UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | November 30 |
| |
Date of reporting period: | May 31, 2012 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth Strategies
Fund - Institutional Class
Semiannual Report
May 31, 2012
(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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2011 to May 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
December 1, 2011 | Ending
Account Value
May 31, 2012 | Expenses Paid
During Period*
December 1, 2011 to
May 31, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,013.60 | $ 6.29 |
Hypothetical A | | $ 1,000.00 | $ 1,018.75 | $ 6.31 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,012.80 | $ 7.55 |
Hypothetical A | | $ 1,000.00 | $ 1,017.50 | $ 7.57 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 10.05 |
Hypothetical A | | $ 1,000.00 | $ 1,015.00 | $ 10.08 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 10.05 |
Hypothetical A | | $ 1,000.00 | $ 1,015.00 | $ 10.08 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,014.30 | $ 5.04 |
Hypothetical A | | $ 1,000.00 | $ 1,020.00 | $ 5.05 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PetSmart, Inc. | 1.8 | 0.0 |
Tractor Supply Co. | 1.6 | 1.2 |
Sara Lee Corp. | 1.5 | 0.0 |
Dick's Sporting Goods, Inc. | 1.3 | 0.0 |
Church & Dwight Co., Inc. | 1.3 | 0.0 |
Roper Industries, Inc. | 1.3 | 1.2 |
LKQ Corp. | 1.2 | 0.0 |
Sherwin-Williams Co. | 1.2 | 0.0 |
Catalyst Health Solutions, Inc. | 1.2 | 0.0 |
Pioneer Natural Resources Co. | 1.2 | 0.0 |
| 13.6 | |
Top Five Market Sectors as of May 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 21.9 | 17.5 |
Information Technology | 17.1 | 22.1 |
Health Care | 13.7 | 15.1 |
Industrials | 13.5 | 12.6 |
Energy | 8.8 | 14.1 |
Asset Allocation (% of fund's net assets) |
As of May 31, 2012* | As of November 30, 2011** |
 | Stocks 98.3% | | | Stocks 97.9% | |
 | Short-Term
Investments and
Net Other Assets (Liabilities) 1.7% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.1% | |
* Foreign investments | 8.8% | | ** Foreign investments | 10.7% | |
Semiannual Report
Investments May 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 21.9% |
Auto Components - 0.6% |
WABCO Holdings, Inc. (a) | 3,390 | | $ 175,466 |
Distributors - 1.2% |
LKQ Corp. (a) | 10,500 | | 382,620 |
Hotels, Restaurants & Leisure - 2.0% |
BJ's Restaurants, Inc. (a) | 1,889 | | 82,719 |
Buffalo Wild Wings, Inc. (a) | 1,400 | | 119,154 |
Domino's Pizza, Inc. | 3,300 | | 101,343 |
Panera Bread Co. Class A (a) | 2,200 | | 323,290 |
| | 626,506 |
Household Durables - 3.2% |
Jarden Corp. | 7,300 | | 296,745 |
Newell Rubbermaid, Inc. | 8,900 | | 163,760 |
NVR, Inc. (a) | 300 | | 241,440 |
Tempur-Pedic International, Inc. (a) | 800 | | 36,968 |
Tupperware Brands Corp. | 4,900 | | 264,845 |
| | 1,003,758 |
Leisure Equipment & Products - 1.0% |
Polaris Industries, Inc. | 4,300 | | 326,671 |
Multiline Retail - 1.0% |
Dollar General Corp. (a) | 3,000 | | 146,730 |
Dollar Tree, Inc. (a) | 1,624 | | 167,564 |
| | 314,294 |
Specialty Retail - 10.4% |
Abercrombie & Fitch Co. Class A | 1,662 | | 55,743 |
Collective Brands, Inc. (a) | 9,800 | | 208,446 |
Dick's Sporting Goods, Inc. | 8,800 | | 409,200 |
Hibbett Sports, Inc. (a) | 2,600 | | 145,678 |
Limited Brands, Inc. | 2,435 | | 108,017 |
O'Reilly Automotive, Inc. (a) | 1,500 | | 143,685 |
PetSmart, Inc. | 8,900 | | 573,513 |
Ross Stores, Inc. | 3,100 | | 196,013 |
Sally Beauty Holdings, Inc. (a) | 11,900 | | 314,517 |
Signet Jewelers Ltd. | 6,500 | | 283,790 |
Tractor Supply Co. | 5,538 | | 505,896 |
Ulta Salon, Cosmetics & Fragrance, Inc. | 1,400 | | 125,118 |
Urban Outfitters, Inc. (a) | 2,300 | | 64,331 |
Vitamin Shoppe, Inc. (a) | 2,400 | | 118,848 |
| | 3,252,795 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - 2.5% |
PVH Corp. | 4,348 | | $ 352,188 |
Under Armour, Inc. Class A (sub. vtg.) (a) | 2,624 | | 264,316 |
Warnaco Group, Inc. (a) | 3,700 | | 164,687 |
| | 781,191 |
TOTAL CONSUMER DISCRETIONARY | | 6,863,301 |
CONSUMER STAPLES - 6.3% |
Beverages - 1.7% |
Beam, Inc. | 3,000 | | 181,680 |
Dr Pepper Snapple Group, Inc. | 2,000 | | 82,520 |
Monster Beverage Corp. (a) | 3,634 | | 263,828 |
| | 528,028 |
Food & Staples Retailing - 1.0% |
United Natural Foods, Inc. (a) | 3,200 | | 162,240 |
Whole Foods Market, Inc. | 1,821 | | 161,359 |
| | 323,599 |
Food Products - 2.3% |
Green Mountain Coffee Roasters, Inc. (a)(d) | 1,863 | | 43,967 |
Sara Lee Corp. | 23,100 | | 482,790 |
The J.M. Smucker Co. | 1,000 | | 76,560 |
TreeHouse Foods, Inc. (a) | 2,400 | | 136,824 |
| | 740,141 |
Household Products - 1.3% |
Church & Dwight Co., Inc. | 7,500 | | 399,300 |
TOTAL CONSUMER STAPLES | | 1,991,068 |
ENERGY - 8.8% |
Energy Equipment & Services - 3.9% |
Cameron International Corp. (a) | 7,100 | | 324,399 |
Dresser-Rand Group, Inc. (a) | 3,000 | | 131,640 |
Ensco PLC Class A | 2,800 | | 125,748 |
Heckmann Corp. (a) | 48,328 | | 163,349 |
Helmerich & Payne, Inc. | 3,000 | | 135,900 |
Petrofac Ltd. | 6,500 | | 156,012 |
Rowan Companies PLC (a) | 6,300 | | 189,000 |
| | 1,226,048 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 4.9% |
Atlas Pipeline Partners, LP | 3,500 | | $ 105,000 |
Cabot Oil & Gas Corp. | 9,516 | | 309,651 |
HollyFrontier Corp. | 2,000 | | 58,960 |
Kinder Morgan Holding Co. LLC | 4,898 | | 167,463 |
Kinder Morgan Holding Co. LLC warrants 2/15/17 | 7,488 | | 17,073 |
Peabody Energy Corp. | 5,900 | | 137,824 |
Pioneer Natural Resources Co. | 3,850 | | 372,295 |
SM Energy Co. | 3,200 | | 173,088 |
WPX Energy, Inc. | 12,300 | | 180,441 |
| | 1,521,795 |
TOTAL ENERGY | | 2,747,843 |
FINANCIALS - 6.5% |
Capital Markets - 1.7% |
Invesco Ltd. | 11,400 | | 247,950 |
KKR & Co. LP | 4,895 | | 57,516 |
TD Ameritrade Holding Corp. | 9,200 | | 157,872 |
Waddell & Reed Financial, Inc. Class A | 2,100 | | 60,291 |
| | 523,629 |
Commercial Banks - 0.2% |
CIT Group, Inc. (a) | 1,700 | | 58,123 |
Consumer Finance - 0.6% |
Capital One Financial Corp. | 2,300 | | 118,151 |
SLM Corp. | 6,000 | | 83,820 |
| | 201,971 |
Diversified Financial Services - 0.4% |
Interactive Brokers Group, Inc. | 7,700 | | 109,802 |
Insurance - 0.1% |
Brasil Insurance Participacoes e Administracao SA | 1,500 | | 12,718 |
Validus Holdings Ltd. | 100 | | 3,138 |
| | 15,856 |
Real Estate Investment Trusts - 3.0% |
Camden Property Trust (SBI) | 2,500 | | 162,775 |
Digital Realty Trust, Inc. | 2,400 | | 169,848 |
Equity One, Inc. | 5,846 | | 116,102 |
Rayonier, Inc. | 4,375 | | 187,994 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
SL Green Realty Corp. | 2,200 | | $ 165,022 |
Ventas, Inc. | 2,467 | | 145,109 |
| | 946,850 |
Real Estate Management & Development - 0.3% |
CBRE Group, Inc. (a) | 6,400 | | 105,280 |
Thrifts & Mortgage Finance - 0.2% |
Ocwen Financial Corp. (a) | 4,500 | | 72,135 |
TOTAL FINANCIALS | | 2,033,646 |
HEALTH CARE - 13.7% |
Biotechnology - 3.4% |
Alexion Pharmaceuticals, Inc. (a) | 4,049 | | 366,718 |
Biogen Idec, Inc. (a) | 1,400 | | 183,050 |
ONYX Pharmaceuticals, Inc. (a) | 3,100 | | 141,918 |
Regeneron Pharmaceuticals, Inc. (a) | 1,700 | | 230,605 |
Seattle Genetics, Inc. (a) | 7,000 | | 136,360 |
| | 1,058,651 |
Health Care Equipment & Supplies - 2.5% |
IDEXX Laboratories, Inc. (a) | 3,600 | | 305,424 |
Sirona Dental Systems, Inc. (a) | 3,600 | | 154,008 |
The Cooper Companies, Inc. | 3,700 | | 315,166 |
| | 774,598 |
Health Care Providers & Services - 6.0% |
Aetna, Inc. | 5,200 | | 212,628 |
Catalyst Health Solutions, Inc. (a) | 4,300 | | 373,541 |
HMS Holdings Corp. (a) | 10,400 | | 278,616 |
Humana, Inc. | 2,200 | | 168,058 |
MEDNAX, Inc. (a) | 4,000 | | 244,040 |
Omnicare, Inc. | 7,900 | | 249,008 |
VCA Antech, Inc. (a) | 7,800 | | 168,012 |
Wellcare Health Plans, Inc. (a) | 3,100 | | 175,057 |
| | 1,868,960 |
Health Care Technology - 0.0% |
Merge Healthcare, Inc. (a) | 4,814 | | 11,313 |
Pharmaceuticals - 1.8% |
Allergan, Inc. | 1,900 | | 171,475 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Elan Corp. PLC sponsored ADR (a) | 10,000 | | $ 139,600 |
Perrigo Co. | 2,600 | | 270,114 |
| | 581,189 |
TOTAL HEALTH CARE | | 4,294,711 |
INDUSTRIALS - 13.5% |
Aerospace & Defense - 2.0% |
BE Aerospace, Inc. (a) | 5,700 | | 246,924 |
Esterline Technologies Corp. (a) | 2,900 | | 187,311 |
Precision Castparts Corp. | 1,100 | | 182,831 |
| | 617,066 |
Building Products - 1.3% |
Lennox International, Inc. | 4,480 | | 192,147 |
Owens Corning (a) | 7,200 | | 222,192 |
| | 414,339 |
Electrical Equipment - 3.8% |
AMETEK, Inc. | 7,300 | | 370,183 |
Cooper Industries PLC Class A | 3,200 | | 225,600 |
Hubbell, Inc. Class B | 2,500 | | 197,300 |
Roper Industries, Inc. | 3,900 | | 394,758 |
| | 1,187,841 |
Machinery - 3.6% |
Colfax Corp. (a) | 4,500 | | 127,485 |
Cummins, Inc. | 1,800 | | 174,510 |
Ingersoll-Rand PLC | 8,547 | | 353,077 |
Melrose PLC | 20,800 | | 136,641 |
SPX Corp. | 2,600 | | 186,758 |
Stanley Black & Decker, Inc. | 2,347 | | 155,489 |
| | 1,133,960 |
Road & Rail - 0.9% |
J.B. Hunt Transport Services, Inc. | 5,300 | | 302,789 |
Trading Companies & Distributors - 1.9% |
W.W. Grainger, Inc. | 1,900 | | 367,935 |
Watsco, Inc. | 3,000 | | 220,830 |
| | 588,765 |
TOTAL INDUSTRIALS | | 4,244,760 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - 17.1% |
Communications Equipment - 1.9% |
Acme Packet, Inc. (a) | 6,300 | | $ 144,144 |
Brocade Communications Systems, Inc. (a) | 21,800 | | 101,370 |
Polycom, Inc. (a) | 11,977 | | 137,017 |
Riverbed Technology, Inc. (a) | 13,000 | | 213,200 |
| | 595,731 |
Computers & Peripherals - 1.0% |
NetApp, Inc. (a) | 2,200 | | 65,472 |
SanDisk Corp. (a) | 7,400 | | 241,980 |
| | 307,452 |
Electronic Equipment & Components - 1.7% |
Arrow Electronics, Inc. (a) | 3,400 | | 115,294 |
Flextronics International Ltd. (a) | 31,200 | | 200,304 |
Itron, Inc. (a) | 2,900 | | 103,907 |
Jabil Circuit, Inc. | 6,400 | | 122,432 |
| | 541,937 |
Internet Software & Services - 1.9% |
Akamai Technologies, Inc. (a) | 5,400 | | 158,436 |
Rackspace Hosting, Inc. (a) | 3,186 | | 157,611 |
Velti PLC (a)(d) | 11,243 | | 82,074 |
VeriSign, Inc. | 4,800 | | 183,504 |
| | 581,625 |
IT Services - 1.5% |
Amdocs Ltd. (a) | 3,700 | | 106,375 |
SAIC, Inc. | 6,400 | | 71,104 |
Sapient Corp. | 8,100 | | 89,100 |
The Western Union Co. | 13,100 | | 214,840 |
| | 481,419 |
Semiconductors & Semiconductor Equipment - 3.2% |
Advanced Micro Devices, Inc. (a) | 25,300 | | 153,824 |
Avago Technologies Ltd. | 6,500 | | 215,150 |
Broadcom Corp. Class A | 3,300 | | 106,755 |
Marvell Technology Group Ltd. | 8,000 | | 100,240 |
NXP Semiconductors NV (a) | 4,700 | | 99,217 |
ON Semiconductor Corp. (a) | 21,400 | | 144,236 |
Skyworks Solutions, Inc. (a) | 6,500 | | 174,590 |
| | 994,012 |
Software - 5.9% |
ANSYS, Inc. (a) | 3,179 | | 196,701 |
BMC Software, Inc. (a) | 5,500 | | 232,760 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Check Point Software Technologies Ltd. (a) | 2,700 | | $ 138,348 |
Citrix Systems, Inc. (a) | 3,535 | | 258,338 |
Intuit, Inc. | 4,743 | | 266,699 |
Mentor Graphics Corp. (a) | 8,300 | | 117,030 |
Nuance Communications, Inc. (a) | 8,614 | | 178,224 |
Parametric Technology Corp. (a) | 9,600 | | 193,920 |
Solera Holdings, Inc. | 3,700 | | 164,280 |
Synopsys, Inc. (a) | 4,100 | | 121,155 |
| | 1,867,455 |
TOTAL INFORMATION TECHNOLOGY | | 5,369,631 |
MATERIALS - 8.7% |
Chemicals - 6.6% |
Airgas, Inc. | 4,100 | | 355,921 |
Albemarle Corp. | 4,400 | | 267,080 |
FMC Corp. | 4,200 | | 214,074 |
PPG Industries, Inc. | 2,700 | | 279,288 |
Sherwin-Williams Co. | 2,900 | | 375,956 |
Sigma Aldrich Corp. | 4,100 | | 284,417 |
Valspar Corp. | 1,700 | | 81,957 |
W.R. Grace & Co. (a) | 3,900 | | 204,750 |
| | 2,063,443 |
Containers & Packaging - 1.4% |
Aptargroup, Inc. | 2,700 | | 136,809 |
Ball Corp. | 4,200 | | 167,874 |
Sonoco Products Co. | 4,300 | | 132,311 |
| | 436,994 |
Metals & Mining - 0.7% |
Carpenter Technology Corp. | 2,600 | | 117,156 |
Reliance Steel & Aluminum Co. | 2,600 | | 122,746 |
| | 239,902 |
TOTAL MATERIALS | | 2,740,339 |
TELECOMMUNICATION SERVICES - 1.6% |
Wireless Telecommunication Services - 1.6% |
Clearwire Corp. Class A (a) | 49,200 | | 59,532 |
Crown Castle International Corp. (a) | 2,800 | | 152,880 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - continued |
MetroPCS Communications, Inc. (a) | 12,600 | | $ 80,640 |
SBA Communications Corp. Class A (a) | 3,900 | | 202,605 |
| | 495,657 |
UTILITIES - 0.2% |
Electric Utilities - 0.1% |
Northeast Utilities | 800 | | 28,808 |
Gas Utilities - 0.0% |
National Fuel Gas Co. | 200 | | 8,646 |
Water Utilities - 0.1% |
American Water Works Co., Inc. | 900 | | 30,789 |
TOTAL UTILITIES | | 68,243 |
TOTAL COMMON STOCKS (Cost $32,248,006) |
30,849,199
|
Money Market Funds - 2.5% |
| | | |
Fidelity Cash Central Fund, 0.17% (b) | 661,279 | | 661,279 |
Fidelity Securities Lending Cash Central Fund, 0.17% (b)(c) | 107,507 | | 107,507 |
TOTAL MONEY MARKET FUNDS (Cost $768,786) |
768,786
|
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $33,016,792) | | 31,617,985 |
NET OTHER ASSETS (LIABILITIES) - (0.8)% | | (241,689) |
NET ASSETS - 100% | $ 31,376,296 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 581 |
Fidelity Securities Lending Cash Central Fund | 7,272 |
Total | $ 7,853 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 6,863,301 | $ 6,863,301 | $ - | $ - |
Consumer Staples | 1,991,068 | 1,991,068 | - | - |
Energy | 2,747,843 | 2,591,831 | 156,012 | - |
Financials | 2,033,646 | 2,033,646 | - | - |
Health Care | 4,294,711 | 4,294,711 | - | - |
Industrials | 4,244,760 | 4,108,119 | 136,641 | - |
Information Technology | 5,369,631 | 5,369,631 | - | - |
Materials | 2,740,339 | 2,740,339 | - | - |
Telecommunication Services | 495,657 | 495,657 | - | - |
Utilities | 68,243 | 68,243 | - | - |
Money Market Funds | 768,786 | 768,786 | - | - |
Total Investments in Securities: | $ 31,617,985 | $ 31,325,332 | $ 292,653 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| May 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $102,367) - See accompanying schedule: Unaffiliated issuers (cost $32,248,006) | $ 30,849,199 | |
Fidelity Central Funds (cost $768,786) | 768,786 | |
Total Investments (cost $33,016,792) | | $ 31,617,985 |
Receivable for investments sold | | 41,811 |
Receivable for fund shares sold | | 9,647 |
Dividends receivable | | 22,886 |
Distributions receivable from Fidelity Central Funds | | 547 |
Prepaid expenses | | 18 |
Other receivables | | 1,085 |
Total assets | | 31,693,979 |
| | |
Liabilities | | |
Payable to custodian bank | $ 49,032 | |
Payable for investments purchased | 50,541 | |
Payable for fund shares redeemed | 49,257 | |
Accrued management fee | 11,078 | |
Distribution and service plan fees payable | 13,639 | |
Other affiliated payables | 9,381 | |
Other payables and accrued expenses | 27,248 | |
Collateral on securities loaned, at value | 107,507 | |
Total liabilities | | 317,683 |
| | |
Net Assets | | $ 31,376,296 |
Net Assets consist of: | | |
Paid in capital | | $ 36,981,844 |
Accumulated net investment loss | | (143,469) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,063,155) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (1,398,924) |
Net Assets | | $ 31,376,296 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($10,793,706 ÷ 1,205,910 shares) | | $ 8.95 |
| | |
Maximum offering price per share (100/94.25 of $8.95) | | $ 9.50 |
Class T:
Net Asset Value and redemption price per share ($13,787,715 ÷ 1,585,609 shares) | | $ 8.70 |
| | |
Maximum offering price per share (100/96.50 of $8.70) | | $ 9.02 |
Class B:
Net Asset Value and offering price per share ($1,809,229 ÷ 219,602 shares)A | | $ 8.24 |
| | |
Class C:
Net Asset Value and offering price per share ($4,510,670 ÷ 547,311 shares)A | | $ 8.24 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($474,976 ÷ 51,400 shares) | | $ 9.24 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 101,040 |
Income from Fidelity Central Funds (including $7,272 from security lending) | | 7,853 |
Total income | | 108,893 |
| | |
Expenses | | |
Management fee
Basic fee | $ 101,985 | |
Performance adjustment | (33,029) | |
Transfer agent fees | 54,848 | |
Distribution and service plan fees | 85,865 | |
Accounting and security lending fees | 6,823 | |
Custodian fees and expenses | 4,737 | |
Independent trustees' compensation | 105 | |
Registration fees | 27,279 | |
Audit | 41,600 | |
Legal | 85 | |
Miscellaneous | 166 | |
Total expenses before reductions | 290,464 | |
Expense reductions | (38,115) | 252,349 |
Net investment income (loss) | | (143,456) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (112,030) | |
Foreign currency transactions | (907) | |
Total net realized gain (loss) | | (112,937) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 757,527 | |
Assets and liabilities in foreign currencies | (30) | |
Total change in net unrealized appreciation (depreciation) | | 757,497 |
Net gain (loss) | | 644,560 |
Net increase (decrease) in net assets resulting from operations | | $ 501,104 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2012
Unaudited) | Year ended
November 30, 2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (143,456) | $ (344,902) |
Net realized gain (loss) | (112,937) | 5,074,645 |
Change in net unrealized appreciation (depreciation) | 757,497 | (4,750,834) |
Net increase (decrease) in net assets resulting
from operations | 501,104 | (21,091) |
Share transactions - net increase (decrease) | (2,198,214) | (1,727,692) |
Total increase (decrease) in net assets | (1,697,110) | (1,748,783) |
| | |
Net Assets | | |
Beginning of period | 33,073,406 | 34,822,189 |
End of period (including accumulated net investment loss of $143,469 and accumulated net investment loss of $13, respectively) | $ 31,376,296 | $ 33,073,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.83 | $ 8.84 | $ 7.18 | $ 5.32 | $ 12.05 | $ 10.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.06) | (.06) | (.04) H | (.02) I | (.10) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.72 | 1.90 | (5.44) | 1.62 |
Total from investment operations | .12 | (.01) | 1.66 | 1.86 | (5.46) | 1.52 |
Distributions from net realized gain | - | - | - | - | (1.27) | - |
Net asset value, end of period | $ 8.95 | $ 8.83 | $ 8.84 | $ 7.18 | $ 5.32 | $ 12.05 |
Total Return B,C,D | 1.36% | (.11)% | 23.12% | 34.96% | (50.65)% | 14.43% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.45% A | 1.45% | 1.43% | 1.68% | 1.63% | 1.53% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.30% | 1.30% | 1.30% | 1.30% |
Expenses net of all reductions | 1.25% A | 1.24% | 1.29% | 1.28% | 1.28% | 1.29% |
Net investment income (loss) | (.60)% A | (.67)% | (.77)% | (.58)% H | (.21)% I | (.85)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,794 | $ 10,792 | $ 10,971 | $ 9,369 | $ 6,492 | $ 12,665 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.59 | $ 8.62 | $ 7.02 | $ 5.21 | $ 11.83 | $ 10.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.08) | (.08) | (.05) H | (.04) I | (.12) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.68 | 1.86 | (5.34) | 1.59 |
Total from investment operations | .11 | (.03) | 1.60 | 1.81 | (5.38) | 1.47 |
Distributions from net realized gain | - | - | - | - | (1.24) | - |
Net asset value, end of period | $ 8.70 | $ 8.59 | $ 8.62 | $ 7.02 | $ 5.21 | $ 11.83 |
Total Return B,C,D | 1.28% | (.35)% | 22.79% | 34.74% | (50.81)% | 14.19% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.75% A | 1.75% | 1.73% | 2.04% | 1.94% | 1.88% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.55% | 1.55% | 1.55% | 1.55% |
Expenses net of all reductions | 1.49% A | 1.49% | 1.54% | 1.53% | 1.53% | 1.54% |
Net investment income (loss) | (.84)% A | (.92)% | (1.02)% | (.83)% H | (.46)% I | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,788 | $ 14,671 | $ 14,612 | $ 12,462 | $ 9,388 | $ 19,144 |
Portfolio turnover rate G | 214%A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.91)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.59)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.02 | $ 11.44 | $ 10.06 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.13) | (.11) | (.08) H | (.08) I | (.17) |
Net realized and unrealized gain (loss) | .14 | .06 | 1.60 | 1.80 | (5.17) | 1.55 |
Total from investment operations | .08 | (.07) | 1.49 | 1.72 | (5.25) | 1.38 |
Distributions from net realized gain | - | - | - | - | (1.17) | - |
Net asset value, end of period | $ 8.24 | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.02 | $ 11.44 |
Total Return B,C,D | .98% | (.85)% | 22.11% | 34.26% | (51.11)% | 13.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.20% | 2.18% | 2.47% | 2.39% | 2.28% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.05% | 2.05% | 2.05% | 2.05% |
Expenses net of all reductions | 1.99% A | 1.99% | 2.04% | 2.03% | 2.04% | 2.04% |
Net investment income (loss) | (1.34)% A | (1.42)% | (1.52)% | (1.33)% H | (.96)% I | (1.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,809 | $ 2,120 | $ 3,095 | $ 3,272 | $ 3,203 | $ 9,082 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.03 | $ 11.45 | $ 10.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) | (.11) | (.08) H | (.08) I | (.18) |
Net realized and unrealized gain (loss) | .14 | .05 | 1.60 | 1.79 | (5.15) | 1.55 |
Total from investment operations | .08 | (.07) | 1.49 | 1.71 | (5.23) | 1.37 |
Distributions from net realized gain | - | - | - | - | (1.19) | - |
Net asset value, end of period | $ 8.24 | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.03 | $ 11.45 |
Total Return B,C,D | .98% | (.85)% | 22.11% | 34.00% | (50.99)% | 13.59% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.20% | 2.18% | 2.47% | 2.38% | 2.28% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.05% | 2.05% | 2.05% | 2.05% |
Expenses net of all reductions | 1.99% A | 1.99% | 2.04% | 2.03% | 2.04% | 2.04% |
Net investment income (loss) | (1.34)% A | (1.42)% | (1.52)% | (1.33)% H | (.96)% I | (1.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,511 | $ 4,870 | $ 5,604 | $ 4,603 | $ 3,703 | $ 8,270 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 9.10 | $ 7.37 | $ 5.44 | $ 12.31 | $ 10.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.04) | (.04) | (.02) G | - H,J | (.07) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.77 | 1.95 | (5.57) | 1.66 |
Total from investment operations | .13 | .01 | 1.73 | 1.93 | (5.57) | 1.59 |
Distributions from net realized gain | - | - | - | - | (1.30) | - |
Net asset value, end of period | $ 9.24 | $ 9.11 | $ 9.10 | $ 7.37 | $ 5.44 | $ 12.31 |
Total Return B,C, | 1.43% | .11% | 23.47% | 35.48% | (50.59)% | 14.83% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.10% A | 1.09% | 1.10% | 1.43% | 1.33% | 1.20% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.05% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.00% A | .99% | 1.04% | 1.03% | 1.03% | 1.04% |
Net investment income (loss) | (.35)% A | (.42)% | (.53)% | (.33)% G | .04% H | (.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 475 | $ 621 | $ 542 | $ 362 | $ 338 | $ 959 |
Portfolio turnover rate F | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.42)%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Growth Strategies 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, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on June 29, 2012, the Fund's other share classes were closed to new accounts with certain exceptions. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,248,383 |
Gross unrealized depreciation | (2,658,421) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (1,140,038) |
| |
Tax cost | $ 33,028,023 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At November 30, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (3,410,913) |
2017 | (250,405) |
Total capital loss carryforward | $ (3,661,318) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,038,568 and $37,155,389, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 14,082 | $ 278 |
Class T | .25% | .25% | 36,862 | 145 |
Class B | .75% | .25% | 10,391 | 7,845 |
Class C | .75% | .25% | 24,530 | 1,904 |
| | | $ 85,865 | $ 10,172 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 3,877 |
Class T | 6,193 |
Class B* | 1,192 |
Class C* | 353 |
| $ 11,615 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC 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
Average
Net Assets* |
Class A | $ 17,447 | .31 |
Class T | 26,057 | .35 |
Class B | 3,202 | .31 |
Class C | 7,580 | .31 |
Institutional Class | 562 | .20 |
| $ 54,848 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
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. The commissions paid to these affiliated firms were $883 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $50 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $371 from securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 11,135 |
Class T | 1.50% | 18,284 |
Class B | 2.00% | 2,126 |
Class C | 2.00% | 4,926 |
Institutional Class | 1.00% | 284 |
| | $ 36,755 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,360 for the period.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended May 31,
2012 | Year ended
November 30,
2011 | Six months ended May 31,
2012 | Year ended
November 30,
2011 |
Class A | | | | |
Shares sold | 123,273 | 348,616 | $ 1,154,165 | $ 3,339,944 |
Shares redeemed | (139,153) | (367,362) | (1,290,775) | (3,463,746) |
Net increase (decrease) | (15,880) | (18,746) | $ (136,610) | $ (123,802) |
Class T | | | | |
Shares sold | 116,721 | 284,211 | $ 1,054,379 | $ 2,574,964 |
Shares redeemed | (238,628) | (271,058) | (2,184,988) | (2,505,414) |
Net increase (decrease) | (121,907) | 13,153 | $ (1,130,609) | $ 69,550 |
Class B | | | | |
Shares sold | 2,957 | 12,134 | $ 25,839 | $ 107,027 |
Shares redeemed | (43,178) | (128,257) | (375,180) | (1,130,647) |
Net increase (decrease) | (40,221) | (116,123) | $ (349,341) | $ (1,023,620) |
Class C | | | | |
Shares sold | 27,304 | 115,363 | $ 233,422 | $ 1,024,037 |
Shares redeemed | (76,479) | (199,330) | (649,968) | (1,750,739) |
Net increase (decrease) | (49,175) | (83,967) | $ (416,546) | $ (726,702) |
Institutional Class | | | | |
Shares sold | 7,319 | 26,322 | $ 72,048 | $ 252,318 |
Shares redeemed | (24,061) | (17,715) | (237,156) | (175,436) |
Net increase (decrease) | (16,742) | 8,607 | $ (165,108) | $ 76,882 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Proposed Reorganization.
The Board of Trustees of the Fund has approved an Agreement and Plan of Reorganization between the Fund and Fidelity Advisor Stock Selector Mid Cap Fund. The agreement provides for the transfer of all the assets and the assumption of all the liabilities of the Fund in exchange solely for the number of equivalent shares of Fidelity Advisor Stock Selector Mid Cap Fund having the same aggregate net asset value as the outstanding shares of the corresponding classes of the Fund on the day the reorganization is effective.
A meeting of shareholders of the Fund is expected to be held during the fourth quarter of 2012. If approved by shareholders, the reorganization is expected to become effective on or about December 14, 2012. The reorganization is expected to qualify as a tax-free transaction with no gain or loss recognized by the funds or their shareholders.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AAGI-USAN-0712
1.786774.109
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Growth Strategies
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2012
(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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2011 to May 31, 2012).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
December 1, 2011 | Ending
Account Value
May 31, 2012 | Expenses Paid
During Period*
December 1, 2011 to
May 31, 2012 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 1,013.60 | $ 6.29 |
Hypothetical A | | $ 1,000.00 | $ 1,018.75 | $ 6.31 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 1,012.80 | $ 7.55 |
Hypothetical A | | $ 1,000.00 | $ 1,017.50 | $ 7.57 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 10.05 |
Hypothetical A | | $ 1,000.00 | $ 1,015.00 | $ 10.08 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 1,009.80 | $ 10.05 |
Hypothetical A | | $ 1,000.00 | $ 1,015.00 | $ 10.08 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 1,014.30 | $ 5.04 |
Hypothetical A | | $ 1,000.00 | $ 1,020.00 | $ 5.05 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of May 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PetSmart, Inc. | 1.8 | 0.0 |
Tractor Supply Co. | 1.6 | 1.2 |
Sara Lee Corp. | 1.5 | 0.0 |
Dick's Sporting Goods, Inc. | 1.3 | 0.0 |
Church & Dwight Co., Inc. | 1.3 | 0.0 |
Roper Industries, Inc. | 1.3 | 1.2 |
LKQ Corp. | 1.2 | 0.0 |
Sherwin-Williams Co. | 1.2 | 0.0 |
Catalyst Health Solutions, Inc. | 1.2 | 0.0 |
Pioneer Natural Resources Co. | 1.2 | 0.0 |
| 13.6 | |
Top Five Market Sectors as of May 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 21.9 | 17.5 |
Information Technology | 17.1 | 22.1 |
Health Care | 13.7 | 15.1 |
Industrials | 13.5 | 12.6 |
Energy | 8.8 | 14.1 |
Asset Allocation (% of fund's net assets) |
As of May 31, 2012* | As of November 30, 2011** |
| Stocks 98.3% | | | Stocks 97.9% | |
| Short-Term
Investments and
Net Other Assets (Liabilities) 1.7% | | | Short-Term
Investments and
Net Other Assets (Liabilities) 2.1% | |
* Foreign investments | 8.8% | | ** Foreign investments | 10.7% | |
Semiannual Report
Investments May 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 21.9% |
Auto Components - 0.6% |
WABCO Holdings, Inc. (a) | 3,390 | | $ 175,466 |
Distributors - 1.2% |
LKQ Corp. (a) | 10,500 | | 382,620 |
Hotels, Restaurants & Leisure - 2.0% |
BJ's Restaurants, Inc. (a) | 1,889 | | 82,719 |
Buffalo Wild Wings, Inc. (a) | 1,400 | | 119,154 |
Domino's Pizza, Inc. | 3,300 | | 101,343 |
Panera Bread Co. Class A (a) | 2,200 | | 323,290 |
| | 626,506 |
Household Durables - 3.2% |
Jarden Corp. | 7,300 | | 296,745 |
Newell Rubbermaid, Inc. | 8,900 | | 163,760 |
NVR, Inc. (a) | 300 | | 241,440 |
Tempur-Pedic International, Inc. (a) | 800 | | 36,968 |
Tupperware Brands Corp. | 4,900 | | 264,845 |
| | 1,003,758 |
Leisure Equipment & Products - 1.0% |
Polaris Industries, Inc. | 4,300 | | 326,671 |
Multiline Retail - 1.0% |
Dollar General Corp. (a) | 3,000 | | 146,730 |
Dollar Tree, Inc. (a) | 1,624 | | 167,564 |
| | 314,294 |
Specialty Retail - 10.4% |
Abercrombie & Fitch Co. Class A | 1,662 | | 55,743 |
Collective Brands, Inc. (a) | 9,800 | | 208,446 |
Dick's Sporting Goods, Inc. | 8,800 | | 409,200 |
Hibbett Sports, Inc. (a) | 2,600 | | 145,678 |
Limited Brands, Inc. | 2,435 | | 108,017 |
O'Reilly Automotive, Inc. (a) | 1,500 | | 143,685 |
PetSmart, Inc. | 8,900 | | 573,513 |
Ross Stores, Inc. | 3,100 | | 196,013 |
Sally Beauty Holdings, Inc. (a) | 11,900 | | 314,517 |
Signet Jewelers Ltd. | 6,500 | | 283,790 |
Tractor Supply Co. | 5,538 | | 505,896 |
Ulta Salon, Cosmetics & Fragrance, Inc. | 1,400 | | 125,118 |
Urban Outfitters, Inc. (a) | 2,300 | | 64,331 |
Vitamin Shoppe, Inc. (a) | 2,400 | | 118,848 |
| | 3,252,795 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - 2.5% |
PVH Corp. | 4,348 | | $ 352,188 |
Under Armour, Inc. Class A (sub. vtg.) (a) | 2,624 | | 264,316 |
Warnaco Group, Inc. (a) | 3,700 | | 164,687 |
| | 781,191 |
TOTAL CONSUMER DISCRETIONARY | | 6,863,301 |
CONSUMER STAPLES - 6.3% |
Beverages - 1.7% |
Beam, Inc. | 3,000 | | 181,680 |
Dr Pepper Snapple Group, Inc. | 2,000 | | 82,520 |
Monster Beverage Corp. (a) | 3,634 | | 263,828 |
| | 528,028 |
Food & Staples Retailing - 1.0% |
United Natural Foods, Inc. (a) | 3,200 | | 162,240 |
Whole Foods Market, Inc. | 1,821 | | 161,359 |
| | 323,599 |
Food Products - 2.3% |
Green Mountain Coffee Roasters, Inc. (a)(d) | 1,863 | | 43,967 |
Sara Lee Corp. | 23,100 | | 482,790 |
The J.M. Smucker Co. | 1,000 | | 76,560 |
TreeHouse Foods, Inc. (a) | 2,400 | | 136,824 |
| | 740,141 |
Household Products - 1.3% |
Church & Dwight Co., Inc. | 7,500 | | 399,300 |
TOTAL CONSUMER STAPLES | | 1,991,068 |
ENERGY - 8.8% |
Energy Equipment & Services - 3.9% |
Cameron International Corp. (a) | 7,100 | | 324,399 |
Dresser-Rand Group, Inc. (a) | 3,000 | | 131,640 |
Ensco PLC Class A | 2,800 | | 125,748 |
Heckmann Corp. (a) | 48,328 | | 163,349 |
Helmerich & Payne, Inc. | 3,000 | | 135,900 |
Petrofac Ltd. | 6,500 | | 156,012 |
Rowan Companies PLC (a) | 6,300 | | 189,000 |
| | 1,226,048 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - 4.9% |
Atlas Pipeline Partners, LP | 3,500 | | $ 105,000 |
Cabot Oil & Gas Corp. | 9,516 | | 309,651 |
HollyFrontier Corp. | 2,000 | | 58,960 |
Kinder Morgan Holding Co. LLC | 4,898 | | 167,463 |
Kinder Morgan Holding Co. LLC warrants 2/15/17 | 7,488 | | 17,073 |
Peabody Energy Corp. | 5,900 | | 137,824 |
Pioneer Natural Resources Co. | 3,850 | | 372,295 |
SM Energy Co. | 3,200 | | 173,088 |
WPX Energy, Inc. | 12,300 | | 180,441 |
| | 1,521,795 |
TOTAL ENERGY | | 2,747,843 |
FINANCIALS - 6.5% |
Capital Markets - 1.7% |
Invesco Ltd. | 11,400 | | 247,950 |
KKR & Co. LP | 4,895 | | 57,516 |
TD Ameritrade Holding Corp. | 9,200 | | 157,872 |
Waddell & Reed Financial, Inc. Class A | 2,100 | | 60,291 |
| | 523,629 |
Commercial Banks - 0.2% |
CIT Group, Inc. (a) | 1,700 | | 58,123 |
Consumer Finance - 0.6% |
Capital One Financial Corp. | 2,300 | | 118,151 |
SLM Corp. | 6,000 | | 83,820 |
| | 201,971 |
Diversified Financial Services - 0.4% |
Interactive Brokers Group, Inc. | 7,700 | | 109,802 |
Insurance - 0.1% |
Brasil Insurance Participacoes e Administracao SA | 1,500 | | 12,718 |
Validus Holdings Ltd. | 100 | | 3,138 |
| | 15,856 |
Real Estate Investment Trusts - 3.0% |
Camden Property Trust (SBI) | 2,500 | | 162,775 |
Digital Realty Trust, Inc. | 2,400 | | 169,848 |
Equity One, Inc. | 5,846 | | 116,102 |
Rayonier, Inc. | 4,375 | | 187,994 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Real Estate Investment Trusts - continued |
SL Green Realty Corp. | 2,200 | | $ 165,022 |
Ventas, Inc. | 2,467 | | 145,109 |
| | 946,850 |
Real Estate Management & Development - 0.3% |
CBRE Group, Inc. (a) | 6,400 | | 105,280 |
Thrifts & Mortgage Finance - 0.2% |
Ocwen Financial Corp. (a) | 4,500 | | 72,135 |
TOTAL FINANCIALS | | 2,033,646 |
HEALTH CARE - 13.7% |
Biotechnology - 3.4% |
Alexion Pharmaceuticals, Inc. (a) | 4,049 | | 366,718 |
Biogen Idec, Inc. (a) | 1,400 | | 183,050 |
ONYX Pharmaceuticals, Inc. (a) | 3,100 | | 141,918 |
Regeneron Pharmaceuticals, Inc. (a) | 1,700 | | 230,605 |
Seattle Genetics, Inc. (a) | 7,000 | | 136,360 |
| | 1,058,651 |
Health Care Equipment & Supplies - 2.5% |
IDEXX Laboratories, Inc. (a) | 3,600 | | 305,424 |
Sirona Dental Systems, Inc. (a) | 3,600 | | 154,008 |
The Cooper Companies, Inc. | 3,700 | | 315,166 |
| | 774,598 |
Health Care Providers & Services - 6.0% |
Aetna, Inc. | 5,200 | | 212,628 |
Catalyst Health Solutions, Inc. (a) | 4,300 | | 373,541 |
HMS Holdings Corp. (a) | 10,400 | | 278,616 |
Humana, Inc. | 2,200 | | 168,058 |
MEDNAX, Inc. (a) | 4,000 | | 244,040 |
Omnicare, Inc. | 7,900 | | 249,008 |
VCA Antech, Inc. (a) | 7,800 | | 168,012 |
Wellcare Health Plans, Inc. (a) | 3,100 | | 175,057 |
| | 1,868,960 |
Health Care Technology - 0.0% |
Merge Healthcare, Inc. (a) | 4,814 | | 11,313 |
Pharmaceuticals - 1.8% |
Allergan, Inc. | 1,900 | | 171,475 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Elan Corp. PLC sponsored ADR (a) | 10,000 | | $ 139,600 |
Perrigo Co. | 2,600 | | 270,114 |
| | 581,189 |
TOTAL HEALTH CARE | | 4,294,711 |
INDUSTRIALS - 13.5% |
Aerospace & Defense - 2.0% |
BE Aerospace, Inc. (a) | 5,700 | | 246,924 |
Esterline Technologies Corp. (a) | 2,900 | | 187,311 |
Precision Castparts Corp. | 1,100 | | 182,831 |
| | 617,066 |
Building Products - 1.3% |
Lennox International, Inc. | 4,480 | | 192,147 |
Owens Corning (a) | 7,200 | | 222,192 |
| | 414,339 |
Electrical Equipment - 3.8% |
AMETEK, Inc. | 7,300 | | 370,183 |
Cooper Industries PLC Class A | 3,200 | | 225,600 |
Hubbell, Inc. Class B | 2,500 | | 197,300 |
Roper Industries, Inc. | 3,900 | | 394,758 |
| | 1,187,841 |
Machinery - 3.6% |
Colfax Corp. (a) | 4,500 | | 127,485 |
Cummins, Inc. | 1,800 | | 174,510 |
Ingersoll-Rand PLC | 8,547 | | 353,077 |
Melrose PLC | 20,800 | | 136,641 |
SPX Corp. | 2,600 | | 186,758 |
Stanley Black & Decker, Inc. | 2,347 | | 155,489 |
| | 1,133,960 |
Road & Rail - 0.9% |
J.B. Hunt Transport Services, Inc. | 5,300 | | 302,789 |
Trading Companies & Distributors - 1.9% |
W.W. Grainger, Inc. | 1,900 | | 367,935 |
Watsco, Inc. | 3,000 | | 220,830 |
| | 588,765 |
TOTAL INDUSTRIALS | | 4,244,760 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - 17.1% |
Communications Equipment - 1.9% |
Acme Packet, Inc. (a) | 6,300 | | $ 144,144 |
Brocade Communications Systems, Inc. (a) | 21,800 | | 101,370 |
Polycom, Inc. (a) | 11,977 | | 137,017 |
Riverbed Technology, Inc. (a) | 13,000 | | 213,200 |
| | 595,731 |
Computers & Peripherals - 1.0% |
NetApp, Inc. (a) | 2,200 | | 65,472 |
SanDisk Corp. (a) | 7,400 | | 241,980 |
| | 307,452 |
Electronic Equipment & Components - 1.7% |
Arrow Electronics, Inc. (a) | 3,400 | | 115,294 |
Flextronics International Ltd. (a) | 31,200 | | 200,304 |
Itron, Inc. (a) | 2,900 | | 103,907 |
Jabil Circuit, Inc. | 6,400 | | 122,432 |
| | 541,937 |
Internet Software & Services - 1.9% |
Akamai Technologies, Inc. (a) | 5,400 | | 158,436 |
Rackspace Hosting, Inc. (a) | 3,186 | | 157,611 |
Velti PLC (a)(d) | 11,243 | | 82,074 |
VeriSign, Inc. | 4,800 | | 183,504 |
| | 581,625 |
IT Services - 1.5% |
Amdocs Ltd. (a) | 3,700 | | 106,375 |
SAIC, Inc. | 6,400 | | 71,104 |
Sapient Corp. | 8,100 | | 89,100 |
The Western Union Co. | 13,100 | | 214,840 |
| | 481,419 |
Semiconductors & Semiconductor Equipment - 3.2% |
Advanced Micro Devices, Inc. (a) | 25,300 | | 153,824 |
Avago Technologies Ltd. | 6,500 | | 215,150 |
Broadcom Corp. Class A | 3,300 | | 106,755 |
Marvell Technology Group Ltd. | 8,000 | | 100,240 |
NXP Semiconductors NV (a) | 4,700 | | 99,217 |
ON Semiconductor Corp. (a) | 21,400 | | 144,236 |
Skyworks Solutions, Inc. (a) | 6,500 | | 174,590 |
| | 994,012 |
Software - 5.9% |
ANSYS, Inc. (a) | 3,179 | | 196,701 |
BMC Software, Inc. (a) | 5,500 | | 232,760 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Check Point Software Technologies Ltd. (a) | 2,700 | | $ 138,348 |
Citrix Systems, Inc. (a) | 3,535 | | 258,338 |
Intuit, Inc. | 4,743 | | 266,699 |
Mentor Graphics Corp. (a) | 8,300 | | 117,030 |
Nuance Communications, Inc. (a) | 8,614 | | 178,224 |
Parametric Technology Corp. (a) | 9,600 | | 193,920 |
Solera Holdings, Inc. | 3,700 | | 164,280 |
Synopsys, Inc. (a) | 4,100 | | 121,155 |
| | 1,867,455 |
TOTAL INFORMATION TECHNOLOGY | | 5,369,631 |
MATERIALS - 8.7% |
Chemicals - 6.6% |
Airgas, Inc. | 4,100 | | 355,921 |
Albemarle Corp. | 4,400 | | 267,080 |
FMC Corp. | 4,200 | | 214,074 |
PPG Industries, Inc. | 2,700 | | 279,288 |
Sherwin-Williams Co. | 2,900 | | 375,956 |
Sigma Aldrich Corp. | 4,100 | | 284,417 |
Valspar Corp. | 1,700 | | 81,957 |
W.R. Grace & Co. (a) | 3,900 | | 204,750 |
| | 2,063,443 |
Containers & Packaging - 1.4% |
Aptargroup, Inc. | 2,700 | | 136,809 |
Ball Corp. | 4,200 | | 167,874 |
Sonoco Products Co. | 4,300 | | 132,311 |
| | 436,994 |
Metals & Mining - 0.7% |
Carpenter Technology Corp. | 2,600 | | 117,156 |
Reliance Steel & Aluminum Co. | 2,600 | | 122,746 |
| | 239,902 |
TOTAL MATERIALS | | 2,740,339 |
TELECOMMUNICATION SERVICES - 1.6% |
Wireless Telecommunication Services - 1.6% |
Clearwire Corp. Class A (a) | 49,200 | | 59,532 |
Crown Castle International Corp. (a) | 2,800 | | 152,880 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - continued |
MetroPCS Communications, Inc. (a) | 12,600 | | $ 80,640 |
SBA Communications Corp. Class A (a) | 3,900 | | 202,605 |
| | 495,657 |
UTILITIES - 0.2% |
Electric Utilities - 0.1% |
Northeast Utilities | 800 | | 28,808 |
Gas Utilities - 0.0% |
National Fuel Gas Co. | 200 | | 8,646 |
Water Utilities - 0.1% |
American Water Works Co., Inc. | 900 | | 30,789 |
TOTAL UTILITIES | | 68,243 |
TOTAL COMMON STOCKS (Cost $32,248,006) |
30,849,199
|
Money Market Funds - 2.5% |
| | | |
Fidelity Cash Central Fund, 0.17% (b) | 661,279 | | 661,279 |
Fidelity Securities Lending Cash Central Fund, 0.17% (b)(c) | 107,507 | | 107,507 |
TOTAL MONEY MARKET FUNDS (Cost $768,786) |
768,786
|
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $33,016,792) | | 31,617,985 |
NET OTHER ASSETS (LIABILITIES) - (0.8)% | | (241,689) |
NET ASSETS - 100% | $ 31,376,296 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 581 |
Fidelity Securities Lending Cash Central Fund | 7,272 |
Total | $ 7,853 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2012, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 6,863,301 | $ 6,863,301 | $ - | $ - |
Consumer Staples | 1,991,068 | 1,991,068 | - | - |
Energy | 2,747,843 | 2,591,831 | 156,012 | - |
Financials | 2,033,646 | 2,033,646 | - | - |
Health Care | 4,294,711 | 4,294,711 | - | - |
Industrials | 4,244,760 | 4,108,119 | 136,641 | - |
Information Technology | 5,369,631 | 5,369,631 | - | - |
Materials | 2,740,339 | 2,740,339 | - | - |
Telecommunication Services | 495,657 | 495,657 | - | - |
Utilities | 68,243 | 68,243 | - | - |
Money Market Funds | 768,786 | 768,786 | - | - |
Total Investments in Securities: | $ 31,617,985 | $ 31,325,332 | $ 292,653 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| May 31, 2012 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $102,367) - See accompanying schedule: Unaffiliated issuers (cost $32,248,006) | $ 30,849,199 | |
Fidelity Central Funds (cost $768,786) | 768,786 | |
Total Investments (cost $33,016,792) | | $ 31,617,985 |
Receivable for investments sold | | 41,811 |
Receivable for fund shares sold | | 9,647 |
Dividends receivable | | 22,886 |
Distributions receivable from Fidelity Central Funds | | 547 |
Prepaid expenses | | 18 |
Other receivables | | 1,085 |
Total assets | | 31,693,979 |
| | |
Liabilities | | |
Payable to custodian bank | $ 49,032 | |
Payable for investments purchased | 50,541 | |
Payable for fund shares redeemed | 49,257 | |
Accrued management fee | 11,078 | |
Distribution and service plan fees payable | 13,639 | |
Other affiliated payables | 9,381 | |
Other payables and accrued expenses | 27,248 | |
Collateral on securities loaned, at value | 107,507 | |
Total liabilities | | 317,683 |
| | |
Net Assets | | $ 31,376,296 |
Net Assets consist of: | | |
Paid in capital | | $ 36,981,844 |
Accumulated net investment loss | | (143,469) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,063,155) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (1,398,924) |
Net Assets | | $ 31,376,296 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| May 31, 2012 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($10,793,706 ÷ 1,205,910 shares) | | $ 8.95 |
| | |
Maximum offering price per share (100/94.25 of $8.95) | | $ 9.50 |
Class T:
Net Asset Value and redemption price per share ($13,787,715 ÷ 1,585,609 shares) | | $ 8.70 |
| | |
Maximum offering price per share (100/96.50 of $8.70) | | $ 9.02 |
Class B:
Net Asset Value and offering price per share ($1,809,229 ÷ 219,602 shares)A | | $ 8.24 |
| | |
Class C:
Net Asset Value and offering price per share ($4,510,670 ÷ 547,311 shares)A | | $ 8.24 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($474,976 ÷ 51,400 shares) | | $ 9.24 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended May 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 101,040 |
Income from Fidelity Central Funds (including $7,272 from security lending) | | 7,853 |
Total income | | 108,893 |
| | |
Expenses | | |
Management fee
Basic fee | $ 101,985 | |
Performance adjustment | (33,029) | |
Transfer agent fees | 54,848 | |
Distribution and service plan fees | 85,865 | |
Accounting and security lending fees | 6,823 | |
Custodian fees and expenses | 4,737 | |
Independent trustees' compensation | 105 | |
Registration fees | 27,279 | |
Audit | 41,600 | |
Legal | 85 | |
Miscellaneous | 166 | |
Total expenses before reductions | 290,464 | |
Expense reductions | (38,115) | 252,349 |
Net investment income (loss) | | (143,456) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (112,030) | |
Foreign currency transactions | (907) | |
Total net realized gain (loss) | | (112,937) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 757,527 | |
Assets and liabilities in foreign currencies | (30) | |
Total change in net unrealized appreciation (depreciation) | | 757,497 |
Net gain (loss) | | 644,560 |
Net increase (decrease) in net assets resulting from operations | | $ 501,104 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended May 31, 2012
Unaudited) | Year ended
November 30, 2011 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (143,456) | $ (344,902) |
Net realized gain (loss) | (112,937) | 5,074,645 |
Change in net unrealized appreciation (depreciation) | 757,497 | (4,750,834) |
Net increase (decrease) in net assets resulting
from operations | 501,104 | (21,091) |
Share transactions - net increase (decrease) | (2,198,214) | (1,727,692) |
Total increase (decrease) in net assets | (1,697,110) | (1,748,783) |
| | |
Net Assets | | |
Beginning of period | 33,073,406 | 34,822,189 |
End of period (including accumulated net investment loss of $143,469 and accumulated net investment loss of $13, respectively) | $ 31,376,296 | $ 33,073,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.83 | $ 8.84 | $ 7.18 | $ 5.32 | $ 12.05 | $ 10.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.06) | (.06) | (.04) H | (.02) I | (.10) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.72 | 1.90 | (5.44) | 1.62 |
Total from investment operations | .12 | (.01) | 1.66 | 1.86 | (5.46) | 1.52 |
Distributions from net realized gain | - | - | - | - | (1.27) | - |
Net asset value, end of period | $ 8.95 | $ 8.83 | $ 8.84 | $ 7.18 | $ 5.32 | $ 12.05 |
Total Return B,C,D | 1.36% | (.11)% | 23.12% | 34.96% | (50.65)% | 14.43% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.45% A | 1.45% | 1.43% | 1.68% | 1.63% | 1.53% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.30% | 1.30% | 1.30% | 1.30% |
Expenses net of all reductions | 1.25% A | 1.24% | 1.29% | 1.28% | 1.28% | 1.29% |
Net investment income (loss) | (.60)% A | (.67)% | (.77)% | (.58)% H | (.21)% I | (.85)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,794 | $ 10,792 | $ 10,971 | $ 9,369 | $ 6,492 | $ 12,665 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.34)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.59 | $ 8.62 | $ 7.02 | $ 5.21 | $ 11.83 | $ 10.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.08) | (.08) | (.05) H | (.04) I | (.12) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.68 | 1.86 | (5.34) | 1.59 |
Total from investment operations | .11 | (.03) | 1.60 | 1.81 | (5.38) | 1.47 |
Distributions from net realized gain | - | - | - | - | (1.24) | - |
Net asset value, end of period | $ 8.70 | $ 8.59 | $ 8.62 | $ 7.02 | $ 5.21 | $ 11.83 |
Total Return B,C,D | 1.28% | (.35)% | 22.79% | 34.74% | (50.81)% | 14.19% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 1.75% A | 1.75% | 1.73% | 2.04% | 1.94% | 1.88% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.55% | 1.55% | 1.55% | 1.55% |
Expenses net of all reductions | 1.49% A | 1.49% | 1.54% | 1.53% | 1.53% | 1.54% |
Net investment income (loss) | (.84)% A | (.92)% | (1.02)% | (.83)% H | (.46)% I | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,788 | $ 14,671 | $ 14,612 | $ 12,462 | $ 9,388 | $ 19,144 |
Portfolio turnover rate G | 214%A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.91)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.59)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.02 | $ 11.44 | $ 10.06 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.13) | (.11) | (.08) H | (.08) I | (.17) |
Net realized and unrealized gain (loss) | .14 | .06 | 1.60 | 1.80 | (5.17) | 1.55 |
Total from investment operations | .08 | (.07) | 1.49 | 1.72 | (5.25) | 1.38 |
Distributions from net realized gain | - | - | - | - | (1.17) | - |
Net asset value, end of period | $ 8.24 | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.02 | $ 11.44 |
Total Return B,C,D | .98% | (.85)% | 22.11% | 34.26% | (51.11)% | 13.72% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.20% | 2.18% | 2.47% | 2.39% | 2.28% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.05% | 2.05% | 2.05% | 2.05% |
Expenses net of all reductions | 1.99% A | 1.99% | 2.04% | 2.03% | 2.04% | 2.04% |
Net investment income (loss) | (1.34)% A | (1.42)% | (1.52)% | (1.33)% H | (.96)% I | (1.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,809 | $ 2,120 | $ 3,095 | $ 3,272 | $ 3,203 | $ 9,082 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.03 | $ 11.45 | $ 10.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.12) | (.11) | (.08) H | (.08) I | (.18) |
Net realized and unrealized gain (loss) | .14 | .05 | 1.60 | 1.79 | (5.15) | 1.55 |
Total from investment operations | .08 | (.07) | 1.49 | 1.71 | (5.23) | 1.37 |
Distributions from net realized gain | - | - | - | - | (1.19) | - |
Net asset value, end of period | $ 8.24 | $ 8.16 | $ 8.23 | $ 6.74 | $ 5.03 | $ 11.45 |
Total Return B,C,D | .98% | (.85)% | 22.11% | 34.00% | (50.99)% | 13.59% |
Ratios to Average Net Assets F,J | | | | | |
Expenses before reductions | 2.20% A | 2.20% | 2.18% | 2.47% | 2.38% | 2.28% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 2.05% | 2.05% | 2.05% | 2.05% |
Expenses net of all reductions | 1.99% A | 1.99% | 2.04% | 2.03% | 2.04% | 2.04% |
Net investment income (loss) | (1.34)% A | (1.42)% | (1.52)% | (1.33)% H | (.96)% I | (1.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,511 | $ 4,870 | $ 5,604 | $ 4,603 | $ 3,703 | $ 8,270 |
Portfolio turnover rate G | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.09)%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended May 31, 2012 | Years ended November 30, |
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 9.10 | $ 7.37 | $ 5.44 | $ 12.31 | $ 10.72 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.04) | (.04) | (.02) G | - H,J | (.07) |
Net realized and unrealized gain (loss) | .15 | .05 | 1.77 | 1.95 | (5.57) | 1.66 |
Total from investment operations | .13 | .01 | 1.73 | 1.93 | (5.57) | 1.59 |
Distributions from net realized gain | - | - | - | - | (1.30) | - |
Net asset value, end of period | $ 9.24 | $ 9.11 | $ 9.10 | $ 7.37 | $ 5.44 | $ 12.31 |
Total Return B,C, | 1.43% | .11% | 23.47% | 35.48% | (50.59)% | 14.83% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | 1.10% A | 1.09% | 1.10% | 1.43% | 1.33% | 1.20% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.05% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.00% A | .99% | 1.04% | 1.03% | 1.03% | 1.04% |
Net investment income (loss) | (.35)% A | (.42)% | (.53)% | (.33)% G | .04% H | (.60)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 475 | $ 621 | $ 542 | $ 362 | $ 338 | $ 959 |
Portfolio turnover rate F | 214% A | 176% | 123% | 301% | 276% | 177% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.42)%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.09)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended May 31, 2012 (Unaudited)
1. Organization.
Fidelity Advisor Growth Strategies 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, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments. Effective after the close of business on June 29, 2012, the Fund's other share classes were closed to new accounts with certain exceptions. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management
Semiannual Report
3. Significant Accounting Policies - continued
to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2012, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
New Accounting Pronouncements. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update is effective during interim and annual periods beginning after December 15, 2011 and will result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
In December 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,248,383 |
Gross unrealized depreciation | (2,658,421) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (1,140,038) |
| |
Tax cost | $ 33,028,023 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At November 30, 2011, capital loss carryforwards were as follows:
Fiscal year of expiration | |
2016 | $ (3,410,913) |
2017 | (250,405) |
Total capital loss carryforward | $ (3,661,318) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,038,568 and $37,155,389, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .41% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
Class A | -% | .25% | $ 14,082 | $ 278 |
Class T | .25% | .25% | 36,862 | 145 |
Class B | .75% | .25% | 10,391 | 7,845 |
Class C | .75% | .25% | 24,530 | 1,904 |
| | | $ 85,865 | $ 10,172 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B, 1.00% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 | $ 3,877 |
Class T | 6,193 |
Class B* | 1,192 |
Class C* | 353 |
| $ 11,615 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC 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
Average
Net Assets* |
Class A | $ 17,447 | .31 |
Class T | 26,057 | .35 |
Class B | 3,202 | .31 |
Class C | 7,580 | .31 |
Institutional Class | 562 | .20 |
| $ 54,848 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
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. The commissions paid to these affiliated firms were $883 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $50 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $371 from securities loaned to FCM.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions - continued
The following classes were in reimbursement during the period.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 11,135 |
Class T | 1.50% | 18,284 |
Class B | 2.00% | 2,126 |
Class C | 2.00% | 4,926 |
Institutional Class | 1.00% | 284 |
| | $ 36,755 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,360 for the period.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended May 31,
2012 | Year ended
November 30,
2011 | Six months ended May 31,
2012 | Year ended
November 30,
2011 |
Class A | | | | |
Shares sold | 123,273 | 348,616 | $ 1,154,165 | $ 3,339,944 |
Shares redeemed | (139,153) | (367,362) | (1,290,775) | (3,463,746) |
Net increase (decrease) | (15,880) | (18,746) | $ (136,610) | $ (123,802) |
Class T | | | | |
Shares sold | 116,721 | 284,211 | $ 1,054,379 | $ 2,574,964 |
Shares redeemed | (238,628) | (271,058) | (2,184,988) | (2,505,414) |
Net increase (decrease) | (121,907) | 13,153 | $ (1,130,609) | $ 69,550 |
Class B | | | | |
Shares sold | 2,957 | 12,134 | $ 25,839 | $ 107,027 |
Shares redeemed | (43,178) | (128,257) | (375,180) | (1,130,647) |
Net increase (decrease) | (40,221) | (116,123) | $ (349,341) | $ (1,023,620) |
Class C | | | | |
Shares sold | 27,304 | 115,363 | $ 233,422 | $ 1,024,037 |
Shares redeemed | (76,479) | (199,330) | (649,968) | (1,750,739) |
Net increase (decrease) | (49,175) | (83,967) | $ (416,546) | $ (726,702) |
Institutional Class | | | | |
Shares sold | 7,319 | 26,322 | $ 72,048 | $ 252,318 |
Shares redeemed | (24,061) | (17,715) | (237,156) | (175,436) |
Net increase (decrease) | (16,742) | 8,607 | $ (165,108) | $ 76,882 |
Semiannual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Proposed Reorganization.
The Board of Trustees of the Fund has approved an Agreement and Plan of Reorganization between the Fund and Fidelity Advisor Stock Selector Mid Cap Fund. The agreement provides for the transfer of all the assets and the assumption of all the liabilities of the Fund in exchange solely for the number of equivalent shares of Fidelity Advisor Stock Selector Mid Cap Fund having the same aggregate net asset value as the outstanding shares of the corresponding classes of the Fund on the day the reorganization is effective.
A meeting of shareholders of the Fund is expected to be held during the fourth quarter of 2012. If approved by shareholders, the reorganization is expected to become effective on or about December 14, 2012. The reorganization is expected to qualify as a tax-free transaction with no gain or loss recognized by the funds or their shareholders.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
AAG-USAN-0712
1.786773.109
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: | July 20, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | July 20, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | July 20, 2012 |
