visteon Corp. (a) | 49,100 | | 4,760,245 |
| | 14,036,413 |
Distributors - 1.0% |
Core-Mark Holding Co., Inc. | 172,100 | | 11,475,628 |
Diversified Consumer Services - 2.3% |
2U, Inc. (d) | 807,700 | | 14,368,983 |
Service Corp. International | 510,300 | | 11,548,089 |
| | 25,917,072 |
Hotels, Restaurants & Leisure - 6.7% |
Buffalo Wild Wings, Inc. (a) | 85,000 | | 15,157,200 |
DineEquity, Inc. | 160,000 | | 17,080,000 |
Domino's Pizza, Inc. | 80,000 | | 7,924,000 |
Sonic Corp. | 150,000 | | 4,540,500 |
Texas Roadhouse, Inc. Class A | 450,000 | | 15,115,500 |
Vail Resorts, Inc. | 175,800 | | 15,428,208 |
| | 75,245,408 |
Household Durables - 1.2% |
Universal Electronics, Inc. (a) | 214,209 | | 13,653,682 |
Leisure Products - 1.9% |
Brunswick Corp. | 253,500 | | 13,759,980 |
Malibu Boats, Inc. Class A (a) | 327,300 | | 7,141,686 |
| | 20,901,666 |
Media - 0.7% |
Live Nation Entertainment, Inc. (a) | 355,200 | | 8,443,104 |
Specialty Retail - 0.9% |
Office Depot, Inc. (a) | 450,000 | | 3,420,000 |
Sally Beauty Holdings, Inc. (a) | 213,961 | | 6,649,908 |
| | 10,069,908 |
Textiles, Apparel & Luxury Goods - 1.6% |
G-III Apparel Group Ltd. (a) | 180,900 | | 17,583,480 |
TOTAL CONSUMER DISCRETIONARY | | 197,326,361 |
CONSUMER STAPLES - 1.3% |
Food Products - 0.5% |
Ingredion, Inc. | 75,100 | | 6,056,064 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Household Products - 0.8% |
Spectrum Brands Holdings, Inc. | 95,000 | | $ 8,519,600 |
TOTAL CONSUMER STAPLES | | 14,575,664 |
ENERGY - 1.8% |
Energy Equipment & Services - 1.0% |
Dril-Quip, Inc. (a) | 73,900 | | 5,485,597 |
Superior Drilling Products, Inc. (d)(e) | 1,295,344 | | 4,533,704 |
Xtreme Drilling & Coil Services Corp. (a) | 1,289,000 | | 1,673,762 |
| | 11,693,063 |
Oil, Gas & Consumable Fuels - 0.8% |
Energy XXI (Bermuda) Ltd. (d) | 500,000 | | 1,470,000 |
Golar LNG Ltd. | 78,100 | | 2,214,916 |
StealthGas, Inc. (a) | 890,400 | | 4,701,312 |
| | 8,386,228 |
TOTAL ENERGY | | 20,079,291 |
FINANCIALS - 7.3% |
Banks - 2.5% |
Investors Bancorp, Inc. | 1,000,000 | | 11,010,000 |
Lakeland Financial Corp. | 183,500 | | 6,925,290 |
Pacific Premier Bancorp, Inc. (a) | 642,186 | | 9,542,884 |
| | 27,478,174 |
Capital Markets - 0.9% |
E*TRADE Financial Corp. (a) | 310,200 | | 7,150,110 |
Value Partners Group Ltd. | 4,000,000 | | 3,399,086 |
| | 10,549,196 |
Consumer Finance - 1.0% |
PRA Group, Inc. (a) | 136,139 | | 6,741,603 |
Springleaf Holdings, Inc. (a) | 140,000 | | 4,424,000 |
| | 11,165,603 |
Insurance - 1.6% |
First American Financial Corp. | 300,000 | | 10,206,000 |
Primerica, Inc. | 153,919 | | 7,640,539 |
| | 17,846,539 |
Real Estate Investment Trusts - 0.3% |
Colony Financial, Inc. | 150,000 | | 3,757,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 1.0% |
Meridian Bancorp, Inc. (a) | 992,280 | | $ 11,520,371 |
TOTAL FINANCIALS | | 82,317,383 |
HEALTH CARE - 26.3% |
Biotechnology - 10.5% |
Achillion Pharmaceuticals, Inc. (a) | 310,000 | | 4,603,500 |
Array BioPharma, Inc. (a)(d) | 800,000 | | 5,728,000 |
Auspex Pharmaceuticals, Inc. | 75,635 | | 4,647,771 |
BioCryst Pharmaceuticals, Inc. (a) | 260,200 | | 2,648,836 |
Celldex Therapeutics, Inc. (a)(d) | 293,400 | | 6,284,628 |
Chimerix, Inc. (a) | 210,100 | | 8,427,111 |
Dyax Corp. (a) | 480,400 | | 7,258,844 |
Insmed, Inc. (a) | 223,400 | | 3,453,764 |
Intercept Pharmaceuticals, Inc. (a) | 30,600 | | 6,151,518 |
Isis Pharmaceuticals, Inc. (a) | 187,157 | | 12,822,126 |
La Jolla Pharmaceutical Co. (a) | 111,412 | | 2,433,238 |
Lion Biotechnologies, Inc. (a)(d) | 360,000 | | 2,826,000 |
Mirati Therapeutics, Inc. (a) | 169,700 | | 3,521,275 |
Novavax, Inc. (a)(d) | 1,097,100 | | 8,568,351 |
Otonomy, Inc. | 95,500 | | 2,788,600 |
Puma Biotechnology, Inc. (a) | 44,500 | | 9,393,060 |
Receptos, Inc. (a) | 55,100 | | 6,070,367 |
Stemline Therapeutics, Inc. (a)(d) | 104,500 | | 1,617,660 |
Synageva BioPharma Corp. (a)(d) | 70,014 | | 8,067,013 |
Threshold Pharmaceuticals, Inc. (a) | 669,900 | | 2,492,028 |
Ultragenyx Pharmaceutical, Inc. | 100,000 | | 5,810,000 |
XOMA Corp. (a)(d) | 800,400 | | 2,849,424 |
| | 118,463,114 |
Health Care Equipment & Supplies - 4.8% |
Abaxis, Inc. | 120,000 | | 7,377,600 |
Cyberonics, Inc. (a) | 100,000 | | 5,557,000 |
ICU Medical, Inc. (a) | 120,008 | | 10,030,269 |
Ldr Holding Corp. (a) | 153,755 | | 5,146,180 |
Novadaq Technologies, Inc. (a) | 326,300 | | 4,643,249 |
NxStage Medical, Inc. (a) | 625,300 | | 11,186,617 |
Steris Corp. | 163,400 | | 10,656,948 |
| | 54,597,863 |
Health Care Providers & Services - 5.3% |
Accretive Health, Inc. (a)(d) | 1,087,226 | | 6,360,272 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
AMN Healthcare Services, Inc. (a) | 450,300 | | $ 8,474,646 |
Civitas Solutions, Inc. | 303,757 | | 5,768,345 |
ExamWorks Group, Inc. (a)(d) | 200,000 | | 7,392,000 |
Healthways, Inc. (a) | 440,000 | | 9,072,800 |
Omnicare, Inc. | 121,100 | | 9,080,078 |
Team Health Holdings, Inc. (a) | 264,200 | | 13,659,140 |
| | 59,807,281 |
Health Care Technology - 2.2% |
athenahealth, Inc. (a)(d) | 109,857 | | 15,348,121 |
Omnicell, Inc. (a) | 301,384 | | 9,593,053 |
| | 24,941,174 |
Life Sciences Tools & Services - 1.9% |
Bruker Corp. (a) | 211,500 | | 3,988,890 |
Charles River Laboratories International, Inc. (a) | 100,000 | | 6,935,000 |
Fluidigm Corp. (a)(d) | 260,000 | | 10,017,800 |
| | 20,941,690 |
Pharmaceuticals - 1.6% |
Akorn, Inc. (a)(d) | 174,200 | | 7,417,436 |
Assembly Biosciences, Inc. (a) | 100,000 | | 840,000 |
Cardiome Pharma Corp. (a) | 153,100 | | 1,531,000 |
Impax Laboratories, Inc. (a) | 160,000 | | 5,867,200 |
Tetraphase Pharmaceuticals, Inc. (a) | 60,000 | | 2,181,600 |
| | 17,837,236 |
TOTAL HEALTH CARE | | 296,588,358 |
INDUSTRIALS - 14.0% |
Aerospace & Defense - 2.0% |
Esterline Technologies Corp. (a) | 58,100 | | 6,512,429 |
Huntington Ingalls Industries, Inc. | 70,000 | | 8,162,000 |
Teledyne Technologies, Inc. (a) | 88,000 | | 8,363,520 |
| | 23,037,949 |
Building Products - 1.5% |
A.O. Smith Corp. | 170,000 | | 10,099,700 |
Universal Forest Products, Inc. | 130,000 | | 6,507,800 |
| | 16,607,500 |
Commercial Services & Supplies - 3.0% |
ABM Industries, Inc. | 130,000 | | 3,753,100 |
KAR Auction Services, Inc. | 300,000 | | 10,233,000 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Commercial Services & Supplies - continued |
Knoll, Inc. | 420,000 | | $ 8,605,800 |
Multi-Color Corp. | 186,900 | | 10,881,318 |
| | 33,473,218 |
Construction & Engineering - 0.6% |
AECOM Technology Corp. (a) | 270,000 | | 6,863,400 |
Machinery - 1.6% |
Allison Transmission Holdings, Inc. | 270,200 | | 8,462,664 |
Luxfer Holdings PLC sponsored ADR | 165,630 | | 2,229,380 |
Mueller Industries, Inc. | 233,400 | | 7,326,426 |
| | 18,018,470 |
Professional Services - 4.6% |
CBIZ, Inc. (a) | 1,316,100 | | 10,897,308 |
GP Strategies Corp. (a) | 385,592 | | 12,871,061 |
Huron Consulting Group, Inc. (a) | 261,200 | | 19,647,464 |
WageWorks, Inc. (a) | 165,000 | | 9,081,600 |
| | 52,497,433 |
Road & Rail - 0.7% |
ArcBest Corp. | 200,000 | | 7,452,000 |
TOTAL INDUSTRIALS | | 157,949,970 |
INFORMATION TECHNOLOGY - 26.3% |
Communications Equipment - 1.0% |
Infinera Corp. (a) | 358,377 | | 5,777,037 |
InterDigital, Inc. | 100,000 | | 4,998,000 |
| | 10,775,037 |
Electronic Equipment & Components - 1.7% |
Ingram Micro, Inc. Class A (a) | 340,300 | | 8,568,754 |
Neonode, Inc. (a)(d) | 750,371 | | 1,943,461 |
RealD, Inc. (a)(d) | 792,300 | | 8,596,455 |
| | 19,108,670 |
Internet Software & Services - 4.7% |
comScore, Inc. (a) | 204,641 | | 8,504,880 |
Cvent, Inc. (a)(d) | 436,160 | | 10,895,277 |
Demandware, Inc. (a)(d) | 210,000 | | 11,247,600 |
E2open, Inc. (a)(d) | 662,094 | | 3,899,734 |
HomeAway, Inc. (a) | 126,100 | | 3,214,289 |
Stamps.com, Inc. (a) | 335,796 | | 15,302,224 |
| | 53,064,004 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - 6.0% |
Broadridge Financial Solutions, Inc. | 125,100 | | $ 6,003,549 |
EVERTEC, Inc. | 300,700 | | 6,032,042 |
Gartner, Inc. Class A (a) | 207,130 | | 17,444,489 |
Genpact Ltd. (a) | 300,000 | | 6,021,000 |
Global Payments, Inc. | 230,500 | | 20,124,954 |
Maximus, Inc. | 220,000 | | 12,258,400 |
| | 67,884,434 |
Semiconductors & Semiconductor Equipment - 5.9% |
Brooks Automation, Inc. | 280,000 | | 3,614,800 |
Cavium, Inc. (a) | 108,210 | | 6,363,830 |
Cirrus Logic, Inc. (a) | 420,000 | | 11,130,000 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 58,500 | | 1,901,835 |
MKS Instruments, Inc. | 353,264 | | 12,367,773 |
Monolithic Power Systems, Inc. | 170,000 | | 8,073,300 |
PDF Solutions, Inc. (a) | 526,872 | | 8,756,613 |
Qorvo, Inc. (a) | 119,170 | | 8,803,088 |
Tessera Technologies, Inc. | 150,200 | | 5,569,416 |
| | 66,580,655 |
Software - 7.0% |
Cadence Design Systems, Inc. (a) | 366,200 | | 6,587,938 |
Ebix, Inc. (d) | 130,017 | | 2,970,888 |
Evolving Systems, Inc. | 301,901 | | 2,702,014 |
Fortinet, Inc. (a) | 185,000 | | 5,530,575 |
Interactive Intelligence Group, Inc. (a) | 157,409 | | 6,384,509 |
Manhattan Associates, Inc. (a) | 150,000 | | 6,696,000 |
Progress Software Corp. (a) | 270,000 | | 6,763,500 |
Proofpoint, Inc. (a) | 140,000 | | 7,000,000 |
Qlik Technologies, Inc. (a) | 520,000 | | 14,768,000 |
Tableau Software, Inc. (a) | 70,000 | | 5,653,200 |
Vasco Data Security International, Inc. (a)(d) | 150,000 | | 3,225,000 |
Verint Systems, Inc. (a) | 210,200 | | 11,220,476 |
| | 79,502,100 |
TOTAL INFORMATION TECHNOLOGY | | 296,914,900 |
MATERIALS - 2.0% |
Containers & Packaging - 1.4% |
Graphic Packaging Holding Co. | 1,150,200 | | 16,654,896 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Paper & Forest Products - 0.6% |
Boise Cascade Co. (a) | 100,000 | | $ 4,044,000 |
TFS Corp. Ltd. (d) | 2,400,000 | | 2,734,316 |
| | 6,778,316 |
TOTAL MATERIALS | | 23,433,212 |
TELECOMMUNICATION SERVICES - 1.0% |
Diversified Telecommunication Services - 1.0% |
inContact, Inc. (a) | 1,314,000 | | 11,260,980 |
TOTAL COMMON STOCKS (Cost $991,233,707) |
1,100,446,119
|
Money Market Funds - 8.9% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 35,821,134 | | 35,821,134 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 64,188,850 | | 64,188,850 |
TOTAL MONEY MARKET FUNDS (Cost $100,009,984) |
100,009,984
|
Equity Funds - 1.2% |
| | | |
Domestic Equity Funds - 1.2% |
iShares Russell 2000 Growth Index ETF
(Cost $13,992,085) | 100,000 | |
13,910,000
|
TOTAL INVESTMENT PORTFOLIO - 107.6% (Cost $1,105,235,776) | | 1,214,366,103 |
NET OTHER ASSETS (LIABILITIES) - (7.6)% | | (86,060,356) |
NET ASSETS - 100% | $ 1,128,305,747 |
Security Type Abbreviations |
ETF | - | Exchange Traded Fund |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 17,984 |
Fidelity Securities Lending Cash Central Fund | 197,883 |
Total | $ 215,867 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Superior Drilling Products, Inc. | $ 8,049,395 | $ 212,441 | $ 146,509 | $ - | $ 4,533,704 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 197,326,361 | $ 197,326,361 | $ - | $ - |
Consumer Staples | 14,575,664 | 14,575,664 | - | - |
Energy | 20,079,291 | 20,079,291 | - | - |
Financials | 82,317,383 | 78,918,297 | 3,399,086 | - |
Health Care | 296,588,358 | 296,588,358 | - | - |
Industrials | 157,949,970 | 157,949,970 | - | - |
Information Technology | 296,914,900 | 296,914,900 | - | - |
Materials | 23,433,212 | 20,698,896 | 2,734,316 | - |
Telecommunication Services | 11,260,980 | 11,260,980 | - | - |
Money Market Funds | 100,009,984 | 100,009,984 | - | - |
Equity Funds | 13,910,000 | 13,910,000 | - | - |
Total Investments in Securities: | $ 1,214,366,103 | $ 1,208,232,701 | $ 6,133,402 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $60,718,876) - See accompanying schedule: Unaffiliated issuers (cost $999,654,099) | $ 1,109,822,415 | |
Fidelity Central Funds (cost $100,009,984) | 100,009,984 | |
Other affiliated issuers (cost $5,571,693) | 4,533,704 | |
Total Investments (cost $1,105,235,776) | | $ 1,214,366,103 |
Receivable for investments sold | | 7,838,850 |
Receivable for fund shares sold | | 1,187,967 |
Dividends receivable | | 108,877 |
Distributions receivable from Fidelity Central Funds | | 27,681 |
Other receivables | | 33,224 |
Total assets | | 1,223,562,702 |
| | |
Liabilities | | |
Payable to custodian bank | $ 36,479 | |
Payable for investments purchased | 28,286,829 | |
Payable for fund shares redeemed | 1,737,726 | |
Accrued management fee | 660,804 | |
Distribution and service plan fees payable | 70,146 | |
Other affiliated payables | 235,550 | |
Other payables and accrued expenses | 40,571 | |
Collateral on securities loaned, at value | 64,188,850 | |
Total liabilities | | 95,256,955 |
| | |
Net Assets | | $ 1,128,305,747 |
Net Assets consist of: | | |
Paid in capital | | $ 1,004,164,719 |
Accumulated net investment loss | | (6,747,596) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 21,769,978 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 109,118,646 |
Net Assets | | $ 1,128,305,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($85,291,998 ÷ 4,838,987 shares) | | $ 17.63 |
| | |
Maximum offering price per share (100/94.25 of $17.63) | | $ 18.71 |
Class T:
Net Asset Value and redemption price per share ($41,674,321 ÷ 2,416,240 shares) | | $ 17.25 |
| | |
Maximum offering price per share (100/96.50 of $17.25) | | $ 17.88 |
Class B:
Net Asset Value and offering price per share ($2,331,615 ÷ 142,585 shares)A | | $ 16.35 |
| | |
Class C:
Net Asset Value and offering price per share ($39,106,360 ÷ 2,403,770 shares)A | | $ 16.27 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($903,951,384 ÷ 49,803,487 shares) | | $ 18.15 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($55,950,069 ÷ 3,076,654 shares) | | $ 18.19 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,484,517 |
Income from Fidelity Central Funds (including $197,883 from security lending) | | 215,867 |
Total income | | 2,700,384 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,106,108 | |
Performance adjustment | (761,422) | |
Transfer agent fees | 1,284,619 | |
Distribution and service plan fees | 425,208 | |
Accounting and security lending fees | 195,620 | |
Custodian fees and expenses | 28,922 | |
Independent trustees' compensation | 2,587 | |
Registration fees | 96,411 | |
Audit | 34,460 | |
Legal | 2,323 | |
Interest | 4,117 | |
Miscellaneous | 5,864 | |
Total expenses before reductions | 5,424,817 | |
Expense reductions | (59,058) | 5,365,759 |
Net investment income (loss) | | (2,665,375) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 45,788,982 | |
Other affiliated issuers | (67,538) | |
Foreign currency transactions | 6,240 | |
Total net realized gain (loss) | | 45,727,684 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,180,758 | |
Assets and liabilities in foreign currencies | (7,979) | |
Total change in net unrealized appreciation (depreciation) | | 28,172,779 |
Net gain (loss) | | 73,900,463 |
Net increase (decrease) in net assets resulting from operations | | $ 71,235,088 |
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, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (2,665,375) | $ (5,539,870) |
Net realized gain (loss) | 45,727,684 | 529,975,803 |
Change in net unrealized appreciation (depreciation) | 28,172,779 | (344,219,184) |
Net increase (decrease) in net assets resulting
from operations | 71,235,088 | 180,216,749 |
Distributions to shareholders from net realized gain | (103,188,497) | (306,246,236) |
Share transactions - net increase (decrease) | (136,909,589) | (817,676,738) |
Redemption fees | 70,131 | 398,744 |
Total increase (decrease) in net assets | (168,792,867) | (943,307,481) |
| | |
Net Assets | | |
Beginning of period | 1,297,098,614 | 2,240,406,095 |
End of period (including accumulated net investment loss of $6,747,596 and accumulated net investment loss of $4,082,221, respectively) | $ 1,128,305,747 | $ 1,297,098,614 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) | (.04) | (.07) H | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 1.24 | 1.69 | 4.87 | (.16) | 3.84 | 1.94 |
Total from investment operations | 1.18 | 1.57 | 4.83 | (.23) | 3.77 | 1.87 |
Distributions from net realized gain | (1.54) | (3.24) | (1.04) | (.32) | (.01) K | - |
Redemption fees added to paid in capital E,M | - | - | - | - | - | - |
Net asset value, end of period | $ 17.63 | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 |
Total ReturnB, C, D | 6.77% | 8.58% | 32.20% | (1.14)% | 29.78% | 17.33% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of fee waivers, if any | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of all reductions | 1.14% A | 1.22% | 1.22% | 1.34% | 1.23% | 1.34% |
Net investment income (loss) | (.68)% A | (.62)% | (.26)% | (.49)% H | (.47)% I | (.56)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 85,292 | $ 88,822 | $ 74,978 | $ 59,684 | $ 67,272 | $ 50,620 |
Portfolio turnover rate G | 161% A | 148% N | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. 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 (.61)%. 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 (.67)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. NPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | (.16) | (.09) | (.11) H | (.11) I | (.10) J |
Net realized and unrealized gain (loss) | 1.21 | 1.66 | 4.82 | (.16) | 3.81 | 1.93 |
Total from investment operations | 1.13 | 1.50 | 4.73 | (.27) | 3.70 | 1.83 |
Distributions from net realized gain | (1.54) | (3.22) | (1.03) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 17.25 | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 |
Total ReturnB, C, D | 6.61% | 8.30% | 31.87% | (1.41)% | 29.44% | 17.04% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of fee waivers, if any | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of all reductions | 1.41%A | 1.49% | 1.48% | 1.60% | 1.49% | 1.60% |
Net investment income (loss) | (.95)% A | (.90)% | (.52)% | (.74)% H | (.73)%I | (.82)%J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 41,674 | $ 42,586 | $ 34,686 | $ 27,658 | $ 30,764 | $ 23,930 |
Portfolio turnover rate G | 161% A | 148%M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.83)%. 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 (.86)%. 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 (.93)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.60 | 4.64 | (.17) | 3.74 | 1.89 |
Total from investment operations | 1.03 | 1.35 | 4.48 | (.35) | 3.56 | 1.73 |
Distributions from net realized gain | (1.54) | (3.14) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.35 | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 |
Total ReturnB, C, D | 6.31% | 7.73% | 31.25% | (1.96)% | 28.94% | 16.37% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.93%A | 2.01% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.23)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,332 | $ 2,764 | $ 3,486 | $ 4,123 | $ 5,295 | $ 5,142 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.59 | 4.64 | (.17) | 3.73 | 1.89 |
Total from investment operations | 1.03 | 1.34 | 4.48 | (.35) | 3.55 | 1.73 |
Distributions from net realized gain | (1.54) | (3.18) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.27 | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 |
Total ReturnB, C, D | 6.34% | 7.70% | 31.32% | (1.96)% | 28.91% | 16.40% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.00% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.92%A | 2.00% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.24)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39,106 | $ 42,215 | $ 32,756 | $ 24,683 | $ 24,914 | $ 18,091 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | (.06) | .01 | (.03) G | (.03) H | (.04) I |
Net realized and unrealized gain (loss) | 1.27 | 1.71 | 4.98 | (.16) | 3.90 | 1.96 |
Total from investment operations | 1.24 | 1.65 | 4.99 | (.19) | 3.87 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.15 | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 |
Total ReturnB, C | 6.94% | 8.87% | 32.74% | (.88)% | 30.20% | 17.63% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .84%A | .91% | .90% | 1.03% | .95% | 1.08% |
Expenses net of fee waivers, if any | .84%A | .90% | .90% | 1.03% | .95% | 1.08% |
Expenses net of all reductions | .83%A | .90% | .88% | 1.02% | .93% | 1.07% |
Net investment income (loss) | (.37)% A | (.31)% | .08% | (.16)% G | (.17)% H | (.29)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 903,951 | $ 1,069,105 | $ 1,315,659 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25)%. 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 (.31)%. 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 (.39)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.04) | (.06) | .01 | (.03) G | (.03) H | (.03) I |
Net realized and unrealized gain (loss) | 1.28 | 1.72 | 4.98 | (.16) | 3.91 | 1.95 |
Total from investment operations | 1.24 | 1.66 | 4.99 | (.19) | 3.88 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.19 | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 |
Total ReturnB, C | 6.92% | 8.89% | 32.65% | (.88)% | 30.24% | 17.60% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of fee waivers, if any | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of all reductions | .85%A | .92% | .91% | 1.05% | .93% | 1.02% |
Net investment income (loss) | (.39)% A | (.32)% | .06% | (.19)% G | (.17)% H | (.24)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 55,950 | $ 51,607 | $ 51,158 | $ 36,694 | $ 41,440 | $ 25,650 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. 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 (.30)%. 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 (.34)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 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. The Fund offered Class F shares during the period June 26, 2009 through November 15, 2013, and outstanding shares were redeemed by November 15, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, 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 may be categorized as Level 3 in the hierarchy.
Exchange-Traded Funds (ETFs) are valued at their last 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (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, 2015 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to are primarily due to in-kind transactions, futures transactions, foreign currency transactions, partnerships 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 | $ 158,730,442 |
Gross unrealized depreciation | (53,847,120) |
Net unrealized appreciation (depreciation) on securities | $ 104,883,322 |
| |
Tax cost | $ 1,109,482,781 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $929,705,861 and $1,159,124,908, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000® Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .57% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 108,097 | $ 2,048 |
Class T | .25% | .25% | 105,664 | - |
Class B | .75% | .25% | 12,896 | 9,715 |
Class C | .75% | .25% | 198,551 | 30,971 |
| | | $ 425,208 | $ 42,734 |
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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
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
by FDC |
Class A | $ 16,537 |
Class T | 3,958 |
Class B* | 426 |
Class C* | 3,808 |
| $ 24,729 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 113,986 | .26 |
Class T | 60,742 | .29 |
Class B | 3,891 | .30 |
Class C | 59,007 | .30 |
Small Cap Growth | 986,387 | .21 |
Institutional Class | 60,606 | .23 |
| $ 1,284,619 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $45,478 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 or other affiliated entities of 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
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 66,799,000 | .32% | $ 4,117 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $828 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the
Semiannual Report
7. Security Lending - continued
obligation. The Fund may experience delays and costs in recovering the securities loaned. 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, and includes $18,455 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $56,139 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 $105.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Growth expenses, during the period in the amount of $2,814.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 A |
From net realized gain | | |
Class A | $ 7,463,668 | $ 13,043,180 |
Class T | 3,715,268 | 6,310,012 |
Class B | 242,938 | 574,582 |
Class C | 3,707,592 | 6,249,863 |
Small Cap Growth | 83,762,458 | 191,545,684 |
Class F | - | 80,609,253 |
Institutional Class | 4,296,573 | 7,913,662 |
Total | $ 103,188,497 | $ 306,246,236 |
A All Class F shares were redeemed on November 15, 2013.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| January 31,
2015 | Year ended
July 31,
2014 A | January 31,
2015 | Year ended
July 31,
2014 A |
Class A | | | | |
Shares sold | 448,471 | 1,706,264 | $ 7,880,247 | $ 32,017,468 |
Reinvestment of distributions | 412,447 | 685,582 | 7,203,492 | 12,377,436 |
Shares redeemed | (959,519) | (1,267,150) | (16,767,235) | (23,663,751) |
Net increase (decrease) | (98,601) | 1,124,696 | $ (1,683,496) | $ 20,731,153 |
Class T | | | | |
Shares sold | 207,463 | 787,491 | $ 3,570,359 | $ 14,539,628 |
Reinvestment of distributions | 211,200 | 341,036 | 3,613,802 | 6,061,090 |
Shares redeemed | (414,282) | (506,140) | (7,061,307) | (9,192,820) |
Net increase (decrease) | 4,381 | 622,387 | $ 122,854 | $ 11,407,898 |
Class B | | | | |
Shares sold | 283 | 11,205 | $ 4,600 | $ 198,217 |
Reinvestment of distributions | 14,482 | 32,147 | 235,501 | 548,598 |
Shares redeemed | (36,113) | (66,282) | (587,193) | (1,168,208) |
Net increase (decrease) | (21,348) | (22,930) | $ (347,092) | $ (421,393) |
Class C | | | | |
Shares sold | 218,009 | 918,904 | $ 3,557,556 | $ 16,220,240 |
Reinvestment of distributions | 216,825 | 347,970 | 3,508,500 | 5,911,022 |
Shares redeemed | (546,976) | (510,512) | (8,872,274) | (8,883,388) |
Net increase (decrease) | (112,142) | 756,362 | $ (1,806,218) | $ 13,247,874 |
Small Cap Growth | | | | |
Shares sold | 5,250,358 | 30,614,664 | $ 94,522,624 | $ 589,831,022 |
Reinvestment of distributions | 4,527,816 | 10,184,956 | 81,276,349 | 187,557,177 |
Shares redeemed | (17,910,518) | (48,426,256) B | (314,041,746) | (934,113,968) B |
Net increase (decrease) | (8,132,344) | (7,626,636) | $ (138,242,773) | $ (156,725,769) |
Class F | | | | |
Shares sold | - | 768,083 | $ - | $ 15,293,461 |
Reinvestment of distributions | - | 4,357,257 | - | 80,609,253 |
Shares redeemed | - | (41,060,113) B | - | (806,457,595) B |
Net increase (decrease) | - | (35,934,773) | $ - | $ (710,554,881) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| January 31, 2015 | Year ended
July 31,
2014 A | January 31, 2015 | Year ended
July 31,
2014 A |
Institutional Class | | | | |
Shares sold | 489,854 | 933,934 | $ 8,866,350 | $ 18,129,031 |
Reinvestment of distributions | 220,272 | 381,830 | 3,963,647 | 7,062,159 |
Shares redeemed | (424,862) | (1,069,577) | (7,782,861) | (20,552,810) |
Net increase (decrease) | 285,264 | 246,187 | $ 5,047,136 | $ 4,638,380 |
A All Class F shares were redeemed on November 15, 2013.
B 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) 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)
ASCPI-USAN-0315
1.803724.111
Fidelity®
Small Cap Growth
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2015 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, 2014 to January 31, 2015).
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 RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Class A | 1.15% | | | |
Actual | | $ 1,000.00 | $ 1,067.70 | $ 5.99 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
Class T | 1.42% | | | |
Actual | | $ 1,000.00 | $ 1,066.10 | $ 7.39 |
HypotheticalA | | $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.10 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Class C | 1.93% | | | |
Actual | | $ 1,000.00 | $ 1,063.40 | $ 10.04 |
HypotheticalA | | $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Small Cap Growth | .84% | | | |
Actual | | $ 1,000.00 | $ 1,069.40 | $ 4.38 |
HypotheticalA | | $ 1,000.00 | $ 1,020.97 | $ 4.28 |
Institutional Class | .86% | | | |
Actual | | $ 1,000.00 | $ 1,069.20 | $ 4.49 |
HypotheticalA | | $ 1,000.00 | $ 1,020.87 | $ 4.38 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Global Payments, Inc. | 1.8 | 1.3 |
Huron Consulting Group, Inc. | 1.7 | 1.4 |
G-III Apparel Group Ltd. | 1.6 | 1.5 |
Gartner, Inc. Class A | 1.6 | 0.0 |
DineEquity, Inc. | 1.5 | 0.0 |
Graphic Packaging Holding Co. | 1.4 | 1.4 |
Vail Resorts, Inc. | 1.4 | 0.0 |
athenahealth, Inc. | 1.4 | 0.4 |
Stamps.com, Inc. | 1.4 | 1.0 |
Buffalo Wild Wings, Inc. | 1.4 | 0.0 |
| 15.2 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 26.3 | 22.7 |
Health Care | 26.3 | 21.8 |
Consumer Discretionary | 17.5 | 13.5 |
Industrials | 14.0 | 16.0 |
Financials | 7.3 | 6.8 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 * | As of July 31, 2014 ** |
| Stocks 97.5% | | | Stocks 98.0% | |
| Other Investments 1.2% | | | Other Investments 0.0% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.3% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.0% | |
* Foreign investments | 3.1% | | ** Foreign investments | 5.8% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 17.5% |
Auto Components - 1.2% |
Tenneco, Inc. (a) | 180,400 | | $ 9,276,168 |
Visteon Corp. (a) | 49,100 | | 4,760,245 |
| | 14,036,413 |
Distributors - 1.0% |
Core-Mark Holding Co., Inc. | 172,100 | | 11,475,628 |
Diversified Consumer Services - 2.3% |
2U, Inc. (d) | 807,700 | | 14,368,983 |
Service Corp. International | 510,300 | | 11,548,089 |
| | 25,917,072 |
Hotels, Restaurants & Leisure - 6.7% |
Buffalo Wild Wings, Inc. (a) | 85,000 | | 15,157,200 |
DineEquity, Inc. | 160,000 | | 17,080,000 |
Domino's Pizza, Inc. | 80,000 | | 7,924,000 |
Sonic Corp. | 150,000 | | 4,540,500 |
Texas Roadhouse, Inc. Class A | 450,000 | | 15,115,500 |
Vail Resorts, Inc. | 175,800 | | 15,428,208 |
| | 75,245,408 |
Household Durables - 1.2% |
Universal Electronics, Inc. (a) | 214,209 | | 13,653,682 |
Leisure Products - 1.9% |
Brunswick Corp. | 253,500 | | 13,759,980 |
Malibu Boats, Inc. Class A (a) | 327,300 | | 7,141,686 |
| | 20,901,666 |
Media - 0.7% |
Live Nation Entertainment, Inc. (a) | 355,200 | | 8,443,104 |
Specialty Retail - 0.9% |
Office Depot, Inc. (a) | 450,000 | | 3,420,000 |
Sally Beauty Holdings, Inc. (a) | 213,961 | | 6,649,908 |
| | 10,069,908 |
Textiles, Apparel & Luxury Goods - 1.6% |
G-III Apparel Group Ltd. (a) | 180,900 | | 17,583,480 |
TOTAL CONSUMER DISCRETIONARY | | 197,326,361 |
CONSUMER STAPLES - 1.3% |
Food Products - 0.5% |
Ingredion, Inc. | 75,100 | | 6,056,064 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Household Products - 0.8% |
Spectrum Brands Holdings, Inc. | 95,000 | | $ 8,519,600 |
TOTAL CONSUMER STAPLES | | 14,575,664 |
ENERGY - 1.8% |
Energy Equipment & Services - 1.0% |
Dril-Quip, Inc. (a) | 73,900 | | 5,485,597 |
Superior Drilling Products, Inc. (d)(e) | 1,295,344 | | 4,533,704 |
Xtreme Drilling & Coil Services Corp. (a) | 1,289,000 | | 1,673,762 |
| | 11,693,063 |
Oil, Gas & Consumable Fuels - 0.8% |
Energy XXI (Bermuda) Ltd. (d) | 500,000 | | 1,470,000 |
Golar LNG Ltd. | 78,100 | | 2,214,916 |
StealthGas, Inc. (a) | 890,400 | | 4,701,312 |
| | 8,386,228 |
TOTAL ENERGY | | 20,079,291 |
FINANCIALS - 7.3% |
Banks - 2.5% |
Investors Bancorp, Inc. | 1,000,000 | | 11,010,000 |
Lakeland Financial Corp. | 183,500 | | 6,925,290 |
Pacific Premier Bancorp, Inc. (a) | 642,186 | | 9,542,884 |
| | 27,478,174 |
Capital Markets - 0.9% |
E*TRADE Financial Corp. (a) | 310,200 | | 7,150,110 |
Value Partners Group Ltd. | 4,000,000 | | 3,399,086 |
| | 10,549,196 |
Consumer Finance - 1.0% |
PRA Group, Inc. (a) | 136,139 | | 6,741,603 |
Springleaf Holdings, Inc. (a) | 140,000 | | 4,424,000 |
| | 11,165,603 |
Insurance - 1.6% |
First American Financial Corp. | 300,000 | | 10,206,000 |
Primerica, Inc. | 153,919 | | 7,640,539 |
| | 17,846,539 |
Real Estate Investment Trusts - 0.3% |
Colony Financial, Inc. | 150,000 | | 3,757,500 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 1.0% |
Meridian Bancorp, Inc. (a) | 992,280 | | $ 11,520,371 |
TOTAL FINANCIALS | | 82,317,383 |
HEALTH CARE - 26.3% |
Biotechnology - 10.5% |
Achillion Pharmaceuticals, Inc. (a) | 310,000 | | 4,603,500 |
Array BioPharma, Inc. (a)(d) | 800,000 | | 5,728,000 |
Auspex Pharmaceuticals, Inc. | 75,635 | | 4,647,771 |
BioCryst Pharmaceuticals, Inc. (a) | 260,200 | | 2,648,836 |
Celldex Therapeutics, Inc. (a)(d) | 293,400 | | 6,284,628 |
Chimerix, Inc. (a) | 210,100 | | 8,427,111 |
Dyax Corp. (a) | 480,400 | | 7,258,844 |
Insmed, Inc. (a) | 223,400 | | 3,453,764 |
Intercept Pharmaceuticals, Inc. (a) | 30,600 | | 6,151,518 |
Isis Pharmaceuticals, Inc. (a) | 187,157 | | 12,822,126 |
La Jolla Pharmaceutical Co. (a) | 111,412 | | 2,433,238 |
Lion Biotechnologies, Inc. (a)(d) | 360,000 | | 2,826,000 |
Mirati Therapeutics, Inc. (a) | 169,700 | | 3,521,275 |
Novavax, Inc. (a)(d) | 1,097,100 | | 8,568,351 |
Otonomy, Inc. | 95,500 | | 2,788,600 |
Puma Biotechnology, Inc. (a) | 44,500 | | 9,393,060 |
Receptos, Inc. (a) | 55,100 | | 6,070,367 |
Stemline Therapeutics, Inc. (a)(d) | 104,500 | | 1,617,660 |
Synageva BioPharma Corp. (a)(d) | 70,014 | | 8,067,013 |
Threshold Pharmaceuticals, Inc. (a) | 669,900 | | 2,492,028 |
Ultragenyx Pharmaceutical, Inc. | 100,000 | | 5,810,000 |
XOMA Corp. (a)(d) | 800,400 | | 2,849,424 |
| | 118,463,114 |
Health Care Equipment & Supplies - 4.8% |
Abaxis, Inc. | 120,000 | | 7,377,600 |
Cyberonics, Inc. (a) | 100,000 | | 5,557,000 |
ICU Medical, Inc. (a) | 120,008 | | 10,030,269 |
Ldr Holding Corp. (a) | 153,755 | | 5,146,180 |
Novadaq Technologies, Inc. (a) | 326,300 | | 4,643,249 |
NxStage Medical, Inc. (a) | 625,300 | | 11,186,617 |
Steris Corp. | 163,400 | | 10,656,948 |
| | 54,597,863 |
Health Care Providers & Services - 5.3% |
Accretive Health, Inc. (a)(d) | 1,087,226 | | 6,360,272 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
AMN Healthcare Services, Inc. (a) | 450,300 | | $ 8,474,646 |
Civitas Solutions, Inc. | 303,757 | | 5,768,345 |
ExamWorks Group, Inc. (a)(d) | 200,000 | | 7,392,000 |
Healthways, Inc. (a) | 440,000 | | 9,072,800 |
Omnicare, Inc. | 121,100 | | 9,080,078 |
Team Health Holdings, Inc. (a) | 264,200 | | 13,659,140 |
| | 59,807,281 |
Health Care Technology - 2.2% |
athenahealth, Inc. (a)(d) | 109,857 | | 15,348,121 |
Omnicell, Inc. (a) | 301,384 | | 9,593,053 |
| | 24,941,174 |
Life Sciences Tools & Services - 1.9% |
Bruker Corp. (a) | 211,500 | | 3,988,890 |
Charles River Laboratories International, Inc. (a) | 100,000 | | 6,935,000 |
Fluidigm Corp. (a)(d) | 260,000 | | 10,017,800 |
| | 20,941,690 |
Pharmaceuticals - 1.6% |
Akorn, Inc. (a)(d) | 174,200 | | 7,417,436 |
Assembly Biosciences, Inc. (a) | 100,000 | | 840,000 |
Cardiome Pharma Corp. (a) | 153,100 | | 1,531,000 |
Impax Laboratories, Inc. (a) | 160,000 | | 5,867,200 |
Tetraphase Pharmaceuticals, Inc. (a) | 60,000 | | 2,181,600 |
| | 17,837,236 |
TOTAL HEALTH CARE | | 296,588,358 |
INDUSTRIALS - 14.0% |
Aerospace & Defense - 2.0% |
Esterline Technologies Corp. (a) | 58,100 | | 6,512,429 |
Huntington Ingalls Industries, Inc. | 70,000 | | 8,162,000 |
Teledyne Technologies, Inc. (a) | 88,000 | | 8,363,520 |
| | 23,037,949 |
Building Products - 1.5% |
A.O. Smith Corp. | 170,000 | | 10,099,700 |
Universal Forest Products, Inc. | 130,000 | | 6,507,800 |
| | 16,607,500 |
Commercial Services & Supplies - 3.0% |
ABM Industries, Inc. | 130,000 | | 3,753,100 |
KAR Auction Services, Inc. | 300,000 | | 10,233,000 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Commercial Services & Supplies - continued |
Knoll, Inc. | 420,000 | | $ 8,605,800 |
Multi-Color Corp. | 186,900 | | 10,881,318 |
| | 33,473,218 |
Construction & Engineering - 0.6% |
AECOM Technology Corp. (a) | 270,000 | | 6,863,400 |
Machinery - 1.6% |
Allison Transmission Holdings, Inc. | 270,200 | | 8,462,664 |
Luxfer Holdings PLC sponsored ADR | 165,630 | | 2,229,380 |
Mueller Industries, Inc. | 233,400 | | 7,326,426 |
| | 18,018,470 |
Professional Services - 4.6% |
CBIZ, Inc. (a) | 1,316,100 | | 10,897,308 |
GP Strategies Corp. (a) | 385,592 | | 12,871,061 |
Huron Consulting Group, Inc. (a) | 261,200 | | 19,647,464 |
WageWorks, Inc. (a) | 165,000 | | 9,081,600 |
| | 52,497,433 |
Road & Rail - 0.7% |
ArcBest Corp. | 200,000 | | 7,452,000 |
TOTAL INDUSTRIALS | | 157,949,970 |
INFORMATION TECHNOLOGY - 26.3% |
Communications Equipment - 1.0% |
Infinera Corp. (a) | 358,377 | | 5,777,037 |
InterDigital, Inc. | 100,000 | | 4,998,000 |
| | 10,775,037 |
Electronic Equipment & Components - 1.7% |
Ingram Micro, Inc. Class A (a) | 340,300 | | 8,568,754 |
Neonode, Inc. (a)(d) | 750,371 | | 1,943,461 |
RealD, Inc. (a)(d) | 792,300 | | 8,596,455 |
| | 19,108,670 |
Internet Software & Services - 4.7% |
comScore, Inc. (a) | 204,641 | | 8,504,880 |
Cvent, Inc. (a)(d) | 436,160 | | 10,895,277 |
Demandware, Inc. (a)(d) | 210,000 | | 11,247,600 |
E2open, Inc. (a)(d) | 662,094 | | 3,899,734 |
HomeAway, Inc. (a) | 126,100 | | 3,214,289 |
Stamps.com, Inc. (a) | 335,796 | | 15,302,224 |
| | 53,064,004 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
IT Services - 6.0% |
Broadridge Financial Solutions, Inc. | 125,100 | | $ 6,003,549 |
EVERTEC, Inc. | 300,700 | | 6,032,042 |
Gartner, Inc. Class A (a) | 207,130 | | 17,444,489 |
Genpact Ltd. (a) | 300,000 | | 6,021,000 |
Global Payments, Inc. | 230,500 | | 20,124,954 |
Maximus, Inc. | 220,000 | | 12,258,400 |
| | 67,884,434 |
Semiconductors & Semiconductor Equipment - 5.9% |
Brooks Automation, Inc. | 280,000 | | 3,614,800 |
Cavium, Inc. (a) | 108,210 | | 6,363,830 |
Cirrus Logic, Inc. (a) | 420,000 | | 11,130,000 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 58,500 | | 1,901,835 |
MKS Instruments, Inc. | 353,264 | | 12,367,773 |
Monolithic Power Systems, Inc. | 170,000 | | 8,073,300 |
PDF Solutions, Inc. (a) | 526,872 | | 8,756,613 |
Qorvo, Inc. (a) | 119,170 | | 8,803,088 |
Tessera Technologies, Inc. | 150,200 | | 5,569,416 |
| | 66,580,655 |
Software - 7.0% |
Cadence Design Systems, Inc. (a) | 366,200 | | 6,587,938 |
Ebix, Inc. (d) | 130,017 | | 2,970,888 |
Evolving Systems, Inc. | 301,901 | | 2,702,014 |
Fortinet, Inc. (a) | 185,000 | | 5,530,575 |
Interactive Intelligence Group, Inc. (a) | 157,409 | | 6,384,509 |
Manhattan Associates, Inc. (a) | 150,000 | | 6,696,000 |
Progress Software Corp. (a) | 270,000 | | 6,763,500 |
Proofpoint, Inc. (a) | 140,000 | | 7,000,000 |
Qlik Technologies, Inc. (a) | 520,000 | | 14,768,000 |
Tableau Software, Inc. (a) | 70,000 | | 5,653,200 |
Vasco Data Security International, Inc. (a)(d) | 150,000 | | 3,225,000 |
Verint Systems, Inc. (a) | 210,200 | | 11,220,476 |
| | 79,502,100 |
TOTAL INFORMATION TECHNOLOGY | | 296,914,900 |
MATERIALS - 2.0% |
Containers & Packaging - 1.4% |
Graphic Packaging Holding Co. | 1,150,200 | | 16,654,896 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Paper & Forest Products - 0.6% |
Boise Cascade Co. (a) | 100,000 | | $ 4,044,000 |
TFS Corp. Ltd. (d) | 2,400,000 | | 2,734,316 |
| | 6,778,316 |
TOTAL MATERIALS | | 23,433,212 |
TELECOMMUNICATION SERVICES - 1.0% |
Diversified Telecommunication Services - 1.0% |
inContact, Inc. (a) | 1,314,000 | | 11,260,980 |
TOTAL COMMON STOCKS (Cost $991,233,707) |
1,100,446,119
|
Money Market Funds - 8.9% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 35,821,134 | | 35,821,134 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 64,188,850 | | 64,188,850 |
TOTAL MONEY MARKET FUNDS (Cost $100,009,984) |
100,009,984
|
Equity Funds - 1.2% |
| | | |
Domestic Equity Funds - 1.2% |
iShares Russell 2000 Growth Index ETF
(Cost $13,992,085) | 100,000 | |
13,910,000
|
TOTAL INVESTMENT PORTFOLIO - 107.6% (Cost $1,105,235,776) | | 1,214,366,103 |
NET OTHER ASSETS (LIABILITIES) - (7.6)% | | (86,060,356) |
NET ASSETS - 100% | $ 1,128,305,747 |
Security Type Abbreviations |
ETF | - | Exchange Traded Fund |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 17,984 |
Fidelity Securities Lending Cash Central Fund | 197,883 |
Total | $ 215,867 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Superior Drilling Products, Inc. | $ 8,049,395 | $ 212,441 | $ 146,509 | $ - | $ 4,533,704 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 197,326,361 | $ 197,326,361 | $ - | $ - |
Consumer Staples | 14,575,664 | 14,575,664 | - | - |
Energy | 20,079,291 | 20,079,291 | - | - |
Financials | 82,317,383 | 78,918,297 | 3,399,086 | - |
Health Care | 296,588,358 | 296,588,358 | - | - |
Industrials | 157,949,970 | 157,949,970 | - | - |
Information Technology | 296,914,900 | 296,914,900 | - | - |
Materials | 23,433,212 | 20,698,896 | 2,734,316 | - |
Telecommunication Services | 11,260,980 | 11,260,980 | - | - |
Money Market Funds | 100,009,984 | 100,009,984 | - | - |
Equity Funds | 13,910,000 | 13,910,000 | - | - |
Total Investments in Securities: | $ 1,214,366,103 | $ 1,208,232,701 | $ 6,133,402 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $60,718,876) - See accompanying schedule: Unaffiliated issuers (cost $999,654,099) | $ 1,109,822,415 | |
Fidelity Central Funds (cost $100,009,984) | 100,009,984 | |
Other affiliated issuers (cost $5,571,693) | 4,533,704 | |
Total Investments (cost $1,105,235,776) | | $ 1,214,366,103 |
Receivable for investments sold | | 7,838,850 |
Receivable for fund shares sold | | 1,187,967 |
Dividends receivable | | 108,877 |
Distributions receivable from Fidelity Central Funds | | 27,681 |
Other receivables | | 33,224 |
Total assets | | 1,223,562,702 |
| | |
Liabilities | | |
Payable to custodian bank | $ 36,479 | |
Payable for investments purchased | 28,286,829 | |
Payable for fund shares redeemed | 1,737,726 | |
Accrued management fee | 660,804 | |
Distribution and service plan fees payable | 70,146 | |
Other affiliated payables | 235,550 | |
Other payables and accrued expenses | 40,571 | |
Collateral on securities loaned, at value | 64,188,850 | |
Total liabilities | | 95,256,955 |
| | |
Net Assets | | $ 1,128,305,747 |
Net Assets consist of: | | |
Paid in capital | | $ 1,004,164,719 |
Accumulated net investment loss | | (6,747,596) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 21,769,978 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 109,118,646 |
Net Assets | | $ 1,128,305,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($85,291,998 ÷ 4,838,987 shares) | | $ 17.63 |
| | |
Maximum offering price per share (100/94.25 of $17.63) | | $ 18.71 |
Class T:
Net Asset Value and redemption price per share ($41,674,321 ÷ 2,416,240 shares) | | $ 17.25 |
| | |
Maximum offering price per share (100/96.50 of $17.25) | | $ 17.88 |
Class B:
Net Asset Value and offering price per share ($2,331,615 ÷ 142,585 shares)A | | $ 16.35 |
| | |
Class C:
Net Asset Value and offering price per share ($39,106,360 ÷ 2,403,770 shares)A | | $ 16.27 |
| | |
Small Cap Growth:
Net Asset Value, offering price and redemption price per share ($903,951,384 ÷ 49,803,487 shares) | | $ 18.15 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($55,950,069 ÷ 3,076,654 shares) | | $ 18.19 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,484,517 |
Income from Fidelity Central Funds (including $197,883 from security lending) | | 215,867 |
Total income | | 2,700,384 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,106,108 | |
Performance adjustment | (761,422) | |
Transfer agent fees | 1,284,619 | |
Distribution and service plan fees | 425,208 | |
Accounting and security lending fees | 195,620 | |
Custodian fees and expenses | 28,922 | |
Independent trustees' compensation | 2,587 | |
Registration fees | 96,411 | |
Audit | 34,460 | |
Legal | 2,323 | |
Interest | 4,117 | |
Miscellaneous | 5,864 | |
Total expenses before reductions | 5,424,817 | |
Expense reductions | (59,058) | 5,365,759 |
Net investment income (loss) | | (2,665,375) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 45,788,982 | |
Other affiliated issuers | (67,538) | |
Foreign currency transactions | 6,240 | |
Total net realized gain (loss) | | 45,727,684 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,180,758 | |
Assets and liabilities in foreign currencies | (7,979) | |
Total change in net unrealized appreciation (depreciation) | | 28,172,779 |
Net gain (loss) | | 73,900,463 |
Net increase (decrease) in net assets resulting from operations | | $ 71,235,088 |
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, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (2,665,375) | $ (5,539,870) |
Net realized gain (loss) | 45,727,684 | 529,975,803 |
Change in net unrealized appreciation (depreciation) | 28,172,779 | (344,219,184) |
Net increase (decrease) in net assets resulting
from operations | 71,235,088 | 180,216,749 |
Distributions to shareholders from net realized gain | (103,188,497) | (306,246,236) |
Share transactions - net increase (decrease) | (136,909,589) | (817,676,738) |
Redemption fees | 70,131 | 398,744 |
Total increase (decrease) in net assets | (168,792,867) | (943,307,481) |
| | |
Net Assets | | |
Beginning of period | 1,297,098,614 | 2,240,406,095 |
End of period (including accumulated net investment loss of $6,747,596 and accumulated net investment loss of $4,082,221, respectively) | $ 1,128,305,747 | $ 1,297,098,614 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 | $ 10.79 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) | (.04) | (.07) H | (.07) I | (.07) J |
Net realized and unrealized gain (loss) | 1.24 | 1.69 | 4.87 | (.16) | 3.84 | 1.94 |
Total from investment operations | 1.18 | 1.57 | 4.83 | (.23) | 3.77 | 1.87 |
Distributions from net realized gain | (1.54) | (3.24) | (1.04) | (.32) | (.01) K | - |
Redemption fees added to paid in capital E,M | - | - | - | - | - | - |
Net asset value, end of period | $ 17.63 | $ 17.99 | $ 19.66 | $ 15.87 | $ 16.42 | $ 12.66 |
Total ReturnB, C, D | 6.77% | 8.58% | 32.20% | (1.14)% | 29.78% | 17.33% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of fee waivers, if any | 1.15% A | 1.22% | 1.24% | 1.35% | 1.25% | 1.35% |
Expenses net of all reductions | 1.14% A | 1.22% | 1.22% | 1.34% | 1.23% | 1.34% |
Net investment income (loss) | (.68)% A | (.62)% | (.26)% | (.49)% H | (.47)% I | (.56)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 85,292 | $ 88,822 | $ 74,978 | $ 59,684 | $ 67,272 | $ 50,620 |
Portfolio turnover rate G | 161% A | 148% N | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. 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 (.61)%. 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 (.67)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. NPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 | $ 10.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | (.16) | (.09) | (.11) H | (.11) I | (.10) J |
Net realized and unrealized gain (loss) | 1.21 | 1.66 | 4.82 | (.16) | 3.81 | 1.93 |
Total from investment operations | 1.13 | 1.50 | 4.73 | (.27) | 3.70 | 1.83 |
Distributions from net realized gain | (1.54) | (3.22) | (1.03) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 17.25 | $ 17.66 | $ 19.38 | $ 15.68 | $ 16.27 | $ 12.57 |
Total ReturnB, C, D | 6.61% | 8.30% | 31.87% | (1.41)% | 29.44% | 17.04% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of fee waivers, if any | 1.42%A | 1.50% | 1.49% | 1.61% | 1.50% | 1.61% |
Expenses net of all reductions | 1.41%A | 1.49% | 1.48% | 1.60% | 1.49% | 1.60% |
Net investment income (loss) | (.95)% A | (.90)% | (.52)% | (.74)% H | (.73)%I | (.82)%J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 41,674 | $ 42,586 | $ 34,686 | $ 27,658 | $ 30,764 | $ 23,930 |
Portfolio turnover rate G | 161% A | 148%M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.83)%. 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 (.86)%. 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 (.93)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 | $ 10.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.60 | 4.64 | (.17) | 3.74 | 1.89 |
Total from investment operations | 1.03 | 1.35 | 4.48 | (.35) | 3.56 | 1.73 |
Distributions from net realized gain | (1.54) | (3.14) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.35 | $ 16.86 | $ 18.65 | $ 15.19 | $ 15.86 | $ 12.30 |
Total ReturnB, C, D | 6.31% | 7.73% | 31.25% | (1.96)% | 28.94% | 16.37% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.93%A | 2.01% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.23)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,332 | $ 2,764 | $ 3,486 | $ 4,123 | $ 5,295 | $ 5,142 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 | $ 10.55 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.12) | (.25) | (.16) | (.18) H | (.18) I | (.16) J |
Net realized and unrealized gain (loss) | 1.15 | 1.59 | 4.64 | (.17) | 3.73 | 1.89 |
Total from investment operations | 1.03 | 1.34 | 4.48 | (.35) | 3.55 | 1.73 |
Distributions from net realized gain | (1.54) | (3.18) | (1.02) | (.32) | - | - |
Redemption fees added to paid in capital E,L | - | - | - | - | - | - |
Net asset value, end of period | $ 16.27 | $ 16.78 | $ 18.62 | $ 15.16 | $ 15.83 | $ 12.28 |
Total ReturnB, C, D | 6.34% | 7.70% | 31.32% | (1.96)% | 28.91% | 16.40% |
Ratios to Average Net Assets F, K | | | | | |
Expenses before reductions | 1.93%A | 2.01% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of fee waivers, if any | 1.93%A | 2.00% | 1.99% | 2.10% | 2.00% | 2.11% |
Expenses net of all reductions | 1.92%A | 2.00% | 1.97% | 2.09% | 1.98% | 2.09% |
Net investment income (loss) | (1.46)% A | (1.41)% | (1.01)% | (1.24)% H | (1.22)% I | (1.32)% J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39,106 | $ 42,215 | $ 32,756 | $ 24,683 | $ 24,914 | $ 18,091 |
Portfolio turnover rate G | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.32)%. 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 (1.36)%. 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 (1.42)%. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 | $ 10.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | (.06) | .01 | (.03) G | (.03) H | (.04) I |
Net realized and unrealized gain (loss) | 1.27 | 1.71 | 4.98 | (.16) | 3.90 | 1.96 |
Total from investment operations | 1.24 | 1.65 | 4.99 | (.19) | 3.87 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.15 | $ 18.45 | $ 20.07 | $ 16.14 | $ 16.65 | $ 12.81 |
Total ReturnB, C | 6.94% | 8.87% | 32.74% | (.88)% | 30.20% | 17.63% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .84%A | .91% | .90% | 1.03% | .95% | 1.08% |
Expenses net of fee waivers, if any | .84%A | .90% | .90% | 1.03% | .95% | 1.08% |
Expenses net of all reductions | .83%A | .90% | .88% | 1.02% | .93% | 1.07% |
Net investment income (loss) | (.37)% A | (.31)% | .08% | (.16)% G | (.17)% H | (.29)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 903,951 | $ 1,069,105 | $ 1,315,659 | $ 1,166,101 | $ 1,382,688 | $ 1,204,818 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25)%. 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 (.31)%. 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 (.39)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 | $ 10.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.04) | (.06) | .01 | (.03) G | (.03) H | (.03) I |
Net realized and unrealized gain (loss) | 1.28 | 1.72 | 4.98 | (.16) | 3.91 | 1.95 |
Total from investment operations | 1.24 | 1.66 | 4.99 | (.19) | 3.88 | 1.92 |
Distributions from net realized gain | (1.54) | (3.27) | (1.06) | (.32) | (.03) J | - |
Redemption fees added to paid in capital D,L | - | - | - | - | - | - |
Net asset value, end of period | $ 18.19 | $ 18.49 | $ 20.10 | $ 16.17 | $ 16.68 | $ 12.83 |
Total ReturnB, C | 6.92% | 8.89% | 32.65% | (.88)% | 30.24% | 17.60% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of fee waivers, if any | .86%A | .92% | .92% | 1.06% | .94% | 1.03% |
Expenses net of all reductions | .85%A | .92% | .91% | 1.05% | .93% | 1.02% |
Net investment income (loss) | (.39)% A | (.32)% | .06% | (.19)% G | (.17)% H | (.24)% I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 55,950 | $ 51,607 | $ 51,158 | $ 36,694 | $ 41,440 | $ 25,650 |
Portfolio turnover rateF | 161% A | 148% M | 142% | 150% | 106% | 105% |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. 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 (.30)%. 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 (.34)%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. 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. MPortfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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 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. The Fund offered Class F shares during the period June 26, 2009 through November 15, 2013, and outstanding shares were redeemed by November 15, 2013. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, 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 may be categorized as Level 3 in the hierarchy.
Exchange-Traded Funds (ETFs) are valued at their last 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (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, 2015 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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.
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3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to are primarily due to in-kind transactions, futures transactions, foreign currency transactions, partnerships 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 | $ 158,730,442 |
Gross unrealized depreciation | (53,847,120) |
Net unrealized appreciation (depreciation) on securities | $ 104,883,322 |
| |
Tax cost | $ 1,109,482,781 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $929,705,861 and $1,159,124,908, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000® Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .57% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 108,097 | $ 2,048 |
Class T | .25% | .25% | 105,664 | - |
Class B | .75% | .25% | 12,896 | 9,715 |
Class C | .75% | .25% | 198,551 | 30,971 |
| | | $ 425,208 | $ 42,734 |
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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
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
by FDC |
Class A | $ 16,537 |
Class T | 3,958 |
Class B* | 426 |
Class C* | 3,808 |
| $ 24,729 |
* 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 the investment adviser, 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-Level Average
Net Assets* |
Class A | $ 113,986 | .26 |
Class T | 60,742 | .29 |
Class B | 3,891 | .30 |
Class C | 59,007 | .30 |
Small Cap Growth | 986,387 | .21 |
Institutional Class | 60,606 | .23 |
| $ 1,284,619 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $45,478 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 or other affiliated entities of 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
Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 66,799,000 | .32% | $ 4,117 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $828 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the
Semiannual Report
7. Security Lending - continued
obligation. The Fund may experience delays and costs in recovering the securities loaned. 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, and includes $18,455 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $56,139 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 $105.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Small Cap Growth expenses, during the period in the amount of $2,814.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 A |
From net realized gain | | |
Class A | $ 7,463,668 | $ 13,043,180 |
Class T | 3,715,268 | 6,310,012 |
Class B | 242,938 | 574,582 |
Class C | 3,707,592 | 6,249,863 |
Small Cap Growth | 83,762,458 | 191,545,684 |
Class F | - | 80,609,253 |
Institutional Class | 4,296,573 | 7,913,662 |
Total | $ 103,188,497 | $ 306,246,236 |
A All Class F shares were redeemed on November 15, 2013.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars |
| January 31,
2015 | Year ended
July 31,
2014 A | January 31,
2015 | Year ended
July 31,
2014 A |
Class A | | | | |
Shares sold | 448,471 | 1,706,264 | $ 7,880,247 | $ 32,017,468 |
Reinvestment of distributions | 412,447 | 685,582 | 7,203,492 | 12,377,436 |
Shares redeemed | (959,519) | (1,267,150) | (16,767,235) | (23,663,751) |
Net increase (decrease) | (98,601) | 1,124,696 | $ (1,683,496) | $ 20,731,153 |
Class T | | | | |
Shares sold | 207,463 | 787,491 | $ 3,570,359 | $ 14,539,628 |
Reinvestment of distributions | 211,200 | 341,036 | 3,613,802 | 6,061,090 |
Shares redeemed | (414,282) | (506,140) | (7,061,307) | (9,192,820) |
Net increase (decrease) | 4,381 | 622,387 | $ 122,854 | $ 11,407,898 |
Class B | | | | |
Shares sold | 283 | 11,205 | $ 4,600 | $ 198,217 |
Reinvestment of distributions | 14,482 | 32,147 | 235,501 | 548,598 |
Shares redeemed | (36,113) | (66,282) | (587,193) | (1,168,208) |
Net increase (decrease) | (21,348) | (22,930) | $ (347,092) | $ (421,393) |
Class C | | | | |
Shares sold | 218,009 | 918,904 | $ 3,557,556 | $ 16,220,240 |
Reinvestment of distributions | 216,825 | 347,970 | 3,508,500 | 5,911,022 |
Shares redeemed | (546,976) | (510,512) | (8,872,274) | (8,883,388) |
Net increase (decrease) | (112,142) | 756,362 | $ (1,806,218) | $ 13,247,874 |
Small Cap Growth | | | | |
Shares sold | 5,250,358 | 30,614,664 | $ 94,522,624 | $ 589,831,022 |
Reinvestment of distributions | 4,527,816 | 10,184,956 | 81,276,349 | 187,557,177 |
Shares redeemed | (17,910,518) | (48,426,256) B | (314,041,746) | (934,113,968) B |
Net increase (decrease) | (8,132,344) | (7,626,636) | $ (138,242,773) | $ (156,725,769) |
Class F | | | | |
Shares sold | - | 768,083 | $ - | $ 15,293,461 |
Reinvestment of distributions | - | 4,357,257 | - | 80,609,253 |
Shares redeemed | - | (41,060,113) B | - | (806,457,595) B |
Net increase (decrease) | - | (35,934,773) | $ - | $ (710,554,881) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| January 31, 2015 | Year ended
July 31,
2014 A | January 31, 2015 | Year ended
July 31,
2014 A |
Institutional Class | | | | |
Shares sold | 489,854 | 933,934 | $ 8,866,350 | $ 18,129,031 |
Reinvestment of distributions | 220,272 | 381,830 | 3,963,647 | 7,062,159 |
Shares redeemed | (424,862) | (1,069,577) | (7,782,861) | (20,552,810) |
Net increase (decrease) | 285,264 | 246,187 | $ 5,047,136 | $ 4,638,380 |
A All Class F shares were redeemed on November 15, 2013.
B 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) 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
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SCP-USAN-0315
1.803699.110
Fidelity®
Series Small Cap Opportunities
Fund
Fidelity Series Small Cap Opportunities Fund
Class F
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Small Cap Opportunities Fund or 1-800-835-5092 for Class F 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. © 2015 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, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Series Small Cap Opportunities | .77% | | | |
Actual | | $ 1,000.00 | $ 1,038.60 | $ 3.96 |
HypotheticalA | | $ 1,000.00 | $ 1,021.32 | $ 3.92 |
Class F | .60% | | | |
Actual | | $ 1,000.00 | $ 1,039.50 | $ 3.08 |
HypotheticalA | | $ 1,000.00 | $ 1,022.18 | $ 3.06 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Huntington Bancshares, Inc. | 1.2 | 1.0 |
PacWest Bancorp | 1.2 | 1.3 |
Global Payments, Inc. | 1.1 | 1.0 |
Mid-America Apartment Communities, Inc. | 1.1 | 0.8 |
Waddell & Reed Financial, Inc. Class A | 1.1 | 0.6 |
Bank of the Ozarks, Inc. | 1.1 | 0.9 |
Home Properties, Inc. | 1.1 | 0.9 |
Ramco-Gershenson Properties Trust (SBI) | 1.0 | 0.9 |
JetBlue Airways Corp. | 1.0 | 0.0 |
Synchronoss Technologies, Inc. | 1.0 | 0.7 |
| 10.9 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 23.1 | 22.5 |
Information Technology | 18.3 | 18.8 |
Health Care | 14.4 | 12.4 |
Consumer Discretionary | 13.3 | 12.4 |
Industrials | 12.0 | 13.3 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 * | As of July 31, 2014** |
| Stocks and Equity Futures 96.6% | | | Stocks and Equity Futures 98.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) 3.4% | | | Short-Term Investments and Net Other Assets (Liabilities) 1.9% | |
* Foreign investments | 7.5% | | ** Foreign investments | 8.0% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 13.3% |
Auto Components - 1.8% |
Cooper Tire & Rubber Co. | 650,080 | | $ 22,616,283 |
Standard Motor Products, Inc. | 446,634 | | 16,284,276 |
Tenneco, Inc. (a) | 839,086 | | 43,145,802 |
Visteon Corp. (a) | 152,300 | | 14,765,485 |
| | 96,811,846 |
Diversified Consumer Services - 0.5% |
Service Corp. International | 1,269,400 | | 28,726,522 |
Hotels, Restaurants & Leisure - 3.2% |
Bloomin' Brands, Inc. (a) | 1,362,116 | | 33,664,697 |
Brinker International, Inc. | 509,400 | | 29,764,242 |
Buffalo Wild Wings, Inc. (a) | 188,300 | | 33,577,656 |
Domino's Pizza, Inc. | 153,900 | | 15,243,795 |
Life Time Fitness, Inc. (a) | 553,120 | | 30,239,070 |
Texas Roadhouse, Inc. Class A | 996,043 | | 33,457,084 |
| | 175,946,544 |
Household Durables - 1.1% |
Ethan Allen Interiors, Inc. (d) | 1,087,235 | | 29,594,537 |
Jarden Corp. (a) | 621,322 | | 29,835,882 |
| | 59,430,419 |
Leisure Products - 0.5% |
Brunswick Corp. | 557,600 | | 30,266,528 |
Media - 1.2% |
MDC Partners, Inc. Class A (sub. vtg.) | 1,400,058 | | 33,461,386 |
Nexstar Broadcasting Group, Inc. Class A | 686,017 | | 34,228,818 |
| | 67,690,204 |
Multiline Retail - 0.5% |
Dillard's, Inc. Class A | 222,344 | | 25,258,278 |
Specialty Retail - 2.5% |
Chico's FAS, Inc. | 1,308,629 | | 21,827,932 |
Genesco, Inc. (a) | 359,125 | | 25,659,481 |
GNC Holdings, Inc. | 711,900 | | 31,565,646 |
Murphy U.S.A., Inc. (a) | 385,100 | | 26,883,831 |
Zumiez, Inc. (a) | 771,282 | | 28,761,106 |
| | 134,697,996 |
Textiles, Apparel & Luxury Goods - 2.0% |
Deckers Outdoor Corp. (a) | 292,500 | | 19,319,625 |
Fossil Group, Inc. (a) | 319,100 | | 31,207,980 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - continued |
G-III Apparel Group Ltd. (a) | 374,587 | | $ 36,409,856 |
Steven Madden Ltd. (a) | 645,139 | | 22,154,073 |
| | 109,091,534 |
TOTAL CONSUMER DISCRETIONARY | | 727,919,871 |
CONSUMER STAPLES - 2.8% |
Beverages - 0.1% |
Coca-Cola Bottling Co. Consolidated | 68,655 | | 6,696,609 |
Food & Staples Retailing - 0.6% |
Casey's General Stores, Inc. | 350,750 | | 32,023,475 |
Food Products - 1.5% |
Aryzta AG | 194,670 | | 14,660,674 |
Greencore Group PLC | 4,912,009 | | 22,802,078 |
Ingredion, Inc. | 279,400 | | 22,530,816 |
J&J Snack Foods Corp. | 224,250 | | 22,003,410 |
| | 81,996,978 |
Personal Products - 0.6% |
Coty, Inc. Class A | 622,400 | | 11,838,048 |
Inter Parfums, Inc. | 816,700 | | 20,540,005 |
| | 32,378,053 |
TOTAL CONSUMER STAPLES | | 153,095,115 |
ENERGY - 3.4% |
Energy Equipment & Services - 1.0% |
Atwood Oceanics, Inc. | 459,426 | | 13,130,395 |
Bristow Group, Inc. | 508,800 | | 28,345,248 |
Total Energy Services, Inc. | 1,256,670 | | 12,905,913 |
| | 54,381,556 |
Oil, Gas & Consumable Fuels - 2.4% |
Diamondback Energy, Inc. (a) | 361,700 | | 24,953,683 |
Newfield Exploration Co. (a) | 1,245,110 | | 37,079,376 |
Stone Energy Corp. (a) | 1,620,746 | | 22,820,104 |
Targa Resources Corp. | 125,990 | | 10,939,712 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
TC Pipelines LP | 213,600 | | $ 14,544,024 |
Western Refining, Inc. | 612,712 | | 22,749,997 |
| | 133,086,896 |
TOTAL ENERGY | | 187,468,452 |
FINANCIALS - 23.1% |
Banks - 9.0% |
Associated Banc-Corp. | 3,053,213 | | 51,324,511 |
BancFirst Corp. | 484,778 | | 27,952,299 |
Bank of the Ozarks, Inc. | 1,790,874 | | 58,078,044 |
Banner Bank (e) | 1,280,871 | | 51,721,571 |
BBCN Bancorp, Inc. | 3,045,910 | | 39,444,535 |
City National Corp. | 544,378 | | 47,192,129 |
Huntington Bancshares, Inc. | 6,472,900 | | 64,858,457 |
Investors Bancorp, Inc. | 3,692,500 | | 40,654,425 |
MB Financial, Inc. | 1,712,400 | | 48,649,284 |
PacWest Bancorp | 1,477,888 | | 63,187,101 |
| | 493,062,356 |
Capital Markets - 3.0% |
AURELIUS AG | 848,707 | | 34,036,291 |
OM Asset Management Ltd. (a) | 2,168,988 | | 32,881,858 |
Raymond James Financial, Inc. | 707,900 | | 37,249,698 |
Waddell & Reed Financial, Inc. Class A | 1,300,941 | | 58,165,072 |
| | 162,332,919 |
Insurance - 3.0% |
Allied World Assurance Co. | 1,323,413 | | 51,176,381 |
Amerisafe, Inc. | 198,092 | | 8,062,344 |
Aspen Insurance Holdings Ltd. | 760,690 | | 32,953,091 |
Primerica, Inc. | 890,205 | | 44,189,776 |
StanCorp Financial Group, Inc. | 475,977 | | 29,529,613 |
| | 165,911,205 |
Real Estate Investment Trusts - 7.2% |
Cousins Properties, Inc. | 4,365,042 | | 48,190,064 |
Equity Lifestyle Properties, Inc. | 840,600 | | 46,006,038 |
First Industrial Realty Trust, Inc. | 1,305,792 | | 28,374,860 |
Home Properties, Inc. | 823,190 | | 58,034,895 |
Kite Realty Group Trust | 1,470,898 | | 44,950,643 |
Mid-America Apartment Communities, Inc. | 733,600 | | 58,189,152 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
National Retail Properties, Inc. (d) | 1,212,941 | | $ 51,962,392 |
Ramco-Gershenson Properties Trust (SBI) | 2,775,850 | | 54,323,385 |
| | 390,031,429 |
Thrifts & Mortgage Finance - 0.9% |
WSFS Financial Corp. (e) | 627,551 | | 46,350,917 |
TOTAL FINANCIALS | | 1,257,688,826 |
HEALTH CARE - 14.4% |
Biotechnology - 9.1% |
ACADIA Pharmaceuticals, Inc. (a)(d) | 676,927 | | 20,598,889 |
Achillion Pharmaceuticals, Inc. (a) | 908,200 | | 13,486,770 |
Agios Pharmaceuticals, Inc. (a)(d) | 230,563 | | 26,726,863 |
Auspex Pharmaceuticals, Inc. | 395,826 | | 24,323,508 |
BioCryst Pharmaceuticals, Inc. (a)(d) | 1,370,550 | | 13,952,199 |
BioMarin Pharmaceutical, Inc. (a) | 211,944 | | 20,592,479 |
Bluebird Bio, Inc. (a) | 176,812 | | 16,427,603 |
Celldex Therapeutics, Inc. (a)(d) | 827,041 | | 17,715,218 |
Chimerix, Inc. (a) | 647,218 | | 25,959,914 |
Dyax Corp. (a) | 1,761,615 | | 26,618,003 |
Genocea Biosciences, Inc. | 259,843 | | 2,229,453 |
Insmed, Inc. (a) | 1,073,835 | | 16,601,489 |
Intercept Pharmaceuticals, Inc. (a) | 100,798 | | 20,263,422 |
Isis Pharmaceuticals, Inc. (a) | 604,972 | | 41,446,632 |
La Jolla Pharmaceutical Co. (a) | 466,900 | | 10,197,096 |
Medivation, Inc. (a) | 175,314 | | 19,077,669 |
Mirati Therapeutics, Inc. (a)(e) | 911,469 | | 18,912,982 |
Neurocrine Biosciences, Inc. (a) | 881,682 | | 29,677,416 |
Novavax, Inc. (a) | 3,434,362 | | 26,822,367 |
Otonomy, Inc. | 553,600 | | 16,165,120 |
Puma Biotechnology, Inc. (a) | 178,300 | | 37,635,564 |
Synageva BioPharma Corp. (a)(d) | 213,897 | | 24,645,212 |
Ultragenyx Pharmaceutical, Inc. | 320,500 | | 18,621,050 |
XOMA Corp. (a)(d) | 2,571,922 | | 9,156,042 |
| | 497,852,960 |
Health Care Equipment & Supplies - 2.2% |
Abaxis, Inc. | 270,681 | | 16,641,468 |
Integra LifeSciences Holdings Corp. (a) | 235,800 | | 13,138,776 |
NxStage Medical, Inc. (a) | 789,300 | | 14,120,577 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - continued |
Sirona Dental Systems, Inc. (a) | 237,700 | | $ 21,445,294 |
Steris Corp. | 393,497 | | 25,663,874 |
Teleflex, Inc. | 118,000 | | 12,928,080 |
Vascular Solutions, Inc. (a) | 142,100 | | 3,873,646 |
West Pharmaceutical Services, Inc. | 205,080 | | 10,112,495 |
| | 117,924,210 |
Health Care Providers & Services - 1.5% |
Omnicare, Inc. | 293,800 | | 22,029,124 |
Surgical Care Affiliates, Inc. (a) | 853,836 | | 27,536,211 |
Team Health Holdings, Inc. (a) | 642,400 | | 33,212,080 |
| | 82,777,415 |
Life Sciences Tools & Services - 0.7% |
Bruker Corp. (a) | 1,114,866 | | 21,026,373 |
Fluidigm Corp. (a) | 521,627 | | 20,098,288 |
| | 41,124,661 |
Pharmaceuticals - 0.9% |
Prestige Brands Holdings, Inc. (a) | 535,854 | | 18,358,358 |
Theravance, Inc. (d) | 1,126,649 | | 12,697,334 |
ZS Pharma, Inc. (d) | 350,900 | | 15,765,937 |
| | 46,821,629 |
TOTAL HEALTH CARE | | 786,500,875 |
INDUSTRIALS - 12.0% |
Aerospace & Defense - 1.3% |
Moog, Inc. Class A (a) | 389,717 | | 27,397,105 |
Teledyne Technologies, Inc. (a) | 488,434 | | 46,420,767 |
| | 73,817,872 |
Air Freight & Logistics - 0.7% |
Hub Group, Inc. Class A (a) | 1,083,263 | | 36,180,984 |
Airlines - 1.0% |
JetBlue Airways Corp. (a)(d) | 3,170,800 | | 53,237,732 |
Construction & Engineering - 0.7% |
EMCOR Group, Inc. | 912,100 | | 36,812,356 |
Electrical Equipment - 0.4% |
OSRAM Licht AG | 539,077 | | 24,902,339 |
Industrial Conglomerates - 0.7% |
Carlisle Companies, Inc. | 426,200 | | 38,221,616 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Machinery - 3.4% |
Allison Transmission Holdings, Inc. | 1,156,771 | | $ 36,230,068 |
KUKA AG (d) | 429,800 | | 29,150,154 |
Navistar International Corp. (a)(d) | 882,853 | | 25,973,535 |
TriMas Corp. (a) | 1,132,644 | | 30,570,062 |
Valmont Industries, Inc. | 255,000 | | 30,630,600 |
Wabtec Corp. | 399,150 | | 33,309,068 |
| | 185,863,487 |
Professional Services - 1.9% |
Dun & Bradstreet Corp. | 276,706 | | 31,851,628 |
Huron Consulting Group, Inc. (a) | 479,231 | | 36,047,756 |
Stantec, Inc. | 1,391,800 | | 34,228,181 |
| | 102,127,565 |
Trading Companies & Distributors - 1.9% |
Applied Industrial Technologies, Inc. | 454,823 | | 18,388,494 |
Kaman Corp. | 689,380 | | 26,210,228 |
Titan Machinery, Inc. (a)(d)(e) | 1,585,619 | | 22,404,796 |
Watsco, Inc. | 333,500 | | 36,304,810 |
| | 103,308,328 |
TOTAL INDUSTRIALS | | 654,472,279 |
INFORMATION TECHNOLOGY - 18.3% |
Communications Equipment - 1.9% |
Aruba Networks, Inc. (a) | 1,610,226 | | 26,697,547 |
Finisar Corp. (a) | 1,492,100 | | 27,066,694 |
Ixia (a) | 2,735,869 | | 27,741,712 |
Radware Ltd. (a) | 1,088,587 | | 20,944,414 |
| | 102,450,367 |
Electronic Equipment & Components - 1.0% |
CDW Corp. | 778,200 | | 26,661,132 |
Trimble Navigation Ltd. (a) | 1,131,700 | | 26,979,728 |
| | 53,640,860 |
Internet Software & Services - 2.7% |
Bankrate, Inc. (a) | 2,561,201 | | 31,963,788 |
EarthLink Holdings Corp. | 1,636,395 | | 6,905,587 |
NIC, Inc. | 1,129,402 | | 18,544,781 |
Points International Ltd. (a)(e) | 1,021,621 | | 11,023,291 |
Rackspace Hosting, Inc. (a) | 417,417 | | 18,767,068 |
SciQuest, Inc. (a) | 999,600 | | 14,214,312 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Stamps.com, Inc. (a) | 371,604 | | $ 16,933,994 |
Web.com Group, Inc. (a) | 1,129,741 | | 17,070,387 |
Zillow, Inc. (a)(d) | 122,100 | | 11,833,932 |
| | 147,257,140 |
IT Services - 3.8% |
Datalink Corp. (a)(e) | 1,674,740 | | 19,025,046 |
ExlService Holdings, Inc. (a) | 1,345,699 | | 39,536,637 |
Global Payments, Inc. | 670,700 | | 58,558,817 |
Interxion Holding N.V. (a) | 629,353 | | 17,175,043 |
Maximus, Inc. | 871,000 | | 48,532,120 |
WEX, Inc. (a) | 231,300 | | 21,291,165 |
| | 204,118,828 |
Semiconductors & Semiconductor Equipment - 3.0% |
Intersil Corp. Class A | 1,443,400 | | 20,655,054 |
Lattice Semiconductor Corp. (a) | 2,543,400 | | 18,134,442 |
M/A-COM Technology Solutions Holdings, Inc. (a) | 328,200 | | 10,669,782 |
Monolithic Power Systems, Inc. | 634,770 | | 30,145,227 |
PMC-Sierra, Inc. (a) | 1,868,300 | | 16,515,772 |
Qorvo, Inc. (a) | 665,550 | | 49,164,179 |
Semtech Corp. (a) | 766,100 | | 19,504,906 |
| | 164,789,362 |
Software - 4.2% |
BroadSoft, Inc. (a) | 875,309 | | 23,537,059 |
CommVault Systems, Inc. (a) | 503,877 | | 21,958,960 |
Interactive Intelligence Group, Inc. (a) | 407,900 | | 16,544,424 |
Parametric Technology Corp. (a) | 842,226 | | 28,138,771 |
Pegasystems, Inc. | 660,400 | | 12,924,028 |
Rovi Corp. (a) | 845,559 | | 19,540,868 |
Solera Holdings, Inc. | 315,600 | | 16,284,960 |
SS&C Technologies Holdings, Inc. | 400,709 | | 22,171,229 |
Synchronoss Technologies, Inc. (a) | 1,245,314 | | 52,888,486 |
Tangoe, Inc. (a) | 1,411,000 | | 16,127,730 |
| | 230,116,515 |
Technology Hardware, Storage & Peripherals - 1.7% |
Cray, Inc. (a) | 376,400 | | 12,229,236 |
Electronics for Imaging, Inc. (a) | 409,825 | | 15,839,736 |
Nimble Storage, Inc. (a)(d) | 500,200 | | 11,219,486 |
Quantum Corp. (a) | 11,950,411 | | 18,881,649 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Technology Hardware, Storage & Peripherals - continued |
Silicon Graphics International Corp. (a)(e) | 2,187,649 | | $ 20,629,530 |
Super Micro Computer, Inc. (a) | 444,069 | | 16,239,603 |
| | 95,039,240 |
TOTAL INFORMATION TECHNOLOGY | | 997,412,312 |
MATERIALS - 4.8% |
Chemicals - 2.6% |
Axiall Corp. | 839,446 | | 37,145,486 |
PolyOne Corp. | 1,067,001 | | 37,974,566 |
Sensient Technologies Corp. | 276,165 | | 16,846,065 |
Tronox Ltd. Class A | 2,381,644 | | 50,347,954 |
| | 142,314,071 |
Containers & Packaging - 1.1% |
Avery Dennison Corp. | 359,100 | | 18,770,157 |
Berry Plastics Group, Inc. (a) | 1,268,660 | | 42,906,081 |
| | 61,676,238 |
Metals & Mining - 1.1% |
Compass Minerals International, Inc. | 396,600 | | 34,662,840 |
Steel Dynamics, Inc. | 658,200 | | 11,215,728 |
Worthington Industries, Inc. | 370,878 | | 11,100,379 |
| | 56,978,947 |
TOTAL MATERIALS | | 260,969,256 |
TELECOMMUNICATION SERVICES - 0.7% |
Diversified Telecommunication Services - 0.6% |
8x8, Inc. (a) | 562,654 | | 4,338,062 |
Cogent Communications Group, Inc. | 363,200 | | 13,460,192 |
FairPoint Communications, Inc. (a) | 145,900 | | 2,182,664 |
Lumos Networks Corp. | 141,000 | | 2,260,230 |
Towerstream Corp. (a)(d)(e) | 5,386,878 | | 11,958,869 |
| | 34,200,017 |
Wireless Telecommunication Services - 0.1% |
RingCentral, Inc. (a) | 167,100 | | 2,255,850 |
TOTAL TELECOMMUNICATION SERVICES | | 36,455,867 |
Common Stocks - continued |
| Shares | | Value |
UTILITIES - 3.2% |
Electric Utilities - 1.8% |
El Paso Electric Co. | 522,980 | | $ 20,950,579 |
Great Plains Energy, Inc. | 647,480 | | 19,145,984 |
IDACORP, Inc. | 381,700 | | 25,921,247 |
Portland General Electric Co. | 740,432 | | 29,395,150 |
| | 95,412,960 |
Gas Utilities - 1.1% |
Atmos Energy Corp. | 438,686 | | 24,965,620 |
Laclede Group, Inc. | 517,300 | | 27,810,048 |
National Fuel Gas Co. | 105,600 | | 6,698,208 |
| | 59,473,876 |
Independent Power Producers & Renewable Electricity Producers - 0.3% |
Dynegy, Inc. (a) | 631,120 | | 17,242,198 |
TOTAL UTILITIES | | 172,129,034 |
TOTAL COMMON STOCKS (Cost $4,596,024,574) |
5,234,111,887
|
U.S. Treasury Obligations - 0.1% |
| Principal Amount | | |
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.03% 3/5/15 to 3/26/15 (f)
(Cost $4,529,869) | | $ 4,530,000 | |
4,529,942
|
Money Market Funds - 6.2% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b) | 191,390,896 | | $ 191,390,896 |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) | 149,693,405 | | 149,693,405 |
TOTAL MONEY MARKET FUNDS (Cost $341,084,301) |
341,084,301
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $4,941,638,744) | | 5,579,726,130 |
NET OTHER ASSETS (LIABILITIES) - (2.3)% | | (126,698,913) |
NET ASSETS - 100% | $ 5,453,027,217 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount
at Value | | Unrealized Appreciation/
(Depreciation) |
Purchased |
Equity Index Contracts |
302 ICE Russell 2000 Index Contracts (United States) | March 2015 | | $ 35,068,240 | | $ (102,494) |
|
The face value of futures purchased as a percentage of net assets is 0.6% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 period end, the value of securities pledged amounted to $1,630,979. |
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 | $ 159,056 |
Fidelity Securities Lending Cash Central Fund | 1,054,318 |
Total | $ 1,213,374 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Banner Bank | $ 51,542,249 | $ - | $ - | $ 461,113 | $ 51,721,571 |
Datalink Corp. | 12,863,242 | 7,529,400 | 2,191,794 | - | 19,025,046 |
Mirati Therapeutics, Inc. | 11,960,748 | 4,044,753 | - | - | 18,912,982 |
Neonode, Inc. | 9,543,365 | - | 6,658,007 | - | - |
Points International Ltd. | 25,447,665 | 1,527,795 | 5,372,677 | - | 11,023,291 |
ServiceSource International, Inc. | 19,646,501 | - | 17,738,035 | - | - |
Silicon Graphics International Corp. | 20,729,984 | 76,909 | - | - | 20,629,530 |
Titan Machinery, Inc. | 22,881,167 | 335,898 | - | - | 22,404,796 |
Towerstream Corp. | 8,888,349 | - | - | - | 11,958,869 |
WSFS Financial Corp. | 31,559,736 | 13,468,274 | - | 157,920 | 46,350,917 |
Total | $ 215,063,006 | $ 26,983,029 | $ 31,960,513 | $ 619,033 | $ 202,027,002 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 727,919,871 | $ 727,919,871 | $ - | $ - |
Consumer Staples | 153,095,115 | 153,095,115 | - | - |
Energy | 187,468,452 | 187,468,452 | - | - |
Financials | 1,257,688,826 | 1,257,688,826 | - | - |
Health Care | 786,500,875 | 786,500,875 | - | - |
Industrials | 654,472,279 | 654,472,279 | - | - |
Information Technology | 997,412,312 | 997,412,312 | - | - |
Materials | 260,969,256 | 260,969,256 | - | - |
Telecommunication Services | 36,455,867 | 36,455,867 | - | - |
Utilities | 172,129,034 | 172,129,034 | - | - |
U.S. Government and Government Agency Obligations | 4,529,942 | - | 4,529,942 | - |
Money Market Funds | 341,084,301 | 341,084,301 | - | - |
Total Investments in Securities: | $ 5,579,726,130 | $ 5,575,196,188 | $ 4,529,942 | $ - |
Derivative Instruments: | | | | |
Liabilities | | | | |
Futures Contracts | $ (102,494) | $ (102,494) | $ - | $ - |
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, 2015. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure /
Derivative Type | Value |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ - | $ (102,494) |
Total Value of Derivatives | $ - | $ (102,494) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $143,174,087) - See accompanying schedule: Unaffiliated issuers (cost $4,385,201,729) | $ 5,036,614,827 | |
Fidelity Central Funds (cost $341,084,301) | 341,084,301 | |
Other affiliated issuers (cost $215,352,714) | 202,027,002 | |
Total Investments (cost $4,941,638,744) | | $ 5,579,726,130 |
Cash | | 1,565,397 |
Foreign currency held at value (cost $50,085) | | 49,768 |
Receivable for investments sold | | 53,553,555 |
Receivable for fund shares sold | | 3,423,221 |
Dividends receivable | | 1,920,293 |
Distributions receivable from Fidelity Central Funds | | 120,484 |
Prepaid expenses | | 12,580 |
Other receivables | | 144,565 |
Total assets | | 5,640,515,993 |
| | |
Liabilities | | |
Payable for investments purchased | $ 31,257,262 | |
Payable for fund shares redeemed | 1,683,979 | |
Accrued management fee | 2,599,274 | |
Payable for daily variation margin for derivative instruments | 863,720 | |
Other affiliated payables | 462,493 | |
Other payables and accrued expenses | 928,643 | |
Collateral on securities loaned, at value | 149,693,405 | |
Total liabilities | | 187,488,776 |
| | |
Net Assets | | $ 5,453,027,217 |
Net Assets consist of: | | |
Paid in capital | | $ 4,828,541,059 |
Distributions in excess of net investment income | | (91,106) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (13,365,286) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 637,942,550 |
Net Assets | | $ 5,453,027,217 |
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, 2015 (Unaudited) |
| | |
Series Small Cap Opportunities:
Net Asset Value, offering price and redemption price per share ($2,589,270,016 ÷ 203,142,326 shares) | | $ 12.75 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($2,863,757,201 ÷ 223,437,997 shares) | | $ 12.82 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $619,033 earned from other affiliated issuers) | | $ 30,791,989 |
Interest | | 728 |
Income from Fidelity Central Funds | | 1,213,374 |
Total income | | 32,006,091 |
| | |
Expenses | | |
Management fee
Basic fee | $ 19,093,019 | |
Performance adjustment | (3,401,538) | |
Transfer agent fees | 2,198,871 | |
Accounting and security lending fees | 569,098 | |
Custodian fees and expenses | 68,258 | |
Independent trustees' compensation | 11,361 | |
Audit | 33,911 | |
Legal | 9,750 | |
Miscellaneous | 12,004 | |
Total expenses before reductions | 18,594,734 | |
Expense reductions | (222,470) | 18,372,264 |
Net investment income (loss) | | 13,633,827 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 48,466,702 | |
Other affiliated issuers | (37,320,819) | |
Foreign currency transactions | 132,747 | |
Futures contracts | 3,859,361 | |
Total net realized gain (loss) | | 15,137,991 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 175,323,936 | |
Assets and liabilities in foreign currencies | (30,725) | |
Futures contracts | 836,893 | |
Total change in net unrealized appreciation (depreciation) | | 176,130,104 |
Net gain (loss) | | 191,268,095 |
Net increase (decrease) in net assets resulting from operations | | $ 204,901,922 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 13,633,827 | $ 12,448,754 |
Net realized gain (loss) | 15,137,991 | 388,400,199 |
Change in net unrealized appreciation (depreciation) | 176,130,104 | (189,066,056) |
Net increase (decrease) in net assets resulting
from operations | 204,901,922 | 211,782,897 |
Distributions to shareholders from net investment income | (23,180,446) | (2,397,517) |
Distributions to shareholders from net realized gain | (274,549,615) | (355,403,438) |
Total distributions | (297,730,061) | (357,800,955) |
Share transactions - net increase (decrease) | 519,670,938 | 2,217,612,913 |
Total increase (decrease) in net assets | 426,842,799 | 2,071,594,855 |
| | |
Net Assets | | |
Beginning of period | 5,026,184,418 | 2,954,589,563 |
End of period (including distributions in excess of net investment income of $91,106 and undistributed net investment income of $9,455,513, respectively) | $ 5,453,027,217 | $ 5,026,184,418 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Small Cap Opportunities
| Six months ended January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.96 | $ 13.55 | $ 10.93 | $ 11.22 | $ 8.76 | $ 6.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .02 | .04 | -J | -G,J | (.01) |
Net realized and unrealized gain (loss) | .47 | .77 | 3.20 | (.17) | 2.50 | 1.83 |
Total from investment operations | .50 | .79 | 3.24 | (.17) | 2.50 | 1.82 |
Distributions from net investment income | (.04) | -J | (.05) | -J | -H | - |
Distributions from net realized gain | (.66) | (1.38) | (.57) | (.11) | (.04)H | - |
Total distributions | (.71)M | (1.38) | (.62) | (.12)L | (.04) | - |
Net asset value, end of period | $ 12.75 | $ 12.96 | $ 13.55 | $ 10.93 | $ 11.22 | $ 8.76 |
Total ReturnB, C | 3.86% | 6.29% | 30.91% | (1.41)% | 28.50% | 26.22% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | .77%A | .82% | .98% | 1.12% | 1.10% | 1.02% |
Expenses net of fee waivers, if any | .77%A | .82% | .98% | 1.12% | 1.10% | 1.02% |
Expenses net of all reductions | .76%A | .82% | .96% | 1.11% | 1.09% | 1.01% |
Net investment income (loss) | .41%A | .19% | .30% | .04% | (.04)%G | (.07)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,589,270 | $ 2,425,973 | $ 1,602,664 | $ 1,329,447 | $ 1,415,570 | $ 1,363,646 |
Portfolio turnover rateF | 77% A | 90%K | 77% | 66% | 73% | 104% |
A Annualized B Total 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 dividends which amounted to $.02 per share. Excluding this non-recurring dividends, the ratio of net investment income (loss) to average net assets would have been (.27) %. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KPortfolio turnover rate excludes securities received or delivered in-kind. LTotal 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. MTotal distributions of $.71 per share is comprised of distributions from net investment income of $.042 and distributions from net realized gain of $.664 per share.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class F
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.04 | $ 13.62 | $ 10.99 | $ 11.27 | $ 8.79 | $ 6.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .05 | .06 | .03 | .02G | .01 |
Net realized and unrealized gain (loss) | .47 | .77 | 3.21 | (.18) | 2.50 | 1.84 |
Total from investment operations | .51 | .82 | 3.27 | (.15) | 2.52 | 1.85 |
Distributions from net investment income | (.07) | (.01) | (.07) | (.01) | - H | - |
Distributions from net realized gain | (.66) | (1.39) | (.57) | (.11) | (.04)H | - |
Total distributions | (.73) | (1.40) | (.64) | (.13)K | (.04) | - |
Net asset value, end of period | $ 12.82 | $ 13.04 | $ 13.62 | $ 10.99 | $ 11.27 | $ 8.79 |
Total ReturnB, C | 3.95% | 6.52% | 31.09% | (1.23)% | 28.74% | 26.66% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | .60%A | .65% | .79% | .91% | .89% | .78% |
Expenses net of fee waivers, if any | .60%A | .65% | .79% | .91% | .89% | .78% |
Expenses net of all reductions | .59%A | .65% | .77% | .91% | .88% | .77% |
Net investment income (loss) | .58%A | .36% | .49% | .24% | .17%G | .17% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,863,757 | $ 2,600,212 | $ 1,351,926 | $ 923,975 | $ 478,821 | $ 174,783 |
Portfolio turnover rateF | 77% A | 90%J | 77% | 66% | 73% | 104% |
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) %. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JPortfolio turnover rate excludes securities received or delivered in-kind. KTotal 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.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended January 31, 2015 (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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
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 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by 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, 2015, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, 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 | $ 916,682,322 |
Gross unrealized depreciation | (283,025,441) |
Net unrealized appreciation (depreciation) on securities | $ 633,656,881 |
| |
Tax cost | $ 4,946,069,249 |
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related 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 may be 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 daily 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 for derivative instruments 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 volume of activity during 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 $3,859,361 and a change in net unrealized appreciation (depreciation) of $836,893 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 $2,135,385,597 and $1,986,231,725, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Small Cap Opportunities. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Series Small Cap Opportunities | $ 2,198,871 | .17 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $85,318 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $3,690 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $7,245,203. 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 $1,054,318, including $11,700 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $222,364 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Series Small Cap Opportunities expenses during the period in the amount of $106.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
From net investment income | | |
Series Small Cap Opportunities | $ 8,552,160 | $ 562,708 |
Class F | 14,628,286 | 1,834,809 |
Total | $ 23,180,446 | $ 2,397,517 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders - continued
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
From net realized gain | | |
Series Small Cap Opportunities | $ 131,736,083 | $ 185,928,427 |
Class F | 142,813,532 | 169,475,011 |
Total | $ 274,549,615 | $ 355,403,438 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2015 | Year ended
July 31,
2014 | Six months ended
January 31,
2015 | Year ended
July 31,
2014 |
Series Small Cap Opportunities | | | | |
Shares sold | 21,099,763 | 88,985,520A | $ 272,752,606 | $ 1,176,045,095A |
Reinvestment of distributions | 11,011,697 | 14,725,510 | 140,288,243 | 186,491,135 |
Shares redeemed | (16,114,631) | (34,876,222) | (205,981,369) | (465,134,933) |
Net increase (decrease) | 15,996,829 | 68,834,808 | $ 207,059,480 | $ 897,401,297 |
Class F | | | | |
Shares sold | 29,606,567 | 112,573,524A | $ 384,583,667 | $ 1,499,078,862A |
Reinvestment of distributions | 12,293,383 | 13,452,037 | 157,441,818 | 171,309,820 |
Shares redeemed | (17,805,143) | (25,924,826) | (229,414,027) | (350,177,066) |
Net increase (decrease) | 24,094,807 | 100,100,735 | $ 312,611,458 | $ 1,320,211,616 |
A Amount includes in-kind exchanges.
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 the investment adviser or its affiliates 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) Limited
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., Boston, MA 02210
www.fidelity.com
SMO-SANN-0315
1.839810.107
Fidelity®
Series Blue Chip Growth
Fund
Fidelity Series Blue Chip Growth
Fund
Class F
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past six months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Blue Chip Growth 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. © 2015 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, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense RatioB | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Series Blue Chip Growth | .76% | | | |
Actual | | $ 1,000.00 | $ 1,084.50 | $ 3.99 |
HypotheticalA | | $ 1,000.00 | $ 1,021.37 | $ 3.87 |
Class F | .59% | | | |
Actual | | $ 1,000.00 | $ 1,085.20 | $ 3.10 |
HypotheticalA | | $ 1,000.00 | $ 1,022.23 | $ 3.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 6.6 | 6.6 |
Amazon.com, Inc. | 3.0 | 2.2 |
Google, Inc. Class A | 2.7 | 2.9 |
Gilead Sciences, Inc. | 2.6 | 2.7 |
Facebook, Inc. Class A | 2.5 | 2.4 |
Google, Inc. Class C | 2.2 | 2.6 |
Home Depot, Inc. | 1.9 | 1.6 |
Biogen Idec, Inc. | 1.8 | 1.5 |
Visa, Inc. Class A | 1.7 | 1.4 |
Actavis PLC | 1.6 | 1.1 |
| 26.6 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 33.4 | 33.3 |
Consumer Discretionary | 23.4 | 20.8 |
Health Care | 16.8 | 15.4 |
Consumer Staples | 9.7 | 9.0 |
Industrials | 8.4 | 9.2 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015 * | As of July 31, 2014 ** |
| Stocks 98.5% | | | Stocks 98.9% | |
| Convertible
Securities 1.5% | | | Convertible
Securities 0.5% | |
 | Short-Term
Investments and
Net Other Assets (Liabilities) 0.0%† | | | Short-Term
Investments and
Net Other Assets (Liabilities) 0.6% | |
* Foreign investments | 11.6% | | ** Foreign investments | 10.1% | |
† Amount represents less than 0.1% |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 23.3% |
Auto Components - 0.2% |
Magna International, Inc. Class A (sub. vtg.) | 93,175 | | $ 8,952,338 |
The Goodyear Tire & Rubber Co. | 307,700 | | 7,458,648 |
| | 16,410,986 |
Automobiles - 1.4% |
Harley-Davidson, Inc. | 300,400 | | 18,534,680 |
Suzuki Motor Corp. | 51,500 | | 1,628,439 |
Tata Motors Ltd. sponsored ADR | 119,800 | | 5,908,536 |
Tesla Motors, Inc. (a)(d) | 407,837 | | 83,035,613 |
| | 109,107,268 |
Diversified Consumer Services - 0.2% |
H&R Block, Inc. | 508,200 | | 17,421,096 |
Houghton Mifflin Harcourt Co. (a) | 84,700 | | 1,666,896 |
| | 19,087,992 |
Hotels, Restaurants & Leisure - 4.8% |
ARAMARK Holdings Corp. | 84,000 | | 2,630,880 |
Boyd Gaming Corp. (a) | 122,500 | | 1,599,850 |
Buffalo Wild Wings, Inc. (a) | 145,114 | | 25,876,728 |
Chipotle Mexican Grill, Inc. (a) | 102,600 | | 72,829,584 |
DineEquity, Inc. | 7,600 | | 811,300 |
Domino's Pizza, Inc. | 152,100 | | 15,065,505 |
Fiesta Restaurant Group, Inc. (a) | 114,500 | | 6,763,515 |
Habit Restaurants, Inc. Class A (d) | 179,800 | | 5,933,400 |
Hilton Worldwide Holdings, Inc. (a) | 412,000 | | 10,699,640 |
Homeinns Hotel Group ADR (a) | 93,978 | | 2,340,992 |
Hyatt Hotels Corp. Class A (a) | 386,100 | | 21,721,986 |
Jack in the Box, Inc. | 9,500 | | 805,505 |
Las Vegas Sands Corp. | 734,800 | | 39,951,076 |
McDonald's Corp. | 179,100 | | 16,556,004 |
Panera Bread Co. Class A (a) | 146,244 | | 25,133,494 |
Papa John's International, Inc. | 161,300 | | 10,236,098 |
Penn National Gaming, Inc. (a) | 159,800 | | 2,392,206 |
Sonic Corp. | 148,200 | | 4,486,014 |
Starbucks Corp. | 1,183,810 | | 103,618,889 |
Whitbread PLC | 136,702 | | 10,305,323 |
Zoe's Kitchen, Inc. (d) | 157,100 | | 4,860,674 |
| | 384,618,663 |
Household Durables - 1.2% |
D.R. Horton, Inc. | 541,100 | | 13,267,772 |
GoPro, Inc. Class A (d) | 204,700 | | 10,183,825 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Harman International Industries, Inc. | 29,100 | | $ 3,772,233 |
Jarden Corp. (a) | 176,000 | | 8,451,520 |
KB Home | 205,300 | | 2,558,038 |
Sony Corp. | 191,000 | | 4,492,528 |
Sony Corp. sponsored ADR | 75,800 | | 1,765,382 |
TRI Pointe Homes, Inc. (a) | 506,900 | | 7,263,877 |
Whirlpool Corp. | 226,400 | | 45,071,712 |
| | 96,826,887 |
Internet & Catalog Retail - 4.5% |
Amazon.com, Inc. (a) | 676,980 | | 240,009,719 |
Ctrip.com International Ltd. sponsored ADR (a) | 147,443 | | 7,011,652 |
Expedia, Inc. | 125,754 | | 10,806,041 |
Groupon, Inc. Class A (a) | 2,912,237 | | 20,851,617 |
MakeMyTrip Ltd. (a) | 148,500 | | 3,690,225 |
Netflix, Inc. (a) | 24,178 | | 10,681,840 |
Priceline Group, Inc. (a) | 52,000 | | 52,492,960 |
The Honest Co., Inc. (f) | 71,609 | | 1,940,604 |
Travelport Worldwide Ltd. | 174,300 | | 2,717,337 |
Vipshop Holdings Ltd. ADR (a) | 486,450 | | 10,891,616 |
Wayfair LLC Class A | 14,800 | | 289,488 |
zulily, Inc. Class A (a) | 74,000 | | 1,369,000 |
| | 362,752,099 |
Media - 2.6% |
Comcast Corp. Class A | 1,374,400 | | 73,042,488 |
Lions Gate Entertainment Corp. | 156,800 | | 4,504,864 |
Naspers Ltd. Class N | 71,100 | | 10,257,021 |
New Media Investment Group, Inc. | 38,400 | | 898,176 |
The Walt Disney Co. | 1,374,217 | | 124,998,778 |
| | 213,701,327 |
Multiline Retail - 1.2% |
B&M European Value Retail S.A. | 177,188 | | 842,675 |
Macy's, Inc. | 587,300 | | 37,516,724 |
Target Corp. | 808,541 | | 59,516,703 |
Tuesday Morning Corp. (a)(d) | 136,200 | | 2,410,740 |
| | 100,286,842 |
Specialty Retail - 5.1% |
Advance Auto Parts, Inc. | 5,300 | | 842,700 |
AutoZone, Inc. (a) | 1,400 | | 835,744 |
CST Brands, Inc. | 19,300 | | 831,830 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
GNC Holdings, Inc. | 270,600 | | $ 11,998,404 |
Home Depot, Inc. | 1,485,100 | | 155,074,142 |
L Brands, Inc. | 457,314 | | 38,702,484 |
Lumber Liquidators Holdings, Inc. (a) | 15,900 | | 1,004,085 |
Michaels Companies, Inc. | 179,600 | | 4,633,680 |
Murphy U.S.A., Inc. (a) | 314,800 | | 21,976,188 |
Restoration Hardware Holdings, Inc. (a)(d) | 811,818 | | 71,058,430 |
Ross Stores, Inc. | 384,638 | | 35,275,151 |
TJX Companies, Inc. | 871,600 | | 57,473,304 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 72,100 | | 9,512,874 |
Williams-Sonoma, Inc. | 72,500 | | 5,673,125 |
| | 414,892,141 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 138,400 | | 9,141,320 |
G-III Apparel Group Ltd. (a) | 30,000 | | 2,916,000 |
Hanesbrands, Inc. | 122,100 | | 13,599,498 |
Kate Spade & Co. (a) | 715,356 | | 22,555,175 |
lululemon athletica, Inc. (a) | 360,900 | | 23,906,016 |
Michael Kors Holdings Ltd. (a) | 450,600 | | 31,897,974 |
NIKE, Inc. Class B | 344,200 | | 31,752,450 |
Ralph Lauren Corp. | 129,800 | | 21,662,322 |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 238,900 | | 14,417,615 |
| | 171,848,370 |
TOTAL CONSUMER DISCRETIONARY | | 1,889,532,575 |
CONSUMER STAPLES - 9.7% |
Beverages - 3.0% |
Anheuser-Busch InBev SA NV ADR (d) | 173,300 | | 21,154,731 |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 89,200 | | 9,852,140 |
Kweichow Moutai Co. Ltd. | 28,500 | | 802,285 |
Monster Beverage Corp. (a) | 508,681 | | 59,490,243 |
PepsiCo, Inc. | 881,686 | | 82,684,513 |
The Coca-Cola Co. | 1,670,381 | | 68,769,586 |
| | 242,753,498 |
Food & Staples Retailing - 3.0% |
Costco Wholesale Corp. | 378,300 | | 54,093,117 |
CVS Health Corp. | 815,600 | | 80,059,296 |
Kroger Co. | 869,159 | | 60,015,429 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - continued |
Food & Staples Retailing - continued |
Rite Aid Corp. (a) | 427,600 | | $ 2,984,648 |
Sprouts Farmers Market LLC (a)(d) | 713,023 | | 25,961,167 |
Tesco PLC | 2,630,700 | | 8,896,139 |
Wal-Mart Stores, Inc. | 18,700 | | 1,589,126 |
Whole Foods Market, Inc. | 252,160 | | 13,136,275 |
| | 246,735,197 |
Food Products - 2.3% |
Associated British Foods PLC | 17,900 | | 836,599 |
Bunge Ltd. | 167,400 | | 14,987,322 |
China Modern Dairy Holdings Ltd. (a) | 3,575,000 | | 1,154,181 |
Dean Foods Co. | 365,500 | | 6,622,860 |
Keurig Green Mountain, Inc. | 893,700 | | 109,531,872 |
Mead Johnson Nutrition Co. Class A | 380,500 | | 37,475,445 |
The Hain Celestial Group, Inc. (a) | 102,900 | | 5,430,033 |
WhiteWave Foods Co. (a) | 191,129 | | 6,301,523 |
| | 182,339,835 |
Household Products - 0.8% |
Energizer Holdings, Inc. | 96,000 | | 12,288,960 |
Procter & Gamble Co. | 584,200 | | 49,242,218 |
| | 61,531,178 |
Personal Products - 0.4% |
AMOREPACIFIC Group, Inc. | 2,381 | | 2,692,309 |
Herbalife Ltd. | 989,238 | | 30,151,974 |
| | 32,844,283 |
Tobacco - 0.2% |
Lorillard, Inc. | 268,852 | | 17,639,380 |
TOTAL CONSUMER STAPLES | | 783,843,371 |
ENERGY - 1.8% |
Oil, Gas & Consumable Fuels - 1.8% |
Anadarko Petroleum Corp. | 259,778 | | 21,236,852 |
Cimarex Energy Co. | 190,630 | | 19,673,016 |
Continental Resources, Inc. (a)(d) | 369,164 | | 16,760,046 |
Diamondback Energy, Inc. (a) | 25,700 | | 1,773,043 |
EOG Resources, Inc. | 408,126 | | 36,335,458 |
Hess Corp. | 71,238 | | 4,807,853 |
Pioneer Natural Resources Co. | 199,300 | | 30,000,629 |
Rice Energy, Inc. | 361,500 | | 6,174,420 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
SM Energy Co. | 141,900 | | $ 5,366,658 |
Whiting Petroleum Corp. (a) | 116,700 | | 3,503,334 |
| | 145,631,309 |
FINANCIALS - 4.0% |
Banks - 2.1% |
Bank of America Corp. | 2,809,800 | | 42,568,470 |
Citigroup, Inc. | 948,289 | | 44,522,169 |
HDFC Bank Ltd. sponsored ADR | 226,200 | | 12,888,876 |
ICICI Bank Ltd. sponsored ADR | 1,362,900 | | 16,368,429 |
JPMorgan Chase & Co. | 1,064,672 | | 57,896,863 |
| | 174,244,807 |
Capital Markets - 1.2% |
Ameriprise Financial, Inc. | 82,762 | | 10,340,284 |
BlackRock, Inc. Class A | 80,200 | | 27,308,902 |
Carlyle Group LP | 104,400 | | 2,745,720 |
Charles Schwab Corp. | 313,000 | | 8,131,740 |
Fairfax India Holdings Corp. (a) | 427,900 | | 4,193,420 |
Invesco Ltd. | 273,492 | | 10,045,361 |
Morgan Stanley | 638,200 | | 21,577,542 |
The Blackstone Group LP | 356,200 | | 13,300,508 |
| | 97,643,477 |
Consumer Finance - 0.3% |
American Express Co. | 254,645 | | 20,547,305 |
Synchrony Financial | 59,000 | | 1,820,740 |
| | 22,368,045 |
Diversified Financial Services - 0.1% |
McGraw Hill Financial, Inc. | 37,200 | | 3,327,168 |
Moody's Corp. | 43,300 | | 3,954,589 |
| | 7,281,757 |
Real Estate Investment Trusts - 0.2% |
Duke Realty LP | 257,200 | | 5,614,676 |
Extra Space Storage, Inc. | 85,100 | | 5,616,600 |
Gaming & Leisure Properties | 104,900 | | 3,422,887 |
| | 14,654,163 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Management & Development - 0.1% |
CBRE Group, Inc. (a) | 25,700 | | $ 831,138 |
Realogy Holdings Corp. (a) | 128,395 | | 5,970,368 |
| | 6,801,506 |
TOTAL FINANCIALS | | 322,993,755 |
HEALTH CARE - 16.8% |
Biotechnology - 9.8% |
Acceleron Pharma, Inc. (a) | 20,600 | | 813,082 |
Agios Pharmaceuticals, Inc. (a) | 97,900 | | 11,348,568 |
Alexion Pharmaceuticals, Inc. (a) | 269,604 | | 49,402,237 |
Alkermes PLC (a) | 361,500 | | 26,118,375 |
Alnylam Pharmaceuticals, Inc. (a) | 339,100 | | 31,817,753 |
Amgen, Inc. | 268,398 | | 40,866,279 |
Ascendis Pharma A/S | 92,100 | | 1,826,343 |
Avalanche Biotechnologies, Inc. (a) | 20,300 | | 805,504 |
BioCryst Pharmaceuticals, Inc. (a) | 378,573 | | 3,853,873 |
Biogen Idec, Inc. (a) | 375,400 | | 146,090,664 |
BioMarin Pharmaceutical, Inc. (a) | 140,400 | | 13,641,264 |
Bluebird Bio, Inc. (a) | 80,000 | | 7,432,800 |
Calithera Biosciences, Inc. | 121,000 | | 2,406,690 |
Celgene Corp. (a) | 527,300 | | 62,833,068 |
Dicerna Pharmaceuticals, Inc. | 78,600 | | 1,675,752 |
FibroGen, Inc. | 31,842 | | 940,294 |
Gilead Sciences, Inc. (a) | 2,017,335 | | 211,477,228 |
Intercept Pharmaceuticals, Inc. (a) | 42,400 | | 8,523,672 |
Intrexon Corp. (a)(d) | 192,200 | | 5,518,062 |
Ironwood Pharmaceuticals, Inc. Class A (a) | 442,916 | | 6,900,631 |
Isis Pharmaceuticals, Inc. (a) | 31,100 | | 2,130,661 |
Karyopharm Therapeutics, Inc. (a) | 22,300 | | 591,619 |
Keryx Biopharmaceuticals, Inc. (a)(d) | 367,460 | | 4,468,314 |
Kite Pharma, Inc. | 44,200 | | 2,968,030 |
KYTHERA Biopharmaceuticals, Inc. (a) | 129,033 | | 4,800,028 |
Medivation, Inc. (a) | 15,800 | | 1,719,356 |
Merrimack Pharmaceuticals, Inc. (a) | 813,200 | | 7,668,476 |
Neurocrine Biosciences, Inc. (a) | 215,800 | | 7,263,828 |
Pharmacyclics, Inc. (a) | 107,300 | | 18,106,875 |
Puma Biotechnology, Inc. (a) | 38,100 | | 8,042,148 |
Receptos, Inc. (a) | 14,400 | | 1,586,448 |
Regeneron Pharmaceuticals, Inc. (a) | 156,180 | | 65,073,959 |
Seattle Genetics, Inc. (a) | 81,000 | | 2,523,960 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Biotechnology - continued |
Spark Therapeutics, Inc. | 7,700 | | $ 385,000 |
Synageva BioPharma Corp. (a) | 76,700 | | 8,837,374 |
Ultragenyx Pharmaceutical, Inc. | 12,600 | | 732,060 |
uniQure B.V. | 146,459 | | 3,075,639 |
Versartis, Inc. (a) | 77,300 | | 1,370,529 |
Vertex Pharmaceuticals, Inc. (a) | 183,100 | | 20,166,634 |
ZIOPHARM Oncology, Inc. (a)(d) | 282,300 | | 2,526,585 |
| | 798,329,662 |
Health Care Equipment & Supplies - 1.0% |
Abiomed, Inc. (a) | 21,200 | | 1,096,888 |
Boston Scientific Corp. (a) | 1,318,900 | | 19,532,909 |
Hologic, Inc. (a) | 425,600 | | 12,923,344 |
Intuitive Surgical, Inc. (a) | 52,400 | | 25,910,752 |
Medtronic PLC | 121,625 | | 8,684,025 |
Novadaq Technologies, Inc. (a) | 236,499 | | 3,365,381 |
Zeltiq Aesthetics, Inc. (a) | 228,800 | | 7,369,648 |
| | 78,882,947 |
Health Care Providers & Services - 0.7% |
AmerisourceBergen Corp. | 66,500 | | 6,320,825 |
Cardinal Health, Inc. | 138,100 | | 11,488,539 |
HCA Holdings, Inc. (a) | 382,350 | | 27,070,380 |
McKesson Corp. | 58,300 | | 12,397,495 |
| | 57,277,239 |
Health Care Technology - 0.4% |
athenahealth, Inc. (a)(d) | 36,700 | | 5,127,357 |
Castlight Health, Inc. Class B (a)(d) | 197,154 | | 1,750,728 |
Cerner Corp. (a) | 318,100 | | 21,105,935 |
Medidata Solutions, Inc. (a) | 17,900 | | 769,521 |
Veeva Systems, Inc. Class A (a) | 83,900 | | 2,412,964 |
| | 31,166,505 |
Life Sciences Tools & Services - 0.3% |
Genfit (a)(d) | 80,689 | | 5,242,768 |
Illumina, Inc. (a) | 84,338 | | 16,461,934 |
Lonza Group AG | 18,053 | | 2,147,013 |
| | 23,851,715 |
Pharmaceuticals - 4.6% |
AbbVie, Inc. | 753,365 | | 45,465,578 |
Achaogen, Inc. (a) | 161,500 | | 1,889,550 |
Actavis PLC (a) | 476,872 | | 127,105,463 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Akorn, Inc. (a) | 38,600 | | $ 1,643,588 |
Bristol-Myers Squibb Co. | 723,800 | | 43,623,426 |
Dermira, Inc. | 144,300 | | 2,431,455 |
GW Pharmaceuticals PLC ADR (a)(d) | 118,669 | | 8,659,277 |
Hospira, Inc. (a) | 25,000 | | 1,585,750 |
Jazz Pharmaceuticals PLC (a) | 65,900 | | 11,159,506 |
Johnson & Johnson | 71,300 | | 7,139,982 |
Mallinckrodt PLC (a) | 83,100 | | 8,807,769 |
Pacira Pharmaceuticals, Inc. (a) | 53,186 | | 5,709,517 |
Perrigo Co. PLC | 59,700 | | 9,058,878 |
Shire PLC sponsored ADR | 124,000 | | 27,188,240 |
Tetraphase Pharmaceuticals, Inc. (a) | 24,500 | | 890,820 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 476,100 | | 27,071,046 |
Valeant Pharmaceuticals International (Canada) (a) | 290,900 | | 46,511,492 |
| | 375,941,337 |
TOTAL HEALTH CARE | | 1,365,449,405 |
INDUSTRIALS - 8.3% |
Aerospace & Defense - 1.3% |
Honeywell International, Inc. | 447,500 | | 43,747,600 |
L-3 Communications Holdings, Inc. | 42,800 | | 5,269,536 |
The Boeing Co. | 409,400 | | 59,514,478 |
| | 108,531,614 |
Air Freight & Logistics - 0.6% |
FedEx Corp. | 143,312 | | 24,235,492 |
United Parcel Service, Inc. Class B | 124,800 | | 12,335,232 |
XPO Logistics, Inc. (a)(d) | 231,100 | | 8,502,169 |
| | 45,072,893 |
Airlines - 2.7% |
American Airlines Group, Inc. | 2,090,734 | | 102,613,225 |
Delta Air Lines, Inc. | 818,300 | | 38,713,773 |
Southwest Airlines Co. | 284,300 | | 12,844,674 |
Spirit Airlines, Inc. (a) | 405,300 | | 30,048,942 |
United Continental Holdings, Inc. (a) | 408,900 | | 28,365,393 |
Virgin America, Inc. | 146,600 | | 4,916,964 |
| | 217,502,971 |
Building Products - 0.1% |
A.O. Smith Corp. | 122,851 | | 7,298,578 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Electrical Equipment - 0.3% |
Acuity Brands, Inc. | 58,600 | | $ 8,783,554 |
SolarCity Corp. (a)(d) | 288,126 | | 14,005,805 |
TCP International Holdings Ltd. | 332,221 | | 2,102,959 |
| | 24,892,318 |
Industrial Conglomerates - 0.8% |
Danaher Corp. | 775,600 | | 63,893,928 |
General Electric Co. | 67,200 | | 1,605,408 |
| | 65,499,336 |
Machinery - 0.7% |
Cummins, Inc. | 279,900 | | 39,034,854 |
Deere & Co. | 19,700 | | 1,678,243 |
Ingersoll-Rand PLC | 223,800 | | 14,860,320 |
Manitowoc Co., Inc. | 185,000 | | 3,459,500 |
| | 59,032,917 |
Professional Services - 0.2% |
Huron Consulting Group, Inc. (a) | 88,299 | | 6,641,851 |
Manpower, Inc. | 124,300 | | 9,058,984 |
| | 15,700,835 |
Road & Rail - 1.4% |
Canadian Pacific Railway Ltd. | 84,300 | | 14,692,627 |
CSX Corp. | 249,800 | | 8,318,340 |
Hertz Global Holdings, Inc. (a) | 519,300 | | 10,656,036 |
J.B. Hunt Transport Services, Inc. | 251,500 | | 20,021,915 |
Union Pacific Corp. | 503,700 | | 59,038,677 |
| | 112,727,595 |
Trading Companies & Distributors - 0.2% |
HD Supply Holdings, Inc. (a) | 85,700 | | 2,470,731 |
United Rentals, Inc. (a) | 148,900 | | 12,336,365 |
| | 14,807,096 |
TOTAL INDUSTRIALS | | 671,066,153 |
INFORMATION TECHNOLOGY - 32.1% |
Communications Equipment - 1.4% |
Arista Networks, Inc. (d) | 52,000 | | 3,282,240 |
Cisco Systems, Inc. | 510,200 | | 13,451,423 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Palo Alto Networks, Inc. (a) | 95,197 | | $ 12,031,949 |
QUALCOMM, Inc. | 1,447,481 | | 90,409,663 |
| | 119,175,275 |
Internet Software & Services - 11.0% |
Akamai Technologies, Inc. (a) | 181,136 | | 10,533,964 |
Alibaba Group Holding Ltd. sponsored ADR | 460,400 | | 41,012,432 |
Baidu.com, Inc. sponsored ADR (a) | 182,000 | | 39,661,440 |
Cornerstone OnDemand, Inc. (a) | 127,100 | | 4,187,945 |
Facebook, Inc. Class A (a) | 2,645,555 | | 200,824,080 |
Gogo, Inc. (a)(d) | 461,400 | | 6,706,449 |
Google, Inc.: | | | |
Class A (a) | 413,413 | | 222,230,158 |
Class C (a) | 331,613 | | 177,253,781 |
LendingClub Corp. | 62,600 | | 1,175,002 |
LinkedIn Corp. (a) | 117,400 | | 26,384,476 |
NAVER Corp. | 18,577 | | 11,944,818 |
New Relic, Inc. | 8,700 | | 270,222 |
Rackspace Hosting, Inc. (a) | 878,765 | | 39,509,274 |
Tencent Holdings Ltd. | 1,433,800 | | 24,183,269 |
Twitter, Inc. (a) | 1,002,700 | | 37,631,331 |
Yahoo!, Inc. (a) | 1,078,233 | | 47,431,470 |
| | 890,940,111 |
IT Services - 4.3% |
Cognizant Technology Solutions Corp. Class A (a) | 1,686,948 | | 91,314,495 |
MasterCard, Inc. Class A | 1,209,500 | | 99,215,285 |
Total System Services, Inc. | 74,700 | | 2,642,139 |
VeriFone Systems, Inc. (a) | 433,400 | | 13,604,426 |
Visa, Inc. Class A | 549,937 | | 140,184,441 |
| | 346,960,786 |
Semiconductors & Semiconductor Equipment - 4.3% |
Ambarella, Inc. (a)(d) | 243,500 | | 13,467,985 |
Atmel Corp. | 895,500 | | 7,459,515 |
Avago Technologies Ltd. | 101,500 | | 10,442,320 |
Broadcom Corp. Class A | 470,800 | | 19,978,398 |
Cavium, Inc. (a) | 399,655 | | 23,503,711 |
Cirrus Logic, Inc. (a) | 909,400 | | 24,099,100 |
Cree, Inc. (a) | 256,873 | | 9,083,029 |
First Solar, Inc. (a) | 470,920 | | 19,929,334 |
Freescale Semiconductor, Inc. (a) | 919,819 | | 29,516,992 |
Himax Technologies, Inc. sponsored ADR | 425,000 | | 3,646,500 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Lam Research Corp. | 115,600 | | $ 8,836,464 |
Marvell Technology Group Ltd. | 422,300 | | 6,541,427 |
Maxim Integrated Products, Inc. | 311,000 | | 10,290,990 |
Monolithic Power Systems, Inc. | 80,256 | | 3,811,357 |
NVIDIA Corp. | 511,520 | | 9,823,742 |
NXP Semiconductors NV (a) | 1,537,669 | | 121,998,658 |
Qorvo, Inc. (a) | 187,187 | | 13,827,504 |
Skyworks Solutions, Inc. | 153,000 | | 12,706,650 |
| | 348,963,676 |
Software - 4.0% |
Activision Blizzard, Inc. | 2,441,228 | | 51,009,459 |
Adobe Systems, Inc. (a) | 422,820 | | 29,652,367 |
Intuit, Inc. | 100,400 | | 8,716,728 |
Microsoft Corp. | 2,094,888 | | 84,633,475 |
Qlik Technologies, Inc. (a) | 169,400 | | 4,810,960 |
Red Hat, Inc. (a) | 171,500 | | 10,939,985 |
salesforce.com, Inc. (a) | 2,001,904 | | 113,007,481 |
Splunk, Inc. (a) | 28,800 | | 1,487,520 |
Tableau Software, Inc. (a) | 204,400 | | 16,507,344 |
Yodlee, inc. | 187,900 | | 1,732,438 |
Zynga, Inc. (a) | 2,582,359 | | 6,610,839 |
| | 329,108,596 |
Technology Hardware, Storage & Peripherals - 7.1% |
Apple, Inc. | 4,566,734 | | 535,038,553 |
BlackBerry Ltd. (a)(d) | 1,449,800 | | 14,715,476 |
Hewlett-Packard Co. | 461,000 | | 16,655,930 |
Nimble Storage, Inc. (a) | 100,400 | | 2,251,972 |
Samsung Electronics Co. Ltd. | 6,001 | | 7,390,167 |
| | 576,052,098 |
TOTAL INFORMATION TECHNOLOGY | | 2,611,200,542 |
MATERIALS - 2.5% |
Chemicals - 2.0% |
Agrium, Inc. | 59,100 | | 6,305,333 |
Air Products & Chemicals, Inc. | 29,700 | | 4,324,617 |
Ashland, Inc. | 67,300 | | 7,976,396 |
CF Industries Holdings, Inc. | 47,800 | | 14,597,164 |
E.I. du Pont de Nemours & Co. | 818,600 | | 58,292,506 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Chemicals - continued |
Intrepid Potash, Inc. (a)(d) | 229,800 | | $ 3,058,638 |
Monsanto Co. | 481,500 | | 56,807,370 |
Potash Corp. of Saskatchewan, Inc. | 330,900 | | 12,046,458 |
PPG Industries, Inc. | 15,700 | | 3,499,216 |
The Mosaic Co. | 17,400 | | 847,206 |
| | 167,754,904 |
Construction Materials - 0.1% |
Caesarstone Sdot-Yam Ltd. | 138,900 | | 8,625,690 |
Containers & Packaging - 0.3% |
Berry Plastics Group, Inc. (a) | 75,300 | | 2,546,646 |
Rock-Tenn Co. Class A | 72,400 | | 4,698,760 |
Sealed Air Corp. | 378,600 | | 15,333,300 |
| | 22,578,706 |
Metals & Mining - 0.1% |
United States Steel Corp. (d) | 227,100 | | 5,550,324 |
TOTAL MATERIALS | | 204,509,624 |
TOTAL COMMON STOCKS (Cost $6,695,415,584) |
7,994,226,734
|
Preferred Stocks - 1.5% |
| | | |
Convertible Preferred Stocks - 1.5% |
CONSUMER DISCRETIONARY - 0.1% |
Internet & Catalog Retail - 0.1% |
The Honest Co., Inc. Series C (f) | 167,087 | | 4,528,058 |
HEALTH CARE - 0.0% |
Biotechnology - 0.0% |
Pronutria Biosciences, Inc. Series C (f) | 248,015 | | 2,499,991 |
INDUSTRIALS - 0.1% |
Aerospace & Defense - 0.0% |
Space Exploration Technologies Corp. Series G (f) | 42,650 | | 3,303,669 |
Professional Services - 0.1% |
Meituan Corp. Series D (e)(f) | 790,926 | | 4,999,997 |
TOTAL INDUSTRIALS | | 8,303,666 |
Preferred Stocks - continued |
| Shares | | Value |
Convertible Preferred Stocks - continued |
INFORMATION TECHNOLOGY - 1.3% |
Internet Software & Services - 1.1% |
Uber Technologies, Inc. | | | |
Series D (f) | 2,578,476 | | $ 85,908,632 |
Series E (f) | 47,420 | | 1,579,921 |
| | 87,488,553 |
IT Services - 0.1% |
AppNexus, Inc. Series E (f) | 307,049 | | 8,720,192 |
Nutanix, Inc. Series E (f) | 230,044 | | 3,153,903 |
| | 11,874,095 |
Software - 0.1% |
Cloudflare, Inc. Series D (f) | 289,335 | | 1,772,322 |
Taboola.Com Ltd. Series E (f) | 289,958 | | 3,022,928 |
| | 4,795,250 |
TOTAL INFORMATION TECHNOLOGY | | 104,157,898 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 119,489,613 |
Nonconvertible Preferred Stocks - 0.0% |
CONSUMER DISCRETIONARY - 0.0% |
Automobiles - 0.0% |
Volkswagen AG | 19,100 | | 4,279,909 |
TOTAL PREFERRED STOCKS (Cost $75,210,039) |
123,769,522
|
Money Market Funds - 1.4% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c)
(Cost $115,395,479) | 115,395,479 | |
115,395,479
|
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $6,886,021,102) | | 8,233,391,735 |
NET OTHER ASSETS (LIABILITIES) - (1.4)% | | (111,597,401) |
NET ASSETS - 100% | $ 8,121,794,334 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(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 $121,430,217 or 1.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
AppNexus, Inc. Series E | 8/1/14 | $ 6,150,867 |
Cloudflare, Inc. Series D | 11/5/14 | $ 1,772,322 |
Meituan Corp. Series D | 1/26/15 | $ 4,999,997 |
Nutanix, Inc. Series E | 8/26/14 | $ 3,081,784 |
Security | Acquisition Date | Acquisition Cost |
Pronutria Biosciences, Inc. Series C | 1/30/15 | $ 2,499,991 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $ 3,303,669 |
Taboola.Com Ltd. Series E | 12/22/14 | $ 3,022,928 |
The Honest Co., Inc. | 8/21/14 | $ 1,937,546 |
The Honest Co., Inc. Series C | 8/21/14 | $ 4,520,923 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $ 40,000,027 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $ 1,579,919 |
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 | $ 19,250 |
Fidelity Securities Lending Cash Central Fund | 1,105,282 |
Total | $ 1,124,532 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, 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 | $ 1,898,340,542 | $ 1,875,493,892 | $ 16,377,988 | $ 6,468,662 |
Consumer Staples | 783,843,371 | 770,298,457 | 13,544,914 | - |
Energy | 145,631,309 | 145,631,309 | - | - |
Financials | 322,993,755 | 322,993,755 | - | - |
Health Care | 1,367,949,396 | 1,365,449,405 | - | 2,499,991 |
Industrials | 679,369,819 | 671,066,153 | - | 8,303,666 |
Information Technology | 2,715,358,440 | 2,567,682,288 | 43,518,254 | 104,157,898 |
Materials | 204,509,624 | 204,509,624 | - | - |
Money Market Funds | 115,395,479 | 115,395,479 | - | - |
Total Investments in Securities: | $ 8,233,391,735 | $ 8,038,520,362 | $ 73,441,156 | $ 121,430,217 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $ 40,000,027 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 48,550,050 |
Cost of Purchases | 15,607,821 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 104,157,898 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 48,550,050 |
Equities - Other Investments in Securities | |
Beginning Balance | $ - |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | 10,193 |
Cost of Purchases | 17,262,126 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 17,272,319 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 | $ 10,193 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 88.4% |
Ireland | 2.6% |
Cayman Islands | 2.2% |
Canada | 1.6% |
Netherlands | 1.5% |
Others (Individually Less Than 1%) | 3.7% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $110,875,884) - See accompanying schedule: Unaffiliated issuers (cost $6,770,625,623) | $ 8,117,996,256 | |
Fidelity Central Funds (cost $115,395,479) | 115,395,479 | |
Total Investments (cost $6,886,021,102) | | $ 8,233,391,735 |
Receivable for investments sold | | 106,149,920 |
Receivable for fund shares sold | | 5,459,968 |
Dividends receivable | | 2,477,402 |
Distributions receivable from Fidelity Central Funds | | 359,636 |
Prepaid expenses | | 21,381 |
Other receivables | | 47,673 |
Total assets | | 8,347,907,715 |
| | |
Liabilities | | |
Payable to custodian bank | $ 2,045,016 | |
Payable for investments purchased
Regular delivery | 97,211,101 | |
Delayed delivery | 4,999,997 | |
Payable for fund shares redeemed | 1,722,436 | |
Accrued management fee | 4,069,684 | |
Other affiliated payables | 575,117 | |
Other payables and accrued expenses | 94,551 | |
Collateral on securities loaned, at value | 115,395,479 | |
Total liabilities | | 226,113,381 |
| | |
Net Assets | | $ 8,121,794,334 |
Net Assets consist of: | | |
Paid in capital | | $ 6,679,198,928 |
Undistributed net investment income | | 2,064,320 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 93,154,046 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,347,377,040 |
Net Assets | | $ 8,121,794,334 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2015 (Unaudited) |
| | |
Series Blue Chip Growth:
Net Asset Value, offering price and redemption price per share ($3,320,379,692 ÷ 276,781,365 shares) | | $ 12.00 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($4,801,414,642 ÷ 400,133,452 shares) | | $ 12.00 |
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, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 39,800,594 |
Income from Fidelity Central Funds | | 1,124,532 |
Total income | | 40,925,126 |
| | |
Expenses | | |
Management fee
Basic fee | $ 22,776,245 | |
Performance adjustment | 800,132 | |
Transfer agent fees | 2,866,192 | |
Accounting and security lending fees | 621,163 | |
Custodian fees and expenses | 104,191 | |
Independent trustees' compensation | 17,322 | |
Audit | 29,287 | |
Legal | 14,524 | |
Interest | 12,487 | |
Miscellaneous | 18,387 | |
Total expenses before reductions | 27,259,930 | |
Expense reductions | (67,310) | 27,192,620 |
Net investment income (loss) | | 13,732,506 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 125,420,906 | |
Foreign currency transactions | (11,016) | |
Total net realized gain (loss) | | 125,409,890 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 535,875,181 | |
Assets and liabilities in foreign currencies | 6,257 | |
Total change in net unrealized appreciation (depreciation) | | 535,881,438 |
Net gain (loss) | | 661,291,328 |
Net increase (decrease) in net assets resulting from operations | | $ 675,023,834 |
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, 2015
(Unaudited) | For the period
November 7, 2013
(commencement of
operations) to
July 31, 2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 13,732,506 | $ 20,153,236 |
Net realized gain (loss) | 125,409,890 | 37,350,557 |
Change in net unrealized appreciation (depreciation) | 535,881,438 | 811,495,602 |
Net increase (decrease) in net assets resulting
from operations | 675,023,834 | 868,999,395 |
Distributions to shareholders from net investment income | (23,623,473) | (7,849,502) |
Distributions to shareholders from net realized gain | (69,954,848) | - |
Total distributions | (93,578,321) | (7,849,502) |
Share transactions - net increase (decrease) | (351,721,038) | 7,030,919,966 |
Total increase (decrease) in net assets | 229,724,475 | 7,892,069,859 |
| | |
Net Assets | | |
Beginning of period | 7,892,069,859 | - |
End of period (including undistributed net investment income of $2,064,320 and undistributed net investment income of $11,955,287, respectively) | $ 8,121,794,334 | $ 7,892,069,859 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Blue Chip Growth
| Six months ended
January 31, 2015 | Year ended
July 31, |
| (Unaudited) | 2014G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 11.18 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .01 | .02 |
Net realized and unrealized gain (loss) | .93 | 1.17 |
Total from investment operations | .94 | 1.19 |
Distributions from net investment income | (.02) | (.01) |
Distributions from net realized gain | (.10) | - |
Total distributions | (.12) | (.01) |
Net asset value, end of period | $ 12.00 | $ 11.18 |
Total ReturnB, C | 8.45% | 11.90% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .76%A | .74%A |
Expenses net of fee waivers, if any | .76%A | .74%A |
Expenses net of all reductions | .76%A | .74%A |
Net investment income (loss) | .23%A | .26%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 3,320,380 | $ 3,288,708 |
Portfolio turnover rateF | 51% A | 67% A, I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 7, 2013 (commencement of operations) to July 31, 2014.
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 Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended
January 31, 2015 | Year ended
July 31, |
| (Unaudited) | 2014G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 11.19 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | .02 | .03 |
Net realized and unrealized gain (loss) | .93 | 1.17 |
Total from investment operations | .95 | 1.20 |
Distributions from net investment income | (.04) | (.01) |
Distributions from net realized gain | (.10) | - |
Total distributions | (.14) | (.01) |
Net asset value, end of period | $ 12.00 | $ 11.19 |
Total ReturnB, C | 8.52% | 12.03% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .59%A | .57%A |
Expenses net of fee waivers, if any | .59%A | .57%A |
Expenses net of all reductions | .59%A | .57%A |
Net investment income (loss) | .40%A | .43%A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 4,801,415 | $ 4,603,361 |
Portfolio turnover rateF | 51% A | 67% A, I |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 7, 2013 (commencement of operations) to July 31, 2014.
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 Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
1. Organization.
Fidelity® Series 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. 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 Blue Chip Growth 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
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
01/31/2015 | Valuation
Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to
Valuation from
an Increase in Input* |
Equities | $ 121,430,217 | Last transaction price | Transaction price | $6.13-$77.46/
$31.72 | Increase |
| | Market comparable | Discount rate | 10.0% | Decrease |
| | | EV/Sales multiple | 2.8-6.0/4.4 | Increase |
| | | Premium rate | 10.0% | Increase |
| | | FCF yield | 4.0% | Decrease |
* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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, 2015, 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
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $ 1,499,294,582 |
Gross unrealized depreciation | (165,298,636) |
Net unrealized appreciation (depreciation) on securities | $ 1,333,995,946 |
| |
Tax cost | $ 6,899,395,789 |
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. 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
Semiannual Report
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,102,595,299 and $2,487,265,272, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 relative investment performance of Series Blue Chip Growth as compared to its benchmark index, the Russell 1000® Growth Index, over the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
same 36 month performance period. The Fund's performance adjustment took effect in November, 2014. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .57% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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 Blue Chip Growth. 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 applicable class were as follows:
| Amount | % of
Class-Level Average
Net Assets* |
Series Blue Chip Growth | $ 2,866,192 | .17 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $31,005 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 or other affiliated entities of 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program - continued
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
Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 42,028,742 | .35% | $ 12,487 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $13,651.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $5,643 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
security lending income during the period amounted to $1,105,282. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $67,274 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Series Blue Chip Growth expenses during the period in the amount of $36.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31, 2015 | Year ended
July 31, 2014A |
From net investment income | | |
Series Blue Chip Growth | $ 6,705,207 | $ 2,859,214 |
Class F | 16,918,266 | 4,990,288 |
Total | $ 23,623,473 | $ 7,849,502 |
From net realized gain | | |
Series Blue Chip Growth | $ 29,046,969 | $ - |
Class F | 40,907,879 | - |
Total | $ 69,954,848 | $ - |
A For the period November 7, 2013 (commencement of operations) to July 31, 2014.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 A | Six months ended
January 31, 2015 | Year ended
July 31, 2014 A |
Series Blue Chip Growth | | | | |
Shares sold | 11,274,482 | 343,560,306 B | $ 130,336,601 | $ 3,450,544,092 B |
Reinvestment of distributions | 3,044,141 | 280,041 | 35,752,176 | 2,859,214 |
Shares redeemed | (31,690,059) | (49,687,546) | (376,435,554) | (532,601,253) |
Net increase (decrease) | (17,371,436) | 294,152,801 | $ (210,346,777) | $ 2,920,802,053 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2015 | Year ended
July 31, 2014 A | Six months ended
January 31, 2015 | Year ended
July 31, 2014 A |
Class F | | | | |
Shares sold | 31,925,820 | 468,726,617 B | $ 370,602,205 | $ 4,729,291,768 B |
Reinvestment of distributions | 4,922,720 | 488,765 | 57,826,145 | 4,990,288 |
Shares redeemed | (48,067,328) | (57,863,142) | (569,802,611) | (624,164,143) |
Net increase (decrease) | (11,218,788) | 411,352,240 | $ (141,374,261) | $ 4,110,117,913 |
A For the period November 7, 2013 (commencement of operations) to July 31, 2014.
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 the investment adviser or its affiliates 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
(Hong Kong) Limited
Fidelity Management & Research
(Japan) 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
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
XS1-SANN-0315
1.967988.101
Fidelity®
Blue Chip Value
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
Shareholder Expense Example | (Click Here) | An example of shareholder expenses. |
Investment Changes | (Click Here) | A summary of major shifts in the fund's investments over the past 6 months. |
Investments | (Click Here) | A complete list of the fund's investments with their market values. |
Financial Statements | (Click Here) | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | (Click Here) | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 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, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio B | Beginning
Account Value
August 1, 2014 | Ending
Account Value
January 31, 2015 | Expenses Paid
During Period*
August 1, 2014
to January 31, 2015 |
Actual | .72% | $ 1,000.00 | $ 1,056.60 | $ 3.73 |
Hypothetical A | | $ 1,000.00 | $ 1,021.58 | $ 3.67 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 4.2 | 0.0 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 3.9 | 0.9 |
Oracle Corp. | 3.6 | 0.0 |
Medtronic PLC | 3.5 | 0.0 |
Berkshire Hathaway, Inc. Class B | 3.4 | 0.0 |
Google, Inc. Class A | 3.2 | 0.0 |
Wells Fargo & Co. | 3.2 | 1.9 |
EMC Corp. | 2.9 | 0.0 |
Chevron Corp. | 2.9 | 0.8 |
JPMorgan Chase & Co. | 2.8 | 2.7 |
| 33.6 | |
Top Five Market Sectors as of January 31, 2015 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.4 | 26.6 |
Information Technology | 19.8 | 13.0 |
Health Care | 14.9 | 14.0 |
Consumer Discretionary | 12.7 | 6.1 |
Energy | 8.0 | 13.0 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2015* | As of July 31, 2014** |
| Stocks 93.0% | | | Stocks 95.1% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 7.0% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 4.9% | |
* Foreign investments | 22.3% | | ** Foreign investments | 4.4% | |
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.0% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 12.7% |
Media - 7.0% |
DIRECTV (a) | 80,400 | | $ 6,856,512 |
Time Warner Cable, Inc. | 70,100 | | 9,542,713 |
Viacom, Inc. Class B (non-vtg.) | 124,400 | | 8,013,848 |
| | 24,413,073 |
Specialty Retail - 5.7% |
AutoZone, Inc. (a) | 16,000 | | 9,551,360 |
Bed Bath & Beyond, Inc. (a) | 61,800 | | 4,620,786 |
GNC Holdings, Inc. | 127,100 | | 5,635,614 |
| | 19,807,760 |
TOTAL CONSUMER DISCRETIONARY | | 44,220,833 |
CONSUMER STAPLES - 1.6% |
Beverages - 0.9% |
C&C Group PLC | 789,000 | | 3,093,748 |
Food & Staples Retailing - 0.7% |
Safeway, Inc.: | | | |
rights | 48,800 | | 4,392 |
rights | 48,800 | | 4,392 |
Tesco PLC | 753,700 | | 2,548,759 |
| | | 2,557,543 |
TOTAL CONSUMER STAPLES | | 5,651,291 |
ENERGY - 8.0% |
Energy Equipment & Services - 1.2% |
BW Offshore Ltd. | 4,458,400 | | 4,276,103 |
Oil, Gas & Consumable Fuels - 6.8% |
Chevron Corp. | 98,135 | | 10,061,782 |
Marathon Petroleum Corp. | 86,300 | | 7,990,517 |
Suncor Energy, Inc. | 182,700 | | 5,449,225 |
| | 23,501,524 |
TOTAL ENERGY | | 27,777,627 |
FINANCIALS - 26.4% |
Banks - 7.9% |
JPMorgan Chase & Co. | 181,616 | | 9,876,278 |
U.S. Bancorp | 155,897 | | 6,533,643 |
Wells Fargo & Co. | 211,198 | | 10,965,400 |
| | 27,375,321 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Capital Markets - 2.6% |
Fortress Investment Group LLC | 610,700 | | $ 4,360,398 |
The Blackstone Group LP | 128,600 | | 4,801,924 |
| | 9,162,322 |
Consumer Finance - 1.4% |
Capital One Financial Corp. | 64,033 | | 4,687,856 |
Diversified Financial Services - 3.4% |
Berkshire Hathaway, Inc. Class B (a) | 82,300 | | 11,843,793 |
Insurance - 7.8% |
ACE Ltd. | 54,200 | | 5,851,432 |
Allstate Corp. | 92,900 | | 6,483,491 |
Prudential PLC | 359,979 | | 8,751,231 |
The Travelers Companies, Inc. | 60,700 | | 6,241,174 |
| | 27,327,328 |
Real Estate Investment Trusts - 3.3% |
American Capital Agency Corp. | 205,100 | | 4,419,905 |
Annaly Capital Management, Inc. | 673,800 | | 7,115,328 |
| | 11,535,233 |
TOTAL FINANCIALS | | 91,931,853 |
HEALTH CARE - 14.9% |
Health Care Equipment & Supplies - 3.5% |
Medtronic PLC | 171,662 | | 12,256,667 |
Health Care Providers & Services - 6.5% |
Cigna Corp. | 89,100 | | 9,518,553 |
Express Scripts Holding Co. (a) | 61,900 | | 4,995,949 |
UnitedHealth Group, Inc. | 75,000 | | 7,968,750 |
| | 22,483,252 |
Pharmaceuticals - 4.9% |
Sanofi SA sponsored ADR | 76,100 | | 3,507,449 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 240,000 | | 13,646,400 |
| | 17,153,849 |
TOTAL HEALTH CARE | | 51,893,768 |
INDUSTRIALS - 5.3% |
Aerospace & Defense - 2.6% |
United Technologies Corp. | 78,800 | | 9,044,664 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Machinery - 2.0% |
Deere & Co. | 82,700 | | $ 7,045,213 |
Professional Services - 0.7% |
Dun & Bradstreet Corp. | 20,500 | | 2,359,755 |
TOTAL INDUSTRIALS | | 18,449,632 |
INFORMATION TECHNOLOGY - 19.8% |
Communications Equipment - 2.4% |
Cisco Systems, Inc. | 323,585 | | 8,531,319 |
Electronic Equipment & Components - 0.7% |
Keysight Technologies, Inc. (a) | 76,100 | | 2,540,979 |
Internet Software & Services - 3.2% |
Google, Inc. Class A (a) | 20,700 | | 11,127,285 |
IT Services - 2.8% |
IBM Corp. | 30,900 | | 4,737,279 |
The Western Union Co. | 291,400 | | 4,953,800 |
| | 9,691,079 |
Software - 3.6% |
Oracle Corp. | 296,100 | | 12,403,629 |
Technology Hardware, Storage & Peripherals - 7.1% |
EMC Corp. | 394,800 | | 10,237,164 |
Samsung Electronics Co. Ltd. | 11,720 | | 14,433,053 |
| | 24,670,217 |
TOTAL INFORMATION TECHNOLOGY | | 68,964,508 |
MATERIALS - 3.1% |
Chemicals - 3.1% |
Agrium, Inc. | 34,800 | | 3,712,785 |
CF Industries Holdings, Inc. | 23,300 | | 7,115,354 |
| | 10,828,139 |
UTILITIES - 1.2% |
Multi-Utilities - 1.2% |
CMS Energy Corp. | 112,900 | | 4,259,717 |
TOTAL COMMON STOCKS (Cost $312,355,599) |
323,977,368
|
Money Market Funds - 6.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.13% (b)
(Cost $23,047,967) | 23,047,967 | | $ 23,047,967 |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $335,403,566) | | 347,025,335 |
NET OTHER ASSETS (LIABILITIES) - 0.4% | | 1,467,432 |
NET ASSETS - 100% | $ 348,492,767 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally 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 | $ 8,489 |
Fidelity Securities Lending Cash Central Fund | 3,884 |
Total | $ 12,373 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value 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. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 44,220,833 | $ 44,220,833 | $ - | $ - |
Consumer Staples | 5,651,291 | 3,093,748 | 2,557,543 | - |
Energy | 27,777,627 | 27,777,627 | - | - |
Financials | 91,931,853 | 83,180,622 | 8,751,231 | - |
Health Care | 51,893,768 | 51,893,768 | - | - |
Industrials | 18,449,632 | 18,449,632 | - | - |
Information Technology | 68,964,508 | 54,531,455 | 14,433,053 | - |
Materials | 10,828,139 | 10,828,139 | - | - |
Utilities | 4,259,717 | 4,259,717 | - | - |
Money Market Funds | 23,047,967 | 23,047,967 | - | - |
Total Investments in Securities: | $ 347,025,335 | $ 321,283,508 | $ 25,741,827 | $ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America | 77.7% |
Ireland | 4.4% |
Korea (South) | 4.2% |
Israel | 3.9% |
United Kingdom | 3.2% |
Canada | 2.7% |
Switzerland | 1.7% |
Bermuda | 1.2% |
France | 1.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2015 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $312,355,599) | $ 323,977,368 | |
Fidelity Central Funds (cost $23,047,967) | 23,047,967 | |
Total Investments (cost $335,403,566) | | $ 347,025,335 |
Cash | | 40,314 |
Receivable for investments sold | | 1,805,179 |
Receivable for fund shares sold | | 341,075 |
Dividends receivable | | 340,493 |
Distributions receivable from Fidelity Central Funds | | 2,464 |
Prepaid expenses | | 681 |
Other receivables | | 1,001 |
Total assets | | 349,556,542 |
| | |
Liabilities | | |
Payable for investments purchased | $ 610,386 | |
Payable for fund shares redeemed | 193,346 | |
Accrued management fee | 155,134 | |
Transfer agent fee payable | 61,250 | |
Other affiliated payables | 11,408 | |
Other payables and accrued expenses | 32,251 | |
Total liabilities | | 1,063,775 |
| | |
Net Assets | | $ 348,492,767 |
Net Assets consist of: | | |
Paid in capital | | $ 417,723,565 |
Undistributed net investment income | | 2,934,454 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (83,786,833) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 11,621,581 |
Net Assets, for 21,984,819 shares outstanding | | $ 348,492,767 |
Net Asset Value, offering price and redemption price per share ($348,492,767 ÷ 21,984,819 shares) | | $ 15.85 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2015 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,422,124 |
Special dividends | | 2,866,372 |
Interest | | 5 |
Income from Fidelity Central Funds | | 12,373 |
Total income | | 6,300,874 |
| | |
Expenses | | |
Management fee
Basic fee | $ 926,838 | |
Performance adjustment | (181,346) | |
Transfer agent fees | 356,241 | |
Accounting and security lending fees | 65,708 | |
Custodian fees and expenses | 6,985 | |
Independent trustees' compensation | 714 | |
Registration fees | 9,206 | |
Audit | 33,148 | |
Legal | 855 | |
Miscellaneous | 965 | |
Total expenses before reductions | 1,219,314 | |
Expense reductions | (446) | 1,218,868 |
Net investment income (loss) | | 5,082,006 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 18,743,430 | |
Foreign currency transactions | (40,136) | |
Futures contracts | 6,346 | |
Total net realized gain (loss) | | 18,709,640 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (5,662,524) | |
Assets and liabilities in foreign currencies | (173) | |
Total change in net unrealized appreciation (depreciation) | | (5,662,697) |
Net gain (loss) | | 13,046,943 |
Net increase (decrease) in net assets resulting from operations | | $ 18,128,949 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended January 31, 2015 (Unaudited) | Year ended
July 31,
2014 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 5,082,006 | $ 4,422,152 |
Net realized gain (loss) | 18,709,640 | 49,264,536 |
Change in net unrealized appreciation (depreciation) | (5,662,697) | (4,025,531) |
Net increase (decrease) in net assets resulting
from operations | 18,128,949 | 49,661,157 |
Distributions to shareholders from net investment income | (4,830,518) | (2,139,474) |
Share transactions
Proceeds from sales of shares | 41,516,059 | 137,673,635 |
Reinvestment of distributions | 4,701,954 | 2,081,150 |
Cost of shares redeemed | (40,849,645) | (139,310,785) |
Net increase (decrease) in net assets resulting from share transactions | 5,368,368 | 444,000 |
Total increase (decrease) in net assets | 18,666,799 | 47,965,683 |
| | |
Net Assets | | |
Beginning of period | 329,825,968 | 281,860,285 |
End of period (including undistributed net investment income of $2,934,454 and undistributed net investment income of $2,682,966, respectively) | $ 348,492,767 | $ 329,825,968 |
Other Information Shares | | |
Sold | 2,633,339 | 9,827,800 |
Issued in reinvestment of distributions | 302,238 | 150,333 |
Redeemed | (2,620,657) | (9,464,241) |
Net increase (decrease) | 314,920 | 513,892 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended
January 31, 2015 | Years ended July 31, |
| (Unaudited) | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.22 | $ 13.32 | $ 10.26 | $ 10.86 | $ 9.82 | $ 8.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .24 J | .18 | .18 | .18 | .14 | .10 |
Net realized and unrealized gain (loss) | .62 | 1.81 | 3.17 | (.62) | 1.04 | .90 |
Total from investment operations | .86 | 1.99 | 3.35 | (.44) | 1.18 | 1.00 |
Distributions from net investment income | (.23) | (.09) | (.29) | (.16) | (.14) | (.13) |
Distributions from net realized gain | - | - | - | - | (.01) | - |
Total distributions | (.23) | (.09) | (.29) | (.16) | (.14) I | (.13) |
Net asset value, end of period | $ 15.85 | $ 15.22 | $ 13.32 | $ 10.26 | $ 10.86 | $ 9.82 |
Total ReturnB, C | 5.66% | 14.99% | 33.33% | (3.95)% | 12.14% | 11.20% |
Ratios to Average Net AssetsE, G | | | | | |
Expenses before reductions | .72% A | .66% | .64% | .77% | .75% | .87% |
Expenses net of fee waivers, if any | .72% A | .66% | .64% | .77% | .75% | .87% |
Expenses net of all reductions | .72% A | .66% | .62% | .76% | .74% | .86% |
Net investment income (loss) | 3.02% A,J | 1.28% | 1.58% | 1.76% | 1.31% | 1.05% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 348,493 | $ 329,826 | $ 281,860 | $ 238,132 | $ 433,047 | $ 324,913 |
Portfolio turnover rate F | 233% A | 102% H | 88% | 102% | 141% | 59% |
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 Portfolio turnover rate excludes securities received or delivered in-kind.
I 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.
J Investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.31%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
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 Fidelity Management &
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be 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, 2015 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company 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 U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, futures contracts, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 20,821,005 |
Gross unrealized depreciation | (12,647,710) |
Net unrealized appreciation (depreciation) on securities | $ 8,173,295 |
| |
Tax cost | $ 338,852,040 |
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. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Fiscal year of expiration | |
2017 | $ (41,508,774) |
2018 | (55,500,128) |
Total capital loss carryforward | $ (97,008,902) |
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related 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.
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. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
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 may be 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 daily 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 for derivative instruments 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 $6,346 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 $377,220,370 and $379,781,805, respectively.
Semiannual Report
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 1000® Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .44% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, 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 .21% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, 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. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2,967 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser 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 $231 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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 $3,884. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $174 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $267.
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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) Limited
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., Boston, MA 02210
www.fidelity.com
BCV-USAN-0315
1.789732.112
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 25, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | March 25, 2015 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
| |
Date: | March 25, 2015 |
